Phl climate action gets boost with $500-M loan from ADB

The Asian Development Bank (ADB) has approved a USD500-million policy-based loan to enhance the Philippines’ efforts in addressing climate change.

In a statement released recently, the ADB announced that the Climate Change Action Program (CCAP) Subprogram 2 will support the country in meeting its Nationally Determined Contribution (NDC) goals. The NDC includes the Philippines’ commitment to reducing greenhouse gas emissions and scaling up climate adaptation initiatives.

The CCAP is part of ADB’s new country partnership strategy for 2024–2029 and its country climate investment plan, which aims to mobilize USD10 billion in climate finance to help implement the Philippines’ NDC and National Adaptation Plan (NAP).

The program focuses on strengthening policies and regulations to encourage investment in renewable energy, energy efficiency, climate-resilient agriculture, and nature-based solutions.

CCAP Subprogram 2 was developed in collaboration with the Agence Française de Développement, which is co-financing the program with USD278.3 million.

This initiative will drive reforms across critical sectors, including agriculture, natural resources, energy, and transport, pushing them toward climate-resilient and low-carbon development pathways.

“Climate change is exacerbating all major development challenges in the Philippines. The country’s high vulnerability affects its economic growth and future prospects,” said ADB Philippines Country Director Pavit Ramachandran.

“This program reflects our commitment to supporting the Philippines in mitigating the economic impact of future climate challenges, mobilizing green investments, and transforming the nation’s economy,” he added.