PH eyes green finance growth as inflation holds at 2.9%

Manila, Philippines, 4 March 2025 – The Philippines is well-positioned to capitalise on the growing momentum in sustainable finance, as stable economic indicators and favourable market conditions create an enabling environment for green financing. This aligns with the broader Asia-Pacific region, which is experiencing record-breaking growth in sustainable finance activity.

The Bangko Sentral ng Pilipinas (BSP) reported encouraging economic figures in January 2025, with headline inflation holding steady at 2.9% year-on-year, firmly within the government’s target range of 2-4% for the year. Core inflation also improved to 2.6% from 2.8%, while month-on-month seasonally adjusted headline inflation eased to -0.1% from December’s 0.5%. These stable economic conditions provide a solid foundation for sustainable finance initiatives to thrive.

The Philippine Institute for Development Studies (PIDS) has identified renewable energy, infrastructure, digital transformation, and healthcare as key sectors of interest in 2025, reflecting rising investor focus on environmental, social, and governance (ESG) principles. This aligns with global trends, as highlighted in ING’s latest Sustainable Finance Pulse report (Issue 5, 2025), which underscores the continued growth of sustainable finance worldwide.

Global sustainable finance momentum

Total global sustainable finance issuance reached a record USD 1.657 trillion in 2024, marking an 11% increase from 2023. Green bond issuance led the way, hitting USD 688 billion in 2024, with projections indicating a rise to USD 700 billion in 2025. Sustainability bonds and green loans also achieved new records, with USD 252 billion and USD 192 billion issued, respectively.

ING, a global leader in sustainable finance, mobilised €130 billion (approximately USD 136.33 billion) in sustainable financing in 2024, surpassing market growth rates and making significant progress toward its 2027 target of €150 billion (approximately USD 157.19 billion) annually. The bank’s strong performance was driven by its focus on integrating sustainability into its decision-making framework, including the use of its Client Transition Plan (CTP) score to assess corporate climate transition strategies.

Philippines’ green finance opportunity

The Philippines is emerging as a key player in the region’s sustainable finance landscape, with renewable energy and infrastructure projects attracting significant interest. The country’s stable inflation and proactive monetary policy measures by the BSP provide a conducive environment for green financing.

Jun Palanca, country manager for ING Philippines, commented on the growing opportunities: “The Philippines is at a pivotal moment in its sustainable finance journey. With stable economic indicators and a clear focus on renewable energy and infrastructure, the country is well positioned to attract green investments. At ING, we are committed to supporting this transition by providing innovative financing solutions that align with global sustainability goals. Our efforts in 2024, including the mobilisation of €130 billion in sustainable financing globally, reflect our dedication to driving meaningful change in the markets we serve.”

As transition bonds and loans gain traction across Asia and emerging markets, the Philippines remains focused on maintaining economic stability while leveraging the region’s expanding sustainable finance landscape. With supportive regulatory frameworks and increasing investor demand for credible ESG solutions, the country is poised to play a significant role in the global transition to a sustainable economy.

Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on Opens in a new tabing.com/climate.