Netherlands-based banking giant ING has reaffirmed its commitment to financing renewable energy (RE) and green digital infrastructure in the Philippines, citing the country’s stable economic outlook and growing demand for sustainable investments.
In its latest report, ING disclosed that it disbursed $1.657 trillion in sustainability funds last year, marking an 11% increase from 2023. The bank anticipates steady growth in sustainability financing through bonds for institutional and corporate clients, including Filipino firms engaged in renewable energy.
“The Philippines is at a pivotal moment in its sustainable finance journey. With stable economic indicators and a clear focus on renewable energy and infrastructure, the country is well-positioned to attract green investments,” said ING Philippines Manager Jun Palanca.
As part of its global sustainability targets, ING aims to increase its annual green financing from $136.33 billion in 2024 to $157.19 billion by 2027.
Palanca highlighted that the rising energy demand in the Philippines, alongside controlled inflation levels, presents a strong case for increased green financing. The Philippine Statistics Authority (PSA) reported that overall inflation decelerated to 2.1% in February from 2.9% in January, driven by lower food, fuel, and housing rental prices.
The Bangko Sentral ng Pilipinas’ (BSP) green finance framework is also expected to attract further investments. ING emphasized that the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) provide banks with a structured approach to classifying investments based on their environmental impact. The SFTG categorizes investments into three classifications:
- Green: Environmentally sustainable investments
- Amber: Investments in transition toward sustainability
- Red: Non-aligned investments
According to ING, this framework will enable financial institutions to make informed decisions and accelerate contributions to the country’s sustainable economic growth.
Beyond the Philippines, ING is expanding its clean energy financing efforts for global shipping firms, despite geopolitical uncertainties and policy shifts in the United States.
“Shipping is vital to the global economy, with over 80% of traded goods transported by sea. ING finances top-tier international ship owners, aiming to drive sustainability by engaging clients, financing their transition to net zero, and collaborating with stakeholders,” the bank stated.
Stephen Fewster, ING’s Global Head for Shipping, emphasized the bank’s role in supporting emission reduction initiatives. “Emission reduction can be achieved through technical measures, operational improvements, and low or zero-carbon alternative fuels. ING supports these efforts by financing retrofits and alternative fuel capabilities, recognizing the importance of scaling up alternative fuels,” he said.
Despite the bank’s commitment, ING acknowledged potential headwinds in the global trade landscape, predicting a possible contraction in 2026 following an expected 2.5% growth this year. The ongoing Red Sea and Suez Canal disruptions remain a key uncertainty, with shipping inefficiencies contributing to rising carbon emissions.
“The full resumption of the Red Sea and Suez route is a key uncertainty, potentially changing shipping dynamics,” ING noted.
The bank reaffirmed its commitment to financing clean energy in the shipping sector, even as U.S. President Donald Trump pushes for increased extraction of traditional fuels to lower global energy prices.
Despite these global shifts, ING remains steadfast in its sustainability agenda. “The country’s stable inflation and proactive monetary policy measures by the BSP provide a conducive environment for green financing,” the bank stated.
As the Philippines continues its transition towards a greener economy, ING’s financial backing is expected to play a crucial role in advancing the country’s renewable energy and infrastructure goals.
