Finance 15 hours ago

No Stopping Green Startups: The Financing Behind Sustainable Development

Businesses involving renewable energy, electric vehicles, and sustainable development have long been a priority in the Philippines. With rising public interest and real demand nowadays, the timing may be perfect for green startups.

Many entrepreneurs believe that in times of crisis, there is opportunity. With the oil crisis sending prices at the pump and demand for green solutions higher and higher, the opportunity is clear. On one hand, rising oil and energy prices, ballooning inflation, a rising dollar exchange rate, and supply chain disruptions have challenged countless businesses. On the other hand, some clear winners—and golden opportunities for the short and long-term future—have begun to emerge.

Leading the charge in new opportunities are businesses involved in the electrification of the energy and transport sector.

For instance, year to date, electric vehicle (EV) sales were up 158.9% at 17,655 units, according to a May 2026 report by Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association (CAMPI-TMA). Global energy think tank Ember also noted in May that the Philippines has become China’s second-largest export market for solar panels.

How can Filipino green entrepreneurs take advantage of these opportunities? If you’re an entrepreneur thinking of founding a green startup, there’s plenty of good news, as the Philippines already has a number of financial incentives in place for green startups.

These incentives range from readily available financing to tax holidays for all kinds of sustainable development—including but not limited to EVs, solar panels, green buildings, and energy efficiency. Let’s take a closer look.

Financing for Green Startups

For green startups, the first hurdle that they will most likely need to clear is financing.

The Bangko Sentral ng Pilipinas has mandated that local commercial banks de-risk and increase lending for sustainable development projects. Banks (such as BPI through its Green Solutions, and LandBank through its Sustainable Finance Framework, as well as its Real Energy+ Lending Program) have specialized portfolios that offer lower interest rates, flexible payment terms, and preferential credit facilities for businesses involved in sustainable development. This includes solar panel installation and EVs, as well as sustainable construction.

Frequently Asked Questions

What financing options are available for green startups in the Philippines?

The Bangko Sentral ng Pilipinas has mandated local commercial banks to increase lending for sustainable development. BPI offers Green Solutions, and LandBank has its Sustainable Finance Framework and Real Energy+ Lending Program — both providing lower interest rates, flexible payment terms, and preferential credit facilities for solar, EV, and green construction businesses.

What is the DOST-TAPI VFEST grant, and who can apply?

DOST-TAPI VFEST (Venture Financing for Environmentally-Sound Technologies) offers startups commercializing green technologies access to 0% interest, no-collateral loans of up to P2.5 million. It is designed to support the commercialization stage of environmentally sound technology ventures in the Philippines.

What is the EU Green Up to Scale Up MSME Transformation Grant?

The European Union's Green Up to Scale Up grant targets Philippine MSMEs involved in sustainable development. It provides financial support of €250,000 to €500,000 per recipient, along with technical assistance and technology transfer support to help small and mid-sized businesses scale green operations.

How does BOI registration benefit green startups in the Philippines?

Green startups registered with the Board of Investments (BOI) can qualify for an Income Tax Holiday of four to seven years, with longer holidays available for businesses established outside Metro Manila. After the holiday period, registered companies may also claim a 200% deduction on research and development expenses.

Are import duties and VAT waived for green startup equipment in the Philippines?

Yes. BOI-registered green startups may be eligible for duty-free importation of capital equipment, materials, and parts, along with value-added tax exemptions. These incentives are designed to reduce the cost of acquiring the technology and infrastructure needed to operate sustainable energy, transport electrification, and green construction businesses.

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