The Department of Finance (DOF), in collaboration with other government agencies and the private sector, is currently developing the Climate Finance Strategy (CFS) to help finance climate priorities, support active membership in the global multilateral funds, and scale up sustainable finance efforts through the Inter-Agency Task Force on Sustainable Finance (ITSF).
In a statement Friday, the DOF said the development of the CFS is part of the initiatives to make sure the Philippines has the right policy tools for Environmental, Social, and Governance (ESG) compliance to take the lead in financing climate action and ensure sustainable economic growth.
The CFS will serve as a national blueprint to scale up financing for climate-related initiatives through harmonized public and private sector efforts.
It identified key steps to ensure a steady stream of resources to achieve a climate-resilient Philippines.
The DOF said these include accelerating the implementation of the National Adaptation Plan (NAP), Nationally Determined Contribution Implementation Plan, and Sustainable Finance Roadmap; strengthening stakeholder capacity for Climate Finance Stewardship; unlocking finance from International Mechanisms; maximizing Domestic Budget Allocations for Climate Action; advancing Climate Outcomes vis-a-vis Public-Private Partnerships; and increasing transparency and accountability in Climate Action.
The initiatives on the CFS are funded by the projects of the United Kingdom Foreign, Commonwealth & Development Office through the Climate Finance Network, as well as the government of Canada through its Accelerating Green and Climate Finance for the Philippines Project.
The ITSF is also prioritizing the crafting of a policy and legal framework for Carbon Markets on Voluntary Carbon Markets and Article 6 Internationally Transferred Mitigation Outcomes, and the potential for financing Green Projects under the Public-Private Partnership Code.
The DOF said it is also coordinating with the World Bank for its support for the Technical Working Group on Carbon Pricing Instruments.
“It is our priority to work in close coordination with other key government agencies to prepare the necessary institutional arrangements, infrastructure, registry, and robust monitoring, reporting, and verification measures to send clear policy signals to the domestic and international market that we produce high-integrity carbon credits,” DOF Undersecretary Maria Luwalhati Dorotan-Tiuseco said.
According to the DOF, the government is updating the Sustainable Finance Framework to boost public sector investment in green infrastructure.
This will enhance the scope of eligible expenditures to be financed by the proceeds of the bonds, incorporate updated sustainability principles, and include more innovative sustainable finance structures.
To date, the Philippines already issued USD7.5 billion in sustainable global bonds, proceeds of which have been used to support the country’s green agenda across clean transportation, climate change adaptation, sustainable agriculture, and renewable energy, among others.
The DOF said the country is also equipped with a reliable funding mechanism to help local government units implement climate change adaptation projects.
It added the People’s Survival Fund (PSF) Board committed the fund for 13 projects and six Project Development Grants for locally-led climate adaptation projects in 2024.
For this year, Tiuseco said the PSF has been given a PHP1-billion funding under the General Appropriations Act.
The amount will be used to implement NAP-aligned projects of local government units. (PNA)
