Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. emphasized the critical need for understanding the effects of nature on emerging economies during the International Workshop on “Nature, Macroeconomy, and Finance.”
This event, which took place from January 29 to 30, 2024, at the BSP Head Office in Manila, marks a pivotal moment in integrating ecological considerations into economic and financial strategies.
The workshop, a collaborative effort between the BSP, the London School of Economics and Political Science-Grantham Research Institute on Climate Change and the Environment, the World Wide Fund for Nature (WWF), and the International Network for Sustainable Financial Policy Insights, Research, and Exchange (INSPIRE), convened a diverse group of researchers, policymakers, regulators, and representatives from academia, multilateral agencies, and financial institutions.
Discussions centered on the urgent risks posed by nature degradation through activities such as deforestation and land use changes, highlighting the essential role of protecting nature and biodiversity, particularly for nations like the Philippines, in achieving climate resilience.
Aimed at emerging market economies, the workshop explored the dynamics, dependencies, and impacts of nature on ecosystem services, financial risks, and the opportunities and challenges these pose for macroeconomic and financial sector policy. Governor Remolona underscored the BSP’s commitment to financial stability through enhancing analytical and research capabilities to monitor nature-related financial system risks.
In a forward-looking approach, the BSP is also focused on fostering financing for projects and activities that align with the Philippines’ climate objectives. A notable outcome of these efforts is the country’s first sustainable finance taxonomy, co-developed with other agencies, laying the groundwork for further climate initiatives, including carbon market development.
The workshop also addressed the importance of green taxonomy, the integration of nature into financial policy, challenges in compiling nature-related data, potential policy implications for nature-related risks, and emerging research themes.
A panel session on financial inclusion, moderated by Monetary Board Member V. Bruce J. Tolentino, shed light on how micro, small, and medium enterprises (MSMEs) can incorporate environmental considerations, highlighting the challenges and opportunities in promoting financial inclusion to enhance nature-resilience for the economy and MSMEs.
This event is the fourth INSPIRE workshop in Southeast Asia, following initiatives with regional regulators in Singapore and events organized with Bank Indonesia and Bank Negara Malaysia, signifying a growing regional commitment to integrating environmental considerations into financial policy making. – PhilippinesToday.ph