The Department of Finance (DOF) has made significant strides in ensuring the Philippines is well-equipped with effective policy tools to lead in financing climate action and achieving sustainable economic growth. By collaborating with government agencies and the private sector, the DOF is spearheading the development of the Climate Finance Strategy (CFS), a national blueprint to scale up financing for climate-related initiatives.
The CFS aims to harmonize public and private sector efforts in financing climate resilience, focusing on initiatives like the National Adaptation Plan (NAP) and the Nationally Determined Contribution Implementation Plan (NDCIP). Key to this strategy are efforts to strengthen stakeholder capacity, unlock international climate finance, and ensure transparency and accountability in climate actions.
Funded by the United Kingdom Foreign, Commonwealth & Development Office and the Government of Canada, the CFS is supported by the Interagency Task Force on Sustainable Finance (ITSF). The ITSF is working on crafting policies for carbon markets and developing frameworks for financing green projects, including those under the Public-Private Partnership (PPP) Code.
Additionally, the DOF continues to work with the World Bank to shape the country’s carbon pricing policy, ensuring it is non-inflationary and conducive to investment. This is part of broader efforts to boost public sector investment in green infrastructure, with the government recently updating its Sustainable Finance Framework. To date, the Philippines has issued USD 7.5 billion in sustainable global bonds, funding projects in clean transportation, renewable energy, and climate change adaptation.
Local government units (LGUs) also benefit from the People’s Survival Fund (PSF), which has committed funds to 13 projects and 6 project development grants for 2024. A recent P1 billion replenishment of the PSF will support NAP-aligned projects for LGUs.
The Philippines continues to demonstrate leadership in international climate finance, holding board memberships in key global funds such as the Green Climate Fund (GCF) and Adaptation Fund (AF). The DOF’s active role in these boards helps secure financing for vulnerable communities and advance adaptation projects.
Through these initiatives, the Philippines is solidifying its role as a global leader in sustainable finance and climate action, positioning the country to effectively tackle the challenges posed by climate change.
