Philippine banks to finance more green projects

Philippine banks are now looking at financing sustainable projects to combat the adverse effects of climate change, the Bankers Association of the Philippines (BAP) said Monday.

BAP President Nestor Tan said the association is now looking at green financing, a form of investment dedicated to sustainable projects that could help mitigate the effects of climate change.

“Sustainable finance is slowly gathering speed. Regulators are assessing parameters in (environmental, social, and governance); investors are now more curious about green funds, and now more banks acknowledge its feasibility and efficiency,” Tan said in a statement.

“Green lending and investment is slowly being tapped by Philippine banks,” he added.

According to the BAP, there is now a rising trend among investors across the world to expect companies to invest more in sustainable projects, and for financial institutions to review systems in place.

Tan said the BAP is now in talks with other stakeholders to maximize the potential of the region.

“We are on a journey to becoming more sustainable economies in the region. Dialogues are ongoing across banking industries to hopefully capture the full potential of sustainable markets in the region,” he said. —VDS, GMA News