The Central Bank of the Philippines published a new set of Frequently Asked Questions (FAQ Series 1.2) to provide additional clarity on the provisions and application of the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) for banks. The guidance explains the rationale for developing the taxonomy and its governance and oversight framework, and clarifies key SFTG provisions covering the scope of application, assessment of economic activities, the traffic light classification system, and current regulatory incentives that support financing of eligible green or sustainable projects and activities. The central bank noted that the FAQ does not supersede the SFTG and that banks should refer to Circular No. 1187 for detailed guidance on the taxonomy and its implementation.
Central Bank of the Philippines 2025-07-28
Central Bank of the Philippines issues FAQ Series 1.2 clarifying implementation of the Philippine Sustainable Finance Taxonomy Guidelines
The Central Bank of the Philippines released FAQ Series 1.2 to clarify the Philippine Sustainable Finance Taxonomy Guidelines for banks. The guidance covers the taxonomy's rationale, governance, scope, assessment criteria, classification system, and regulatory incentives for green projects. It emphasizes that the FAQ does not replace the SFTG, advising banks to consult Circular No. 1187 for comprehensive details.