The Asian Development Bank (ADB) on Tuesday approved a $500-million loan for the Philippines to help the country address climate change issues.

In a statement, ADB said the loan, whose portion worth $278.3 million will be co-funded by Agence Française de Développement, will support the country's climate adaptation plan. To implement the plan, ADB said the government needs a $10 million fund.

The new loan is part of the Philippines’ Climate Change Action Program Subprogram 2 and ADB’s new country partnership strategy for 2024–2029.

Commitment to help Phl avert damages

"This program is part of our commitment to help our host country avert economic damages from future climate change impact, mobilize green investment, and transform its economy," ADB Philippines country director Pavit Ramachandran said.

ADB projects Philippine economic damage from climate change could hit 7.6 percent of gross domestic product by 2030.

According to the 2023 World Risk Index, the Philippines contributed only 0.48 percent to global carbon emissions but is the most vulnerable to natural disasters, with a "very high risk" score of 46.86 out of 100, the highest among 193 countries.

The Bangko Sentral ng Pilipinas shared that the country recorded P24.4 billion in agriculture and infrastructure damage last year due to extreme weather.

For this month, the National Disaster Risk Reduction and Management Council reported typhoons “Nika,” “Ofel” and “Pepito” caused agricultural and infrastructure damage amounting to over P478 million.

Cut carbon emissions to 75%

The government aims to reduce carbon emissions by 75 percent by 2030 to prevent the worst effects of climate change.

As a signatory to the Paris Agreement, the Philippines is committed to help limit the rise in global temperature to 1.5 degrees Celsius.