The Bangko Sentral ng Pilipinas (BSP) has positioned blended finance as a powerful tool to significantly increase funding for climate adaptation and resilience projects in the country. This was the central theme of the "Blended Finance Forum for the Philippines", held from October 15 to 16, 2025, at the BSP Head Office in Manila.
What is Blended Finance and Why Does It Matter?
During the forum, BSP Governor Eli M. Remolona, Jr. emphasized the transformative potential of this financing model. He explained that it is crucial to invest in readiness before disasters occur. Governor Remolona cited the example of areas with mangroves that experienced faster recovery after the devastation of Typhoon Yolanda, a clear benefit he termed the "resilience dividend."
Despite these proven advantages, a significant funding gap remains. Adaptation finance currently represents a mere five percent of total global climate funding. Governor Remolona stressed that this is precisely where blended finance becomes essential, acting as a catalyst to bridge this critical gap.
A Collaborative Effort for Sustainable Development
The event was co-organized by the BSP, Australia’s Department of Foreign Affairs and Trade, and the global network Convergence. Ritesh Thakkar, Senior Advisor and Head of Asia Pacific at Convergence, provided a clear definition for attendees. He described blended finance as "the use of catalytic capital from public or philanthropic sources to mobilize private sector investment for sustainable development."
The forum served as a major gathering point for a diverse group of stakeholders, including:
- Government agencies and regulators
- Financial institutions
- Private enterprises
- Development partners
Participants engaged in productive discussions on key strategies, such as creating a pipeline of investable adaptation projects and finding ways to mobilize domestic capital.
High-Level Discussions on Key Sectors
A closed-door High-Level Leaders’ Roundtable Discussion was a featured part of the event. Notable attendees included Australian Ambassador to the Philippines Marc Innes-Brown and Climate Change Commission Secretary Robert E.A. Borje.
Facilitated by BSP Assistant Governor and Chief Sustainability Officer Pia Bernadette Roman-Tayag, the roundtable delved into applying blended finance solutions across vital sectors of the Philippine economy. The focus areas included:
- Agriculture
- Micro, small, and medium enterprises (MSMEs)
- Nature-based solutions
Aligning with the National Sustainability Agenda
This Blended Finance Forum is a concrete component of the broader BSP Sustainability Agenda. The central bank's initiative aims to direct financial flows toward the country's most pressing climate priorities. This effort is designed to be fully aligned with the National Adaptation Plan 2023–2050, ensuring a coordinated national response to climate challenges.
By championing blended finance, the BSP is leading a strategic push to unlock much larger pools of private capital. The goal is to build a more resilient and sustainable future for the Philippines, ensuring the nation is better prepared for the impacts of climate change.
