Philippines borrows P9 billion for climate change efforts

MANILA, Philippines — The Philippines has secured 150 million euros (P9 billion) in loan financing from the French government to ramp up climate mitigation and adaptation efforts.

This is part of the bigger 390 million euros (P23.29 billion) financed by the French Development Agency (AFD) and Asian Development Bank. The $250 million (P13.78 billion) ADB loan was signed in June last year.

The loan financing aims to support the country in achieving its nationally determined contribution (NDC) and in its efforts to transform vulnerable sectors into a resilient, low-carbon economy.

In particular, the fund will aid public reforms aimed at setting up planning and financing systems to strengthen climate action, as well as strengthen the resilience of the population to the growing impacts of climate change.

It also targets to reduce greenhouse gas emissions through the deployment of renewable energies, improving energy efficiency and deploying sustainable transport.

The Philippines has been one of the most climate-vulnerable countries over the past two decades. At present, over one percent of the country’s gross domestic product (GDP) is directly lost due to earthquakes and typhoons.

An earlier report of the Department of Finance showed that the Philippines is bound to incur as much as P1.5 trillion in losses from natural disasters in the next five decades as impacts of climate change continue to worsen.

This is about 7.7 percent of the country’s nominal GDP of P19.187 trillion as of 2021.

For this year’s budget, almost nine percent has been allocated for programs related to climate change mitigation and adaptation to meet the country’s own NDC targets.

French Ambassador Michèle Boccoz said that France remains engaged in the fight against the climate crisis, which has become a big problem for the Philippines.

France has earmarked six billion euros each year until 2025 to help developing countries, including the Philippines, finance their transition and cope with climate disasters.

AFD implements France’s policy on international development and solidarity.

It was in 2009 when AFD started its operations in the country with a focus on addressing climate change. Since then, AFD has mobilized more than 1.14 billion euros in financing for the Philippines.