IEEFA supports the specified design criteria but emphasizes the importance of credibility, which can be challenging to ensure in a principles-based taxonomy.
To best achieve climate mitigation objectives, IEEFA recommends including or strengthening language that specifies that all fossil fuel-related exploration, production, transportation, and power generation projects be designated as “red.”
Natural gas should not be considered sustainable or transitional, as it risks locking the Philippines into a high-emitting future.
IEEFA recommends removing carbon capture, utilization, and storage (CCUS) as an “enabling sector” from the current iteration of the taxonomy guidelines. While CCUS activities may contribute to climate mitigation objectives in high-emitting sectors, qualification as “sustainable” will require scientific thresholds that are not currently suitable for a principles-based taxonomy.
05 October 2023
To: The Secretariat, Bangko Sentral ng Pilipinas
Re: Philippines Sustainable Finance Taxonomy Guidelines - Consultation Document
IEEFA supports establishing Sustainable Finance Taxonomy Guidelines for the Philippines market that are globally interoperable, credible and high-quality under the Philippine Sustainable Finance Roadmap.
We respond to selected consultation questions in the consultation document:
We welcome the opportunity to discuss further issues and participate in setting future standards.
Submitted via email.