Policy overhaul needed to attract green funds

To advance climate-resilient, sustainable cities in the Philippines, the Organization for Economic Cooperation and Development (OECD) is urging the government to put in place an integrated and centralized framework that would attract green private investments.

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"The Philippines faces several challenges in sustainable urban development financing. One major issue is the fragmented institutional coordination that hinders the implementation of sustainable urban development frameworks," the OECD said in an April 17 report titled "Financing Sustainable Cities in Southeast Asia."

"Despite progress in renewing national spatial plans and frameworks, the lack of integrated climate action and land use regulations remains a significant barrier," the OECD added.

The OECD also identified challenges in diversifying financing instruments and leveraging private investment for sustainable cities in the country, including "complex" taxation and policy requirements for real estate investment trusts (REITs), which it nonetheless noted are being addressed by reforms introduced in 2020 through revisions in the REIT Act, allowing corporations and investors to promote more REIT investments.