September 20, 2022
Good morning FINEX, Water dot org, ACCRA Law, and partners in sustainable development.
Thank you for hosting this very important event.
The Philippine archipelago is one of the most richly endowed countries when it comes to natural resources – the most basic and perhaps most crucial of which is water.
As the source of both life and livelihood, water security is crucial to our country’s development.
And yet, this life-giving resource has become so prone to mismanagement and exploitation.
Water security is under increasing threat, facing stressors that range from poor management to accelerating climate change.
It is a national shame that we are ranked as the world’s third-biggest plastics polluter in the oceans, with an estimated 750 thousand metric tons of untreated plastic entering the ocean every year.
Our failure to properly manage and dispose of plastic waste has growing consequences on our economy, environment, and public health.
Toxic chemicals from these plastics not only contaminate our oceans but gravely affect the quality of life across our communities. Its ill effects will be surely experienced by the generations to come.
As one of the most climate-vulnerable nations, Filipinos bear the brunt of a warming planet.
Out of 181 nations, we ranked as the ninth most affected country by extreme weather events.
The Philippines is sinking at a rate four times faster than the global average; endures vicious cycles of drought and flooding; and suffers billions-worth of losses and damages every year due to climate-related hazards.
The climate crisis is also aggravating the water sector’s challenges, with the increase in global temperatures and sea level rise. This leaves our country frequently depleted of water supply and battered by stronger weather disturbances.
Besides degrading the quality of life in affected localities, unhygienic circumstances, especially in a time of a pandemic, also spawn poor living and working environments that exert downward pressure on economic productivity.
As such, the Philippine government recognizes the critical role of sustainable water supply and systems in the daily reality of our people.
That is why last year, the National Economic and Development Authority introduced the Philippine Water Supply and Sanitation Master Plan.
This Plan serves as the blueprint to achieve universal access to safe, sufficient, affordable, and sustainable water supply, hygiene, and sanitation by 2030.
To accomplish this goal, the Master Plan focuses on eight key reform agendas that include strengthening our regulatory environment and enabling access to financing.
The Plan calls for a total investment of over a trillion pesos to achieve universal access to water by 2030.
This would require a harmonized orchestration of investments and increased participation from the private sector, international development partners, as well as local and national agencies.
At present, the green finance structure in the Philippines is focused on financial tools that are designed to increase revenue generation while taking into account environmental risks to finance projects.
For its part, the Department of Finance has been vigorously advocating for the protection of the environment and the sound management of its resources.
To deepen our financial markets and enable green financing to grow, the Department of Finance has been working closely with various government agencies and multilateral partners in building a supportive green finance environment.
As a result of this multi-sectoral effort, we have put together a policy package that supports this agenda.
The Sustainable Finance Roadmap incorporates this whole-of-nation approach in mobilizing finance to support the transition to a clean, sustainable, and climate-resilient economy.
It aims to address policy and regulatory gaps in promoting sustainable investments through finance, implementing sustainable government initiatives, facilitating investments in public infrastructure, and developing projects that promote sustainability in the Philippines.
Meanwhile, the Philippine Securities and Exchange Commission has formally launched the Sustainability Reporting Guidelines for Publicly Listed Companies or PLCs. Broad principles on sustainability are also incorporated in the Code for Corporate Governance for PLCs.
Through the Green Force, which is co-led by the Bangko Sentral ng Pilipinas and the Department of Finance, we will synergize public and private investments in greening the business landscape and mainstreaming climate action across the financial sector.
We have drawn in strong support from multilateral partners and investors for our climate finance initiatives.
Recently, we 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.
Our first Environmental, Social, and Governance bond issuance marks the opening salvo of our efforts to develop the sustainable financing market in the Philippines.
On top of these, the Asian Development Bank has extended to the Philippines its first-ever climate change policy-based financing worth 250 million US dollars, making us one of the pioneers in climate policy development financing.
At home, the Department of Finance is strongly pushing for the passage of a bill that would tax the use of single-use plastics to cut pollution and adopt more sustainable alternatives. This initiative will encourage every Filipino to do their part in saving the environment.
To complement these nationwide efforts, we are building the capacity of our local governments for the formulation and implementation of sustainable development projects on the ground.
Through the Climate Change Commission, we have assembled a high-caliber team of Filipino experts from all corners of the archipelago, representing the broadest range of disciplines and backgrounds.
These experts are familiar with working on the ground, with businesses and local governments. They will engage climate-vulnerable communities and prepare them to execute localized action plans.
Amid these efforts, we are aware that there is still much to be done to address the water and climate crisis.
In closing, allow me to assure you that in our capacity as chair of the administration’s economic team, the Department of Finance stands ready to support all efforts toward our shared goal of achieving universal access to clean water and fighting climate change at the soonest possible time.
Thank you.
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