Secretary Loyzaga: Green financing is more than just renewable energy

Secretary Loyzaga: Green financing is more than just renewable energy | Daily Tribune

In her recent opening remarks at the Adaptation in Action Investment Forum, held on 21 March 2025, Philippine Environment Secretary Maria Antonia Yulo-Loyzaga noted that as one of the countries most vulnerable to climate change, the Philippines faces urgent challenges that demand immediate action and innovative financing solutions. With the sobering forecast from the 2022 Philippines Climate and Development Report warning of potential economic losses amounting to 1.2 to 1.4 trillion pesos by 2030 due to climate-related risks, the need for adaptive measures has never been more critical.

Central to Secretary Loyzaga’s address was the concept of green financing — an essential component for fostering resilience in a country where natural disasters are commonplace. Climate adaptation is not simply an environmental need; it is a matter of economic survival. The current fiscal constraints faced by the Philippines necessitate a paradigm shift in how we view investments in climate resilience. Traditional funding methods are inadequate for addressing the scale of risks associated with climate change. Therefore, innovative and blended financing mechanisms must be established, merging public resources with private sector investments to generate sustainable and climate-resilient solutions.

Green financing encompasses more than just funding for renewable energy projects. It should also include investments in climate-proof infrastructure, sustainable agriculture, and disaster-resilient urban planning. In her speech, Secretary Loyzaga emphasized the need for designs and engineering that not only reduce emissions but also ensure that food and water systems are robust against climate impacts. This highlights a crucial point: climate adaptation and mitigation can and should be integrated. Projects that deliver co-benefits — those that contribute to both mitigation efforts and bolster resilience — are paramount in creating a comprehensive approach to climate action.

The forum’s collaboration with the United Kingdom’s climate action team underscores the importance of international partnerships in sharing resources, expertise, and innovative financial tools. By leveraging external knowledge and funding, the Philippines can fortify its climate adaptation efforts. As noted by Secretary Loyzaga, a successful strategy must align with national policies and international agreements, including the Paris Agreement and Sustainable Development Goals. This alignment will help secure both public and private investments, creating a more robust pipeline of bankable projects that are not only essential for resilience but also viable for financial stakeholders.

Moreover, building a sustainable financial environment requires contributions from various institutions. As Secretary Loyzaga pointed out, agencies such as the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission and the Philippine Stock Exchange play critical roles in ensuring corporate accountability and advancing sustainable finance initiatives. Their involvement can lead to improved transparency and accountability in environmental performance, fostering an ecosystem where businesses prioritize sustainability.

In closing her remarks, Secretary Loyzaga encapsulated the essence of the forum: investing in climate resilience is not just fundamental for business continuity; it is essential for safeguarding lives and livelihoods. The future of the Philippines hinges on strategically engaging the private sector through partnerships and innovative financing models. As we collectively confront the urgent challenges posed by climate change, let us embrace opportunities for collaboration and innovation in financing solutions. By doing so, we not only safeguard the environment but also create a sustainable future for generations to come.