Philippine Sustainable Finance Taxonomy Guidelines: Sample Climate Adaptation-related Projects and Activities

BANGKO SENTRAL NG PILIPINAS OFFICE OF THE GOVERNOR MEMORANDUM No. M-2025 -033 To . ALL BANKS Subject Philippine Sustainable Finance Taxonomy Guidelines: Sample Climate Adaptation-related Projects and Activities The Philippine Development Plan IPDP) 2023-2028 highlights adaptation as the country's primary climate strategy. recognizing the Philippines' high vulnerability to climate-related hazards. Complementing this is the National Adaptation Plan INAP) 2023-2050. which lays out a long-term strategy to reduce vulnerability to climate change and strengthen resilience across sectors and communities. The NAP identifies eight (8) key sectors for adaptation action, as follows: A riculture, Fisheries. and Food Securit Land Use and Human Settlements Water Resources Livelihoods and Industries Health Ener . Trans ort, and Communications Ecosystems and Biodiversity Cultural Heritage. Population Dis lacement, and Mi ration In line with this, the BSP is issuing the attached document containing examples of actual climate change adaptation-related projects (Annex A) and potential activities (Annex B) under the key sectors in the NAP, The list is not exhaustive and is intended solely for reference purposes. These examples are provided to assist banks in designing financial products and instruments that support the financing of climate change adaptation-related projects and activities. It is essential that the identified activities be assessed against the Philippine Sustainable Finance Taxonomy Guidelines. The assessment should consider the activities' substantial contribution to climate change adaptation objectives. while ensuring that no significant harm is done to the environment or society in general. The assessed activity may also be used in compliance with the mandatory credit to agriculture, fisheries and rural development or may qualify for the regulatory incentives provided under Circular No. 1185 dated 13 December 2023. For information and guidance. 1.1 EU M. REMOLONA. ,R. Governor October 2025 Ing^

ANNEX A Non-exhaustive List of Actual Climate Change Adaptation-Related Projects Priority Activity/ Project Sector/s Pro Get Title Description and Scope Pro orient Agriculture, Project LAWA rig^^n: Project LAWA is a Proponent: Fisheries. (Local Adaptation sustainable solution which alleviates Department and Food to Water Access) the challenges of water scarcity faced of Social Security by local communities in periods of Welfare and severe drought. Development (DSWD); Food Water 2024-innovative As part of the program, technical and Resources solutions- guidance was provided related to the Agriculture construction of small fa rin reservoirs Organization (SFR ) to enhance water and food (FAO), in disaster-risk- security. collaboration red uction with the Moving forward. complementary Department activities such as vegetable of Agriculture gardening. aquaculture, and DA) and hydroponics activities may be linked DOST- to the SFRs. PACASA Scope: Pilot implementation in 2023 and Nationwide scaleup as of 2024 Agriculture, Private Sector ri, ^2: This initiative aims to Philippine Fisheries. Role in Water and support and scale innovative solutions Disaster and Food Food Resilience that can address poor wastewater Resilience Security (Philippine management and unsafe water Foundation Disaster sources. (PDRF) Resilience Water Foundation ) One of the solutions identified include Resources the ML Foldable Tank which is a https://WWW, con rainwater collection and storage nectingbusiness. system. Using pipes. it transports org/ourwork/phili water from rooftops into foldable, PPIneS lightweight. and modular water tanks that can carry 1,000 liters of water per day, On food resilience. one of the innovative solutions is the agri-tech platform empowering smallholder farmers and fisherfolks through "Growership Villages". This intends to improve rural incomes through climate smart production interventions and tech-enabled B2B distribution of harvest; thereby strengthening livelihood. reducing food loss and building resilience. Based on the project presentation during the 'Adaptat, bn in Action. . Mobi/Iz, rig Finance for Climate-Re Water and Foodsystem3 Convention on 21 March 2025 Page I of 5

Priority Activity/ Project Sector/s Pro t Title Description and Scope Pro nent Scope, Implemented from 2023-2025, designed to be scalable and adaptable nationwide. targeting both rural and urban vulnerabilities Agriculture, Commercializing ness^ This project aims to ACREA Fisheries, Climate-Resilient commercialize climate-resilient high- Agricultural and Food High. Yielding yielding varieties (HYVs) of sugarcane Systems Security Sugarcane and scale extension services for soil International. Varieties (ACREA) and water conservation practices. Inc. Livelihoods Resilient sugarcane varieties is seen to and help formers adapt to the negative Industries impacts of climate change. Scope: Up to 180,000 ha of sugarcane I^rins across Negros Occidental until 2030 Agriculture, SERBISYO DB^^: This initiative. Provincial Fisheries, PROGRAM spearheaded by the Provincial Government and Food (System Government of 110ilo. aims to enhance of 110ilo Security Enhancement for rice production while addressing Rice to climate challenges. Boost. Increase Livelihoods and Sustain The province seeks to increase rice and Yields Onwards) yields by scaling climate-resilient Industries seeds/high yielding varieties that can tolerate dry spells, deployed with the optimal mix of crop care solutions and farming practices. The program also includes development of small- scale reservoirs with sola r-powered conveyance for rainfed areas. offered on a pay-per use model. Scope:137,000 ha of I^rinland dedicated to rice cultivation (30% of total land area)in the Province of 110ilo Agriculture, Sustainable DR^3: The project is an agri- UNDP and the Fisheries, Provincial Agro- forestry innovation and climate Province of and Food Industry resilient trading hub. Agusan del Security Resource Center Sur (SPARC) Project SPARC provides I^riners. micro, small. (Provincial and medium enterprises IMSMEsi, Livelihoods Government of and local industries with access to and Agusan Del Sur) cutting-edge agricultural Industries technologies, market linkages, and capacity-building programs. Aligned with A usan del Sur's broader efforts ' Based on the project presentation during the 'Adaptation in Actrbn, Mob, 11:21ng Fibance for C/,,. hate-Pes, 11^fit Water andFoodSystem3 Convention on 21 March 2025

