DOF Secures PHP15.79B French Loan for Climate Action

The Philippines has secured EUR 250 million (about PHP15.79 billion) in concessional funding from France to support its climate agenda, following an agreement formalized between Finance Secretary Ralph G. Recto and French Ambassador Marie Fontanel on June 2.

The funding, facilitated through the Agence Française de Développement (AFD), forms part of the Climate Change Action Program, Subprogram 2 (CCAP2), which aims to bolster the country’s transition to a low-carbon, climate-resilient economy.

“This is a vote of confidence in the Filipino people and our shared vision of a greener, safer, and more resilient future,” Recto said during the ceremonial exchange in Manila.

The CCAP2 builds on the gains of CCAP1 and supports the Philippines in achieving its Nationally Determined Contribution (NDC) under the Paris Agreement, particularly in strengthening climate governance and assisting vulnerable sectors.

Implemented from 2020 to 2022, CCAP1 received USD 250 million (around PHP13.90 billion) from the Asian Development Bank (ADB) and EUR 150 million (about PHP9.47 billion) from AFD, laying foundational reforms in climate policy and financing.

The new phase, CCAP2, is co-financed by AFD, ADB (EUR 449.12 million or PHP28.36 billion), and the Japan International Cooperation Agency (JICA) (JPY 35 billion or PHP13.3 billion).

“With this agreement, we strengthen our strategic cooperation on climate action, reinforce our institutional capacities, and accelerate the delivery of real, lasting change—especially for the most vulnerable,” Recto said.

“This is the kind of meaningful partnership the times demand—ambitious, strategic, and purposeful,” he added.

The program’s three subcomponents focus on enhancing climate planning and finance, building resilience to environmental risks, and promoting decarbonization and sustainable growth.

France reaffirmed its support for the Philippines’ climate efforts, reflecting a decade-long development partnership anchored in mutual commitments to sustainability and ocean protection.

“France and the Philippines stand once again united in their commitment to address the urgent challenges of climate change, environmental degradation, and ocean protection,” Ambassador Fontanel said.

“I would like to commend the government of the Philippines for its leadership and resolve in tackling those global issues,” she added.

AFD Country Director Benedicte Gazon emphasized the importance of systemic policy-level interventions.

“As a development partner, we are proud to be a part of this effort and to be working at the policy level,” Gazon said.

“We firmly believe that working on systemic change is essential to meet the scale and urgency of today’s climate challenges.”

Recto assured the French government that the funds would be managed responsibly and directed toward transformative climate programs.

“We will ensure that every euro invested, and every collaboration, will translate to meaningful impact in the lives of ordinary Filipinos,” he said.

AFD is France’s official development finance institution, responsible for delivering the country’s overseas development strategy through sustainable and poverty-reducing initiatives.

Also present at the signing were Department of Finance officials including Chief of Staff Maria Luwalhati Dorotan Tiuseco, IFG Undersecretary Joven Balbosa, Assistant Secretary Donalyn Minimo, and Director John Adrian Narag.