JICA, Government Partners to Strengthen Sustainable Finance and Transparency in the Philippines

The Japan International Cooperation Agency (JICA) is advancing efforts to strengthen sustainable finance and enhance climate‑related disclosures and transparency in the Philippines with the signing of the Record of Discussions for the “Project on Strengthening Sustainability and Transparency Framework” this May. The agreement was signed by JICA Philippines Chief Representative BABA Takashi and Secretary Frederick D. Go from the Department of Finance (DOF), as the lead implementing agency in partnership with the Securities and Exchange Commission (SEC) and the Department of Environment and Natural Resources (DENR).

In a 2025 Philippine Institute of Development Studies (PIDS) discussion paper on climate change perceptions and climate finance mechanisms, it stated that the DOF Sustainable Finance Roadmap (SFR) indicates an annual climate finance at only USD 2.5-3.0 billion, far below the approximately USD 12-15 billion required each year, leaving annual shortage of about USD 9-12 billion. As one of the countries most vulnerable to climate change, the Philippines faces escalating risks from stronger typhoons, flooding, and rising temperatures. These impacts affect communities, critical infrastructure, and key sectors such as agriculture and energy. Addressing these challenges requires robust systems for planning, financing, and monitoring climate action, including strengthened approaches to managing and tracking climate‑related investments.

To be implemented from 2026 to 2029, the project will enhance sustainable finance and transparency through improved disclosure frameworks, strengthened greenhouse (GHG) inventory and reporting systems, and monitoring of climate‑related initiatives. Through targeted capacity-building, DOF, SEC, and DENR officers will be better equipped to contribute to advance the Philippines’ commitments under the Paris Agreement. These knowledge exchanges will strengthen institutional capacities in the Philippines and enhance implementing Article 6, including the Joint Crediting Mechanism.

Under the project, JICA will dispatch Japanese experts on climate change, sustainable finance, sustainability reporting, and transparency/GHG inventory. The DOF will lead policy integration and overall implementation; the SEC will support sustainability reporting enhancements; and the DENR will strengthen the transparency framework. By enhancing coordination among agencies and aligning reporting frameworks, the project will help ensure that policies and investments remain aligned with the Philippines’ climate targets and long-term development priorities.

The Project on Strengthening Sustainability and Transparency Framework forms part of JICA’s broader support for climate action in the Philippines over the years, including policy‑based lending Climate Change Action Program - Subprogram 2 amounting JPY 35 billion in 2025, climate change advisory, technical cooperation projects on enhancing forest monitoring and inventory of hydropower potential sites, training and scholarship programs, private sector engagement, and disaster risk reduction and climate co-benefits efforts.

Reflecting 70 years of bilateral cooperation between Japan and the Philippines, JICA continues to support low‑carbon growth, build resilience to climate impacts, and reinforce the country’s ability to address environmental challenges.