DOF Boosts ITSF Role To Advance Sustainable Finance

The Department of Finance (DOF) is spearheading the Philippines' sustainable finance push by dramatically enhancing the role and organization of the Inter-Agency Technical Working Group on Sustainable Finance (ITSF), or the Green Force. The overall goal is to make the ITSF a primary force behind forging climate-adapted policies and investments that will serve the nation's climate objectives, with aggressive plans set for 2025.

At the March 28 ITSF meeting, Undersecretary and DOF Chief of Staff Maria Luwalhati Dorotan Tiuseco urged the need for reforming the nation's sustainable finance system. "Our objective today is plain—to empower the ITSF to become more involved and focused in helping shape sustainable finance policies of the country," she said. "Today is our chance to share the vision we have for the ITSF and what role it can play in building evolutionary changes in the sustainable finance environment of our country."

Co-chaired by the Climate Change Commission and the DOF, the ITSF serves as the key to the Philippine Sustainable Finance Roadmap. It also assists in aligning green policies across agencies and building a strong, sustainable investment pipeline. The meeting was a major milestone, with the DOF mapping out the way forward to make the ITSF more inclusive, strategic, and able to address the intricacies of climate finance.

One of the main efforts is the inclusion of ITSF membership of major agencies like the Bureau of the Treasury (BTr), PHILGUARANTEE, and other finance institutions. The aim is to provide wider government representation and promote a more integrated approach to sustainable finance. These inclusions are anticipated to enhance the group's ability to respond to climate issues through unified financial measures.

A new organizational structure will now organize the ITSF into three strategic clusters: the Policy Cluster, which will lead regulatory convergence; the Financing Cluster, which will be responsible for maximizing financial instruments; and the Investment Cluster, which will lead the creation of a pipeline of bankable green projects. This cluster-based approach is meant to establish a more streamlined and effective system for the execution of the Sustainable Finance Roadmap.

To enable ongoing policy monitoring and facilitate inter-agency coordination, the DOF will also start calling the ITSF quarterly. The regular sessions will be a forum for agencies to monitor progress, exchange views, and coordinate actions across the three clusters. Additionally, a new Center of Excellence for Sustainable Finance will be established to act as a training, policy, and market development center, assisting in the development of institutional knowledge and capabilities within the government.

The other key element of the DOF's plan is triggering a green project pipeline. Agencies are enjoined to synchronize their high-priority projects with the Philippines' climate plans, notably the National Adaptation Plan (NAP) and the Nationally Determined Contribution Implementation Plan (NDCIP). This synchronization is crucial to making the investments climate-resilient as well as in keeping with the Philippines' international obligations, among them the Paris Agreement.

Among the proposals being considered is an exploratory study on a Carbon Market Framework, which will be informed by Article 6 of the Paris Agreement. The creation of such a framework would allow the country to join international carbon markets, potentially opening up new sources of climate finance and stimulating private sector involvement.

Along with these initiatives, the DOF is developing a national Climate Finance Strategy, a new Sustainable Finance Framework, and new green financing guidelines under the amended Public-Private Partnership (PPP) Code. These tools are likely to give more guidance and stronger incentives for public and private stakeholders to pursue green investments.

The meeting on March 28 brought together important representatives from the different government agencies, such as the Securities and Exchange Commission (SEC), Bangko Sentral ng Pilipinas (BSP), PPP Center, Department of Budget and Management (DBM), Department of Environment and Natural Resources (DENR), Department of Energy (DOE), Department of Public Works and Highways (DPWH), Department of Trade and Industry (DTI), Bases Conversion and Development Authority (BCDA), Insurance Commission (IC), and Mindanao Development Authority (MinDA). Their attendance underscored the increasing inter-agency backing for institutionalizing sustainable finance.

Through these bold reforms, the DOF and the ITSF are putting the Philippines on the path towards becoming a regional leader in climate-aligned finance in Southeast Asia. By enhancing policy coherence, making financial tools more potent, and catalyzing green investments, the government is setting the stage for a resilient and sustainable economic future.