The Philippines has secured a $500-million climate financing support from the Asian Development Bank (ADB), the Department of Finance (DOF) said on Thursday.
In a statement, ADB President Masatsugu Asakawa said during the Coalition of Finance Ministers for Climate Action regional meeting that it was finalizing the financing support to the country under its Climate Change Action Program Subprogram 2—a climate change policy-based loan.
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The program is part of the bank’s $10-billion climate finance initiative for the Philippines, covering 2024 to 2029. This commitment was announced by Asakawa last year.
“The financing commitment aims to improve the climate resilience of local communities, ecosystems and the national economy. It focuses on investments in public transport, clean energy, disaster risk management and social protection,” the DOF said.
Regional resources
The bank also vowed to continue leveraging regional resources, such as the Asean Catalytic Green Finance Facility and the Green Climate Fund to enhance the availability and accessibility of grant financing in the Philippines.
In addition, ADB said that the new Country Partnership Strategy for the country will be reviewed for consideration by the ADB Board next week.
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The program focuses on critical areas, including human development, economic competitiveness, quality infrastructure, climate action and private sector development.
Climate funding
ADB is the largest multilateral provider of climate finance in Asia, responsible for 50 percent of the region’s international climate funding.
For his part, Finance Secretary Ralph Recto assured the ADB that the Marcos administration has strong political will to ensure that projects financed through official development assistance (ODA) will be implemented with maximum efficiency and effectiveness.
The ADB was the second-largest source of the country’s ODA, holding a portfolio of $11.43 billion, which represents 30.65 percent of the total last year.