The global climate change crisis is a deeply unfair challenge, with underdeveloped countries being disproportionately impacted. Nations with the fewest resources are likely to bear the biggest burden in terms of loss of life and relative effect on economy and investments.
On Wednesday, Finance Secretary Ralph G. Recto called on finance ministers of 92 countries to drive integrated solutions that bring climate action and poverty eradication all together, stressing the need to balance economic development and climate resilience during a high-level meeting hosted by the Philippines.
"Here in the Philippines, we are no strangers to the economic gymnastics required to balance growth and resilience. Just like our two-time Olympic gold medalist, we strive to master the complexities of economic development and climate action—to emerge triumphant," he said in his keynote address at the Coalition of Finance Ministers for Climate Action (CFMCA) Regional Meeting on August 28 held at the Asian Development Bank (ADB) Headquarters.
"As finance ministers, we understand better than most that these two vital agendas are not competing forces on a scale. When done right and contextualized in our realities, they reinforce each other to ensure our people's welfare, security, and prosperity," he added.
Established in 2019, the CFMCA is a global alliance of Finance Ministers in 92 countries that fosters knowledge exchange and supports climate action initiatives.
During the meeting, Recto emphasized to fellow Finance Ministers and development partners that the Philippines prioritizes fiscal stability to provide the long-term investments needed to take real and meaningful climate action.
The Marcos administration's Medium-Term Fiscal Program serves as the government's blueprint for sustainable economic growth while upholding the highest standards of fiscal discipline.
The program enables the government to prudently finance green infrastructure, support local adaptation projects, educate people on climate consciousness, create green jobs, and reduce poverty.
"For we know all too well, that we cannot achieve overall economic prosperity for Filipinos without boosting climate resilience," the finance chief said.
"Because climate change is deeply unfair. It strikes the hardest at the poorest. It makes poverty worse. As climate impacts grow, so will the difficulty and cost of eradicating poverty in the country. It is the ultimate injustice," he added.
Apart from the fiscal consolidation plan, the Philippines has the National Adaptation Plan (NAP) and the NDC Implementation Plan (NDC IP), which are playbooks that outline strategies to fully achieve both climate and economic objectives.
Recto also highlighted the People's Survival Fund (PSF) as one of the country's concrete and innovative climate solutions. The PSF channels vital resources directly to locally tailored and community-led climate adaptation projects.
To facilitate the development of a green and sustainable economy in the Philippines, the Inter-Agency Task Force on Sustainable Finance (ITSF) or Green Force was established with support from the Government of the United Kingdom (UK) under the Association of Southeast Asian Nations (ASEAN) Low Carbon Energy Programme (ALCEP).
The Philippines is also mobilizing the nation through the recently enacted Public-Private Partnership (PPP) Code to expedite sustainable and climate-resilient investments across the Philippine archipelago.
Recto also said that the Department of Finance (DOF) is utilizing fiscal policy to promote a regime that rewards green investments in the country.
He shared the anticipated passage of the Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill, which will improve the country's tax incentives policy and tailor-fit investors' interests to attract more investments in clean and renewable energy, green infrastructure, sustainable agriculture, and waste-to-energy technologies, among others.
The DOF is also pushing to pass the Excise Tax on Single-Use Plastics bill to cut pollution and adopt more sustainable practices.
In addition, the recent approval of the expanded electric vehicle incentive program under Executive Order (EO) No. 12 will further enhance the ease of doing business in the Philippines and advance the country's climate ambitions by promoting more sustainable investments and generating more jobs in green technology for Filipinos.
Moreover, the government and the private sector are actively issuing sustainability bonds to finance green and social projects nationwide.
"But our commitment does not end at our borders. Because climate change does not respect boundaries, and neither should our actions. It is equally important that we support and stand by our regional neighbors," Recto said.
He stressed that President Ferdinand Marcos, Jr., is pushing for the Philippines' bid to host the Loss and Damage Fund (LDF) Board and bring it to Asia and the Pacific Region.
"By doing so, we will not only spotlight our achievements but amplify our voices and galvanize our efforts to secure more financial resources for climate action," the Finance Chief explained.
"With your help, we hope that our LDF hosting will serve as the gold standard for climate finance and action, not just in Asia and the Pacific, but worldwide," he added.
In closing, Recto highlighted that today is a defining moment that will determine the fate of nations and that finance ministers should let history judge them as the generation that reversed the twin tides and ended the era of delay and inaction.
"And let us become the coalition that worked hand in hand in steering the world faster and further on the road to a greener and more prosperous future that the next generations will proudly inherit," he underscored.
The DOF, in partnership with the CFMCA, led by the Netherlands and Indonesia as co-chairs, the Asian Development Bank (ADB), the United Nations Development Programme (UNDP), the United Nations Environment Programme (UNEP), NDC Partnership, and the World Bank (WB), hosted the two-day Regional Meeting from August 27 to 28, 2024 in Manila.
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