Building a sustainable future through renewables, finance
MANILA, Philippines — The Philippines stands at a critical juncture. As one of the world’s most climate-vulnerable nations, we face annual economic losses of P177 billion due to typhoons and earthquakes.
Yet, amid these challenges, our economy remains resilient. Inflation in January 2025 held steady at 2.9 percent year-on-year, well within the Bangko Sentral ng Pilipinas target range of two to four percent. Core inflation also eased to 2.6 percent, reflecting the BSP’s careful monetary stewardship.
This stability is fueling a transformative shift in our energy landscape, as renewable energy investments surge to unprecedented levels.
While recent weather disruptions and African swine fever have driven up prices for vegetables, fish, and meat, declining rice prices — supported by sufficient domestic supply and lower-tariff imports — have helped balance the equation. A slower annual increase in electricity rates has further moderated non-food inflation, creating a favorable environment for sustainable investments.
This economic stability is not happening in isolation. Globally, renewable energy investment trends are shifting. Established markets like the United States and United Kingdom saw declines of 12 percent and 68 percent, respectively, in 2024.
However, emerging markets like the Philippines are picking up the slack. According to BloombergNEF, the Philippines recorded a remarkable 45 percent increase in renewable energy investments last year, far outpacing the global average of eight percent. This growth, alongside gains in Thailand (70 percent), Malaysia (13 percent) and Indonesia (10 percent), has positioned Southeast Asia as a renewable energy powerhouse, with regional investment growth of 37 percent.
The scale of this transformation is undeniable. The Board of Investments reports that renewable energy accounted for 95 percent of the P1.35 trillion in approved investments last year. This staggering figure underscores the urgent need for financial institutions to develop scalable and innovative sustainable finance solutions.
The Philippines’ national framework for sustainable finance, anchored in the Philippine Development Plan 2023-2028 and our climate commitments, is driving this momentum. While social objectives are still being integrated, current initiatives are already channeling capital toward priority areas like healthcare, infrastructure, housing and food security — tying back to the pressing need to address rising food prices and ensure long-term resilience.
The financial sector is rising to the occasion. Banks are leading the charge with green, social and sustainability bonds, while real estate developers are pioneering sustainability-linked instruments. A standout example is BDO Unibank’s P55.7 billion sustainability bond, which attracted 11 times its initial target under ING’s arrangement and sustainability coordination.
This enthusiasm reflects a broader trend: the sustainable finance market in the Philippines grew by 2.5 times in 2024 compared to the previous year. Since 2021, sustainable debt issuances have reached $13.5 billion, including $10.2 billion in sustainability bonds and $1.3 billion in green bonds.
Recent deals highlight the growing momentum. Philippine National Bank marked its return to the international debt capital markets after five years with a $300 million sustainability bond, allocated primarily to solar projects (50-60 percent) and renewable energy loans (30-40 percent). ING served as the sole sustainability coordinator, helping PNB update its Sustainable Financing Framework and achieve the lowest spread/yield for a Philippine financial institution in 2024.
Similarly, Rizal Commercial Banking Corp. successfully issued a $350 million sustainability bond in January 2025, oversubscribed by 2.9 times with orders from over 77 accounts. ING acted as joint bookrunner, leveraging our global network and expertise to ensure a nimble and efficient execution.
Three key factors are driving this momentum: evolving regulatory frameworks from the BSP and SEC mandating ESG reporting, corporations’ need to diversify funding sources for large-scale projects and growing pressure from ESG-conscious investors, particularly on publicly traded companies.
At ING, we are committed to supporting this transition. We have assessed the climate disclosures and transition plans of nearly 2,000 clients, assigning each a Client Transition Plan score to track their progress. Our “inclusion first” approach ensures ongoing dialogue with clients and stakeholders, enhancing the quality of our sustainability-focused solutions. While this is a significant step forward, our work is far from over. We will continue to evaluate our remaining clients, focusing on their governance, strategy and action plans to ensure they have a solid foundation for their transition. This structured approach allows us to support companies at every stage of their journey, driving meaningful progress across the board.
To further strengthen this effort, we’ve established clear criteria for effective transition plans, covering emissions tracking, decarbonization targets and implementation strategies. This collaborative approach not only reduces emissions but also enhances client resilience and strengthens our long-term position. Together, we are working toward the 2050 net-zero goal, creating measurable environmental progress along the way.
As we approach 2025, new ESG disclosure requirements will further shape the landscape, spanning climate impact to governance frameworks both in the Philippines and across the broader Asia Pacific region. For business leaders, this convergence of renewable energy growth and economic stability presents a strategic opportunity to invest in sustainability. The BSP’s commitment to price stability reinforces the foundation for advancing renewable energy adoption and sustainable finance initiatives, ensuring that the Philippines remains on a path toward resilience and growth.
In this era of change and opportunity, ING remains steadfast in guiding our clients through their sustainability journey. By combining our financial expertise with a deep commitment to sustainability, we aim to build a more resilient and sustainable Philippine business landscape for generations to come. Together, we can turn challenges into opportunities and pave the way for a brighter, greener future for the Philippines.
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