It is no secret that the country bears the brunt of climate change, with its effects directly impacting lives, livelihoods, and infrastructure— and disrupting the economy in the process.
Despite the damage and disruption, there is an opportunity to turn climate risk into investment potential.
A 2025 report by the Green Finance Institute (GFI) notes that the Philippines’ Nationally Determined Contributions (NDC) Implementation Plan estimates a $72-billion climate financing need across five sectors: agriculture, waste, industry, transport, and energy.
With public funds covering only 2.7 percent of this amount, unlocking private investment through innovative financing is crucial.
Developed in collaboration with the Department of Finance (DOF), the Climate Change Commission (CCC), and the UK Foreign, Commonwealth & Development Office, the GFI report identifies key barriers to private climate financing and proposes policy and financial solutions.
It also explores how the Inter-agency Task Force on Sustainable Finance, or the “Green Force,” can serve as a national platform to bridge funding gaps and mobilize private capital toward the country’s Nationally Determined Contribution (NDC) and National Adaptation Program (NAP) goals.
Untapped sectors: transport and waste
The report highlights that, despite growing climate commitments, capital mobilization for the public transport and waste sectors remains limited. The Climate Bonds Initiative found that from 2014 to 2023, 35 percent of green bond funds went to energy projects, while mass transport and solid waste remain largely “untapped sectors.”
According to James Hooton, managing director of missions at GFI, investors believe these sectors lack execution rather than ambition.
“The real challenge lies in the gap between political promises and commercial realities,” he said in an interview with InsiderPH. “Renewables succeeded because clear policies, standard contracts, and predictable revenues made them mature and investable.”
Hooton explained that public transport deals are often small and fragmented, with route and revenue uncertainty affecting bankability.
In the waste sector, low tipping fees, cheap landfill options, and unstable public-private partnership (PPP) arrangements make greener alternatives less competitive. Unclear regulations also add risk to emerging technologies like waste-to-energy projects.
Climate and infrastructure realities
Data shows that the transport sector contributes 23 percent of the Philippines’ greenhouse gas (GHG) emissions, with public utility jeepneys accounting for 15.5 percent of that total.
Despite the rollout of the jeepney modernization program, progress has been slow—only 4 percent of the target fleet has been replaced.
The waste sector contributes 13 percent of national GHG emissions. In 2020, the Philippines generated 18 million tons of municipal solid waste, growing by 3.4 percent annually.
Only 9 percent of plastic waste is recycled, resulting in an estimated $790 million –$890 million in lost value each year. Investment uncertainty has also slowed the development of waste-to-energy projects, according to the Asian Development Bank.
'Green Force'
Established in 2021, the Green Force, led by the DOF and CCC, aims to institutionalize sustainable finance and build a pipeline of green investments.
Working with GFI, it seeks to develop structured finance solutions and evolve into the Philippines Investment Platform, mirroring global models designed to mobilize private capital for climate goals.
“Capital will flow where there is a suitable risk-adjusted return,” Hooton said. “Public and development finance isn’t about volume—it’s about being catalytic: using blended finance and risk-sharing to pull in private money where it wouldn’t otherwise go.
GFI works with governments and markets to make NDC ambition investable—through clear policy, institutional reform, credible pipelines, and transaction structures that can close and scale.”
He added that the private sector can drive the next wave of green investments.
“Domestic banks can step in with repeatable senior debt. Corporates can anchor long-term offtake. Foreign investors bring equity and project finance as execution risk falls. And once deals are proven and replicable, institutional capital follows.”
A coordinated path forward
According to Hooton, the most effective approach involves coordinated action across the entire value chain—engaging industry, developers, DFIs, and investors to turn NDC and NAP goals into an actionable Investment Greenprint.
This requires clear policies, efficient regulation, strong market infrastructure and catalytic capital for initial projects.
“As climate ambition grows, financing and institutions must expand with it,” he said.
Resilient green economy
Ultimately, the goal of the Green Force is to establish lasting and effective financing solutions that strengthen economic resilience such as developing robust transport and charging infrastructure and modernized waste systems that prevent flooding from clogged drainage.
“Success in three years looks like an 'investment greenprint' that converts NDC and NAP priorities into pilot transactions that show a pathway to scale—backed by enabling conditions and delivery structures so capital can move quickly to where it matters most,” Hooton said.
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