‘Funding gap hits Philippines firms’ net-zero targets’

MANILA, Philippines — Despite the country’s bold climate targets, most local companies are still struggling to meet their net-zero goals largely due to limited access to capital, according to the Net Zero Carbon Alliance.

NZCA, the country’s leading private sector-backed net-zero coalition, said the lack of vital tools, scalable technologies and accessible financing has held back many Philippine businesses from achieving their climate commitments.

These challenges were said to have kept companies stuck in the promise phase, stalling the shift from climate pledges to the implementation of real, measurable decarbonization strategies.

“Whether they’re small and medium enterprises tracking emissions for the first time or large corporations working to reduce supply chain emissions, the challenge is clear: ambition must translate into action,” NZCA executive director Allan Barcena said.

Environment Secretary Raphael Lotilla earlier said the Philippines would require at least $72 billion in financing to lower its carbon emissions and help confront the climate crisis.

“Hence, mobilization and provision of finance technology and capacity building to enable ambitious climate action need to be accelerated,” Lotilla emphasized in a climate summit last month.

To deepen the dialogue on the national decarbonization strategy, NZCA, in partnership with Southeast Asia Corporate Decarbonization Exchange, is set to stage this year’s Philippine Net Zero Conference on Sept. 18.

The conference aims to provide local businesses with a solutions-focused agenda that will explore innovative pathways and unlock financing mechanisms to help advance their net-zero goals.

“Through continuous and practical dialogue with different leaders, we can help drive both corporate and national progress toward a low-carbon economy,” Barcena said.

In 2016, the Philippines, along with 174 countries, signed the historic Paris Agreement, which sets long-term goals to guide all nations in reducing their emissions.

As outlined in its nationally determined contribution, the Philippines commits to reducing its greenhouse gas emissions by 75 percent by 2030.