The Asian Development Bank has approved a USD500 million policy-based loan to help the Philippines, one of the most disaster risk-prone countries in the world, in its efforts to tackle climate change.
The loan is part of the country’s Climate Change Action Program Subprogram 2, which aligns with the Philippines’ commitment to the Paris Agreement and its nationally determined contribution to stabilize global climate.
The Philippines’ eastern seaboard faces the Pacific Ocean, a major generator of tropical cyclones that in recent years have intensified due to climate change. Economic damages from climate-related disasters could be as high as 7.6 percent of gross domestic products by 2030, according to the ADB. Aside from climate challenges, the country also sits on the so-called Pacific Ring of Fire, an area prone to devastating volcanic eruptions and earthquakes.
The program aims to accelerate climate-resilient and low-carbon reforms across key sectors, including agriculture, natural resources, energy, and transport.
“Climate change is exacerbating all major development challenges in the Philippines… This program will help avert economic damages, mobilize green investment, and transform the economy,” said Pavit Ramachandran, ADB Philippines Country Director.
CCAP Subprogram 2 builds on reforms such as the NDC Implementation Plan and the National Adaptation Plan (NAP) 2023–2050. The program is co-financed by the Agence Française de Développement with USD278.3 million. This initiative is also part of ADB’s broader strategy to mobilize USD10 billion in climate finance for the Philippines.
