ADB pledges $500M for Philippines’ climate action

By Francis Allan L. Angelo

Finance Secretary Ralph G. Recto secured additional support from the Asian Development Bank (ADB) for the Philippines’ climate action initiatives during a high-level meeting with ADB President Masatsugu Asakawa on August 28, 2024, in Ortigas.

President Asakawa announced that the ADB is finalizing the approval of a $500 million financing support under the Climate Change Action Program (CCAP) Subprogram 2, as part of the bank’s $10 billion climate finance commitment to the Philippines from 2024 to 2029.

The program builds on the accomplishments of the CCAP1, making the Philippines a pioneer in the ADB’s climate-focused policy-based lending.

The financing aims to enhance the climate resilience of communities, ecosystems, and the economy by investing in public transport, clean energy, disaster risk management, and social protection.

“The ADB is committed to working closely with the Philippine government to ensure these projects are implemented efficiently and deliver tangible results,” Asakawa said in a press statement.

Recto expressed gratitude for the ADB’s continued support, noting that the ADB is the Philippines’ top multilateral partner and second-largest source of official development assistance (ODA).

“The Philippine government has strong political will to ensure that ODA projects are implemented with maximum efficiency and effectiveness,” Recto emphasized.

In addition to the $500 million financing, Asakawa pledged to leverage regional facilities like the ASEAN Catalytic Green Finance Facility and the Green Climate Fund to increase grant financing availability for the Philippines.

The ADB’s new Country Partnership Strategy (CPS) for the Philippines, covering 2024 to 2029, will soon be reviewed by the ADB Board.

The CPS will focus on critical areas such as human development, economic competitiveness, quality infrastructure, climate action, and private sector development.

Asakawa also highlighted the ADB’s role in the ASEAN Climate Finance Policy Platform’s first meeting, aimed at supporting Southeast Asian finance ministry leaders in advancing collective climate action.

Additionally, he congratulated the Philippines on winning the bid to host the Loss and Damage Fund (LDF) Board, further cementing the country’s leadership in climate change issues in the region.

The meeting also recognized the success of the first regional Asia-Pacific meeting of the Coalition of Finance Ministers for Climate Action (CFMCA), co-hosted by the Philippines and the ADB, along with several international partners, in Manila from August 27 to 28, 2024.

The ADB executives in attendance included Justine Diokno-Sicat, Executive Director for the Philippines, and Winfried Wicklein, Director General of the Southeast Asia Department, among others.

Recto was joined by several high-ranking officials from the Department of Finance, highlighting the significance of the discussions and the ongoing collaboration between the Philippines and the ADB in addressing climate change.