PH pursues sustainable future through collaboration
S
USTAINABILITY in the Philippines is not just a goal, but a journey marked by collaborative efforts in green technology, financial inclusion programs and environmental conservation projects.
With a population of over 100 million people and a rapidly growing economy, the Philippines faces unique challenges and opportunities in its quest for sustainability. Through collaborative efforts across government, industry and civil society, the country is forging a path toward a more sustainable and resilient future.
Green technology
At the forefront of the Philippines’ sustainability efforts is the adoption of green technology.
President Ferdinand “Bongbong” Marcos Jr. underscores the country’s commitment to green technology, emphasizing the importance of cooperation, liberalization and investment facilitation in advancing the transition to renewable energy sources.
Marcos says: “For our part, the Philippines has liberalized to full ownership in the solar, wind and geothermal sectors; reduced tariff rates on environmental goods; and advanced the promotion and increased adoption of renewables in our energy mix and diversification of energy sources to include clean and indigenous sources and mainstream sustainable practices.”
This commitment to liberalization and the promotion of renewable energy sources reflects the Philippines’ dedication to environmental sustainability and economic development.
The President underscores the importance of supporting affected segments like micro, small and medium enterprises (MSMEs) and disadvantaged communities, ensuring access to affordable energy and quality jobs.
Embracing these approaches will contribute to a sustainable and inclusive transition towards a greener future. “As regulators and decision-makers, ours is the responsibility to balance stimulating economic growth with protecting the public during this transition,” he noted.
SUSTAINABLE fiNANCE
Government plays a significant role in shaping sustainability outcomes through policy and regulation.
The Monetary Board approves the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) for banks — a tool to assess the environmental and social sustainability of economic activities.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona, Jr. emphasizes that while this marks a crucial step, it’s the beginning of an iterative process to fully capture the Philippine economy’s conditions.
“The issuance of a taxonomy is a crucial step in our sustainability journey. It provides high-level guidance in determining the greenness of an investment. But, this is just the first step to what I expect will be a long iterative process of calibrating the document to fully capture the conditions of the Philippine economy,” Remolona says.
Remolona says the SFTG’s first version focuses on climate change mitigation and adaptation, with future iterations to cover biodiversity and the circular economy. Using a traffic light system, activities are classified as green, amber or red based on alignment with the guidelines — green for an SFTGaligned activity; amber for partially aligned and red for not aligned.
An amber classification includes activities that are in transition to remedy actual or potential harm done. This also includes activities that are considered enablers of climate change mitigation and adaptation objectives.
Meanwhile, a red classification means that the activity does not meet the higher ambitions of the SFTG, but these activities may still be eligible for “unlabeled” financing.
The taxonomy also simplifies assessment for MSMEs to promote financing in this sector. Banks have until the end of 2024 for familiarization and understanding of the SFTG with a pilot testing exercise planned in partnership with the industry.
The SFTG aligns with national policies and the Association of Southeast Asian Nations Taxonomy for Sustainable Finance, operationalizing recommendations from the Philippine Sustainable Finance Road Map.
In parallel, the financial sector is
playing a crucial role in promoting sustainability through innovative financing solutions. The Bank of the Philippine Islands (BPI), one of the country’s largest banks, has taken a proactive approach to sustainability with the launch of its Green Solutions program.
Dexter Lloyd Cuajotor, head of BPI Retail Lending and Bancassurance, says: “BPI Green Solutions represents a pioneering step in sustainable financing, providing customized solutions for housing and auto loans to make sustainable homes and evehicles (electric vehicles or EVs) more accessible and affordable to the market.”
By offering financing options for eco-friendly housing and EVs, BPI is empowering consumers to make sustainable choices, while supporting the transition to a low-carbon economy. Beyond Green Solutions, BPI demonstrates its commitment to sustainability through its bank wide sustainability mandate.
The Sustainable Development Finance Program, launched in 2019, encompasses green financing for sustainable agriculture, renewable energy, energy efficiency and climate resilience, aligning with the United Nations Sustainable Development Goals (UN SDGs).
Meanwhile, the Asian Development Bank (ADB) is granting $655,000 to nine rural banks and a bank consortium in the Philippines to implement digital transformation solutions, aiming to boost financial inclusion in underserved sectors.
