Green investments to drive Philippines’ sustainable recovery — BSP

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno has highlighted the importance of green investments or projects aimed at the conservation of natural resources in driving the country’s post-pandemic recovery.

“Since the Philippines is vulnerable to typhoons and climate-related risks due to its geographical location, green recovery is the ideal approach to strike a balance between implementing economic strategies and building climate and disaster resilience,” Diokno said in a statement on Thursday.

Citing data from World Bank’s International Finance Corporation, the BSP chief said that investments in the Philippines and in three other big emerging markets —China, Indonesia, and Vietnam —may reach $5.1 trillion if these economies adopt a post-pandemic “green recovery approach.”

The said approach includes investments in energy efficiency, green infrastructure, support for environment-related research and development, and incentives for low-carbon vehicles.

Diokno said the BSP has incorporated sustainability principles in its portfolio management as part of its sustainable central banking strategy.

The BSP invested $550 million in the Green Bond Fund managed by the Bank for International Settlements (BIS) and plans to invest in the BIS Asian Green Bond Fund in 2022, he said.

“The BSP also encourages banks and other supervised financial institutions to offer sustainable financial instruments that may support the post-pandemic recovery of the agriculture and the micro, small, and medium-sized enterprise (MSME) sectors,” Diokno said.

The central bank has been advocating the wider adoption of sustainable finance, which incorporates environmental, social, and governance (ESG) standards to assess the value, performance, and long-term growth of an asset.

“The BSP remains committed to fostering the country’s sustainability efforts to ensure a more stable, resilient, and inclusive Philippine financial system,” the central bank chief said. — RSJ, GMA News