Zambia has built a green finance framework since 2019, with green bond guidelines, Bank of Zambia green loan guidelines from 2023, a green finance taxonomy in 2025 and a climate law with carbon market rules. The first green bonds financed solar power, and agriculture is an eligible sector in the green loan guidelines and the taxonomy, although no figures on green lending to agriculture had been published by October 2026.
7.1
What is in force
The Bank of Zambia issued Green Loans Guidelines on 29 September 2023, gazetted on 6 October 2023. They set governance and disclosure rules for green loans, and their eligible categories include sustainable agriculture, irrigation, climate-smart agriculture and weather index insurance1. The Stability and Resilience Facility of December 2024 prices green loans three percentage points below the policy rate2. The Zambia Green Finance Taxonomy, a voluntary classification developed by the Bank of Zambia, the Pensions and Insurance Authority and the Securities and Exchange Commission, was issued in 2025 and covers agriculture, forestry, energy, mining, tourism, transport, water and waste34.
On the capital market, the Securities and Exchange Commission issued green bond guidelines in 20195. The first green bonds were issued by CEC Renewables in December 2023 (US$53.5 million) and December 2024 (US$96.7 million) to finance solar plants, and the 2026 Budget Address put the total raised through green bonds at US$150.2 million678. The Green Economy and Climate Change Act of 2024 establishes a Climate Change Fund and regulates carbon markets, and the Carbon Market Regulations of January 2026 set up a national registry and a government share of proceeds910.
Environmental Management ActAct No. 12 of 201115 Apr 2011, amended 2013, 2023 and 2026
The Act established the Zambia Environmental Management Agency as the environmental regulator and coordinating agency, with a mandate to protect the environment and control pollution1415. New Environmental Impact Assessment Regulations were issued in January 202616.
Recent changes: Amended by Act No. 10 of 2013, Act No. 8 of 2023 and Act No. 27 of 2026, the last listed as uncommenced16.
Water Resources Management ActAct No. 21 of 2011Assent 15 Apr 2011, commenced by SI No. 19 of 2012
The Act establishes the Water Resources Management Authority and provides for the management, conservation and equitable, sustainable use of water resources17. It guarantees the right to draw water for domestic and non-commercial purposes, creates catchment councils and water users associations and supports adaptation to climate change17. It replaced the Water Act of 19491718.
Forests ActAct No. 4 of 2015Assent 14 Aug 2015, commenced by SI No. 63 of 2015
The Act provides for National and Local Forests, joint forest management areas and private and community forests, with participation of local communities and traditional institutions19. It establishes the Forest Development Fund and implements Zambia's obligations under the climate, biodiversity, desertification, wetlands and endangered species conventions19. Community Forest Management Regulations were issued in 201820.
Disaster Management ActAct No. 13 of 2010Assent 13 Apr 2010, amended by Act No. 2 of 2026
The Act sets up a national system for preparedness, prevention, mitigation and management of disasters and for relief and recovery21. It established the National Disaster Management and Mitigation Unit and the National Disaster Relief Trust Fund and provides for the declaration of disasters21. The text consolidated after the 2026 amendment places a National Disaster Risk Management Division in the Office of the Vice-President22.
Recent changes: Disaster Management (Amendment) Act No. 2 of 202622.
Green Economy and Climate Change ActAct No. 18 of 2024Assent 20 Dec 2024, gazetted 26 Dec 2024, commenced by SI No. 67 of 2025 (10 Oct 2025), amended by Act No. 47 of 2026
The Act provides for climate change adaptation, disaster risk reduction, mitigation and low emission development, regulates carbon markets and sets environmental and social safeguards for climate actions23. It establishes a Climate Change Fund and domesticates the UNFCCC and the Paris Agreement23. A commencement order was issued in October 2025 and Carbon Market Regulations followed in January 202624.
Recent changes: Green Economy and Climate Change (Amendment) Act No. 47 of 202623.
Zambia Green Finance TaxonomyGreen Finance Mainstreaming Working Group (BoZ, PIA, SEC)2025
The taxonomy defines which economic activities count as green for financial sector purposes and was prepared by the Green Finance Mainstreaming Working Group of the Bank of Zambia, the Pensions and Insurance Authority and the Securities and Exchange Commission with UNDP BIOFIN support3. Its first iteration covers agriculture, forestry, energy, mining, tourism, transport, water and waste across six environmental objectives3. The first edition is voluntary, and the regulators intend to introduce formal disclosure and alignment rules later3. UNDP BIOFIN dates its launch to 2 December 20254.
National Policy on Climate ChangeMinistry of National Development PlanningApr 2016
The policy provides a framework for a coordinated national response to climate change and guidance on sustainable economic growth26. The National Adaptation Plan of 2023 cites it as one of the earlier climate instruments it builds on27.
National Adaptation PlanMinistry of Green Economy and EnvironmentOct 2023
The plan identifies medium to long term adaptation actions for droughts, floods, high temperatures and windstorms across sectors including agriculture, livestock and fisheries27. It builds on the 2007 adaptation programme, the 2010 climate response strategy, the 2016 climate change policy and the 2016 NDC27. Its formulation was supported by the Green Climate Fund and the Global Water Partnership27.
