Diokno optimistic on ADB’s $10-B climate finance support for PH

Finance Secretary Benjamin E. Diokno has expressed optimism on the Asian Development Bank (ADB)’s $ 10 billion climate finance support for the Philippines and thanked the Bank for being a steadfast and longstanding development partner of the country.

“I thank our ever-reliable and trusted partner, the ADB, for their generous support. This 10 billion-dollar climate financing from 2024 to 2029 will be instrumental in helping us accelerate climate action and enhance climate resilience, which are deeply rooted in the Marcos, Jr. administration’s development agenda,” he said.

ADB President Masatsugu Asakawa made the announcement on the Bank’s support to the Philippines during the high-level dialogue on harnessing financing coalitions for accelerating climate finance on December 4, 2023, which the ADB organized.

“I am pleased to announce that ADB will program $10 billion in climate finance for the Philippines under the new country program we are developing with the government. ADB will also continue efforts to mobilize additional climate finance from the private sector, co-financing partners, and other sources,” President Asakawa said.

The ADB is preparing its country partnership strategy for the Philippines 2024 to 2029, which will prioritize climate action and promote inclusive growth.

Low-carbon transport, renewable energy, the development of carbon markets, flood management, resilient coastal development, food security, as well as adaptive health and social protection are among the key areas that the ADB will support under the strategy.

The ADB has been the Philippines’ steadfast and longstanding partner in the implementation of the country’s commitments to climate action under the Paris Agreement.

In 2022, the Bank approved the $250 million Climate Change Action Program, Subprogram 1 (CCAP1) for the Philippines–the ADB’s first-ever climate change policy-based loan.

The program supports the country’s implementation of national climate policies, including its Nationally Determined Contribution (NDC) and mobilization of climate adaptation, mitigation, and disaster resilience initiatives.

Two climate mitigation and adaptation projects for the country were approved by the ADB this year.

The $1 billion Davao Public Transport Modernization Project, which is the ADB’s largest road-based public transport project in the Philippines, will establish a modern public bus transport system in Davao City.

It is the first project in the country to deploy electric bus fleets in support of the Philippines’ efforts to reduce greenhouse gas emissions.

Meanwhile, the ADB approved a $303 million loan for the Integrated Flood Resilience and Adaptation Project (Phase 1), which will reduce flood and climate risks as well as protect people and livelihoods in three major river basins in the Philippines (i.e. the Abra River basin in Luzon, and the Agus and Tagum-Libuganon river basins in Mindanao).

Aside from its support in mobilizing climate finance, the ADB is helping the Philippines develop its Nationally Determined Contribution Implementation Plan (NDC IP), which will be instrumental in facilitating a sound and robust climate finance ecosystem in the country.