Is the Philippines Ready for Nature-Related Financial Disclosures?

BIOFIN Philippines | March 2024

In the COP15, countries agreed to a Global Biodiversity Framework which sets targets to protect 30% of the earth’s land, inland waters, oceans and coastal areas by 2030 with emphasis on areas important for biodiversity and ecosystem services. Expanding restricted spaces for conservation may present transition risks to mining, agriculture and tourism sectors if applied in the Philippines. The Philippines has sound strategies and comprehensive environmental laws and policies, but some penalties need updating. Taxes, subsidies, fines, and penalties if set high enough, are effective mechanisms to discourage pollutive activities and promote green practices. This technical brief highlights the findings and recommendations of the study conducted by BIOFIN Philippines on the country’s readiness for nature-related finance disclosures. The study assessed Philippines’ institutional, policy and regulatory readiness for disclosure of nature-related finance and risks. It also assessed the institutional arrangements readiness and capacities of national and local associations of economic agents and put forward a set of entry points and recommendations moving forward.