Philippines, Nepal share climate finance lessons

The Climate Change Commission and the Department of Finance convened a peer-to-peer learning exchange with government representatives from Nepal, creating a platform for both countries to share best practices on climate finance systems, governance and budgeting.

The exchange was organized by the United Nations Development Programme through the Climate Finance Network under the UK-funded Climate Action for Resilient Asia Programme.

The activity aimed to facilitate knowledge sharing on climate finance strategies, institutional frameworks and tools that support climate action.

The Philippines, through the CCC, presented its current national frameworks, including the National Adaptation Plan of the Philippines 2023–2050 and the Nationally Determined Contribution Implementation Plan 2020–2030.

The Climate Change Expenditure Tagging system was also presented during the exchange.

The CCET system institutionalizes the tagging and tracking of climate-related programs, activities and projects across government.

Aimee Evangelista of the CCC’s Implementation Oversight Division said, “climate budget tagging is not only about tracking expenditures, but about ensuring that public resources are aligned with national climate priorities.”

The exchange also highlighted the Philippines’ People’s Survival Fund as a key domestic adaptation finance mechanism.

The PSF supports local government units and communities in implementing climate adaptation projects.

Under the current setup, the DOF serves as the Secretariat of the PSF, while the CCC is one of the members of the PSF Board.

The discussions also gave both countries an opportunity to tackle shared challenges in climate finance.

Among the issues raised were mobilizing private sector investment, improving data systems and reporting mechanisms, and enhancing access to international climate finance.

CCC Vice Chairperson and Executive Director Robert E.A. Borje emphasized the need for sustained collaboration and knowledge exchange in strengthening climate finance systems.

He also highlighted the role of peer learning in advancing transparent, accountable and evidence-based climate action across countries.

Director John Narag of the DOF’s Climate Finance Policy Group welcomed the Nepal delegation and underscored the importance of peer learning in strengthening climate finance systems.

Narag said the exchange was particularly relevant as the Philippines continues to advance regional cooperation as ASEAN Chair.

He also highlighted the Philippines’ institutional setup, where the DOF coordinates with the Department of Budget and Management and interagency bodies, including the Development Budget Coordination Committee, to align fiscal policy and budgeting.

Narag also cited ongoing efforts to strengthen climate finance tracking through initiatives such as a climate finance dashboard.

Nepal, for its part, shared its experience in implementing Climate Budget Tagging.

Nepal introduced its Climate Budget Tagging system in 2012, making it one of the first systems globally to track climate-related public expenditures.

Representatives from Nepal’s Ministry of Finance said the system supports planning, monitoring and reporting of climate investments across national and subnational levels.

Participating agencies from Nepal included the Ministry of Energy, Water Resources and Irrigation, the Alternative Energy Promotion Center, the Ministry of Finance, the Ministry of Forests and Environment, and the Ministry of Law, Justice and Parliamentary Affairs.

The exchange underscored how both countries are working to embed climate finance more deeply into national planning and budgeting systems.

For the Philippines, the discussions also reinforced the government’s push to strengthen climate governance by improving coordination among agencies and sharpening the use of public funds for adaptation and mitigation.

Both the Philippines and Nepal reaffirmed their commitment to strengthening collaboration and sustaining knowledge exchange.

The two countries recognized peer learning as a key mechanism for institutionalizing climate finance in national planning and budgeting, while supporting long-term resilience and sustainable development.