Philippines secures P3.6 billion financing for green economy program

MANILA, Philippines — The Philippines has secured P3.6 billion from the European Union to boost the country’s sustainability efforts for a green economy amid worsening impacts of climate change.

Finance Secretary Benjamin Diokno represented the Philippines in signing the 60-million euro financing agreement with the European Union.

Diokno is currently in Brussels, Belgium for the Global Gateway Forum.

The agreement between the Philippines and the EU will support the Green Economy Program, a key part of the EU’s contribution to the Team Europe Initiative on Green Economy.

The Green Economy Program aims to assist the Philippines in transitioning toward a sustainable economy.

This includes embracing the circular economy, reducing waste and plastic usage, ensuring water supply and wastewater treatment, promoting energy efficiency, and deploying renewable energy to address the impacts of the climate crisis.

As part of the agreement, the EU will collaborate with the national and local government, as well as the private sector to promote green investments, bonds, and skills, focusing on greener supply chains and production processes.

EU commissioner for International Partnerships Jutta Urpilainen said the EU was taking decisive steps to build a circular economy, promote sustainable practice and support climate change mitigation.

“This initiative demonstrates the EU’s dedication to working hand in hand with our partners, like the Philippines, to build a greener, more sustainable future for generations to come,” Urpilainen said.

Diokno, for his part, said that  the EU’s financing support would help the Philippines fulfill its Nationally Determined Contribution commitment to reduce and avoid greenhouse gas emissions by 75 percent by 2030.

“The country will benefit from various measures in reducing the production of wastes and plastics, deploying renewable energy, and improving energy efficiency,” Diokno said.

Earlier this year, European Commission president Ursula von der Leyen and President Marcos launched the Team Europe Initiative on Green Economy under Global Gateway worth 466 million euros.

Further, the EU is also looking at the potential for a free trade agreement, as well as possible collaborations on the country’s local mining industry, supporting communities, and ensuring a secure global supply of critical raw materials.