This initiative, part of ADB’s Financial technology for Inclusion Transformation (FIT) program, is funded by the HighLevel Technology Fund and the Republic of Korea e-Asia and Knowledge Partnership Fund.
Rural banks serving women, farmers, fisherfolk and MSMEs are chosen for the grants, following the program’s launch in June 2023. The Rural Bankers Association of the Philippines and BSP are supporting this grant program.
Emma Xiaoqin Fan, director of the Finance Sector Group at ADB, says: “The FIT program builds on ADB’s efforts to utilize technology to increase the efficiency, sustainability and resilience of the finance sector, especially those which service underserved sectors in the country.”
Sustainable aviation
The Department of Energy (DoE) is spearheading efforts to promote sustainable aviation through the adoption of alternative fuels such as sustainable aviation fuel (SAF).
DoE Undersecretary Alessandro Sales says: “The use of SAF is intended to reduce the carbon footprint associated with aviation operations. This alternative fuel source, derived from renewable feedstock, holds the potential to lower greenhouse gas emissions while ensuring the highest safety and performance standard.”
By collaborating with the country’s aviation sector and international partners, the Philippines is exploring the use of SAF, which can be processed from plant and used oil feedstock such as forestry and agricultural waste and used vegetable oils.
One potential feedstock for SAF is coconut oil, which is also used for biodiesel production. The DoE acknowledges international initiatives such as the Carbon Offsetting and Reduction Scheme for International Aviation (Corsia), which offers a harmonized approach to reducing emissions from international aviation.
The Philippines, as an International Civil Aviation Organization (ICAO) member, joins Corsia in 2018. Under the Corsia’s timetable, participating ICAO Member States are mandated to comply with the CO2 or Carbon dioxide off-setting requirements by 2024 to 2026, while the mandatory compliance was set for 2027 to 2035.
Republic Act No. 9367 mandates the National Biofuels Board to recommend biofuel blends in air transport, considering safety and technical viability.
Blue economy
On the maritime front, the Department of Transportation (DoTr) is rallying maritime agencies and stakeholders to harness the potential of the blue economy.
According to Transportation Secretary Jaime Bautista, “By embracing the concept of the Blue economy, we contribute to global efforts in combating climate change and preserving biodiversity.”
By aligning efforts with the Maritime Industry Development Plan 2028, stakeholders aim to enhance the resilience of the maritime sector while fostering sustainable growth. This comprehensive road map addresses challenges and opportunities in areas such as transport safety, environmental sustainability and digitalization, laying the foundation for a more sustainable maritime industry.
Businesses play a pivotal role in advancing sustainability, as they drive economic activity and have the resources and influence to catalyze meaningful change.
International Container Terminal Services Inc. (ICTSI) commits to achieving net-zero greenhouse gas emissions for its Scope 1 and 2 emissions by 2050, demonstrating its dedication to responsible business practices and environmental protection.
Christian Gonzalez, ICTSI executive vice president, compliance officer and chief sustainability officer says: “Our commitment to decarbonization targets marks an important step on our journey to becoming a more sustainable company and as part of this, we are actively implementing initiatives to maximize energy and resource efficiency, reduce carbon intensity and lower emissions.”
By 2030, ICTSI aims to reduce its GHG emissions per container move by 26 percent compared to a 2021 baseline. The company is evaluating emissions across its entire value chain (Scope 3) and will develop an inventory by 2025, followed by target reviews to stay aligned with evolving climate science.
ICTSI has already achieved carbon neutrality in four terminals in the Americas – Contecon Guayaquil in Ecuador, Contecon Manzanillo in Mexico, and Tecon Suape and Rio Brasil Terminal in Brazil – representing a significant quarter of the Group’s total volume handled.
ICTSI has deployed 48 hybrid radioisotope thermoelectric generators across its network, underscoring its commitment to reducing environmental impact.
Gonzalez says: “Making a positive environmental impact is fundamental to our business strategy which means we will continuously review and update our goals to ensure their relevance and accelerate our efforts towards mitigating climate change.”
