ADB to Allocate US$10B in Climate Finance for the Philippines
by Fintech News Philippines December 5, 2023The Asian Development Bank (ADB) has announced a commitment of US$10 billion in climate finance to support the Philippines between 2024 and 2029. The announcement was made by ADB President Masatsugu Asakawa during a high-level dialogue on financing coalitions at COP28 in Dubai, with the aim of assisting the Philippines in fulfilling its climate action obligations under the Paris Agreement.
Masatsugu Asakawa
In his statement, Masatsugu emphasised the pivotal role of Asia and the Pacific in addressing climate change, with the Philippines being particularly susceptible to its effects. He stated,
“I am pleased to announce that ADB will program US$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 mobilise additional climate finance from the private sector, co-financing partners, and other sources.”
The high-level dialogue was organised by ADB and brought together key figures, including Philippine Finance Secretary and ADB Governor Benjamin Diokno, Philippine Environment Secretary and head of the COP28 delegation Maria Antonia Yulo-Loyzaga, and ministers from other countries.
According to the Global Climate Risk Index, the Philippines ranked fourth among nations most affected by extreme weather events globally from 2000 to 2019. ADB’s climate finance support for the Philippines aims to enhance the resilience of vulnerable communities in these areas, ecosystems, and the overall economy.
ADB is currently in the process of developing its country partnership strategy for the Philippines for the 2024–2029 period, with an emphasis on climate action and inclusive growth. Under this strategy, ADB plans to support initiatives including low-carbon transport, renewable energy, carbon market development, flood management, resilient coastal development, food security, and adaptive health and social protection.
The ADB’s first dedicated climate policy-based loan to the Philippines, part of the Climate Change Action Program Subprogram 1, has played a role in driving reforms aligned with the government’s nationally determined contributions to global climate stabilization efforts.
Recent project approvals in the Philippines include the Davao Public Transport Modernisation Project and the Integrated Flood Resilience and Adaptation Project – Phase 1, highlight ADB’s continued commitment to sustainable solutions for climate change mitigation and adaptation in the country.
