ADB approves $500 million loan for Philippines’ climate change efforts

The Asian Development Bank has approved a $500 million loan to support the Philippines' efforts to tackle climate change, it said on Tuesday.

The loan will help accelerate reforms in the Southeast Asian nation to put sectors like agriculture, natural resources, energy and transport on a climate-resilient and low-carbon path, it added.

The Philippines, an archipelago of more than 7,600 islands, faces the highest disaster risk globally. It topped the 2022 to 2024 World Risk Index which assesses populations most at risk from earthquakes, cyclones, floods, droughts and sea-level rise.

"The country's high vulnerability impacts its economic momentum and outlook," ADB Philippines Country Director Pavit Ramachandran said in a statement.

In 2021, the Philippines pledged a 75% cut in greenhouse gas emissions by 2030, up from a target of 70% set four years prior.

In December, the multilateral lender announced $10 billion in climate finance for the Philippines between 2024 and 2029 to support low-carbon transport and climate resilience.

The ADB approved a new goal in September to devote 50% of its annual lending to climate finance by 2030.