BSP taps space agency for climate-risk monitoring – BusinessWorld Online
THE Bangko Sentral ng Pilipinas (BSP) said it entered into a partnership with the Philippine Space Agency (PhilSA) to use satellite technology in identifying the economic impact of climate and environmental risks.
In a statement on Thursday, the central bank said its memorandum of agreement (MoA) with the PhilSA serves to advance financial stability, sustainability and resilience.
“The MoA reflects how we view resilience-building in the financial system: It requires good governance, strong coordination, and better data — supported by technology that helps institutions act earlier and smarter,” BSP Assistant Governor Pia Bernadette R. Tayag said.
“This innovation improves preparedness across the economy and the financial sector,” she added.
The agreement will grant the BSP access to PhilSA satellite imagery and other datasets, which will indicate areas prone to climate shocks and facilitate assessments of community and economic impact.
“These insights can inform monetary policy, financial supervision, and sustainability initiatives,” the central bank said.
In a recent report, the International Monetary Fund flagged the economic risks of climate shocks, citing the potential for supply disruptions that significantly affect agriculture.
It noted that a category-5 typhoon in the Philippines risks accelerating inflation by about 0.4% percentage points.
Earlier, the government weather service, known as PAGASA, forecast up to eight tropical cyclones entering the Philippine area of responsibility within the first half.
“Space science and banking may appear to operate in different domains, yet both are ultimately concerned with stability,” PhilSA Director General Gay Jane P. Perez said.
The BSP noted that the MoA will also facilitate the development of tools, research and training “to promote the responsible use of satellite data and geospatial analytics in support of their respective mandates.” — Katherine K. Chan
