ADB OKs $250 million loan for climate mitigation

MANILA, Philippines — The Asian Development Bank (ADB) has approved a $250 million policy loan for the Philippines’ climate change adaptation and mitigation efforts.

In a statement yesterday, the multilateral development bank said the Climate Change Action Program would help the Philippines deliver its commitment in helping advance efforts to stabilize the world’s climate under the Paris Agreement, as well as for a climate-resilient and low-carbon economy.

The program was prepared with the Agence Française de Développement, which is providing $172 million worth of cofinancing to the government.

“We have a climate emergency, and all countries must come together and address the causes and adapt in a way that ensures food security, protects our biodiversity, and improves the well-being of millions of vulnerable persons,” said Ahmed Saeed, ADB vice-president for East Asia, Southeast Asia, and the Pacific.

He said the Philippines has adopted climate actions and goals to help address threats and challenges, as well as achieve a green and resilient recovery from the pandemic.

“This is ADB’s first climate action policy-based loan. It will support the Philippines’ goal to develop, deliver, and finance a holistic approach to address climate change by transitioning to low-carbon pathways, strengthening the ability of vulnerable sectors to adapt to climate change, and increasing conservation of land and marine resources,” he said.

In the Global Climate Risk Index 2021, the Philippines placed fourth among countries most affected by extreme weather globally from 2000 to 2019.

Amid the pandemic, the country has become more vulnerable to the economic impact of severe weather events.

Among those affected are poor households, particularly in urban areas with less secure infrastructure, as well as those situated along vast coastal areas most exposed to extreme weather.

With the new program, the aim is to have policy reforms and help the Philippine government scale up climate action.

The program will support reforms to help the farming and fishing communities become more resilient to climate change, as well as reduce greenhouse gas emissions through the use of renewable energy, energy efficiency, and sustainable transport.

ADB is providing the loan as part of its commitment on climate action. It aims to deliver $100 billion in cumulative climate finance to its developing member countries from 2019 to 2030.