Marcos admin to focus on ‘climate finance’ to mitigate global warming

Marcos admin to focus on ‘climate finance’ to mitigate global warming

Former Bangko Sentral ng Pilipinas governor and concurrent finance secretary Benjamin Diokno. (Photo credits: Global Daily Mirror)

By Tracy Cabrera

MANILA — In consideration of the country’s vulnerability to climate-related disasters, the new administration of President Ferdinand ‘Bongbong’ Marcos Jr. is set to make ‘climate finance’ a strategic policy priority to respond to the call of the Group of 20 (G20) to initiate action to mitigate the problem of global warming.

“Our climate finance initiatives will promote a sustainable orchestration of grants, investments, and subsidies,” finance secretary Benjamin Diokno shared at last Saturday’s meeting of finance ministers and central bank governors from the group’s member countries.

“Currently, the government is mobilizing climate finance through the Green Force, an interagency task force co-led by the DoF and the Bangko Sentral ng Pilipinas (BSP),” Diokno added.

He explained that the task force is in charge of implementing the Philippine Sustainable Finance Roadmap (PSFR), with the goal of bridging policy and regulatory gaps in promoting sustainable investments.

“The Philippines has drawn in strong support from multilateral partners and investors for its climate finance initiatives and as one of the pioneers in climate policy development financing, we have already signed a US$250-million policy-based loan for (our) Climate Change Action Program, Subprogram 1 (CCAP1) with the Asian Development Bank (ADB) last June,” the finance chief revealed.

In addition, Diokno also revealed that the country has recently issued its first-ever sustainability global bonds and sustainability samurai bonds, which were all met with strong demand despite volatility in the global markets.

“In March 2022, (we) successfully tapped the international capital markets with the country’s offering of US$2.25 billion triple tranche 5-year, 10.5-year, and 25-year Global Bonds. The transaction was the first triple tranche USD offering from the Philippines,” he further said.

He explained that proceeds from the sustainability bonds will help fund the government’s general budget and finance and refinance assets in line with the Philippines’ Sustainable Finance Framework.

In ending, however, Diokno recognized that while there is a shift to more sustainable activities domestically, the Philippines cannot solve climate change alone and without conscientious and orchestrated actions by all nations.

“The Philippines, therefore, commits to being at the forefront of the global movement for climate justice. We stand in solidarity with all nations in calling for concrete and equitable climate action,” he said in conclusion. (ai/mtvn)

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