Manila, Philippines — The Department of Environment and Natural Resources (DENR) hosted a roundtable discussion on thematic bonds supported by the United Kingdom's Foreign, Commonwealth and Development Office (UK FCDO) and the United Nations Development Programme (UNDP) through the Climate Finance Network (CFN) initiative. The event gathered key stakeholders to explore the potential of thematic bonds — such as green and blue bonds — to support the Sustainable Development Goals (SDGs). The discussions centered on strengthening the collaboration between the different development sector partners and national government agencies to promote sustainable financing in the Philippines. 

DENR Undersecretary for Finance, Information Systems, and Climate Change Analiza Rebuelta-Teh opened the session by highlighting the urgent need for investments to align with the SDGs and national priorities, especially the Philippines’ Nationally Determined Contribution (NDC) and the National Adaptation Plan (NAP). UK FCDO’s Southeast Asia Regional Lead for Green Finance and Carbon Pricing Mechanisms Charis Yeap noted the significant growth in the sustainable finance market and the UK's comprehensive strategy, which includes sovereign green bonds and various policy commitments. Yeap underscored the UK's collaboration with Southeast Asian countries to align financial systems with global climate goals and highlighted specific programs and partnerships supporting these efforts.

Meanwhile, ADB Senior Infrastructure Specialist Dan Haglund provided an overview of global and regional trends in thematic bonds. He shared examples of thematic bonds fund projects with specific environmental or social benefits, following a use-of-proceeds framework aligned with international standards. While thematic bonds are growing rapidly, they still represent a small share of the global bond market. 

With the DENR currently preparing the National Blue Carbon Action Plan, the discussion then shifted to how the Philippines can draw lessons from Fiji's experience in financing the blue economy through the issuance of thematic bonds, anchored in their National Ocean Policy, as presented by UNDP’s SDG Finance Specialist, Anders Nordheim. Fiji's blue bond issuance aimed to diversify the economy and reduce dependency on tourism, with support from UNDP and the UK government. The bond issuance was successful, with high demand and competitive rates, and Fiji's experience became a model for other small economies considering similar financing initiatives.

The group also discussed the various relevant initiatives from national government agencies. Among those discussed include the BSP’s Sustainable Finance Framework, incentives for green projects, and streamlined regulations to facilitate bond issuance. BSP's ongoing efforts include enhancing sustainability reporting and aligning with international standards. Director John Narag of the Department of Finance (DOF) discussed the Philippines' experience with sovereign bonds, particularly thematic and sustainable bonds, as part of its innovative climate finance strategy. He highlighted the country's efforts to mobilize resources through instruments like sustainability-linked bonds, catastrophe bonds, and debt-for-nature swaps, emphasizing inter-agency coordination and international support. A key initiative of government to support this is the convening of the Inter-Agency Task Force for Sustainable Finance or the Green Force, to align national strategies with the Philippines' NDC commitments. These initiatives help ensure transparency and adherence to sustainable finance principles while leveraging both local and global capital markets to finance climate adaptation, social programs, and sustainable development projects. The Securities and Exchange Commission (SEC) shared its guidelines for the issuance of Green, Social, Sustainability, Sustainability-Linked, and Blue Bonds under the ASEAN standards in the Philippines. These rules and regulations set the framework for specific-purpose bonds where proceeds are exclusively applied to finance or refinance eligible projects that offer environmental and social benefits, including renewable energy, pollution prevention, affordable housing, and sustainable water management.

 This roundtable discussion underscored the growing importance of thematic bonds in achieving sustainable development goals and highlighted the collaborative efforts needed to advance these financing instruments in the Philippines and beyond.