ADB backs Philippines with $500m climate loan

The Asian Development Bank (ADB) approved a $500 million policy-based loan to support the Philippines in addressing climate change, it said in a statement on Tuesday.

The loan will help the country implement its Climate Change Action Programme (CCAP) Subprogramme 2, which is aligned with its commitment to the Paris Agreement.

The programme aims to accelerate reforms in sectors like agriculture, natural resources, energy, and transport to promote climate-resilient and low-carbon pathways.

The Philippines faces the highest disaster risk globally, as per the World Risk Index 2022–2024.

Four powerful typhoons hit the country one after the other, marking its vulnerability to witness more frequent and severe extreme weather events. Climate-related disasters could lead to economic losses of up to 7.6 per cent of GDP by 2030.

“Climate change is exacerbating all major development challenges in the Philippines. The country’s high vulnerability impacts its economic momentum and outlook,” said ADB Philippines Country Director Pavit Ramachandran.

Attribution: The Asian Development Bank report

Subediting: Y.Yasser