Empowering visually impaired entrepreneurs
Philippine Long Distance Telephone Co. (PLDT), Smart, and Adaptive Technology for Rehabilitation Integration and Empowerment of the Visually Impaired (Atriev) complete the second Digital Business Basics Training (DBBT) in Mindanao, benefiting 25 visually impaired entrepreneurs from Maguindanao del Norte.
This initiative aims to foster inclusive community participation through technology. Visually impaired participant Sharita Sulaiman expresses gratitude for the training, recognizing the opportunities it presents for business growth.
Sulaiman says: “I own a small business and because of this initiative, I realized that there are a lot of opportunities for me to grow my business with the help of technology. Thank you, Atriev, PLDT and Smart.”
DBBT focuses on essential digital business skills, including the use of Android Apps, ewallets, marketing strategies and delivery apps to enhance logistics and customer service.
Brian Aubrey Serrano, Atriev lead trainer, says: “Through this training, the participants will learn new skills that can help them to start and strategize their business. We are teaching them different online applications that could help them sell their products in Upi (unified payments interface) and all over the country.”
This collaboration forms part of PLDT and Smart’s broader Inclusion, Diversity, Equity, Advocacy through Technology program, aligning with UN SDGs by promoting economic inclusion and reducing inequalities while supporting national digitalization efforts.
Empowering communities for sustainable livelihoods
In the ongoing battle against poverty, the Philippines is spearheading a community based initiative known as the Sustainable Livelihood Program (SLP).
With a focus on enhancing the socioeconomic status of its participants, the program operates under the Convergence Strategy, targeting beneficiaries of the Pantawid Pamilyang Pilipino Program.
Its aim is not only to provide immediate relief, but also to sustain and extend the socioeconomic benefits beyond the initial intervention period.
Formerly known as the SelfEmployment Assistance Kaunlaran Program, SLP stands as a cornerstone of poverty alleviation efforts led by the Department of Social Welfare and Development (DSWD).
Recognizing the power of collaboration, SLP has forged partnerships across various sectors to effectively address the diverse needs of its beneficiaries.
Key partnerships include collaborations with esteemed organizations such as:
SM Foundation, for conducting skills development training for farmer beneficiaries of Bulacan, Tarlac, City of San Fernando and Fort Magsaysay;
Kapampangan Development Foundation, for ffering skills training in various areas such as meat processing and fruit tree propagation;
Negotechno, for providing technical skills training, particularly in producing decorative materials from corn husks;
Bulacan State University, for collaborating on capacity building and coastal mangrove planting projects;
BPIGlobe Banko, for assisting beneficiaries with savings mobilization and social insurance;
Alalay sa Kaunlaran Inc., for offering capacity building, training, and employment opportunities, including Farmer’s Entrepreneurship Training;
SLAgritech, for imparting techniques and technologies for hybrid rice farming to farmer beneficiaries;
University of the Philippines College of Social Work and Community Development, for conducting community development immersion programs in Nueva Ecija;
Department of Public Works and Highways, for implementing the Trabahong Lansangan project with DSWD;
Technical Education and Skills Development Authority, for culminating cash for training projects and providing tool kits to beneficiaries;
Department of Labor and Employment, for providing capital assistance to eradicate child labor and establish livelihoods and Philippine Center for Entrepreneurship for offering employment opportunities and personality development training to outofschool youths through programs like “Negosyo mo, Bukas ko” and training for transformation.
Through these partnerships, SLP aims to empower beneficiaries, foster economic growth and create sustainable livelihood opportunities, thereby contributing to poverty reduction and community development.
DSWD Undersecretary Edu Punay emphasizes: “Our new programs in the DSWD are helping the poor by capacitating and giving them tools on how to rise above the poverty line because we firmly believe that Filipinos are not lazy. The only thing lacking for them is opportunity and an enabling environment. If we teach them how to stand on their own, that would be more sustainable in the long run.”
Education and awarenessraising efforts are vital for fostering a culture of sustainability and empowering individuals to make informed decisions.
By embracing innovation, fostering partnerships and prioritizing environmental stewardship, the Philippines is paving the way for a brighter tomorrow where economic prosperity is balanced with social equity and environmental responsibility.