MANILA, Philippines — The Philippines and French governments have inked a nearly P16-billion loan facility that aims to address the worsening impacts of climate change.
Finance Secretary Ralph Recto yesterday led the ceremonial exchange of the credit facility agreement for the Climate Change Action Program (CCAP), Subprogram 2 between the Philippines and the Agence Francaise De Developpement (AFD), France’s developmental and financial institution.
The facility amounts to 250 million euros (P15.89 billion). AFD is co-financing the program while the Asian Development Bank is providing $500 million and the Japan International Cooperation Agency with $232.45 million.
In his speech, Recto said the concessional financing agreement from France aims to secure a greener, safer and more resilient future for Filipinos.
“With this agreement, we strengthen our strategic cooperation on climate action, reinforce our institutional capacities and accelerate the delivery of real, lasting change – especially for the most vulnerable,” Recto said.
“We are advancing a gender-responsive implementation of our Nationally Determined Contributions (NDC), strengthening disaster risk management and laying the foundation for a circular economy that redefines how we grow,” he said.
CCAP aims to help accelerate reforms for climate-resilient and low-carbon agriculture, natural resources and environment, as well as energy and transport.
Under its NDC, the Philippines’ goal is to cut greenhouse gas emissions and scale up adaptation.
Subprogram 2 is expected to help deliver these ambitions through key reforms such as adopting the NDC Implementation Plan and NAP 2023–2050, scaling up budget allocations for climate activities and deploying climate technologies.
The program is also expected to strengthen policies and regulations to mobilize climate-related investment in renewable energy and energy efficiency, climate-resilient agriculture and nature-based solutions.