Unlocking finance for a new era of inclusive growth

Finance is pivotal to Asean’s sustainability transition, driving decarbonisation and climate resiliency while spurring economic growth. However, shifting national commitments, geopolitical tensions and weakening global alliances are constraining access to sustainable finance, with Asia alone facing an over US$800 billion annual climate finance gap.

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The Philippines is especially vulnerable to this funding gap due to its reliance on multilateral finance and foreign direct investments, while structural challenges – from a fragmented regulatory environment to pervasive data gaps – fuel further risk aversion among investors.

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Despite this, the country is advancing a whole-of-government approach to mainstream sustainable finance – scaling green bonds, embedding sustainability into macroeconomic policies and developing a taxonomy to bridge data gaps and spur investment.

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However, translating high-level frameworks into measurable action is critical as environmental crises intensify. This plenary will convene key stakeholders across the Philippines’ financial ecosystem to determine credible, globally aligned frameworks that catalyses finance at scale and into important national projects.

Across Asia, artificial intelligence (AI) is being deployed to decarbonise energy grids and address climate challenges – optimising industrial efficiency while enhancing disaster forecasting through data analytics.  

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For the Philippines, AI offers dual solutions: accelerating the low-carbon transition and mitigating the devastating impacts of typhoons and floods, which disproportionately affect vulnerable communities.

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Yet AI’s inherent environmental and social costs cannot be ignored. The technology’s rapid digitalisation risks higher emissions if powered by non-renewables, while automation threatens millions of livelihoods through job displacement. Balancing these trade-offs is critical to ensuring AI-driven climate solutions benefit all equitably.

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This plenary session brings together industry leaders and experts to define the legal frameworks, financing mechanisms and policy levers needed to harness AI for sustainable development.

As an archipelagic nation rich in mangroves, seagrasses and forests, the Philippines holds immense potential to lead Southeast Asia's blue and green carbon economy.

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These natural assets not only sequester carbon at scale but also bolster coastal resilience and biodiversity – critical for a climate-vulnerable nation.  

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BDO, the Philippines’ largest bank became the first local lender to issue a blue bond to tackle ocean litter and preserve clean water in a country beset by marine pollution. Banking peer, BPI, intends to follow suit.  Blue bonds will be key to financing underutilised and sustainable water and ocean-related projects.

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Demand is also growing for green bonds as local banks scale up issuances for projects related to renewable energy, green buildings, clean transportation and pollution reduction.

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However, realising the green and blue economy’s potential requires targeted regulation, innovative financing and unprecedented cross-sector collaboration.  

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This fireside chat will explore the role of government and financial institutions in balancing conservation with sustainable development, from carbon credit verification frameworks to incentives for private-sector investment in nature-based solutions.  

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The session will also explore strategies to avoid the potential risks incurred from carbon projects such as community displacement, project integrity and greenwashing.

Carbon markets have emerged as a pivotal yet contentious tool in the fight against climate change. Proponents argue they channel investment into emission reductions and clean energy, offering a flexible, cost-effective path to net zero.  

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Critics, however, warn of greenwashing risks where carbon offsetting replaces genuine emissions reduction and question the integrity of carbon credits, particularly in unregulated voluntary markets.

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For developing economies like the Philippines, carbon trading could unlock vital climate finance and incentivise low-carbon transitions. However, weak governance, opaque pricing and social equity concerns persist. Without robust safeguards, markets may inadvertently perpetuate pollution while diverting attention from systemic decarbonisation.

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This plenary debate convenes leading experts in their fields, debating if carbon markets accelerate global climate progress or hinders it. Key topics include the opportunities (and risks) from the operationalisation of Article 6.4 of the Paris Agreement; what the ASEAN Common Carbon Framework means for the region; and ensuring carbon projects protect the communities directly and indirectly affected by them.

Rising temperatures, extreme weather and environmental degradation are amplifying health risks – from heat-related illnesses and vector-borne diseases to malnutrition and mental health. Vulnerable communities, particularly in climate-exposed regions like the Philippines, bear the heaviest burden.

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Climate action is thus an opportunity to bolster both planetary and human health. Cleaner air, nature-based solutions and climate adaptation improves liveability while driving down emissions.  

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The challenge lies in prioritising health within climate strategies, mobilising finance, innovation and cross-sector collaboration to deliver co-benefits at scale.

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This plenary session convenes health experts, policymakers and climate leaders to explore critical questions such as how can nations integrate health into climate adaptation and mitigation strategies? And what policies and investments are needed to turn the climate-health nexus into a catalyst for equitable development?

Global inequality continues to rise, with climate change exacerbating these disparities – disproportionately affecting marginalised and low-income communities.

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Pervasive income gaps, loss of livelihood from climate impacts and unequal access to sustainable finance threaten to deepen social divides unless addressed with urgent, systemic interventions.

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For the Philippines, where 20 per cent of the population lives below the poverty line yet contributing only marginally to global emissions, the green transition must prioritise justice, equality and job creation.

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Vulnerable groups, from farmers to the informal sector, risk being left behind without targeted reskilling programs and localised green job opportunities. Meanwhile, bureaucratic hurdles and geopolitical delays threaten timely access to the Loss and Damage Fund for Filipino communities already battered by climate disasters.

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This plenary session convenes key players advancing social justice and equality in the Philippines to determine the policy levers to catalyse finance for marginalised communities, integrate inclusivity as a central component to climate adaptation and empower local communities through resource sharing and upskilling.