Regulatory Alerts2025-07-17
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Palestine Monetary Authority Circular No. 87 of 2025: Outcomes of the First Meeting of the Sustainable Finance Working Group
The Palestine Monetary Authority mandates that banks establish an internal sustainable finance working group comprising key functions such as strategic planning, risk management, and operations to align with the sector-level working group established under Circular No. 30 of 2025. Banks are required to submit the charter and membership list of this internal team to the Authority via email within two weeks of the circular's date. The document reinforces the strategic importance of implementing the Authority's Sustainable Finance Roadmap and integrating ESG standards to address climate-related financial risks and enhance the sector's international standing.
PALESTINE MONETARY AUTHORITY
Circular No. (87 / 2025) To all banks operating in Palestine Date: Tuesday, 05 August, 2025
Subject: Outcomes of the First Meeting of the Sustainable Finance Working Group
Further to Circular No. (30/ 2025) regarding the establishment of the Sustainable Finance Working Group for the financial sector, and based on the outcomes of the first meeting of the Sustainable Finance Sector Working Group held on 17/07/2025, with the participation of representatives from banks and specialized lending institutions, during which the current state of the sector in the field of sustainable finance was reviewed, highlighting the most prominent challenges and key initiatives implemented,
In addition to discussing the vision and future directions, we wish to emphasize the following outcomes of the meeting:
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Proceeding with the implementation of the Palestine Monetary Authority's Sustainable Finance Roadmap as a strategic opportunity for expansion, investment, and mobilization of funds, especially in light of the trend of many international entities towards requiring compliance with Sustainable Development Goals and Environmental, Social, and Governance (ESG) standards as a fundamental condition for obtaining financing or entering into investment partnerships, as well as the necessity of keeping pace with international developments in this field, which contributes to enhancing the reputation and status of the Palestinian financial sector at the regional and international levels.
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The role of the working group in enhancing coordination and consultation between the Palestine Monetary Authority and the financial sector, unifying concepts and terminology related to the subject, and crystallizing a shared understanding that contributes to setting unified and integrated policies, in addition to unifying efforts towards actively responding to environmental and social challenges.
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The importance of enhancing internal consultation and coordination at the bank level in this field, through: a. Establishing an internal working group concerned with sustainable finance, which should include key relevant functions, especially strategic planning and product development, risk management, operations, finance, marketing, human resources, and others.
b. The bank's representative in the Sustainable Finance Working Group for the financial sector - pursuant to Circular No. (30/ 2025) - must be a member of the internal team to ensure full coordination with the outcomes of the financial sector working group.
c. The team shall undertake, at a minimum, the following tasks:
- Assessing the bank's current situation in the field of sustainable finance and managing financial risks associated with climate.
- Identifying gaps and related challenges, and preparing a vision and action plans aimed at enhancing the integration of sustainable finance principles and practices into strategies, policies, and internal procedures across various levels and functions within the bank.
- Contributing to the unification of concepts, capacity building, and increasing internal awareness.
d. The necessity of providing the Palestine Monetary Authority with the internal team's charter and identifying its members within two weeks from its date, via the following email address: GF-CCR@pma.ps.
We also attach to you a set of important reference documents in the fields of climate change, climate finance, and sustainable finance, which we believe will contribute to supporting your efforts towards integrating concepts in this field.
The Supervisory Group Palestine Monetary Authority
Attachments:
- Minutes of the First Meeting of the Sustainable Finance Working Group.
- The presentation presented during the aforementioned meeting.
- Climate and Development Country Profile for the State of Palestine (CCDRs).
- Nationally Determined Contributions (NDCs).
- Sustainable Finance Roadmap.