亚开行-绿色基础设施投资机会：菲律宾2020年报告（英文）-2020.11-60页_8mb

Green Infrastructure Investment Opportunities in the Philippines (2020 Report)

Core Content

This report outlines the opportunities for green infrastructure investment in the Philippines, emphasizing the importance of transitioning to a low carbon and climate-resilient economy. It serves as a guide for project owners, developers, institutional investors, and government stakeholders to identify and engage with green investment opportunities.

Main Points

• Green Infrastructure Importance: Green infrastructure is a critical component for achieving climate goals and economic development. It is projected that USD100 trillion worth of climate-compatible infrastructure will be needed globally by 2030.

• Philippines as a Green Investment Hub: The Philippines is considered one of the most vulnerable countries to climate change, with a high exposure to natural hazards and climate-sensitive resources. Despite this, it has shown significant growth in green finance and infrastructure development.

• Green Finance Growth: The green bond market in the Philippines has grown rapidly, with total sustainable bond issuances reaching USD3.4 billion equivalent as of 2020. Most of these issuances are from the private sector, and they are often labeled under ASEAN Green Bond Standards (GBS).

• Government and Institutional Support: The Philippine government has taken a "whole of government" approach to sustainable finance, with the Department of Finance establishing the Interagency Task Force on Green Finance and the Bangko Sentral ng Pilipinas (BSP) publishing a sustainability framework and investing in green bonds.

• Private Sector Leadership: Private sector entities, including banks and renewable energy companies, have been at the forefront of green bond issuance in the Philippines, demonstrating strong engagement and interest in sustainable projects.

• Post-COVID-19 Recovery Focus: The report highlights the need for the post-pandemic recovery to prioritize green and sustainable infrastructure. This includes the use of green finance instruments such as green bonds, resilience bonds, and blue bonds to fund recovery efforts.

• Investment Pipeline: The Philippines has a growing pipeline of infrastructure projects, including renewable energy, sustainable transport, water management, and waste management. The Build, Build, Build (BBB) program includes 104 big-ticket projects worth PHP4.1tn (USD84.46bn).

• Investor Appeal: The Philippines offers an attractive investment environment due to its stable sovereign ratings, low interest rates, and a diverse range of financing options. The country's green bond market is growing and aligns with international standards.

Key Investment Opportunities

• Renewable Energy: The Philippines has a strong potential for renewable energy investments, with geothermal being a major focus. The first ASEAN green bond was issued by AP Renewables in 2016.

• Low Carbon Transport: The country faces severe traffic congestion, which is both an economic and social challenge. Investments in sustainable transport infrastructure are crucial for improving mobility and reducing emissions.

• Sustainable Water Management: With a significant portion of the population relying on water resources, investments in sustainable water management systems are essential for long-term resilience and development.

• Sustainable Waste Management: The report highlights the need for better waste management solutions to support environmental sustainability and public health.

• Other Green Opportunities: Additional sectors such as ICT, digital economy, and healthcare are also identified as areas for green investment, especially in response to the pandemic.

Measures for Growth

• Promotion of Green Finance Instruments: The report emphasizes the need for more green debt and equity instruments to support the transition to a low carbon economy.

• Credit Enhancement and Risk Transfer: Credit enhancement mechanisms and risk transfer instruments are recommended to make green projects more attractive and bankable for investors.

• Adoption of Green Standards: The Philippines has adopted ASEAN Green Bond Standards, which are aligned with international best practices, providing assurance to investors.

• Transparency and Certification: The use of international green standards and certification schemes, such as those by the Climate Bonds Initiative, is encouraged to ensure transparency and build investor confidence.

Supporting Institutions

• Climate Bonds Initiative (CBI): CBI has played a key role in developing the green bond market in the Philippines and globally. It provides a taxonomy and certification framework for green finance instruments.

• ASEAN Catalytic Green Finance Facility (ACGF): ACGF supports ASEAN governments in sourcing public and private financing for green infrastructure projects.

• Asian Development Bank (ADB): ADB has been instrumental in supporting green finance in the Philippines, including facilitating the first project climate bond in the region.

Conclusion

The Philippines presents a compelling opportunity for green infrastructure investment due to its growing green bond market, supportive regulatory environment, and commitment to sustainable development. The report encourages continued engagement from investors and stakeholders to build a resilient, low carbon economy.

Key Figures

• Population: 109 million (July 2020)
• GDP: USD376.80 billion (Annual, 2019)
• Interest Rate (Cash Rate): 2.75% (August 2020)
• Government 10Y Yield: 2.64% (August 20, 2020)
• Sovereign Ratings: BBB+, stable (S&P); Baa2, stable (Moody's); BBB (Fitch); A-, stable (Japan Credit Rating Agency)
• Total Sustainable Bond Issuances: USD3.4 billion equivalent (as of 2020)
• Infrastructure Spending to GDP: 5% in 2017; targeted to reach 7% by 2019
• BBB Program Projects: 104 big-ticket projects worth PHP4.1tn (USD84.46bn)

Annexes

• Annex I: Green Debt Instruments
• Annex II: Green Equity Instruments
• Annex III: Credit Enhancement Mechanisms
• Annex IV: Risk Transfer Instruments
• Annex V: Green Standards in the Philippines
• Annex VI: Sample Green Pipeline

References

• Exchange Rate: 1 USD = 48.48 PHP (September 30, 2020)
• World Bank: Projected 2020 GDP contraction of 1.9%
• JICA: Estimated daily loss due to traffic congestion at USD70 million (PHP3.5 billion)
• Philippine Development Plan: Includes targets for infrastructure development in transport, water, and energy sectors
• IMF: Supports the realignment of infrastructure projects for faster recovery
• CBI: Provides a global green bond standard and certification scheme

Summary

The Philippines is a promising market for green infrastructure investment, driven by its commitment to sustainable development, supportive regulatory environment, and growing green finance instruments. The report outlines the importance of green infrastructure in achieving climate goals and economic resilience, while also highlighting the need for continued market development and transparency. With a diverse range of financing options and a strong pipeline of projects, the Philippines is well-positioned to attract international and domestic investors interested in green and sustainable opportunities.