BSP pushes blended finance for climate resilience

The Bangko Sentral ng Pilipinas (BSP) emphasized the critical role of blended finance in scaling up funding for climate adaptation during the “Blended Finance Forum for the Philippines” held from October 15 to 16, 2025, at the BSP Head Office in Manila.

BSP Governor Eli M. Remolona, Jr. said blended finance has the potential to transform how adaptation projects are funded across the country.

“It is about being ready before the disaster strikes,” Remolona said, recalling how areas with mangroves bounced back faster after Typhoon Yolanda, a scenario he described as the “resilience dividend.”

Despite such benefits, adaptation finance currently accounts for just five percent of total global climate funding.

“This is where blended finance comes in,” he added, referring to financial structures that combine public and private capital to mobilize investments.

Ritesh Thakkar, Senior Advisor and Head of Asia Pacific of Convergence, defined blended finance as “the use of catalytic capital from public or philanthropic sources to mobilize private sector investment for sustainable development.”

The forum was co-organized by the BSP, Australia’s Department of Foreign Affairs and Trade, and Convergence, and brought together regulators, financial institutions, government agencies, development partners, and private sector leaders.

Participants discussed strategies to develop a pipeline of investable adaptation projects, attract domestic capital, and apply blended finance in key areas such as agriculture, micro, small and medium enterprises (MSMEs), and nature-based solutions.

Nature-based solutions involve restoring and protecting ecosystems to address social and environmental challenges while promoting biodiversity.

A high-level, closed-door roundtable was also held and attended by Australian Ambassador to the Philippines Marc Innes-Brown and Climate Change Commission Secretary Robert E.A. Borje.

The session was facilitated by BSP Assistant Governor and Chief Sustainability Officer Pia Bernadette Roman-Tayag and featured participants from both the public and private sectors.

The event is part of the BSP Sustainability Agenda, which supports the Philippines’ National Adaptation Plan 2023–2050 and aims to align financial flows with national climate goals.