National Green Growth Strategy 2024-2030Ministry of Green Economy and EnvironmentApr 2024
The strategy aims at a transition to a low-carbon, resource efficient, resilient and socially inclusive economy by 203028. It rests on four pillars, namely resilient and climate compatible growth, resource efficiency, natural capital and inclusivity28.
Securities (Green Bonds) Guidelines and green bond listing rules
Securities and Exchange Commission
Alignment with the ICMA Green Bond Principles, external review and use-of-proceeds disclosure
2021
Green Finance Mainstreaming Working Group
BIOFIN (UNDP) with SEC, Bank of Zambia and PIA
Coordination platform for green finance
29 Sep 2023
Banking and Financial Services (Green Loans) Guidelines
Bank of Zambia
Eligible categories include sustainable agriculture, irrigation, climate-smart agriculture and weather index insurance
2023
Membership of the Sustainable Banking and Finance Network
SEC and Bankers Association of Zambia
IFC-supported peer network
Dec 2023
First green bond, US$53.5 million
CEC Renewables (Copperbelt Energy Corporation)
Solar generation
24 Apr 2024
National Green Growth Strategy 2024–2030
Ministry of Green Economy and Environment
K150.6–323.7 billion of investment needs 2023–2030, K34.1 billion for sustainable agriculture
Dec 2024
Second green bond tranche, US$96.7 million
CEC Renewables
Listed on the Lusaka Securities Exchange
20 Dec 2024 (assent)
Green Economy and Climate Change Act No. 18 of 2024
Parliament
Climate Change Fund and carbon market regulation
30 Dec 2024
Stability and Resilience Facility with a lower rate for green loans
Bank of Zambia
Policy rate minus 3 points for green loans
2025
Zambia Green Finance Taxonomy
Bank of Zambia, PIA and SEC
Voluntary classification covering agriculture, forestry, energy, mining, tourism, transport, water and waste
9 Jan 2026
Carbon Market Regulations, SI No. 5 of 2026
Ministry of Green Economy and Environment
National carbon registry and a share of proceeds of US$1.00–2.00 per mitigation outcome
Source: BIOFIN · BoZ · SBFN · MGEE · UNEP LEAP / FAOLEX · SEC · UNDP BIOFIN · GRZ — The original text of the 2019 green bond guidelines could not be opened, and its date rests on BIOFIN and SBFN pages. The Bank of Zambia was not listed as a member of the Sustainable Banking and Finance Network in October 2025.
Green bonds listed in Lusaka
CEC Renewables green notes under a US$200 million programme, US$ million
Tranche
Amount raised (US$ m)
First tranche (Dec 2023)
53.5
Second tranche (Dec 2024)
96.7
Source: BIOFIN · MoFNP — Both tranches finance solar power. The 2026 Budget Address put the total raised through green bonds at US$150.2 million.
Cost of the Green Growth Strategy
Investment costs 2023–2030 by area, two scenarios, ZMW billion
Area
Scenario GG1 (ZMW bn)
Scenario GG2 (ZMW bn)
Energy
61.97
217.38
Sustainable agriculture
34.06
34.06
Land-based interventions
24.5
31.75
Energy efficiency (annual)
20.78
30.61
Waste prevention
5.73
5.73
Livestock emission reductions (annual)
2.8
3.35
Source: MGEE — Table 4 of the National Green Growth Strategy 2024–2030. The total cost of low-carbon interventions is K150.6 billion in the first scenario and K323.7 billion in the second.
7.2
What it means for agricultural lenders
Agriculture is an eligible green sector
The green loan guidelines and the taxonomy both list sustainable agriculture, irrigation and climate-smart farming, which gives banks a basis to label and report farm loans as green13.
Cheaper central bank funding for green loans
Green loans refinanced under the Stability and Resilience Facility are priced three points below the policy rate, against one point for other loans2.
Climate funds and accredited local entities
The Green Climate Fund listed 12 projects for Zambia worth US$184 million in October 2026, and lists the Development Bank of Zambia, under Bank of Zambia possession since July 2023, and Zanaco as direct access entities2930.
Large investment needs in sustainable farming
The Green Growth Strategy costs sustainable agriculture at K34.1 billion for 2023–2030, part of K150.6–323.7 billion of low-carbon investment13.
Zambia Green Finance Taxonomy 2025 (PDF) — Government of the Republic of Zambia, Green Finance Mainstreaming Working Group (hosted by the Securities and Exchange Commission)verified
BIOFIN Zambia country page — United Nations Development Programme, Biodiversity Finance Initiativeverified
AI-assisted content, human-reviewed: This page was generated with the assistance of artificial intelligence and reviewed by a human editor. (last review: October 2026) Despite review, errors or outdated values may remain; please verify critical figures against the linked primary sources before relying on them. Nothing here is investment, legal or financial advice.
