This session brought together regulators, financial institutions, corporations, and international organizations to exchange views on the latest initiatives and trends in environmental finance.

Representing the government sector, the Securities and Exchange Commission of the Philippines (SEC) participated, while the financial sector, included representatives from the World Bank, Asian Development Bank (ADB), Bank of the Philippine Islands (BPI), and Sumitomo Mitsui Banking Corporation (SMBC). In addition, ACEN of the Ayala Group and Asuene contributed to the discussion as private companies and exchanged views on the development of environmental business in both Japan and the Philippines.

The speakers emphasized how the private sector can connect business activities with financial support to facilitate the transition to a net-zero emissions society. They also analyzed the current state of environmental disclosure and finance in the context of a unified carbon price mechanism in ASEAN. Furthermore, they examined how private financial resources and corporate needs could be coordinated to bring all financial flows into compliance with the goals of the Paris Agreement.

This session focused on balancing air pollution control and climate change action, emphasizing cooperation between Japan and the Philippines. Stakeholders from both countries shared their air quality initiatives, discussed scientific methods for understanding the current status of air pollution throughout Asia, and discussed regional cooperation on pollution control.

The session also discussed air quality monitoring issues and countermeasures noticing that Japan and the Philippines are strengthening their capacity for monitoring volatile organic compounds (VOC) and supporting the preparation of guidelines. In addition, private companies presented their monitoring and VOC countermeasure technologies and shared their practical efforts.

In the ASEAN region, approximately 680 million people live and the economy is growing rapidly, but the development of industrial and domestic wastewater treatment facilities has not fully caught up with the current situation. The Philippines is no exception, and there is an urgent need to develop water environment businesses and improve the water environment. In this session, many technologies were introduced aiming to create business opportunities between Japan and the Philippines.

Regarding the current situation in the Philippines, sewage infiltration from domestic wastewater putrefaction tanks is a major challenge, and the need to implement sewage systems was highlighted. Also new approaches, including their applicability to DX (Digital Transformation) models were introduced.

The Japanese government introduced septic tank systems called Jhokasou and water reuse technologies. In addition, seven companies presented their technologies and shared information on future business opportunities related to water environment improvement.

This session introduced initiatives and challenges in climate change mitigation and explored the potential for cooperation between the private sector in Japan and the Philippines to achieve a net-zero, decarbonized society in the Philippines. The Ministry of the Environment, Japan (MOEJ), the Department of Environment and Natural Resources (DENR) of the Philippines, and the Securities and Exchange Commission (SEC) of the Philippines presented their respective initiatives.

In particular, the SEC introduced an incentive program to promote corporate disclosure and reported that high compliance rates have been achieved through this program. However, data reliability and technological developments were cited as future challenges.

DENR proposed the following opportunities for future cooperation: promoting technology transfer and private sector investment through the bilateral credit system (JCM), strengthening the MRV (Measurement, Reporting, and Verification) system, and creating a pilot project for a carbon market using the forestry industry.

In the latter half of the session, the specific framework for cooperation, including JCM and its achievements in the Philippines, was explained, and each company gave a presentation on new opportunities for collaboration using JCM.

In this session, efforts to promote sustainable electrical and electronic equipment waste (E-waste) management and recycling in the Philippines were discussed. The Department of Environment and Natural Resources (DENR) of the Philippines and the Japanese Ministry of Environment are cooperating under their Memorandum of Understanding for Environmental Cooperation and the ASEAN-Japan Resources Recycling Partnership on E-waste and Critical Minerals (ARCPEC).

The session discussed the current status and challenges of E-waste recycling in　the Philippines. It also addressed trends in Extended Producer Responsibility (EPR) and hazardous waste management legislation, measures to promote proper collection and environmentally sound recycling of E-waste, and potential business opportunities in both Japan and the Philippines. The key points raised included: responsibility sharing in E-waste management, financial mechanisms and incentives, strengthening the participation of local governments, capacity building in the public and private sectors, introduction of superior technologies, and raising consumer awareness.

This session introduced key initiatives and challenges in advancing the circular economy and waste management in the Philippines. Furthermore, it explored possibilities for further cooperation between the private sector in Japan and the Philippines.

The speakers from the Philippines emphasized that it is essential for both governments to establish mutually supportive policies and regulations to promote a circular economy and a robust waste management system, especially by providing incentives through the introduction of energy from waste (WtE) solutions. They also pointed out the need for cooperation between Japanese companies specializing in WtE and local industries in the Philippines. This partnership aims to promote investment in sustainable technologies through research and innovation. Additionally, it seeks to strengthen international collaboration to enhance the capacity of each country. In addition, it was also discussed that it is essential to change consumer behavior.

Seven companies introduced their businesses related to the circular economy and waste management leading to a lively exchange of ideas.

In this session, information was shared on the latest technologies and trends in climate change adaptation measures being considered in the Philippines and Southeast Asian countries.

In addition to introducing the development of an Early Warning System (EWS) using public-private partnerships (PPP) by Japan, Quezon City presented its efforts to respond to the "Enhanced Local Climate Change Action Plan" (LC-CAP), which all municipalities in the Philippines are required to formulate and to work toward a circular economy, water and food security.

Philippine companies shared their efforts to address climate change and environmental challenges, recommending more efficient management of water resources, efforts to reduce flood damage, and waste reduction efforts.

The World Bank Philippines Office also shared best practices from around the world. An Indonesian company suggested that the palm sugar business can contribute to social and environmental sustainability not only through climate adaptation measures but also through effective biodiversity measures.

CEFIA (Clean Energy Future Initiative Asia) is an initiative established to build a platform to promote public-private cooperation to accelerate the deployment of clean energy and the development of decarbonization technologies in the ASEAN region.

In this session, in collaboration with Japan's Ministry of Economy, Trade and Industry (METI), the potential use of microgrid technology in the Philippines was discussed. Microgrids are integrated renewable energy systems that combine wind and solar power generation with storage batteries and are positioned as a flagship project of CEFIA.

Japanese companies participating in this project are deploying microgrid systems in the Philippines and presented the usefulness of microgrids in the Philippines.

In addition, other Japanese companies also presented examples of various pilot projects. They are pursuing in the ASEAN/Asia region using Japanese assistance programs, as well as potential future cooperation with the Philippines.