Financing Low-Carbon Transport Transition in the Philippines: Mapping Financing Sources, Gaps and Directionality of Innovation

Successfully achieving a low-carbon transition in the transport sector requires an understanding of the lending logics of the financial institutions in order to identify the financing directionality and gaps. However, in the transportation literature, there is a lack of attention on the relationship between financing sources and the direction of innovation. The present study seeks to address this by mapping the flow of finance from financial institutions to transport projects. Our dataset consists of 9 transport projects included in the Philippines’ Nationally Determined Contribution (NDC). We consider different types of projects (rail development, bus rapid transit implementation, jeepney modernization) and various financial actors (multi-lateral banks, private and government banks). Through an analysis of loan portfolio composition and interview data, we uncover the underlying logics of each financial institution in lending to transport projects. Our findings suggest that the lending logics of many financial institutions is primarily driven by portfolio and borrower credit-worthiness considerations, and less by motivations concerning sustainability transition. As a result, with respect to the average, some transport projects are over-financed (e.g. rail development), while others – which have a high potential to accelerate decarbonization – are under-financed (e.g. jeepney modernization). All these have profound implications for the directionality of low-carbon transition. Deeper engagement of transition research with finance is a nascent field, and the current research contributes to the literature not only by presenting a comprehensive mapping of several financing sources and projects, but also of proposing three credit enhancement mechanisms to mobilize capital for under-financed projects

Generalization of Digital Innovation for Financial Inclusion by Means of Market Creation through Regulation and Governance

Achieving financial inclusion in shorter timeframes is a grand societal challenge that can be addressed by digital technology. Nonetheless, how an innovative digital technology gets generalized is understudied in the literature. We present the generalization of a cloud-based core banking system to drive financial inclusion in the Philippines. We draw our material from the case of cloud-based core banking system adoption in the Philippines. Our results show that market formation is essential to the generalization, and this can be accomplished through a mix of laissez-faire and dirigisme mechanisms. Pure laissez-faire mechanisms alone, with minimal intervention from the central bank, may drive the generalization of digital innovations. Nonetheless, for the generalization of cloud digital technology to happen at an accelerated pace, the central bank must intervene more proactively, especially in establishing an industry-wide digital financial ecosystem. Furthermore, for the generalization of cloud digital technology to truly contribute to the societal mission of financial inclusion, the central bank ought to take the lead as a meta-governor directing the various elements of the digital finance ecosystem. Our study provides a nuanced understanding of the interplay between laissez-faire and dirigisme in the genesis of markets for digital innovations in pursuit of financial inclusion

Does the Greening of Banks Impact the Logics of Sustainable Financing? The Case of Bank Lending to Merchant Renewable Energy Projects in the Philippines

As the Philippines pursues its mission of decarbonization in the energy sector by 2030, a target which aims to achieve a 35% share of renewable energy (RE) in the country\u27s power generation mix, the broad participation of merchant plant developers and banks is crucial. Developers of merchant plants can generate supply of renewable energy, while banks can provide the financing. Nonetheless, banks traditionally do not lend to fully merchant plants, particularly by small proponents who have no implicit guarantor. In recent years, as more banks embed sustainability principles in their corporate philosophy, the question arises on whether this trend has also impacted the bank lending logics, especially with respect to how banks evaluate the risk-return profiles of RE projects, including pure merchant plants by small developers. Using qualitative research methods, we collected data through interviews and desk research from six banks in the Philippines (private and government-controlled, as well as universal and rural). To unpack the lending logics of banks, we presented ten credit enhancement options for the banks to appraise. We found that government-controlled banks, partly due to their mandate in supporting national development, have more appetite towards small merchant plants, unlike private banks, despite the latter\u27s aggressive pursuit of sustainability targets. In the end, a fundamental gap between private banks and merchant plants remains. Since addressing it is crucial for the Philippines to achieve its mission of energy decarbonization, we end with some recommendations on how this gap may be bridged

Book monitoring system with real-time inventory using RFID technology

Book monitoring in a library set-up is essential not only for library administrators but for students and faculty as well. Library administrators need to close certain sections of their libraries in order to perform inventory. For students and faculty, the task of locating books in shelves is often disregarded. Searching books in the library can be hard when books that are searched are misplaced or missing from their specified shelves. Borrowing and returning functions of students can also be done without the need for library supervision. Radio Frequency Identification (RFID) Technology used in a library set-up provides solutions to these problems. By applying a program that incorporates the RFID reader with high-frequency tags attached in books, the tasks of library personnel, students and faculty in searching, monitoring and supervising books are supported and made easier

Book monitoring system with real-time inventory using RFID technology

Book monitoring in a library set-up is essential not only for library administrators but as well as students and faculty alike. Library administrators need to close certain sectors of their libraries in order to perform inventory, a continuous update of bookshelves can eliminate this tedious task. For students and faculty, the task of locating books in shelves is often disregarded. Searching books in the library can be hard when books that are searched are misplaced or missing from their specified shelves. Borrowing and returning functions of students can also be done without the need for library supervision. Radio Frequency Identification or RFID technology used in a library set-up provides solutions to these problems. By applying a program that incorporates the RFID reader with high-frequency tags attached in books the tasks of library personnel, students and faculty in searching, monitoring and supervising books are supported and made easier