The Green Finance Institute (GFI) has released a groundbreaking report that lays out a roadmap for accelerating the Philippines’ decarbonization efforts by unlocking private investment in the transport and waste sectors—two of the country’s biggest but most underfunded sources of emissions.
The Mobilising Climate Finance into the Philippines was developed in partnership with the Department of Finance (DOF), the Climate Change Commission (CCC), and the UK Foreign, Commonwealth and Development Office (FCDO). The report identifies barriers to private finance, outlines policy and financial solutions, and highlights the crucial role of innovative investment platforms in achieving the Philippines’ Nationally Determined Contributions Implementation Plan (NDCIP).
The Philippines’ NDCIP estimates that around US$72 billion in climate financing is needed across five key sectors—agriculture, waste, industry, transport, and energy. Yet only 2.7 percent of this amount is covered by public funds, underscoring the urgency of mobilizing private capital through creative and scalable financing mechanisms. While local banks have shown strong support for renewable energy projects, far fewer have ventured into circular economy or zero-emission transport financing, revealing a major investment gap in these emerging areas.
To help bridge this divide, the report supports the work of the Inter-Agency Task Force on Sustainable Finance, known as the “Green Force,” which is led by the DOF and CCC. Formalized in 2021, the Green Force is designed to institutionalize sustainable finance and create a pipeline of green, bankable investments. The GFI’s research and proposed solutions aim to strengthen this platform—helping it evolve into a full-fledged national investment mechanism capable of channelling large-scale private capital into priority sectors.
Transport accounts for roughly 23 percent of the Philippines’ total greenhouse gas emissions from fuel combustion, with traditional jeepneys alone contributing about 15.5 percent. Yet fleet modernization has been slow: as of the end of 2023, only 4 percent of targeted units had been replaced, and fewer than 1,000 electric vehicle charging stations were operational nationwide.
Meanwhile, the waste sector contributes 13 percent of total emissions and produces over 18 million tonnes of municipal solid waste annually, growing at 3.4 percent per year. Only 9 percent of plastic waste is recycled, resulting in up to US$890 million in lost material value annually. The report notes that while waste-to-energy (WtE) projects could unlock this potential, investment uptake has been minimal due to policy uncertainty and limited access to financing.
The GFI’s findings were presented at a validation event in May 2025, co-hosted by the DOF, CCC, and FCDO, bringing together investors, policymakers, and private sector leaders. The next phase of the initiative will focus on implementing blended finance tools, refining regulatory frameworks, and developing investment-ready projects aligned with national climate goals.
James Hooton, Managing Director for International at GFI, said the Philippines represents “a strong but underexplored opportunity” for climate investment. “While public finance remains limited, there’s growing momentum to develop mechanisms that unlock private capital,” he said. “With a revitalized Green Force and rising interest in sustainable finance, this is the moment to focus on sectors that hold real potential for impact.”
British Embassy Counsellor Lloyd Cameron emphasized that climate risks can also drive innovation and opportunity. “By aligning financial flows with national development and decarbonization goals, we can unlock private capital to drive low-carbon, resilient growth,” he said. “The UK is proud to support this work and share its expertise in green finance.”
The Department of Finance underscored that identifying barriers to private investment is critical to making the Philippines’ climate ambitions bankable. “With transport and waste decarbonization among our national priorities, this report marks a key step toward mobilizing private capital for sustainable, inclusive, and climate-resilient growth,” the agency said.
