THE Securities and Exchange Commission (SEC) and the International Finance Corp. (IFC) are looking to boost sustainable finance in the country.
The two entities signed a cooperation agreement to support the 30by30 Zero Philippines Program that seeks to grow the climate-related lending activities of financial institutions, the SEC said in an e-mailed statement over the weekend.
“The Philippines faces the immense challenge of mitigating climate change while ensuring inclusive and sustainable economic growth…Through this partnership, we aim to channel long-term funding into climate-focused initiatives that prioritize both people and the planet,” SEC Commissioner McJill Bryant T. Fernandez said.
The SEC and the IFC will undertake capacity-building efforts for thematic bond issuers, investors, and domestic external reviewers, as part of the agreement.
They will also carry out a stocktaking survey on the Philippine Thematic Capital Market, and look for other potential areas for collaboration.
The 30by30 Zero Philippines initiative was developed by the IFC and the World Bank, with funding from German government’s International Climate Initiative.
It seeks to raise the climate-related lending of financial institutions to 30% of total portfolio on average with near zero coal exposure by 2030.
The program is aimed to support the role of financial institutions as aggregators of climate financing, integrating green finance strategies into investment plans to lessen climate risks and lower greenhouse gas emissions.
“Through this (partnership), we will continue to jointly host dedicated technical workshops and training sessions to further enhance the awareness and capacity of the capital market players regarding climate thematic instruments and opportunities,” IFC Regional Manager for East Asia and the Pacific Christina Ongoma said. — Revin Mikhael D. Ochave
