His Excellency Daniel Pruce, British Ambassador to the Philippines, His Excellency John Holmes, Canadian Ambassador to the Philippines, Secretary Benjamin Diokno of the Department of Budget and Management, Commissioner Ephyro Amatong of the Securities and Exchange Commission, Mr. Titon Mitra, Country Director of the United Nations Development Programme, distinguished guests, ladies and gentlemen:
Thank you for your interest in the subject of today’s forum.
Winter is here and it will wipe out not only the people of Westeros but of the entire planet. So goes the theme of the Game of Thrones and like the series, while everyone is busy fighting their own battles — Brexit, the budget here, the wall in the US — no one is paying attention to the Climate Change.
Climate change is the most pressing problem of our time. As we watch the ice melt on both of the Earth’s poles, we know we have very little time to prepare for a rapid rise in sea levels.
Climate change scientists are now telling us that we could only tolerate a 1.5-degree Celsius increase in global temperature before the Earth wreaks havoc on us. In a matter of years, some of the most vulnerable island countries could actually disappear from the map. We have seen the bleaching and possible death of the Great Barrier Reef in Australia. Just this month, scientists announced a most frightening finding: the oceans are warming much faster than anticipated. That could threaten a diverse range of marine life.
Recently, the BBC News reported that rising temperatures are reducing the period during which snow is on the ground in the mountains—snow that millions rely on for their fresh water. In California, this is leading to shorter winters and longer summers which are now being seen as contributory to the forest fires occurring in the area.
The global response to the perils of climate change is two-pronged. First, we need to drastically reduce the amount of carbon we throw up into the atmosphere. Second, we need to prepare our communities to withstand the severe weather conditions that global warming has already brought to our doorstep.
The challenges posed by climate change demand all hands be on deck: government, the private sector and the non-government organizations. Among the weapons we have is Green Financing. This will allow us to mobilize investments for a range of initiatives, from wider use of renewable energy to improving the resilience of our communities.
The Philippines is among the most vulnerable to the effects of climate change. We have seen how increasingly severe weather conditions inflict a growing cost on our economy, increase the vulnerability of our communities and threaten our food security. We need to put in our best efforts to turn back climate change and improve resilience to minimize economic dislocation.
We have not been idle in the face of an encompassing challenge. We have our dragons.
Both the Philippine Development Plan and the National Climate Change Action Plan outline the strategies for climate change adaptation and mitigation across all sectors. These strategies, obviously, require huge investments. This is the reason we need to refine our concepts and instruments for Green Financing to help make investments in adaptation and resilience an attractive one.
In 2016, we launched the People’s Survival Fund as a financing program to fund climate change projects proposed by local government units. This has an annual rolling minimum budget allocation of 1 billion pesos.
Last year, the Securities and Exchange Commission approved the Guidelines on the Issuance of Green Bonds under the ASEAN Green Bonds Standards. This provides us a reference point for determining the eligibility of green projects covering renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and land use, clean transportation and adaptation of green buildings.
The Department of Budget and Management also launched its Green, Green, Green Program. This aims to assist 145 cities in making life more livable for its residents through the development of public open spaces.
Back in 2016, the ADB issued its landmark 225 million US dollar-climate bond through the Bank of the Philippine Islands. The proceeds were used to finance the rehabilitation of the Tiwi-Makban geothermal facility.
Last year, the first internationally rated triple-A peso-denominated green bond called the Mabuhay Bond amounting to 90 million US dollars was issued by the International Finance Corporation or IFC through BDO Unibank.
Following this, China Banking Corporation successfully issued its first green bond last year, raising 150 million US dollars with the IFC as its sole investor. The proceeds will be used to fund climate-related projects in renewable energy, green buildings, energy efficiency and water conservation.
Meanwhile, the Development Bank of the Philippines has activated its Green Financing Program to assist strategic sectors, industries and local governments in adapting environment-friendly processes and technologies through financing and technical assistance.
There is clearly a great interest in the investment community in green investments. The Philippine Government is keen on strengthening its policies on climate financing.
Specifically, government is looking at expanding the coverage of the ASEAN Framework for Green Bonds to cover such sectors as transportation, infrastructure, and commercial banking. We hope to mainstream access to green financing through the banks and microfinance institutions. We are, to be sure, exploring possible funding of various public-private partnerships or PPPs through green financing.
This forum provides an excellent opportunity to share experiences, technologies and best practices concerning green financing. We could improve on the standards we set, the definitions we use and the procedures we prescribe.
At the end of the day, as Tyrion Lannister said, “Perhaps that is the secret. It is not what we do, so much as why we do it.”
I look forward to the next series of Game of Thrones, almost as much as I look forward to a vibrant and productive discussion in this forum. You will help us advance green financing with the urgency that the challenge of climate change demands.
Thank you very much.
@@@