This initiative supports the country’s Climate Change Action Program (CCAP) Subprogram 2, which is aligned with its nationally determined contribution (NDC) under the Paris Agreement.
The program focuses on reforming critical sectors like agriculture, energy, transport, and natural resources to adopt low-carbon and climate-resilient pathways, the ADB said in a statement.
It also aims to scale up budget allocations for climate activities and deploy green technologies at both national and local levels.
“Climate change is exacerbating all major development challenges in the Philippines. The country’s high vulnerability impacts its economic momentum and outlook,” said ADB Philippines Country Director Pavit Ramachandran.
“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,” Ramachandran added.
The Philippines faces the highest disaster risk in the world, according to the World Risk Index 2022–2024. Recent typhoons underscore its vulnerability to extreme weather, with climate-related economic damage projected to reach 7.6 percent of GDP by 2030.
ADB’s $500-million loan complements $278.3 million in co-financing from the Agence Française de Développement. Together, these funds will support reforms like adopting the NDC Implementation Plan, scaling up renewable energy, and promoting climate-resilient agriculture.
Since CCAP’s approval in 2022, it has become a cornerstone of ADB’s new country partnership strategy, aiming to mobilize $10 billion for climate finance through 2029.
