'Green' recovery not in mind of Asian economy rescuers — ING
MANILA, Philippines — The Philippines is among Asian countries that have left out the environment in its coronavirus spending plan, missing a once-in-a-lifetime opportunity to tackle the long-term threat of climate change as governments prioritize economic revival.
"The COVID-19 (coronavirus disease-2019) pandemic has offered governments around the word an opportunity for a total rethink on how their economies will operate in the decades to come. COVID-19 might be a near-term crisis, but global warming remains the longer-term threat," Dutch financial giant ING Bank said in a report released Tuesday.
"Few governments in Asia appear to have grasped this chance, with most choosing easier, but arguably less effective traditional stimulus approaches," it added.
According to ING, the pandemic has forced nations to muster a large-scale fiscal bazooka to avert a deeper economic slump. In the Philippines, ING estimates showed the government has so far rolled out a P604-billion COVID-19 warchest.
For ING, the stimulus packages could have also been used to back green projects meant to cut heat-trapping carbon emissions, instead of just cash dole outs, income subsidies and spending on health "with no emphasis on the environment or sustainability."
Apart from Philippines, Taiwan, Indonesia, Thailand, Japan and Australia are just some of the countries that have neglected a greener recovery under their stimulus plans. India, China, New Zealand and Singapore, meanwhile, are at the other end of the spectrum with focus on environmental-sensitive outlays.
At home, lawmakers are set to pass a stimulus package that follows the Duterte administration's thrust of fiscal discipline under the Bayanihan to Recover as One bill already approved by Congress. However, ING believes even this new legislation "will likely continue to focus on income replacement with the economy on partial lockdown... with no emphasis on green projects or programs."
"With COVID-19 spreading across the Philippines and the economy in recession, it may be understandable that the majority of funds have been allocated to income subsidies, healthcare and support to SMEs," the global bank said.
"The government has opted to channel a part of the COVID-19 response into loan support for SMEs given that the bulk of employment is generated by this sector," it added.
Last year, the Philippines was declared facing the highest risk of climate change hazards, according to the latest Global Peace Index (GPI) released by Institute for Economics and Peace, an Australia-based independent think tank. The country lodged the highest scores in terms of hazards such as floods, cyclones and droughts.
For climate advocates, green stimuli can deliver a stronger boost to the economy than other policies and generate a greater number of jobs in many, if not most, cases. This, as the coronavirus-induced recession means governments would have to rescue even fossil fuel-heavy sectors that had contributed to climate change prior to the pandemic to save jobs and the economy.
But as the second stimulus bill contained under the so-called Bayanihan II is set to reach President Rodrigo Duterte's desk, the global bank said there are still ways to include environmental priorities on the package.
"Authorities might have opted to tie some of these salary subsidies and low interest rate loans with requirements to help promote the environment and sustainability," ING Bank said.
"The government could perhaps identify and prioritise infrastructure projects depending on their green criteria," the bank added.
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