The Asian Development Bank (ADB) has programmed $10 billion in climate finance for the Philippines for the period of 2024 to 2029.
The support, announced by ADB president Masatsugu Asakawa at a high-level dialogue on financing coalitions at COP28 in Dubai, will help the Philippines implement its commitments to climate action under the Paris Agreement.
“The battle against climate change will be won or lost in Asia and the Pacific and nowhere is this more evident than in the Philippines,” Asakawa said.
“I am pleased to announce that ADB will program $10 billion in climate finance for the Philippines under the new country program we are developing with the government. ADB will also continue efforts to mobilize additional climate finance from the private sector, co-financing partners and other sources,” he added.
The high-level dialogue was organized by ADB and attended by Finance Secretary Benjamin Diokno, Environment Secretary Maria Antonia Yulo-Loyzaga and ministers from other countries.
ADB is currently preparing its country partnership strategy for the Philippines for 2024 to 2029, which will prioritize climate action and promote inclusive growth.
Under the new strategy, ADB said it will support low-carbon transport, renewable energy, the development of carbon markets, flood management, resilient coastal development, food security and adaptive health and social protection.
ADB’s first dedicated climate policy-based loan under its Climate Change Action Program, Subprogram 1, drove key reforms aligned with the government’s nationally determined contribution, which is its commitment to help advance global efforts to stabilize the world’s climate.
Additionally, ADB has been instrumental in supporting flagship climate investments through its Infrastructure Preparation and Innovation Facility since 2017.
Two significant projects approved this year, the Davao Public Transport Modernization Project and the Integrated Flood Resilience and Adaptation Project-Phase 1, also highlight ADB’s commitment to sustainable solutions for climate change mitigation and adaptation in the Philippines.
The Philippines, an archipelago of more than 7,600 islands, topped last year’s World Risk Index that assesses which populations are most at risk to earthquakes, cyclones, floods, droughts and sea-level rise.
Capital-intensive industries and the agriculture sector were likely to suffer most due to economic damage brought about by intense and more frequent extreme weather events, the Washington-based lender said.
The World Bank said in its report many actions do not require investments, such as ensuring that new construction does not occur in areas at risk of floods, storm surges or rising sea levels.
Support for renewable energy, energy efficiency, sustainable transport, and for building smart cities, should be scaled up to mitigate the impact of climate change, the report said.
“Adaptation must be a priority for the Philippines,” Diop said, adding these measures could reduce the economic losses from climate change by around two-thirds. –Angela Celis
