SEC, IFC supercharge green financing

SEC, IFC supercharge green financing | Daily Tribune

In a game-changing move, the Securities and Exchange Commission (SEC) and the International Finance Corp. (IFC) have teamed up to supercharge green finance in the Philippines through the 30by30 Zero Philippines Program. This isn’t just another corporate handshake — it’s a bold push to ensure money flows into climate-friendly projects that benefit the economy and the environment.

With their freshly inked cooperation agreement, the SEC and IFC are setting the stage for a greener financial landscape. Their mission: to ensure that investments are not only lucrative but also aligned with climate action.

The partnership, made official with a ceremonial signing last week, will roll out capacity-building initiatives for thematic bond issuers, investors and domestic external reviewers. They will also dive deep into the Philippine Thematic Capital Market with a stocktaking survey and scope out fresh opportunities to boost climate financing.

For SEC Commissioner McJill Bryant T. Fernandez, the timing couldn’t be more perfect — or more urgent. The Philippines is on the frontlines of climate change, facing everything from devastating typhoons to rising sea levels.

“The Philippines faces the immense challenge of mitigating climate change while ensuring inclusive and sustainable economic growth,” Fernandez said. “Through this partnership, we aim to channel long-term funding into climate-focused initiatives that prioritize both people and the planet.” Translation: we need to act now, and money needs to move where it matters most.

At the heart of this initiative is the 30by30 Zero Philippines Program, an ambitious plan designed by IFC and the World Bank with backing from Germany’s International Climate Initiative. It aims to get financial institutions to commit at least 30 percent of their lending to climate-related projects by 2030 while drastically reducing coal exposure.

That means banks and financial institutions need to pivot away from fossil fuels and embrace green infrastructure, renewable energy and other sustainable ventures. It’s a tall order, but one that could redefine the future of finance in the country.

IFC regional manager for East Asia and the Pacific Christina Ongoma is all in on the SEC’s role to making the shift happen.

“We are grateful for our partnership with the SEC and are delighted to formalize our collaboration,” Ongoma said. “Through this, we will continue to jointly host dedicated technical workshops and training sessions to further enhance the awareness and capacity of capital market players regarding climate thematic instruments and opportunities.” In other words, this isn’t just talk — there’s a real action plan in place to make sustainability second nature in financial circles.

Beyond workshops and training, this partnership is about equipping investors and financial institutions with the tools to navigate an evolving sustainable finance landscape. By setting clear guidelines and boosting transparency, the SEC and IFC are making it easier (and more attractive) for businesses to embrace responsible investment practices.

For the Philippines, an emerging market with enormous potential, sustainability finance is a golden opportunity to grow the economy without wrecking the planet. ESG (environmental, social and governance)-driven investments are gaining global traction, and aligning the local financial system with these trends is crucial. The SEC has already laid down some groundwork, tightening disclosure requirements for publicly-listed companies and promoting the issuance of green, social, and sustainability bonds.

As sustainability takes center stage in global markets, the SEC-IFC partnership is a reminder that finance has a starring role in the climate fight. It’s not just about managing risk — it’s about unlocking new opportunities for innovation, resilience and inclusive growth.

With financial institutions steering capital toward greener ventures, this initiative is set to spark a chain reaction across industries. The more businesses and investors adopt sustainability as a core principle, the faster the shift toward a low-carbon economy will take place.

Sure, the road to green finance isn’t exactly a smooth ride. But with regulatory muscle and strategic alliances like this, the momentum is building.

By embedding sustainability into financial decision-making, the SEC and IFC are laying down a roadmap for an economy that thrives while keeping the planet intact.