September 8, 2022
(Pleasantries)
Climate change is the greatest threat facing humanity today. With its devastating social and economic impacts, it requires urgent action from all levels of society.
Over the past decade, the Philippines has incurred losses and damages estimated at a staggering 10 billion US dollars from climate-related hazards despite contributing only 0.3 percent of the world’s greenhouse gas emissions.
Clearly, climate change is a daily reality in the Philippines. We are therefore determined to be a world leader in this fight against the crisis.
To demonstrate our commitment, the Philippines submitted the country’s first nationally determined contribution or NDC in April of last year.
Our first-ever NDC set an ambitious goal to reduce greenhouse gas emissions by 75 percent by 2030.
We recognize the critical role of sustainable finance in driving the shift to climate change adaptation and mitigation practices.
Through the Green Force co-led by the Department of Finance and the Central Bank, we will synergize public and private investments in greening the business landscape and mainstreaming climate change through the financial sector. Our climate finance initiatives will promote a sustainable orchestration of grants, investments, and subsidies.
Recently, we have worked with the Asian Development Bank and private sector partners in developing the Energy Transition Mechanism project, which is the largest emission mitigation program in the world.
The Energy Transition Mechanism project will help us accelerate the retirement of coal and quicken our transition to clean energy. This comes after the government imposed a moratorium on new coal plants in October 2020.
In 2021, the Philippines signed a Memorandum of Understanding on the ASEAN Low Carbon Energy Programme.
This Programme will be instrumental in our bid to promote inclusive economic growth and reduce poverty incidence in the country through increased green finance flows for low carbon energy and increased energy efficiency.
Earlier this year, we also launched the Philippine Sustainable Finance Roadmap.
The Roadmap strategically lays out our action plan to mobilize financing in order to mainstream climate action initiatives, facilitate investments in climate-resilient public infrastructure, and develop projects that promote sustainable development in the Philippines.
We recently issued our first-ever sustainability global bonds worth 1 billion US dollars, and sustainability samurai bonds worth 600 million US dollars. Both transactions were met with strong demand despite the volatility in the global markets.
In like manner, the Asian Development Bank has extended to the Philippines its first-ever climate change policy-based financing worth 250 million US dollars, making the country one of the pioneers in climate policy development financing.
Under the leadership of President Ferdinand Marcos Jr., we will continue to put climate action front and center in our pursuit of a robust, sustainable, and twenty-first century economy.
The Marcos administration’s legislative priorities will include measures that will improve and modernize governance in the country while promoting environmental sustainability to address climate change.
For instance, we are proposing the imposition of excise tax on single-use plastics to cut plastic pollution in favor of more sustainable alternatives. We are also studying the imposition of a carbon tax in the country.
We are determined to harness the vast renewable energy sources available to us, such as hydro, geothermal, wind, and solar power to mitigate the impacts of climate change and bring down energy costs for our people.
We all have the responsibility to mainstream sustainability in our respective sectors. As industry leaders, you are well-positioned to make a systemic and enduring impact in greening the business landscape.
Just as countries that contribute the most to the climate crisis must bear the greater task of reversing it, businesses must boldly take the lead in embracing sustainability and mainstreaming climate action in society.
We will not sit idly by as the planet burns – and with it, our people and the gains we have fought tooth-and-nail for. We intend to take all the necessary steps now and act decisively for the good of our people, our economy, and our planet.
The Philippines, therefore, stands in solidarity with all nations in calling for climate justice and equitable solutions to this global crisis.
Thank you.
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