{"id":72118,"date":"2025-11-10T07:00:12","date_gmt":"2025-11-09T23:00:12","guid":{"rendered":"http:\/\/www.upgrademag.com\/web\/?p=72118"},"modified":"2025-10-29T13:04:24","modified_gmt":"2025-10-29T05:04:24","slug":"green-finance-institute-launches-report-analyzing-barriers-to-decarbonize-ph-transport-and-waste-sectors","status":"publish","type":"post","link":"http:\/\/www.upgrademag.com\/web\/2025\/11\/10\/green-finance-institute-launches-report-analyzing-barriers-to-decarbonize-ph-transport-and-waste-sectors\/","title":{"rendered":"Green Finance Institute launches report analyzing barriers to decarbonize PH transport and waste sectors"},"content":{"rendered":"

The Green Finance Institute released a new report titled Mobilising Climate Finance into the Philippines\u00a0<\/i>in collaboration with Philippines Department of Finance (DOF), the Climate Change Commission (CCC) and the UK Foreign, Commonwealth and Development Office (FCDO), analysing investment barriers and innovative financial mechanisms to mobilising private capital into the transport and waste sectors. This report is a significant milestone in mobilising finance for the Nationally Determined Contributions Implementation Plan (NDCIP).<\/span><\/span><\/strong><\/p>\n

The Philippines\u2019<\/span>\u00a0NDCIP estimates a significant climate financing need of US$72 billion required across five priority sectors \u2013 agriculture, waste, industry, transport, and energy.\u00a0With public financing committing to fund 2.7% of this, innovative financial mechanisms to unlock private financing are essential.<\/span><\/span><\/p>\n

Foreign direct investment in the Philippines remains modest, but it does not flow to all sectors. While 89% of commercial banks in the Philippines support<\/span> renewable energy, only 28% are backing resource efficiency and circular economy lending, and 22% are financing zero-carbon transport. Reflecting a broader Asia-Pacific and global trend, data from the Climate Bonds Initiative (CBI) reveals that from 2014 to 2023, 35% of cumulative green bond proceeds flowed into energy projects. The CBI flagged mass transport and solid waste as \u201cuntapped\u201d green investment sectors.<\/span><\/span><\/p>\n

To support private capital deployment in key sectors, the GFI produced a report in collaboration with the DOF and CCC as the first step in a broader effort to drive investment into decarbonising the Philippines\u2019 waste and transport sectors. The report identifies key barriers to private finance, proposes initial policy and financial solutions, and explores how the \u201cGreen Force\u201d could evolve into the country’s sustainable investment platform to help close financing gaps and accelerate private capital mobilisation towards the country\u2019s Nationally Determined Contribution (NDC) targets and National Adaptation Programme (NAP) goals.<\/span><\/span><\/p>\n

The GFI presented findings at a validation event in May 2025, co-hosted by DOF, CCC and FCDO, which brought together investors, industry and policymakers to test recommendations and help shape the next phase of the programme where GFI will take forward proposed solutions to lay the pathway for capital mobilisation.<\/span><\/span><\/p>\n

State of transport<\/span><\/span><\/b><\/p>\n

The transport sector accounts for\u00a0<\/span>23% of the country\u2019s greenhouse gas (GHG) emissions from fuel combustion, with jeepneys alone estimated to contribute around 15.5% of the transport sector\u2019s total emissions. Yet modernisation efforts have been slow: just 4% of the targeted jeepney fleet had been replaced as of year-end 2023,\u00a0<\/sup>and fewer than 912 electric vehicle (EV) charging stations were operational as of March 2025.<\/span><\/span><\/p>\n

State of waste<\/span><\/span><\/b><\/p>\n

The waste sector contributes 13% of the country\u2019s GHG emissions and generated over 18 million tonnes of municipal solid waste in 2020, growing at an average of 3.4% annually over the last decade.\u00a0The country also loses an estimated US$790\u2013890<\/span>\u202f<\/span>million annually from unrecovered plastic resources, with only 9% of plastic waste currently recycled.<\/b><\/span><\/span><\/p>\n

In 2018, the Asian Development Bank warned that municipal waste-to-energy (WtE) projects in the Philippines had seen\u00a0virtually no uptake\u00a0due to investment uncertainty<\/span>.<\/span>\u00a0Yet 78% of the material value\u00a0of plastics is\u00a0lost\u00a0to the Philippine economy each year.\u00a0Solving the\u00a0plastic waste challenge\u00a0could unlock up to\u00a0US$790\u2013890 million\u00a0in annual value.<\/b><\/span><\/span><\/p>\n

The Green Force<\/span><\/span><\/b><\/p>\n

This work is being undertaken in collaboration with the Inter-agency Task Force on Sustainable Finance (ITSF), or the \u201cGreen Force\u201d led by the DOF and the CCC. Formalised in 2021, the Green Force\u2019s mandate is to institutionalise sustainable finance and develop a pipeline of bankable green investments. The GFI\u2019s work focuses on developing structured finance solutions to unlock private capital and enable the Green Force to evolve into the Philippines Investment Platform, mirroring other country platforms being set up globally.<\/span><\/span><\/p>\n

The GFI aims to enable greater private capital investment in emerging sectors and regions by improving institutional design, policy frameworks, and structured finance solutions. It helps to shape and co-create investable opportunities worldwide. Internationally, the GFI focuses on mobilising private capital into key sectors by bridging the gap between countries’ NDC commitments\u2014which generate demand\u2014and the capital supply, targeting opportunities with suitable risk and return profiles.<\/span><\/span><\/p>\n

James Hooton, Managing Director, International at the Green Finance Institute, said:\u00a0<\/span>\u201cThe Philippines presents a strong but underexplored opportunity for private investment in waste and transport\u2014two critical sectors for meeting its climate goals. While public finance remains limited, there\u2019s growing momentum to develop financial mechanisms that can unlock private capital. With a redesigned Green Force and increasing interest in sustainable finance, now is the time to shift focus towards sectors that have so far been overlooked but hold real potential for impact.\u201d<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The Philippines\u2019\u00a0NDCIP estimates a significant climate financing need of US$72 billion required across five priority sectors \u2013 agriculture, waste, industry, transport, and energy.\u00a0With public financing committing to fund 2.7% of this, innovative financial mechanisms to unlock private financing are essential.<\/p>\n","protected":false},"author":6,"featured_media":72119,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,18],"tags":[5554,7837,5972,6157],"class_list":["post-72118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-headlines","category-white-papers","tag-digital-sustainability","tag-green-finance-institute","tag-sustainability","tag-sustainability-efforts"],"_links":{"self":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/72118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/comments?post=72118"}],"version-history":[{"count":1,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/72118\/revisions"}],"predecessor-version":[{"id":72120,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/72118\/revisions\/72120"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media\/72119"}],"wp:attachment":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media?parent=72118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/categories?post=72118"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/tags?post=72118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}