August 30, 2024 | 12:00am
MANILA, Philippines — The Philippines is expected to secure a $500-million (P28.14 billion) loan from Manila-based Asian Development Bank (ADB) to ramp up the country’s climate action initiatives.
Following a meeting with ADB president Masatsugu Asakawa, Finance Secretary Ralph Recto said the multilateral lender is finalizing the approval of the Climate Change Action Program (CCAP) Subprogram 2.
This $500-million loan financing is a follow-through of the CCAP 1 signed in June 2022 and is worth over $400 million.
The second part of the loan program aims to improve the climate resilience of local communities, ecosystems and the national economy.
It focuses on investments in public transport, clean energy, disaster risk management and social protection.
The program is also part of the ADB’s $10 billion climate finance commitment for the Philippines starting this year and continuing until 2029.
The CCAP will likewise support the Philippines in implementing its national climate policies, including its nationally determined contribution.
The program will intensify efforts to transform critical sectors toward a climate-resilient, low-carbon economy.
Recto said ADB also pledged to continue leveraging regional facilities such as the ASEAN Catalytic Green Finance Facility and the Green Climate Fund to enhance the availability and accessibility of grant financing for the country.
ADB remains the country’s top multilateral partner and second-largest source of official development assistance (ODA) commitments.
“The government has strong political will to ensure that ODA projects are implemented with maximum efficiency and effectiveness,” Recto said.
In a related development, Recto said the Philippines is set to establish a global gold standard for climate finance and action with the recent enactment of the Loss and Damage Fund (LDF) Board Act.
The LDF is a global financial mechanism designed to support countries’ response and recovery from losses and damage caused by climate change.
Last month, the 26-member LDF board selected the Philippines as its host.
Following the law’s enactment, the board will have juridical personality and legal capacity in the Philippines.
It enables the board to enter into contracts, acquire and dispose of property, institute legal proceedings and negotiate with the World Bank – the interim trustee and host of the LDF secretariat.
By hosting the LDF Board, the Philippines will play a leading role in helping attract significant support from developed countries and development partners to provide concrete financial contributions in averting, minimizing and addressing losses and damage.
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