MANILA - The Philippines plans to boost its fight against climate change by pushing for sustainable financing, investments in climate resiliency and subsidies in the sector, Finance Secretary Benjamin Diokno said Thursday.

The Philippines in 2022 launched its Sustainable Finance Roadmap with the goal of putting the focus on climate change through the financial sector, Diokno said during the forum "BDO Unlocking Capital for Sustainability Philippines."

"The roadmap strategically lays out our action plan to mobilize financing in order to mainstream climate action initiatives, facilitate investments in climate resilience, public infrastructure, and develop projects that promote sustainable development in the Philippines," Diokno said.

Part of the initiative is the recent issuance of the country's first-ever sustainability global bonds with $1 billion and the sustainability Samurai bonds worth $600 million, he added.

The country has committed to reduce gas emissions by 75 percent by 2030. In October 2020, it also issued a moratorium on new coal plants, the Finance chief said, adding that it also signed an ASEAN low-carbon energy pact.

"This program will be instrumental in our feat to promote inclusive economic growth and reduce poverty incidence in the country through increased green finance flows for low carbon energy and increased energy efficiency," he said.

Diokno said the new administration under President Ferdinand Bongbong Marcos Jr vowed to include environmental sustainability meant to address climate change in its legislative priorities.

This includes the proposed imposition of excise tax on single-use plastics and the imposition of carbon tax, he said.

Climate change initiatives have also received a bigger budget allocation for 2023 at P453.1 billion, which is higher than the P289.7 billion in 2022, the Department of Budget and Management earlier said.

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Aside from mitigating measures, Diokno said the Philippines would harness the “vast energy sources” available including hydro, geothermal, wind and solar power to bring down energy costs.

“We will not sit idly by as the planet burns...We intend to take all necessary steps now and act decisively for the good of our people, our economy and our planet,” Diokno said.

BDO Unibank, the country's largest bank in terms of assets, also announced its BDO Energy Financial Statement, which is meant to guide its approach to energy transition, said BDO Senior Vice President and Chief Compliance Officer Atty. Federico Tangcongo.

“BDO recognizes that the banking industry plays a critical role in the Philippines' committed transition to low carbon economy, a transition that will require providing access to affordable, reliable, sustainable and clean energy,” Tangcongco said.

“We declared that BDO commits to reduce our coal exposure to 50 percent by 2033 while ensuring that our coal exposure does not exceed 2 percent of its total loan portfolio by 2023,” he added.

The statement is focused on coal but it would eventually include other fossil fuels in the future, BDO Unibank Vice President and Head of Sustainability Office Marla Garin-Alvarez said.

Finance Undersecretary and economist Cielo Magno said BDO's commitment has set the standard in sustainable finance in the country.

“We are in a middle of a climate crisis so I think with respect to leadership, we need to see convergence of leadership not just from government but from various sectors,” Magno said.

“The announcement of BDO is very good in terms of setting the standard in financial sustainable finance in the country. Particularly right now that the country has made its commitment in reducing carbon emission aligning that with the various initiatives of the private sector,” she added.

Diokno said the country, which is considered among the most vulnerable to climate change, is determined to be a "world leader" in the fight against the crisis.

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