Sustainable Finance Roadmap and Guiding Principles
The Philippines launched its first-ever Sustainable Finance Roadmap in October 2021 to synergise public and private investments towards green projects. This tackles the policy and regulatory gaps in promoting sustainable finance, the implementation of sustainable government initiatives, the facilitation of investments in public infrastructure, and the development of programmes and projects that catalyse sustainable financing in the country. Alongside the Sustainable Finance Development Roadmap, the Guiding Principles document shall serve as a taxonomy for the sustainable finance ecosystem in the Philippines. It is aligned with the ASEAN Standards for Green Bonds, EU Taxonomy, and so on.
The Sustainable Finance Roadmap serves as an overarching policy that lays out the high-level action plans of government to promote sustainable finance in the Philippines. While sustainable consumption and production may not be explicitly stated in the document, pursuing its implementation is within the scope of possible projects and programs under the Roadmap.
In addition, the Sustainable Finance Guiding Principles have been developed to establish a common understanding among stakeholders of the economic activities in the Philippines that can be considered "sustainable". It aims to provide principles-based guidance in identifying economic activities that contribute to supporting sustainable development, with a focus on addressing the impacts of climate change, and on encouraging the flow of capital into these activities. The following are the Sustainable Finance Guiding Principles: (a) climate change mitigation and adaptation; (b) promoting transition to a low-carbon economy; (c) resilient food systems; (d) sustainable cities; (e) sustainable and resilient infrastructure for inclusive growth and poverty reduction; (f) environmental management and conservation; and (g) prohibited activities.
The Inter-Agency Task Force for Sustainable Finance (ITSF) or “Green Force”, co-chaired by the Department of Finance and Bangko Sentral ng Pilipinas, leads the development and implementation of the Roadmap and Guiding Principles. The Green Force convenes three working clusters as sub-working groups in pursuit of the Roadmap’s objectives:
- Financing and Investment Pipeline - To channel foreign financing, grants, assistance to priority activities/projects;
- Sustainable Financial Ecosystem - To cover the adoption of sustainable finance agenda, alignment of relevant regulations, including corporate governance, risk management and disclosure; and
- National Strategy Alignment and Policy Implementation - To capacitate relevant industries and build pathways for stakeholders to adopt sustainability agenda.
The sub-working groups have the capacity to develop programmes and measures that will promote the mainstreaming of SCP. This will be coursed through sourcing financing and integrating SCP into the sustainable financial ecosystem.