The Asian Development Bank (ADB) has greenlit a $500 million policy-based loan to further help boost the Philippines’ efforts to address climate change.
In a statement, ADB said the Philippines’ Climate Change Action Program (CCAP) subprogram 2 supports the country in implementing its nationally determined contribution (NDC), its commitment to help advance global efforts to stabilize the world’s climate under the Paris Agreement.
The CCAP subprogram 2 was prepared jointly with the Agence Française de Développement, which is providing cofinancing of $278.3 million to the government.
The program is helping ramp up reforms to transform key sectors such as agriculture, natural resources and the environment, energy and transport toward climate-resilient and-low carbon pathways.
“Climate change is exacerbating all major development challenges in the Philippines. The country’s high vulnerability impacts its economic momentum and outlook,” said Pavit Ramachandran, ADB Philippines country director.
“This program is part of our commitment to help our host country avert economic damages from future climate change impact, mobilize green investment, and transform its economy,” he added.
The Philippines’ CCAP was approved in 2022 as ADB’s first climate policy-based loan across Asia and the Pacific.
The program is a significant component of ADB’s new country partnership strategy 2024–2029, and its country climate investment plan, that aims to mobilize $10 billion in climate finance for the implementation of the country’s NDC and national adaptation plan (NAP).
Under its NDC, the Philippines aims to cut greenhouse gas emissions and scale up adaptation.
ADB said the subprogram 2 is instrumental in delivering these ambitions through key reforms such as adopting the NDC Implementation Plan and NAP 2023–2050, scaling up budget allocations for climate activities and deploying climate technologies at national and local levels.
The program also strengthens policies and regulations to mobilize climate-related investment in renewable energy and energy efficiency, climate-resilient agriculture and nature-based solutions.
