Last month, the World Bank (WB) approved a $ 750 million loan for environmental protection and climate resilience. The Philippines is the number two recipient of climate financing in Southeast Asia, after Indonesia, the Lowy Institute said in a report.
The Asian Development Bank was the biggest provider of climate development finance in the Philippines, with a $250 million policy-based loan to support its climate change adaptation and mitigation efforts. This is ADB’s first climate action policy-based loan. The Philippines is highly vulnerable to natural hazards, facing some of the highest disaster risk levels in the world. Climate financing accounts for 68% of all climate-related disbursements. Climate development finance disbursements to the Philippines average $1.6 billion per year, making it the second-largest destination of such finance in the region, behind Indonesia.
In some of the economies in ASEAN, such as Vietnam, Indonesia, and the Philippines, official development financing (ODF) is a major funding source for critical development priorities. ASEAN as a whole has developed the ASEAN Taxonomy for Sustainable Finance which serves as a common building block that helps ASEAN countries to transition into their sustainable finance adoption goals. The ASEAN Taxonomy will be a larger priority for discussion by ASEAN Finance Ministers and Central Bank Governors noting various systems and policies on sustainable finance across the region.
