The Department of Finance (DOF) is strengthening the Philippines’ Environmental, Social, and Governance (ESG) policy framework to lead in financing climate action and promote sustainable economic growth.
In collaboration with other government agencies and the private sector, the DOF is developing a Climate Finance Strategy (CFS) to fund the country’s climate priorities, enhance its role in global multilateral funds, and expand sustainable finance initiatives through the Interagency Task Force on Sustainable Finance (ITSF).
The CFS will serve as a national blueprint to scale up climate-related financing through coordinated efforts between the public and private sectors.
Key strategic actions include accelerating the implementation of the National Adaptation Plan (NAP), Nationally Determined Contribution Implementation Plan (NDCIP), and Sustainable Finance Roadmap (SFR).
The strategy also prioritizes strengthening stakeholder capacity for climate finance stewardship, maximizing domestic budget allocations, leveraging international finance mechanisms, enabling public-private partnerships, and increasing transparency and accountability.
Funding for CFS initiatives comes from the United Kingdom Foreign, Commonwealth & Development Office via the Climate Finance Network, and from the Government of Canada through its Accelerating Green and Climate Finance for the Philippines Project.
The ITSF is also working to develop a policy and legal framework for Voluntary Carbon Markets (VCM) and Article 6 Internationally Transferred Mitigation Outcomes (ITMOs), and exploring green project financing opportunities under the Public-Private Partnership (PPP) Code.
The DOF is coordinating with the World Bank to support the Technical Working Group (TWG) on Carbon Pricing Instruments (CPIs).
TWG is evaluating the socio-economic impacts of carbon policies to ensure that measures remain non-inflationary, investment-friendly, and suitable for the Philippine context.
“It is our priority to work in close coordination with other key government agencies to prepare the necessary institutional arrangements, infrastructure, registry, and robust monitoring, reporting, and verification measures to send clear policy signals to the domestic and international market that we produce high-integrity carbon credits,” said DOF Undersecretary Maria Luwalhati Dorotan-Tiuseco.
To boost green infrastructure investments, the government is updating its Sustainable Finance Framework to widen the scope of eligible expenditures, incorporate new sustainability principles, and explore more innovative finance structures.
As of 2025, the Philippines has issued a total of USD7.5 billion in sustainable global bonds.
Proceeds from these issuances support projects in clean transportation, climate change adaptation, renewable energy, and sustainable agriculture.
The Philippines is also equipped with a funding mechanism to help local government units (LGUs) implement climate adaptation projects through the People’s Survival Fund (PSF).
In 2024, the PSF Board committed funds to 13 projects and six project development grants.
For fiscal year 2025, the PSF received its first-ever replenishment of PHP1 billion under the General Appropriations Act, which will be used for NAP-aligned projects.
The Philippines continues to demonstrate leadership in global climate finance, holding board memberships in key international funds through the DOF.
Undersecretary Dorotan-Tiuseco currently serves on the boards of the Green Climate Fund (GCF) and Adaptation Fund (AF).
She said the DOF is leveraging financing from operating entities under the United Nations Framework Convention on Climate Change (UNFCCC) and the Convention on Biological Diversity.
In January 2025, the Philippines was reappointed to the GCF Board as an Alternate Board Member under the Asia-Pacific Group Constituency and named to the AF Board for the 2025–2027 term.
The AF supports adaptation projects that help vulnerable communities in developing countries.
The DOF is also advancing its accreditation as a national implementing entity for the AF, enabling it to receive direct financing for projects.
Additionally, the DOF co-chairs the Accelerating Green and Climate Finance in the Philippines: Nature-Based Solutions (AGCF) Board.
The AGCF, funded by the Government of Canada, has an approved budget of USD4.5 million and runs from March 2022 to December 2026.
It aims to strengthen the country’s climate resilience through gender-responsive policies and nature-based solutions.
Among AGCF’s projects is the Securities and Exchange Commission’s SMILEES Roadshow, which supports small and medium enterprises (SMEs) and publicly listed companies in integrating sustainability into operations and reporting.
Another AGCF initiative, NEDA’s SPACE app (Stakeholder Partnership Accelerator for Convergence and Engagement), acts as a one-stop shop to help public and private stakeholders identify and develop bankable, SDG-aligned projects.
