Why it matters
APAC continues to expand its sustainable finance footprint despite geopolitical uncertainty and softer global issuance, underscoring the region’s structural demand for clean energy, digital infrastructure and transition funding.
The big picture
ING reported that global sustainable finance issuance reached $1,231 billion in the first three quarters of 2025, slightly lower year on year, but APAC issuance hit $345 billion over the same period, keeping the region on track for another strong year.
The Philippines is increasingly contributing to that momentum as renewable energy targets translate into bankable projects.
“Even against a backdrop of geopolitical uncertainty and shifting policy signals, sustainable finance has proven remarkably resilient,” Deepali Bhargava, head of research and chief economist for ING APAC, said in a press release on Dec. 17, 2025.
“Corporates in APAC are pressing ahead with decarbonization, and the rapid growth of AI and data centers is creating powerful new demand for clean energy, keeping sustainable finance central to funding the transition in 2026 and beyond.”
Zoom in Philippines
The country’s Department of Energy (DOE) has set a target of 35 percent renewable energy in the power mix by 2030, rising to 50 percent by 2040.
That policy clarity is already reshaping the financing landscape, with year to date sustainable finance issuances exceeding $10 billion and more than 10 gigawatts of renewable capacity secured through green energy auctions.
The Philippines is also set to record its first annual decline in coal generation in nearly two decades.
“The global sustainable finance market's resilience creates a strong foundation for growth in our Philippine operations,” said Jun Palanca, country manager for ING Philippines.
“We're seeing increased client interest in sustainable finance products across multiple sectors, and we're responding by strengthening our local team's expertise and expanding our product offerings.”
The Philippines’ data center market is expanding rapidly, with a target of one gigawatt of hyperscale capacity by 2026, supported by government policies encouraging green operations.
Through the DOE’s Green Energy Option Program, data centers can source power directly from renewable suppliers, enabling leading facilities to shift to fully renewable energy and creating strong opportunities for sustainable finance that supports both digital growth and climate goals.
Across APAC
ING said it reached its APAC year end sustainable finance volume target by September, driven by strong demand from financial institutions, technology firms and data center operators.
The rise of transition labeled transactions signals a broader shift, as companies move from compliance driven sustainability toward long term value creation.
“What we're seeing across the region is a fundamental shift in how clients see sustainability, from a compliance requirement to a driver of business value and competitive advantage,” said Diana Tang, director for Sustainable Solutions Group APAC for ING.
What’s next
With data centers, AI and electrification accelerating power demand, the Philippines’ alignment of digital growth with renewable energy is positioning it as a strategic hub for sustainable finance, reinforcing APAC’s continued expansion in the global energy transition. —Vanessa Hidalgo | Ed: Corrie S. Narisma
