This Spotlight builds on sources and insights presented in the broader report, Domestic Capital Mobilization for Climate Finance in Southeast Asia.
Key takeaways:
- The Philippines trails behind regional peers in climate finance and blended climate finance flows, receiving USD 22.5 billion in climate finance between 2017 and 2022 compared to Vietnam (49.1 billion) and Indonesia (26.9 billion).
- Domestic climate finance is predominantly private sector-led (77% of domestic flows). Commercial banks and corporates play a central role, particularly in financing renewable energy and energy related activities.
- The Philippines has the highest share of adaptation finance compared to regional peers, representing 32% of climate financing flows.
- Since 2022, Bangko Sentral ng Philipinas (BSP) has introduced reforms to unlock sustainable financing, including easing single borrower limits, lowering reserve requirements for green bonds, and enabling sustainable finance to meet agricultural lending requirements.