Philippines emerging as key market for sustainable finance

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December 18, 2025 | 12:00am

MANILA, Philippines — The Philippines is emerging as a key growth market for sustainable finance in Asia-Pacific, buoyed by accelerating renewable energy projects and rising demand from data-intensive industries, even as global issuance softened in 2025, according to Dutch financial giant ING.

ING’s latest Sustainable Finance Pulse showed global sustainable finance issuance reached $1.231 trillion from January to September, down by 5.2 percent from $1.298 trillion in the same period last year.

Despite the moderation, the Asia-Pacific region recorded $345 billion in issuance from January to September, extending a growth streak that began in 2021 and keeping the region on track for another record year.

Within this regional momentum, the Philippines has posted measurable gains, supported by policy targets and strong deal flow. ING said year-to-date sustainable finance issuances in the country have exceeded $10 billion, alongside commitments for around 10.2 gigawatts of renewable energy capacity secured through the government’s Green Energy Auction program.

The country is also set to record its first annual decline in coal power generation in nearly two decades, marking a milestone in its energy transition.

“The global sustainable finance market’s resilience creates a strong foundation for growth in our Philippine operations,” said Jun Palanca, country manager for ING Philippines.

He noted rising client interest across multiple sectors, prompting the bank to expand its local expertise and product offerings.

“ING Philippines is committed to being a leading partner for companies driving the country’s energy transition, supporting projects that deliver both environmental impact and commercial value,” Palanca said.

The Department of Energy’s Clean Energy Scenario aims to raise the share of renewables in the power generation mix to 35 percent by 2030 and 40 percent by 2040, targets that ING said are spurring both project development and sustainable finance activity.

The data center market in the Philippines is also experiencing robust growth. ING said the country is targeting one gigawatt of hyperscale data center capacity by 2026, with government policy encouraging operators to source power directly from renewable energy suppliers through the Green Energy Option Program.

Several leading facilities are already transitioning to 100 percent renewable energy operations, aligning digital infrastructure growth with climate objectives.

At the regional level, ING noted that sustainable finance has remained resilient despite global headwinds.

“Even against a backdrop of geopolitical uncertainty and shifting policy signals, sustainable finance has proven remarkably resilient,” Deepali Bhargava, head of research and chief economist for ING Asia Pacific, said.

She added that corporates are pushing ahead with decarbonization while the rapid expansion of artificial intelligence and data centers is driving fresh demand for clean energy, keeping sustainable finance central to funding the transition beyond 2025.