DOF: Invest More In Climate Resilience Financing

The Department of Finance (DOF) called on climate experts and leaders from the public, private, and development sectors to invest more in resilience finance to reduce climate risks and disasters.

At the Climate Investment Forum by the Climate Change Commission (CCC), Finance Secretary Benjamin Diokno emphasized the need for adaptation and resilience finance, specifically for sustainable and climate-resilient infrastructures.

Diokno added that the country’s high exposure to climate and disaster risks has pushed the government to be more proactive in addressing disaster risks and climate change impacts.

The DOF then proposed a three-pronged blended approach of grants, investments, and subsidies as modalities of climate finance.

This includes the private sector, multilateral development banks (MDBs), and global financial regulatory partners in the mobilization of financing for adaptation and mitigation projects

The government also continues to seek support from international channels and partners to ensure a sufficient budget for addressing the climate crisis.

In April 2021, The Philippines submitted its first nationally determined contribution (NDC) committed to mitigating climate change.

“The first NDC committed to a projected greenhouse gas emission reduction and avoidance of 75%, representing the country’s ambition for GHG mitigation by 2030 for the agriculture, waste, industry, transport, and energy sectors,” Diokno explained.

Diokno also emphasized the crucial role of the private sector in transitioning to a low-carbon economy through finding alternative sources of energy, technology development and deployment, and building climate-resilient communities, with due regard to natural resources and ecosystem integrity.

Several efforts by government institutions to encourage private sector participation have been deployed to synergize public and private investments in green projects and create the environment for greener policies.

Last month, the Marcos administration tapped the international capital markets for the first time with an offering of $2 billion triple-tranche global bonds.

The 25-year global bonds were issued under the Philippines’ Sustainable Finance Framework and mark the country’s third Environmental, Social, and Governance (ESG) G3 bond offering.

“There is clearly a great interest in the investment community in green investments. The Philippine government is keen on strengthening its policies on climate financing,” Diokno said.

Source: Manila Bulletin