Finance Secretary Carlos Dominguez III said Wednesday the Philippines’ newly-launched Sustainable Finance Roadmap and its guiding principles on building a green, sustainable and climate-resilient economy will encourage other countries to adopt similar plans and policies that help reduce carbon emissions.
Dominguez, Bangko Sentral ng Pilipinas Governor Benjamin Diokno and British Ambassador-Designate to the Philippines Laure Beaufils led the virtual launch of the roadmap.
Dominguez said the development of the roadmap underscored the pivotal role that appropriate fiscal policies play in reversing the effects of the climate crisis and in enabling the shift to a low-carbon economy.
Dominguez said this was “a major step forward in our comprehensive national effort to combat climate change and support our sustainable recovery and development.”
The roadmap is the outcome of the Philippines’ partnership with the government of the United Kingdom in helping the country implement the Association of Southeast Asian Nations Low Carbon Energy Program.
The British government supported the establishment of the “Green Force”—the Inter-Agency Technical Working Group for Sustainable Finance led by the DOF and the BSP.
The sustainable finance masterplan will address the policy and regulatory gaps in promoting sustainable investments through finance, implementing sustainable government initiatives, facilitating investments in public infrastructure and developing projects that promote sustainable financing in the Philippines.
Dominguez said he would bring the blueprint to the forthcoming 26th United Nations Climate Change Conference of the Parties n Glasgow, Scotland, where he would ensure that the voices of climate change-vulnerable countries like the Philippines would be heard.
“The roadmap underscores our commitment to deliver on our carbon reduction pledges. We hope this roadmap will inspire other countries towards adopting the appropriate finance policies that will help in the reduction of carbon emissions,” Dominguez said.
Diokno said adopting green or sustainable finance principles and practices could unlock various opportunities for the BSP and the banking sector.
“For instance, the BSP’s investment of a total of $550 million in the Bank for International Settlements’ green bond fund allows the diversification of the gross international reserves as it offers adequate returns compared to other fixed-income assets,” Diokno said.
Diokno said the BSP saw the need for banks and financial institutions to understand and manage climate change and environmental, social and governance risks to fully maximize opportunities behind lending or investing in green or sustainable projects.
Banks can be innovative in designing sustainable finance instruments in mobilizing funds for sectors supporting pandemic response and recovery, and other economic activities that contribute to sustainable development.
“As we advance sustainability initiatives and continue to collaborate with relevant government agencies and other multilateral development partners, we hope that the sustainability agenda will have a big leap for the next five years,” Diokno said.
Dominguez said the Philippines’ bold commitment to the Paris Agreement of reducing the country’s greenhouse gas emissions by 75 percent over the next decade requires a whole-of-nation strategy that can only be achieved if the government starts spearheading the implementation of practical and achievable solutions on the ground.
