(Bloomberg) -- Philippines President Ferdinand Marcos Jr. said on Tuesday the nation’s green bond market has the potential to expand further, in remarks that show the Asia-Pacific region is stepping up efforts to fund risks arising from extreme weather events.
“Our green bond market has been recognized by the Asian Development Bank for its potential to expand even further,” Marcos said in a speech at the Asia-Pacific ministerial conference on disaster risk reduction in Manila. Renewable energy, green buildings and sustainable agriculture are some of the most promising sectors for growth in the country’s green bond market, he said.
Marcos also made a case for investments in blue bonds — which are raised for a specific purpose that involves water, such as ocean preservation — and said they’re needed to protect coastal communities in the nation that is hit by an average 20 typhoons every year.
Sales of green bonds in the Philippines have so far lagged Asian and global peers by a wide margin, with the country having issued a total of $3.1 billion over the past six years, according to data compiled by Bloomberg Intelligence.
Green bonds continue to dominate the broader sustainable debt market despite cooling sentiments on investments in the environmental, social and governance segment globally because it’s easier to conduct investor due diligence on the end—use of capital. More than $580 billion in green bonds have been issued worldwide this year led by the US and Germany, the BI data showed.
The President’s comments come as extreme weather events ravage the world’s most climate-vulnerable region, causing $65 billion in economic losses last year. “Sustained and predictable data and financing would help address disaster risks better,” he said.
Marcos also called for “forward-thinking policies” to help those displaced by climate change and natural disasters.
--With assistance from Ishika Mookerjee.
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