ADB, France lend $809 million for Philippines climate action plan

MANILA, Philippines — The Philippines has obtained loan packages worth $809 million from the Asian Development Bank (ADB) and the French government to bankroll mitigation measures against climate change. Finance Secretary Carlos Dominguez III said the Philippines has finalized $250 million in funding from the ADB for the multilateral’s pioneer climate change policy-based loan and an additional $159 million from its French counterpart in support of the country’s efforts to alleviate the impact of climate change.

The outgoing finance chief said the government will allocate the financing for its climate change measures with the objective of hitting its green targets.

The Philippines has embarked on a 10-year program to reduce its greenhouse gas emissions by 75 percent by 2030.

The government also intends to retrofit hydropower plants in Mindanao to wean the island from coal energy.

In line with this, the country is participating in the ADB’s energy transition mechanism wherein coal facilities would be decommissioned within the next 15 years.

“We have not only set a bold carbon reduction goal, but have also shifted the focus from merely theorizing about climate change to implementing practical projects on the ground,” Dominguez said.

The government also received another loan from the ADB amounting to $400 million to finance the completion of sustainable infrastructure.

According to Dominguez, the funding also expands the government’s access to long-term financing, as it can be used to improve the efficiency of the debt market and increase investments in insurance funds.

Moving forward, Dominguez said that both programs support the government’s target of shifting to green infrastructure.

Dominguez added that by pooling resources for climate action, the economy can weather the challenges posed by environmental risks.

“An improved infrastructure backbone will increase the efficiency of our economy. It will enable us to improve our climate resiliency and spur sustainable growth,” Dominguez said.

Based on estimates, the Philippines lost a total of P506.1 billion to climate hazards from 2010 to 2020, forfeiting an average of P48.9 billion, or 0.33 percent of the gross domestic product, every year to weather extremes.

Despite this, the country only contributes roughly 0.3 percent of the planet’s greenhouse gas emissions, pushing Dominguez to remind developed economies of their commitment to cut their carbon footprint.