ADB finalizing $500M loan for PH’s climate action efforts — DOF

The Philippines has secured the continuous commitment of the Asian Development Bank (ADB) to support the government’s climate action efforts, the Department of Finance (DOF) said Thursday.

In a statement, the DOF said Finance Secretary Ralph Recto had a high-level meeting with ADB president Masatsugu Asakawa on Aug. 28, 2024, at the ADB’s headquarters in Ortigas.

During the meeting, Asakawa announced the ADB is finalizing the approval of a $500-million financing support to the Philippines under the Climate Change Action Program (CCAP) Subprogram 2, according to the Finance Department.

The CCAP Subprogram 2 forms part of the ADB’s $10-billion climate finance commitment for the Philippines from 2024 and 2029, announced by Asakawa during the COP28 in Dubai last 2023. 

The DOF said the ADB’s financing commitment 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 CCAP2 builds on the accomplishments of the CCAP1 signed in June 2022, which made the Philippines a pioneer of the ADB’s first-ever policy-based loan dedicated to climate action, according to the DOF.

Moreover, Asakawa also pledged to continue leveraging regional facilities, such as the ASEAN Catalytic Green Finance Facility (ACGF) and the Green Climate Fund (GCF), to enhance the availability and accessibility of grant financing in the Philippines.

The ADB chief also said that the ADB's new Country Partnership Strategy (CPS) for the Philippines for 2024 to 2029 will be reviewed for consideration by the ADB Board next week. 

The CPS focuses on critical areas, including human development, economic competitiveness, quality infrastructure, climate action, and private sector development, according to the DOF.

— LA, GMA Integrated News