Philippines: Climate Change Action Program, Subprogram 1

Sovereign Project | 55268-001

The program constitutes the first dedicated climate change policy-based loan undertaken by the Asian Development Bank (ADB) and addresses climate change as its core objective. It will support the Philippines to implement its national climate policies, including its Nationally Determined Contribution (NDC), which aims to peak greenhouse gas (GHG) emissions by 2030, and scale up climate adaptation, mitigation, and disaster resilience. The program will increase and intensify actions to transform key sectors toward a climate-resilient and low-carbon economy. It focuses on sectors that are of national priority for climate action, targeting adaptation in highly vulnerable sectors (agriculture, natural resources, and environment), and mitigation in emissions-intensive sectors (energy and transport). The program reform areas are (i) strengthening planning, financing, and institutional linkages for climate action; (ii) enhancing resilience to climate impacts; and (iii) strengthening low-carbon pathways.

Project Details

  • Project Officer
    Connett, Diana G.
    Southeast Asia Department
    Request for information
  • Country/Economy
    Philippines
  • Sector
    • Energy
Project Name Climate Change Action Program, Subprogram 1
Project Number 55268-001
Country / Economy Philippines
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4186-PHI: Climate Change Action Program, Subprogram 1
Ordinary capital resources US$ 250.00 million
Loan: Climate Change Action Program, Subprogram 1
Agence Francaise de Developpement US$ 171.67 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

Energy / Energy sector development and institutional reform

Finance / Finance sector development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The program constitutes the first dedicated climate change policy-based loan undertaken by the Asian Development Bank (ADB) and addresses climate change as its core objective. It will support the Philippines to implement its national climate policies, including its Nationally Determined Contribution (NDC), which aims to peak greenhouse gas (GHG) emissions by 2030, and scale up climate adaptation, mitigation, and disaster resilience. The program will increase and intensify actions to transform key sectors toward a climate-resilient and low-carbon economy. It focuses on sectors that are of national priority for climate action, targeting adaptation in highly vulnerable sectors (agriculture, natural resources, and environment), and mitigation in emissions-intensive sectors (energy and transport). The program reform areas are (i) strengthening planning, financing, and institutional linkages for climate action; (ii) enhancing resilience to climate impacts; and (iii) strengthening low-carbon pathways. The program has been prepared jointly with the Agence Fran aise de D veloppement (AFD).
Project Rationale and Linkage to Country/Regional Strategy

The programmatic approach is anchored on the growing recognition that the Philippines needs to act now to put in place a policy, institutional, and financing framework that will use the post-pandemic recovery as an opportunity to address the massive challenges posed by climate change. It responds to the need for long-term support to implement the mitigation and adaptation priorities of the NDC, and enables sequenced reforms to successively strengthen institutions and integrate climate into sector development. The approach provides flexibility for mid-course design adjustments, which is important given the evolving COVID-19 pandemic conditions and the need to learn from emerging experiences.

The program comprises two subprograms consisting of three reform areas: (i) planning, financing, and institutional linkages for climate action strengthened; (ii) resilience to climate impacts enhanced; and (iii) low-carbon pathways strengthened. Subprogram 1 supports the submission of the NDC and strengthens linkages between key national and sector agencies. It also supports initial actions to strengthen planning, financing, institutions, and operations in priority NDC implementation sectors. All prior actions for subprogram 1 have been completed. Subprogram 2 actions will build on these initiatives and scale up implementation of efforts to increase the resilience of agriculture and ecosystems and the transition to a low-carbon pathway. It will help set a long-term strategy and provide a foundation upon which future NDC development can be built. The program supports the government to deliver its unconditional NDC actions by strengthening sector institutions, including their capacity and budgets. It also enables the implementation of conditional NDC priorities by (i) helping to demonstrate and deploy low-carbon and climate-resilient technologies, and (ii) enabling public and private financing. Policy actions and reform areas were selected based on multicriteria optimization across (i) climate change impacts, (ii) government priorities, (iii) ADB's value addition, and (iv) development partner coordination.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Connett, Diana G.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Department of Finance
DOF Building
Bangko Sentral ng Pilipinas Complex
Roxas Blvd., Manila, Philippines
Timetable
Concept Clearance 11 Jan 2022
Fact Finding 02 Nov 2021 to 23 Nov 2021
MRM 06 Apr 2022
Approval 31 May 2022
Last Review Mission -
Last PDS Update 31 May 2022

Loan 4186-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 May 2022 01 Jun 2022 21 Jun 2022 31 Jul 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 421.67 Cumulative Contract Awards
ADB 250.00 14 Jul 2022 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 171.67 14 Jul 2022 250.00 0.00 100%

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