Priority Activity/ Projec. Sector/s Pro cot Title Description and Scope Pro nen. to enhance soil health and sustainable farming, SPARC integrates science, technology. and innovation to improve agricultural resilience and economic growth. Scripe: 44.5 ha government-owned land of Agusan del Sur Province. The project commenced in 2023 and expected to be operationalized in 2027 onwards Ecosystems Restoration ^r^tmn: The Restoration Conservation and Insure rice Service Insurance Service Company IRISCO) International Biodiversity Company is a pioneering model for climate (RISCO) adaptation that turns mangroves into natural infrastructure for flood Land Use protection. By quantifying the risk- and Human reducing benefits of mangrove Settlements ecosystems, RISCO enables insurance companies to invest directly in ecosystem restoration as a climate risk management strategy. This helps vulnerable coastal communities adapt to sea-level rise. storm surges. and extreme weather by preserving natural barriers that absorb wave energy and reduce flooding. RISCO works hand-in-hand with local communities to identify high-impact sites for restoration. ensuring the approach is both locally grounded and socially inclusive. Insurance payments provide susta'nable financing for long-term ecosystem maintenance, offering a novel way to fund adaptation while strengthening community resilience from the ground up. Scope: The planned pilot is in the Philippines. targeting 3,400 ha of mangrove conservation and 600 ha of restoration Ecosystems The Trinity DR^ri^ien: The Trinity Project is a Hijo and Project three-fold approach to rebuilding Resources Biodiversity IHijo Resources HRC's coastal ecosystem. Carried out Corporation Corporation in four phases covering four (HRC); (HPC)l kilometers of Hijo's coastline in supported by Tagum City. Davao del Norte. the City Government Implementation of the first phase of of Tagum and the Trinity Project has resulted in the the bulletin/20,8020 return of different fish s ecies, rowth De artment

Priority Activity/ Project Sector/s Pro cot Title Description and Scope Pro nent 8/2821750615704 of corals and spread of sea grass of Science Z^ meadows, Transplanted corals and doubled in size in two years, Technology (DOST) Scripe: The Trinity Project aims to plant 20 hectares of mangrove forest, grow 80 hectares of seagrass meadows. and create a fringing artificial coral reef environment. The total rehabilitated area is estimated to cover around 120 hectares of intertidal and sub-tidal zones. The boundaries of the project reach from the southern side of the Madaum River down to the northern side of the Libuganon River. Health Ready-to-Eat Deseri^ion^ The Ready-To-Eat IRTE) Philippine (RTEI Food Food Products are a major Women's Products for breakthrough in emergency nutrition College of Children Aged for children. This project responds to Davao; One to Five Years the urgent need for safe. nutritious. supported by old and shelf-stable meals during the Philippine calamities when food supply chains Council for break down. agricultural systems are Health damaged, and shortages of essential Research and and nutritious food become Development widespread. By using ingredients (PCHRD) sourced from the Davao Region. these products ensure both accessibility and cultural suitability for vulnerable communities at a time when it matters most. The initiative has successfully produced four RTE products: All Veggie Monggo Meal. All-Veggie Cornmeal Porridge, Fruit-Veggie Leather with Peanuts and Puffed Rice. and Seed-Enriched Whole Grain Cookies. These products have been rigorously tested for acceptability, safety. and shelf life, ensuring they can reliably support the health and well being of young children in crisis situations. Beyond nutrition. this effort also contributes to strengthening community resilience and disaster preparedness. S^ripe: Nationwide; targeted to be aligned with the 20232028 National Health Research Agenda

