ING Extends Renewable Energy Financing to the Philippines

ING Extends Renewable Energy Financing to the Philippines | Daily Tribune

The Netherlands-based bank ING vows to continue financing renewable energy (RE) and greener digital infrastructure in the Philippines.

In a report last week, ING said it released sustainability funds amounting to $1.657 trillion last year, higher by 11 percent in 2023.

The investment bank said it expects a steady growth in sustainability financing through bonds for institutional and corporate clients, including Filipino firms engaged in RE.

“The Philippines is at a pivotal moment in its sustainable finance journey. With stable economic indicators and a clear focus on renewable energy and infrastructure, the country is well-positioned to attract green investments,” ING Philippines manager Jun Palanca said.

ING aims to increase its target for global sustainable financing from $136.33 billion per year in 2024 to $157.19 billion per year starting in 2027.

Palanca said demand for energy among Filipinos is rising as the Philippine inflation remained low or within the Bangko Sentral ng Pilipinas’ (BSP) target of 2 to 4 percent.

According to the Philippine Statistics Authority, overall inflation decelerated to 2.1 percent last month from 2.9 percent in January as prices of food, fuels and housing rental declined.

Aside from the demand for energy, ING also said the BSP’s framework for green financing will further attract investments for sustainable economic growth in the Philippines.

“The country’s stable inflation and proactive monetary policy measures by the BSP provide a conducive environment for green financing,” ING said in its report.

With the Philippine Sustainable Finance Taxonomy Guidelines or SFTG, the BSP said banks can determine investments with the most and least harmful impact on the environment, enabling them to better plan finances and speed up contributions to the country’s sustainable economic growth.

There are three SFTG categories. First, green which means the investment is highly environment-friendly. Second, amber which indicates the investment is ready to transition into green. Last, red which means the investment is not aligned with sustainability priorities.

ING added it will continue to fund clean energy for shipping firms amid United States President Donald Trump’s opposition to help expand production of RE.

Trump announced the extraction of all possible sources of traditional fuels in the US to reduce their prices to global consumers.

“Shipping is vital to the global economy, with over 80 percent of traded goods transported by ships. ING finances top-tier international ship owners, aiming to drive sustainability by engaging clients, financing their transition to net zero, and collaborating with stakeholders,” ING said.

ING global head for shipping Stephen Fewster said the bank will be lending a hand to fund various processes in the shipping industry toward less carbon emissions.

“Emission reduction can be achieved through technical measures, operational measures, and low or zero-carbon alternative fuels. ING supports these efforts by financing retrofits and alternative fuel capabilities, recognizing the importance of scaling up alternative fuels,” he said.

ING said it will be partnering with shipping firms despite possible contraction of global trade in 2026 from a projected 2.5 percent growth this year.

“The full resumption of the Red Sea and Suez route is a key uncertainty, potentially changing shipping dynamics,” ING said.

“Carbon emissions in shipping have increased due to rerouting and inefficiencies, with the sector not yet on track for its emission targets despite fuel efficiency gains and alternative fuels,” the bank added.