The Philippines realizes the importance to develop Philippines sustainable finance and also a society that is environmentally mindful. The Philippines also realizes that it is essential to develop an economy that is more circular. The transformation and development are inevitable.
Since the Philippines is now facing an increasing population, extreme vulnerability to climate change, and limited availability of natural resources, the development becomes much more important. The transformation will create opportunities for employment, growth, and investments
Definition of Philippines Sustainable Finance Framework
In the Philippines, no formal definition is known for sustainable finance. But there are some national and international definitions that can serve as a reference. Sustainable finance refers to strategies that are used to mainstream the environmental and climate factors.
Those factors will be mainstreamed as the strategic and financial imperative and will mobilize private finance for more resilient and cleaner growth. Sustainable finance can also be defined as the process of taking the due account of governance, environmental, and social considerations.
Those considerations are crucial especially when making some investment decisions in the financial sector that leads to increased investments into more sustainable economic projects and activities.
This country needs to foster additional initiatives and policies in order to achieve the local, regional, and international commitments. The Philippines also needs to strengthen the current initiatives in order to develop more sustainable finance.
It is also crucial for the country to show stronger commitment towards achieving sustainable development. A roadmap is designed in order to lay out the plan for strategic action of the entire government. The goal is to promote the Philippines sustainable finance.
The roadmap will also address social and environmental risks such as climate change. The roadmap is going to be built and also aligned with the current and previous government efforts.
There was a Streamlined Review Framework for ASEAN Common Prospectus launched in order to widen the access to various sustainable financial products. The framework has been operationalized in some other countries such as Thailand, Singapore, and Malaysia.
The same framework may be considered in order to improve the Philippines’ market access which is going to facilitate cross border fundraising and investment. Under the framework, the criteria of eligibility for products that are financially sustainable can be simplified.
The use of some financial technology also plays a vital role to improve the market access to the Philippines’ sustainable centra bank finance services and products that offer much lower costs.
Mainstreaming the Philippines Sustainable Finance
In order to mainstream sustainable finance, there are some areas that should be highlighted such as the collection and measurement of data that is related to the flows of sustainable finance. Another area that must be highlighted is also the collaboration.
For example, the collaboration with the multilateral development banks in order to strengthen the regional synergies must be improved as well as the collaboration between private and public sectors in order to unlock the entire finance sources and financial innovations.
The Philippines needs to transform to sustainable finance. The country needs to develop a roadmap that helps develop sustainable finance successfully.