the Asian Development Bank (ADB) has approved a USD500-million policy-based loan to strengthen the Philippines’ efforts to tackle climate change.
In a statement on Tuesday, the ADB said the Climate Change Action Program (CCAP) Subprogram 2 supports the country in implementing its Nationally Determined Contribution (NDC).
Under its NDC, the Philippines aims to cut greenhouse gas emissions and scale up adaptation.
CCAP is part of ADB’s new country partnership strategy 2024–2029, and its country climate investment plan, that aims to mobilize USD10 billion in climate finance for the implementation of the country’s NDC and national adaptation plan (NAP).
The program strengthens policies and regulations to mobilize climate-related investment in renewable energy and energy efficiency, climate-resilient agriculture and nature-based solutions.
CCAP Subprogram 2 was prepared jointly with the Agence Française de Développement, which is providing cofinancing of USD278.3 million to the government.
The program will accelerate reforms to transform key sectors such as agriculture, natural resources and the environment, energy, and transport toward climate-resilient and low carbon pathways.
“Climate change is exacerbating all major development challenges in the Philippines. The country’s high vulnerability impacts its economic momentum and outlook,” ADB Philippines Country Director Pavit Ramachandran said.
“This program is part of our commitment to help our host country avert economic damages from future climate change impact, mobilize green investment, and transform its economy, ” he added. (PNA)
