BSP workshop gathers multi-sectoral specialists in Manila
The workshop featured insights from the BSP, financial institutions, and development funders on the challenges and opportunities in promoting financial inclusion to drive nature-resilience of the economy.’
Protecting nature and biodiversity is integral to climate-resilience particularly for a country like the Philippines which is vulnerable to vagaries in weather.
This fact was underscored in discussions by policy-makers, regulators, researchers from a diverse backgrounds and representatives from the academe, multilateral agencies, and financial institutions in a recent international workshop organized by the BSP in collaboration with the the London School of Economics and Political Science-Grantham Research Institute on Climate Change and the Environment, the World Wide Fund for Nature (WWF), and the International Network for Sustainable Financial Policy Insights, Research, and Exchange (INSPIRE).
The discussions that took place in the recent international workshop on “Nature, Macroeconomy, and Finance” were focused on the various critical risks to countries’ environments due to degradation of nature through economic activities including deforestation and land use activities.
From the perspective of emerging market economies, talks by the workshop participants were devoted into the dynamics, dependencies, and impact of nature on ecosystem services, opportunities, and financial risks; and policy challenges of nature on the macroeconomy and the financial sector.
Financial stability
“The BSP’s mandate is to promote financial stability,” stressed BSP Governor Eli Remolona, “thus, we have been building our analytical and research capabilities to monitor the nature-related risks in the financial system.”
The BSP aims, beyond risks management, to generate financing for projects and activities geared towards the Philippines’ climate objectives.
Thus, the central bank has co-developed with other agencies the first sustainable finance taxonomy of the country which is foundational for such climate initiatives as the development of carbon markets.
Green taxonomy
The importance of green taxonomy and prospects for integrating nature in financial policy along with the current state and challenges of compiling data on nature; potential policy implications for supervisors of nature-related risks; and cutting-edge research themes on nature were other consequential subjects tackled by workshop participants.
A highlight of the workshop was a panel session on financial inclusion and how micro, small, and medium enterprises (MSMEs) may potentially embrace environmental considerations.
Moderated by Monetary Board Member V. Bruce J. Tolentino, the panel members featured insights from the BSP, financial institutions, and development funders on the challenges and opportunities in promoting financial inclusion to drive nature-resilience of the economy and the MSMEs.