Priority Activity/ Project Sector/s Pro cot Title Description and Scope Pro nent Cultural The Manggahan DR^: The Manggahan Project Alliance of Heritage. Project is a climate-resilient housing initiative Peoples' Population in Pasig City, Philippines. It is created Organizations Displacemen in response to the threat of forced Along t, and relocation ^ced by residents living Manggahan Migration forced- along the Manggahan Floodway after Floodway relocation- Typhoon On doy in 2009. (APOAMF1 P^ Pasig City In an effort to remain in their Government; community. residents organized the National own-climate- Alliance of Peoples' Organizations Housing resilient Along Manggahan Floodway Authority (APOAMF) and crafted the People's INHA); Plan-a community-led proposal for With the in-city housing, su pport of University of This plan laid the groundwork for the Toronto Manggahan Project. empowering (Reach residents to design and construct Alliance) and their own apartment complex close Department to their original homes. The project of Pu blic aims to provide safe, durable housing Works and that can withstand climate related Highways disasters while maintaining residents' (DPWH ) access to jobs, schools, and social networks. Built on elevated land with reinforced structures and sustainable water systems. the project has already provided secure homes for hundreds of I^inilies. Scope: Serves hundreds of low- income families in Pasig City Philippines. Earlier phases were completed in 2017. but rehabilitations are still ongoing as of 2025

AN N Ex B Non-exhaustive List of Sample Climate Change Adaptation-Related Activities/Practices' Priority Sector Climate Change Adaptation-Related Activities/Practices Agriculture, Fisheries, and Climate-Resilient Crop Production Food Security Focused on adapting agricultural practices to withstand climate stresses like drought, floods. and changing seasons: . Using stress-tolerant varieties (e. g. . submergence, salinity, drought, heat tolerance) o Using adaptive crop calendars (weather-adjusted planting/harvesting schedules) . Using integrated crop management or shifting to diversified cropping systems (e. g. . intercropping ) . Practicing organic I^rining Water Management and Conservation Techniques for conserving water and enhancing availability for agricultural use: . Using water harvesting technologies (e. g. , small impounding projects, drip irrigation I . Implementing soil and water conservation techniques Agroforestry and Sustainable Land Use Integrated land use systems that combine crops. trees. and/or livestock: . Adopting agroforestry systems (e. g. , fruit/timber trees around rice fields) . Biogas and composting Ias part of circular nutrient management! Sustainable Fisheries and Aquaculture Nature-based and community-led approaches to aquatic food production: o Adopting aqua-SIIviculture activities Ie. g. . fish forming in mangrove areas) . Adopting organic aquaculture . Communal stocking and rehabilitation of fish (community fish stock enhancement) Water Resources Installing resilient water systems powered by renewable energy Improving water infrastructures/pipelines. watersheds and irrigation systems Adopting nature-based solutions (e. g. . restoring wetlands and river systems) Promoting efficient water allocation. water recycling. sustainable reuse of gray\Nater. rainwater harvesting Adopting and implementing smart technologies and innovative policies for water and wastewater inaria ement ' Sample activities may also benefit other priority sectors (e. g. . activity benefitting both agriculture and biodiversity priority areas). Page I of 3

Priority Sector Climate Change Adaptation-Related Activities/Practices Adopting recirculation and water reduction in water consumption per unit of product Health Integrating meteorological data into health information systems to inform public and save more lives Adopting technology and digital health innovations tsuch as through telemedicine. mobile health: solar-powered water filtration I Making green. safe, and climate-resilient health facilities Ie. g. , resilient hospital design. reengineering a'r flow patterns; flood-resilient latrines and water points in flood-prone areas; disaster-proofing infrastructures) Ecosystems and Biodiversity Implementing ecosystem-based adaptation practices I Maintenance and/or restoration of mangroves and other coastal wetlands to reduce flooding arid erosion; I Sustainable management of upland wetlands and floodplains for maintenance of water flow and quality; I Conservation and restoration of forests to stabilize land slopes and regulate water flows; I Establishment of diverse agroforestry systems to cope with increased risk from changed climatic conditions; and the I Conservation of agrobiodiversity to provide specific gene pools for crop and livestock adaptation to climate change Land Use and Human Creating smart and intelligent cities Settlements I Inclusive smart city solutions I Technological advancement I Use of big data and machine learning-based urban planning tools I Use of flood-sensor technologies Improving buildings height above the projected sea level rise Livelihoods and Industries Petrofitting production sites or business premises to be climate resilient Adopting climate-resilient technologies and equipment Developing one-stop-shop business solutions (e. g. smart workspace hub: neighborhood business centers; integrated business access points) to minimize transportation and commuting Energy, Transport, and Energy Communications . Installing more efficient cooling focilities to address increasing temperatures

Priority Sector Climate Change Adaptation. Related Activities/Practices Integrating structural adaptations into the structural designs/strengthening of energy infrastructures Transport . Constructing bridges that transport form inputs and outputs . Implementing infrastructures that better connect markets and economic facilities. such as transport infrastructure Communications . Implementing infrastructures that better connect markets and economic facilities. such as communications infrastructure . Using and accessing climate change and climate risk information in planning processes to assist in the development of green or blue infrastructure runked to both communications and planning intelligence systems) Cultural Heritage, Population Developing early warning systems and community- Displacement, and Migration based disaster preparedness Designing climate-resilient housing and infrastructure for displaced populations Constructing climate-resilient post-disaster shelters that can better withstand future hazards