New Green Financing Framework for the Philippines

17 January 2022 by Jack Mulloy
blog author

​A Sustainable Finance Framework has been established by the Republic of the Philippines (ROP) to boost its sustainability commitments. 

The new green financing scheme lays out how ROP will raise green, social or sustainability bonds for projects that support renewable energy sources, loans and similar instruments in the international capital markets. 

The support of renewable energy sources includes manufacturing, development, installation, operation, transmission and distribution of solar, wind, geothermal, biomass and hydropower. 

ROP, which has received support from Standard Chartered Bank and UBS as joint structuring advisors, will adhere to the Framework which will also enable support for social projects that will provide access to education, basic infrastructure, food security, jobs and affordable housing. 

Each project must protect biodiversity and should not involve the burning of peat, according to the terms of the Framework, and will instead produce bioenergy from agricultural or forestry residues. 

Any expenditure related to activities such as exploration, production or transportation of fossil fuels, non-RSPO-certified palm oil and extractive mining will be excluded from Eligible Social Projects and Eligible Green Projects. 

ROP will contribute to developing the Sustainable Financing market domestically in the Philippines through the Framework and any proceeds raised will be used to support projects that show commitment to the Sustainable Development and the United Nations Sustainable Development Goals (UN SDGs), in line with the Philippine Development Plan (“PDP”) 2017-2022 and Public Investment Program (“PIP”) 2017-2022. 

Vigeo Eiris, a global provider of environmental, social and governance (ESG) solutions and a Moody’s affiliate will provide the Second Party Opinion (SPO) on the Framework, to ensure it is aligned with the four core components of a variety of principles. The four components are Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting. The principles include Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2021 and Social Loan Principles 2021. 

ROP’s climate change commitments will also be supported by Sustainable Financing Instruments under the National Framework Strategy on Climate Change. 

Jack Mulloy, Principal Consultant - Sustainable & Impact Investing, Acre said: “It is wonderful to see such a well-coordinated and impactful multistakeholder partnership like this emerge that truly advances economic growth while delivering positive environmental and social impact at scale. Congratulations Michael Baldinger, Daniel Hanna and all involved."

Jack is a Principal Consultant in the Sustainable Finance & Impact investing team. He has over 4 years of recruitment experience in the sustainability space having worked across energy & carbon, environment & sustainability and health & safety. Jack has led on a range of mid and senior-level assignments, with clients ranging from global Asset Management firms, REIT (Real Estate Investment Trusts), Investment Banks, Philanthropies, Private Equity firms and Management consultancies.

Prior to and since joining Acre, Jack supports charities and humanitarian groups globally focussing on the Syrian refugee crisis. Jack has previously worked on marine conservation projects across South East Asia and continues to support a variety of NGO’s and advocacy groups in this space.