The Philippines has partnered with the One Planet Initiative to consider the possibility of establishing a biodiversity credit market, as the government is looking at ways to attract more investments to help battle the challenges of climate change and nature loss.
Environment Secretary Antonio Loyzaga revealed the potential market plans during her high-level speech at COP15 in Montreal, according to two press releases by the Department of Environment and Natural Resources (DENR) published this week, highlighting the government’s actions and positions on biodiversity.
“Over 50% of global gross domestic product is linked directly to nature, but public sector funds support over 80% of annual spending. This challenge must be owned by all of us,” said Loyzaga.
“Each stakeholder – the whole of government, private sector, philanthropies, academia, non-government organisations, and communities – needs to contribute to our sustained action,” she said.
The releases did not go into detail over the biodiversity credit deliberations and if a potential market in the Philippines would be designed to attract investments only from domestic companies, or if foreign buyers would be welcome as well.
The One Planet Initiative is a French initiative formed in 2017, aiming at protecting and restoring biodiversity while fighting climate change and desertification.
Only last month Loyzaga committed the Philippines to continue working with the initiative, which is involved in more than 40 coalitions and initiatives in over 130 countries.
Even so, a biodiversity credit market would only be one of a number of initiatives pushed by Manila to help direct funds towards nature.
The environment secretary said the nation has already begun aligning its official development assistance with strategic goals, such as supporting the 10-point Agenda for Financing Biodiversity and the High Ambition Coalition.
In addition, the Department of Finance, with support from the UK, has designed a Sustainable Finance Ecosystem, which allows the department, the Securities and Exchange Commission, and the central bank to collaborate.
It also allows private companies to issue green, development, and social bonds.
“We have adopted a whole of society and systemic risk-based approach where multilateral development banks and the private sector have a key role in achieving sustainable development, nature-based solutions and climate action, and the valuation of ecosystem services,” said Lyzaga.
In addition, the Philippines is in the process of implementing some unspecified debt-for-nature agreements, and is finalising carbon offset agreements with Conservation International and consumer goods firm Procter & Gamble that will fund mangrove restoration.
By Stian Reklev – email@example.com