Understanding Sustainable Finance
One of the leading vital tools in the world that contributes to economic growth while addressing climate change is sustainable finance. According to the European Commission, the primary executive branch of the European Union, sustainable finance takes into consideration the environmental, social and governance (ESG) factors creating investment decisions to ensure long-term investments that could bring stable income and projects. Through sustainable finance, the country aims to support more economic projects that are more environmentally conscious and increasingly carbon-neutral.
Sustainable Finance in the Philippine Market
From January to September 2025, ING, a global financial institution from Netherlands, reported a financial issuance reaching $1.231 trillion, reflecting a down by 5.2% from $1.298 trillion during the same period last 2024.
Despite the dip in the overall issuance, it is to be noted that the Asia-Pacific region had an issuance reaching $345 billion from January to September which had a growth streak since 2021. Notably, the Philippines had contributed to the sustainable financial growth in the Asia-Pacific region, having a finance issuance which have exceeded $10 billion. Beyond this, the Philippines’s coal power generation has had its first annual decline for the first time in two decades. Abo and Penaranda Law takes pride in their legal expertise in setting up companies for Foreign Investors to take advantage of this steady growth.
Looking ahead, the Department of Energy’s Clean Energy Scenario hopes to achieve a 35% increase in the usage of renewable energy by 2030 and a 40% increase by 2040. With these in mind, various institutions have already transitioned to operating through the use of 100% renewable energy, using power directly from suppliers through the Green Energy Option Program.
Legal Expertise
While the progress of sustainable finance in the Philippine market is not linear, it is evident that more institutions are being mindful of adopting sustainable finance practices such as Abo and Penaranda Law. This is largely because such practice offers two-in-one benefit—which mainly strengthens the economy while protecting the environment. Such mindful decisions not only ensure progress for the country but enables to give benefit for the current and future generations.
