Philippines Financial Sector Assessment Program : Climate Change and Environmental Risks and Opportunities
The Philippines’ financial sector is highly vulnerable to climate risks. The country has high exposure to natural hazards (typhoons, landslides, floods, droughts, volcanic eruptions), strong dependence on a climate-sensitive agricultural sector, an...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/244321629266625579/Philippines-Financial-Sector-Assessment-Program-Climate-Change-and-Environmental-Risks-and-Opportunities-Technical-Note http://hdl.handle.net/10986/36182 |
| Summary: | The Philippines’ financial sector is
highly vulnerable to climate risks. The country has high
exposure to natural hazards (typhoons, landslides, floods,
droughts, volcanic eruptions), strong dependence on a
climate-sensitive agricultural sector, and vast coastlines
where all major cities and the majority of the population
reside. Significant systemic vulnerabilities can materialize
if large natural disasters affect the capital region. In
addition to physical risks, Philippine banks can also be
exposed to transition impacts, that is, risks that emerge
during the transition towards a more sustainable and
carbon-neutral economy. Philippine supervisory authorities
should build capacity to better understand and manage
climate risks and foster transparency. At the same time,
there is opportunity for deepening financial markets for
green growth, by addressing several market and institutional
barriers. With limits in public spending, there is great
need, but also a significant opportunity for the private
sector to contribute to green inclusive growth, including
finance for climate resilience and mitigation efforts. |
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