ASEAN pushes for major shift in climate financing

Jakarta (ANTARA) - ASEAN countries are calling for a major shift in climate financing, given that its impacts are not only an environmental challenge but also a fiscal shock requiring a collective response. This issue was specifically discussed in a panel organised by the Philippines as the current ASEAN chair, in collaboration with the United Nations Development Programme (UNDP). The Philippines presented national examples and regional lessons on the importance of shifting from short-term grants to large-scale long-term investments—to protect communities and economies. “Climate shocks are fiscal shocks,” said Philippine Deputy Minister of Environment and Natural Resources Analiza Rebuelta-Teh on the official website of the Philippine ASEAN Chairmanship 2026, on Monday (4/5). Philippine Deputy Finance Minister Joven Balbosa then emphasised the need for finance ministries in each country to lead financing efforts, if climate impacts erode productivity and swell public debt, threatening fiscal resilience. In the discussion, panellists highlighted how Nationally Determined Contributions (NDCs) can shift from policy statements to investment signals that attract global capital. “NDCs must be repositioned as investment portfolios,” said UNDP Resident Representative in the Philippines Christophe Bahuet, arguing that high-integrity public financial management provides certainty to investors. Concrete examples from other countries underscored this message. The Philippines’ Climate Change Expenditure Tagging (CCET) system was praised as a model for tracking climate budgets. Vice Chair and Executive Director Robert E.A. Borje of the Philippine Climate Change Commission (CCC) described CCET as a “bright spot” that brings transparency to domestic climate spending, while urging further data analysis to make the information actionable. Indonesia’s shift from manual reporting to the “Connected Dashboard” also shows how digital systems can close information gaps. “Seamless cooperation between finance and environment ministries is crucial,” said Deputy Director for Multilateral Cooperation and Sustainable Finance of the Indonesian Ministry of Finance Irwan Dharmawan. He explained how automated tracking helps align information and accelerate the adoption of national data transparency. The dashboard can also support Biennial Transparency Reports and improve decision-making. Meanwhile, Naeeda Crishna Morgado from the Asian Development Bank introduced the ASEAN Climate Finance Policy Platform (2025–2027) as an inter-country learning mechanism to strengthen finance ministries across member states. “Climate resilience must be translated into fiscal instruments,” she said, outlining an operational framework to help finance ministries systematically assess, manage, and mobilise climate funds. The speakers also highlighted the need for better monitoring and verification. The session recommended digitalisation and automation of climate tracking—emulating Indonesia’s Connected Dashboard and expanding the Philippines’ CCET—to reduce information asymmetry, maximise budget impacts, and demonstrate tangible results for investors. The session did not produce binding commitments but established a clear roadmap, namely institutionalising whole-of-economy financing, positioning NDCs as ready-to-invest portfolios, expanding direct access for local governments, and leveraging digital tracking tools to enable transparency and investor confidence. The panel discussion concluded that ASEAN must act swiftly to align policies, data systems, and financial flows so that climate resilience becomes an integral part of national budgets, not a separate budget line.