DOF takes on a series of high-level discussions during the WB-IMF Spring Meetings to amplify the PH’s call for innovative climate finance solutions

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The Department of Finance (DOF) has taken part in a series of high-level discussions on the sidelines of the World Bank-International Monetary Fund (WB-IMF) Spring Meetings in Washington, D.C. to amplify the Philippines’ call for innovative climate finance solutions.

On April 16, 2024, the Department of Finance (DOF) and the Bangko Sentral ng Pilipinas (BSP) joined a roundtable discussion on the inaugural Vulnerable 20 Group of Finance Ministers (V20) Finance Ministers Governors Working Group Meeting.

The working group was established during the V20’s 11th Ministerial meeting in October 2023 in Marrakech. It aims to further the technical collaboration with V20 and G21 central banks, and mobilize resources from the IMF.

On the same day, the DOF participated in the High-Level Event on Addressing Polycrisis: Capital Mobilization for the V20 Climate Prosperity Agenda, which called for the strengthening of Country Platforms composed of domestic policymakers, international investors, and technical experts who can facilitate the development of a nationally appropriate investment plan and an associated portfolio of investment projects.

The Philippines signified its interest in being included in the next wave of countries for the Country Platform as it is already equipped with an Interagency Task Force on Sustainable Finance (ITSF), which brings together various government agencies to facilitate discussions on mobilizing climate finance to meet the country’s Nationally Determined Contributions (NDC).

On behalf of Finance Secretary Ralph G. Recto, Chief-of-Staff and Undersecretary for the Climate Finance Policy Group (CFPG) Maria Luwalhati Dorotan Tiuseco delivered a high-level statement during the 12th V20 Ministerial Dialogue later that day.

The Dialogue provided a platform for Finance Ministers to discuss the most pressing concerns on climate change, particularly financing for climate action and identifying areas for collaboration and development in V20 member economies.

Undersecretary Tiuseco showcased the Philippines’ integrated investment and financing strategy which will help the country mobilize climate finance until 2030.

This includes tapping into international finance sources such as the Green Climate Fund (GCF) and Global Environment Facility (GEF).

The GCF is a global fund that supports developing countries in responding to the challenges of climate change, while the GEF is dedicated to confronting biodiversity loss, climate change, pollution, and supporting land and ocean health.

These sources can help fund the country’s National Adaptation Plan (NAP) and scale up financing for its local People’s Survival Fund (PSF), the country’s national adaptation fund chaired by the Secretary of Finance and managed by DOF as lead Secretariat.

Moreover, the Philippines has designed an investment incentives system, called the Strategic Investment Priority Plan (SIPP), to encourage strategically important investments in the country.

The SIPP identifies priority industries, projects, and activities that can be granted fiscal incentives. This includes projects geared towards climate adaptation and mitigation.

With its provision for green financing, the recently passed Public-Private Partnership (PPP) Code will also help the government develop sustainable economic and climate-responsive projects with the help of the private sector.

Undersecretary Tiuseco also announced that the Philippines, with support of the V20,will be developing its Philippine Climate Prosperity Plan this year to support priority adaptation and mitigation sectors, including power system and grid modernization.

On April 17, 2024, the DOF also attended the 11th Ministerial Meeting of the Coalition of Finance Ministers for Climate Action, which tackled topics on the involvement of Ministers of Finance in the design and financing of Nationally Determined Contributions (NDCs) and effective coordination with Ministries of Environment; the harmful financial incentives and appropriate pricing mechanisms; and mobilizing global bond markets for just transition.

On April 18, 2024, Undersecretary Tiuseco delivered for the Secretary of Finance an intervention on the Philippines’ actions and solutions to combat the effects of climate change during the Ministerial Breakfast entitled, Getting It Done: Driving Finance Solutions for Development and Climate at the World Bank (WB) Headquarters in Washington.

In the intervention, the DOF called for the leaders’ support for the Philippines’ bid to host the Loss and Damage Fund (LDF) Board, which is backed by its solid experience in hosting numerous international and regional organizations in Manila and Laguna. 

To deliver on the Philippines’ Nationally Determined Contribution (NDC), an estimated investment amount of around USD 72 billion or more is needed.

Particularly, USD 36.5 billion is needed to prioritize investments in transmission and grid improvement and expansion of financial structures to support rapid scaling up of renewable energy and energy-efficient investments.

The Philippines is equipped with the National Adaptation Plan (NAP) 2023-2050 and NDC Implementation Plan (NDC IP) to help it implement effective long-term adaptation measures and mainstream climate resilience into every facet of society.

According to the Undersecretary, this includes expanding market-based measures such as sustainability-linked, green, and blue bonds, as well as leveraging the newly released Sustainable Finance Taxonomy Guidelines (SFTG) to steer financial investments towards the attainment of the country’s climate agenda.

The event was organized by The Rockefeller Foundation and Open Society Foundation. 

It was attended by Barbados Prime Minister Mottley; Vice-Minister of Finance and G20 Finance Deputy of Brazil H. E. Tatiana Rosito; The Right Honourable Andrew Mitchell MP, UK Minister of State in the Foreign, Commonwealth & Development Office; Minister of International Cooperation of the Arab Republic of Egypt H.E. Rania Al-Mashat; COP28 Director-General H.E. Ambassador Majid Al Suwaidi; and UN Deputy Secretary General Amina Mohammed.

The Rockefeller Foundation President Dr. Raj Shah; Chief Executive Officer of the Children’s Investment Fund Foundation (CIFF) Kate Hampton; Open Society Foundations President The Right Honorable Lord Mark Malloch-Brown; and other Ministers and high-level representatives from the US, Ghana, France, Germany, Barbados were also  present during the high-level meeting.

Later on, Undersecretary Tiuseco represented the Philippines as a member of the Global Shield Board in welcoming the new group of beneficiary countries.

The Global Shield Against Climate Risk aims to make considerable progress towards providing and facilitating more and better pre-arranged protection against climate and disaster-related risks for vulnerable countries.

It complements the LDF in scaling up financial protection and enhancing disaster response in vulnerable countries.

During her brief intervention, the Undersecretary stated the Philippines’ intent to proceed with its Global Shield application and host the LDF Board, emphasizing their indispensable role in building the country’s resilience against climate disasters.

On April 19, 2024, the DOF attended the working group meeting on carbon finance and the launch of the partnership between V20 Finance Ministers and Voluntary Carbon Markets Integrity Initiatives (VCMI).

The event discussed country specific case studies of government action on carbon markets, and highlighted collaboration opportunities between CVF, V20 member countries, and VCMI.

Finally, DOF’s Director John Narag represented the Philippines during an event entitled, From the National to the International: Policymaking for Climate Prosperity and Global Financial Architecture Reform at the Fairmont Hotel.

The high-level event tackled policymaking for climate prosperity and global financial architecture reform featuring representatives from the V20 Group, US government, and prominent international financial institutions.

The event was co-hosted by the Rockefeller Foundation, the V20, the Boston University Global Development Policy Center, the Centre for Sustainable Finance at SOAS, and the University of London.

From April 21 to 26, the DOF’s John Narag and Anna Mercali participated in the international residency program of the V20 Climate Prosperity Fellowship  hosted by the V20 Secretariat, Boston University, and SOAS UK London in Boston, Massachusetts.

The DOF-CFPG provides advisory services and technical support to the Secretary of Finance concerning the Department’s mandates on climate finance, disaster risk financing and insurance, and sustainable finance covering financing, initiatives, and partnerships in the national and global setting.