PH develops national climate finance strategy to boost green investments

The Philippine government, through the Department of Finance (DOF), has partnered with key agencies and the private sector to craft a comprehensive Climate Finance Strategy (CFS). This strategy aims to mobilize funding for climate priorities, strengthen participation in global multilateral funds, and accelerate sustainable finance efforts.

In a statement on Friday, the DOF said the CFS will serve as the country’s national roadmap to scale up climate financing by aligning the efforts of both public and private sectors. The strategy focuses on ensuring steady resources for climate action and building resilience against climate-related challenges.

Key initiatives under the CFS include the implementation of the National Adaptation Plan (NAP), the Nationally Determined Contribution Implementation Plan, and the Sustainable Finance Roadmap. The strategy will also enhance stakeholder capacity in climate finance stewardship, leverage international funding mechanisms, maximize domestic budget allocations, foster public-private partnerships, and promote transparency and accountability in climate efforts.

The development of the CFS is supported by funding from the United Kingdom’s Foreign, Commonwealth & Development Office and Canada’s Accelerating Green and Climate Finance for the Philippines Project.

The Inter-Agency Task Force on Sustainable Finance (ITSF) is also prioritizing the establishment of a policy and legal framework for Carbon Markets and exploring opportunities for financing green projects under the Public-Private Partnership Code.

DOF Undersecretary Maria Luwalhati Dorotan-Tiuseco emphasized the importance of creating strong institutional arrangements and robust monitoring and verification measures. “Our goal is to send clear signals to domestic and international markets that the Philippines is committed to producing high-integrity carbon credits,” she said.

The government is also updating its Sustainable Finance Framework to increase public sector investments in green infrastructure, with an expanded scope of eligible expenditures and innovative finance structures.

So far, the country has issued $7.5 billion in sustainable global bonds, supporting projects in clean transportation, climate change adaptation, sustainable agriculture, and renewable energy.

Additionally, the People’s Survival Fund (PSF) continues to serve as a key financing tool for local government units. In 2024, the PSF Board approved funding for 13 climate adaptation projects and six Project Development Grants. For 2025, the PSF has been allocated PHP1 billion under the General Appropriations Act to support NAP-aligned projects at the local level.