Monetary authorities are considering to institutionalize blended financing for projects aimed towards sustainability and climate change adaptation to maximize funding availability for trillions worth of projects.
Ellen Joyce Suficiencia, Director of Bangko Sentral ng Pilipinas’ (BSP) Sustainability Office, said Thursday there is a need to prioritize financing for sustainability projects but this “will depend on the understanding on where the vulnerabilities are.”
She said that while there are constraints on funding such projects, there are businesses and institutions and philanthropists that are willing to contribute to these projects.
“At the end of the day, the unifying factor is resiliency,” she said in one of the panel discussions during the Eco-Business’ forum in Pasig City.
In an interview at the sidelines of the event, Suficiencia said the blended financing would lessen the risks among banks and other financing sources that are committed to fund such projects.
She said this is happening for major projects, such as those being financed with the help of the Asian Development Bank, but is not widely done yet.
She said the financing mode would greatly help optimize government resources.
“The government can only allot certain amount but if this amount can be boosted by blended financing, just imagine how big the impact will be,” she added.
Aside from the proposed funding mechanism, the central bank official said there is also a need to provide knowledge-sharing and to have a co-investment platform to gather project proposals and financing sources in one site for easier access between these sectors. (PNA)
