France – PH Climate Loan Signed

The Department of Finance (DOF) reports that France and the Philippines have signed a climate change loan worth an estimated $162.53 million or €150 million.

The Agence Française de Développement (AFD) and the DOF have agreed on the policy-based loan for the Climate Change Action Program, Subprogram 1 (CCAP1) to “help the Philippines scale up its efforts to mitigate and adapt to climate change.”

DOF Secretary Benjamin E. Diokno released a statement saying that “as a country vulnerable to climate change impacts, which cost us over 1% of the country GDP in direct losses to public and private assets due to earthquakes and typhoons, the Philippines is committed to pursuing concrete climate actions to protect the most vulnerable from its devastating effects.”

Secretary Diokno has mentioned that the government plans to allot 8.72% of the National Budget for 2023 to climate change adaptation and mitigation programs.

The Asian Development Bank (ADB) and the AFD have a combined policy-based loan of $442.40 million or €390 million. Aside from this, ADB has another CCAP1 loan worth over $250 million. This targets to support the Philippines in reaching its nationally-determined contribution or NDC and its attempts to shift the vulnerable sectors into low-carbon and resilient economies says the DOF.

“The Philippines is one of the most vulnerable countries to climate change and ranked as the fourth most affected country by extreme weather events between 2000 and 2019. In addition to their direct impacts on people, the economic consequences of these disasters will cost the country more than $3.5 billion a year by 2040,”

Source: Manila Bulletin