Philippines to Receive $10M for Climate Resilience

By Francis Allan L. Angelo

The Department of Finance (DOF) has successfully hosted the Green Climate Fund’s (GCF) four-day mission to the Philippines, securing a $10 million program grant to enhance the country’s readiness to address climate hazards.

The GCF, established under the Paris Agreement, supports low-emission and climate resilience projects in developing nations. As the National Designated Authority (NDA), the DOF facilitated the mission from May 7 to 10, 2024, to enhance climate finance access, promote local adaptation, and drive sustainable development.

Key moments of the mission included a meeting between GCF leaders and Finance Secretary Ralph G. Recto on May 9, 2024. GCF Director German Velasquez announced a new program to provide the Philippines with a $10 million grant to bolster governmental readiness for climate hazards. This is in addition to existing GCF programs.

“The projects developed with the GCF will have a lasting impact on our local communities and globally in building a more secure and sustainable world,” said Secretary Recto, emphasizing the importance of collective action for a resilient future.

The grant will expedite climate-resilient projects in sectors such as agriculture, energy, biodiversity conservation, environment, transportation, and waste management. Collaboration will involve the Philippines’ Direct Access Entities (DAE) to the GCF, including the Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), and the Foundation for the Philippine Environment (FPE) as a candidate DAE. The People’s Survival Fund (PSF) is also being considered to harness the grant’s potential.

The Philippines, represented by Undersecretary Maria Luwalhati C. Dorotan Tiuseco on the GCF Board, currently benefits from GCF funding for multiple projects valued at $139.9 million, with additional projects worth $188 million in the pipeline.

GCF officials highlighted the Fund’s diverse financing options, including grants, concessional loans, and innovative financial instruments. Discussions during the mission focused on scaling up the Readiness and Preparatory Support Programme (RPSP), private sector involvement, and innovative approaches to sustainable development.

GCF Director Velasquez reiterated, “Our partnership with the Department of Finance aims to unlock the full potential of climate finance in the Philippines, focusing on projects that address climate challenges and promote sustainable development and resilience.”

The mission also included consultations with representatives from various government agencies, civil society organizations, and private sector stakeholders, emphasizing the DOF’s commitment to enhancing readiness and access to GCF.