Partners for progress: The crucial role of private sector in climate change adaptation

For the past week, I had the privilege of engaging with different private sector leaders in discussions related to the National Adaptation Plan (NAP). These conversations at the State of Climate Forum 2025 and NAP Investment Forum underscored one undeniable truth: the private sector’s participation in climate adaptation is essential to our nation’s resilience. The Philippines, among the most at risk to climate change impacts, cannot afford to neglect the power of private investments and partnerships in securing long-term stability, growth and survival.

To be effective, the NAP process must be country-driven, transparent and inclusive, involving key sectors such as the vulnerable communities, civil society organizations, the academe and the business community. Industry players bring not only capital but also unique expertise and experience that can accelerate adaptation efforts and contribute to greater national resiliency.

When the private sector considers climate action as an opportunity to adapt to the impacts of and mitigate the root causes of climate change, transformation can finally happen. Businesses can create social, ecological and technological gains while generating financial returns. Businesses can use climate risk avoidance and reduction to drive growth with scale and speed. Businesses can invest, innovate and create impact, thereby ensuring long-term benefits, not just for their shareholders but also for society as a whole.

The Philippines has taken important steps to establish the enabling environment for businesses to embrace the needed change and lay the groundwork for private sector engagement in climate adaptation.

Programs such as the Land Bank’s Ecosystem Program and the Development Bank’s Green Financing Program, and regulatory measures including the Banko Sentral ng Pilipinas’ Sustainable Finance Framework, are examples of our country’s commitment. These efforts have contributed to over P100 billion in sustainable bond issuances. Yet, we must do more to fully engage the private sector, particularly in infrastructure and other critical industries.

The NAP outlines several strategies to deepen private sector engagement in climate adaptation. One key strategy is the creation of an investor database that provides access to historical climate data and predictive models. This database will equip stakeholders with valuable insights to direct investments toward priority adaptation projects. Continuous data monitoring and trend analysis will help ensure that adaptation efforts remain responsive to evolving risks.

Equally important is a strategy focused on providing technical assistance to enhance private sector capacity in adaptation financing, especially for micro, small and medium enterprises (MSMEs), which make up 99.63 percent of businesses in the Philippines. Unlike large businesses with established capabilities in capital markets, MSMEs often struggle to access financing for climate adaptation measures. Through partnerships with local and international experts, we can advise MSMEs on available funding sources and guide them in unlocking financing opportunities.

Another crucial step involves the establishment of a national focal entity for adaptation finance. This unified body will play a key role in coordinating stakeholders, consolidating adaptation-related financing and projects, and creating a pipeline of viable adaptation investments. By streamlining efforts and ensuring greater accountability, the private sector would find climate adaptation projects more attractive and feasible.

Integrating climate resilience into private sector operations is also necessary. For example, businesses must apply not only traditional models and conduct climate stress tests to assess vulnerabilities, identify risks and explore opportunities for adaptation-focused investments. Public-Private Partnerships offer additional avenues for the private sector to contribute to climate-related projects and initiatives. These partnerships promote both innovation, such as new technologies and approaches, and help increase the coverage of solutions to critical sectors like infrastructure, energy and transportation.

Building community resilience is key in protecting assets and business and service continuity — the primary goal of partnerships between local government units and businesses. The Climate Change Commission (CCC) already has ongoing collaboration with key private sector players, including Aboitiz Foundation, Aboitiz Equity Ventures and First Gen, to provide capacity development training for LGUs to help them develop and implement effective Local Climate Change Action Plans.

Scaling and expanding these partnerships under the NAP framework open up new avenues for impactful investments that can be replicated in other regions. This will drive broader climate resilience and for private entities that integrate adaptation solutions into their business models.

At the CCC, we are offering our partners in the private sector with engagement pathways designed to sustain collaboration and accountability, or what we call a “loop of action and ambition.”

One such pathway is “Engage-To-Leverage,” which focuses on CCC’s bilateral partnerships with the private sector that is anchored on the respective strengths of CCC and its partners. It aims to deliver technical offerings such as knowledge and capacity building, policy development and review, and carbon sequestration measurement and projections.

Beyond bilateral partnerships, we have our “Lead-To-Shape” strategy. This CCC’s system of “contact groups” includes CONNECT or Communicating Opportunities to Network, Navigate and Explore Climate Transformation for the private sector, and WECAN or Working to Empower Climate Action Network for the civil society. These contact groups serve as platforms to foster and enhance collaboration, as well as encourage and support businesses to transition from corporate social responsibility to sustainability-centered operations. They also promote cohesive civil society program interventions on the ground, strengthening their voices in shaping national policies and agenda.

We likewise emphasize the importance of social mobilization campaigns through our “Influence-To-Act” strategy. This includes CCC’s social mobilization activities that bring together climate champions and the larger community to work towards climate actions. One example is the Partners’ Solidarity Night that we held during the observance of the Global Warming and Climate Change Consciousness Week last November, in partnership with Ayala Corporation, Metro Pacific Investments Corporation and UN Women.

These pathways are envisioned to provide a concrete platform for collaboration between the CCC and the private sector, working upstream to inform national policymaking and global positioning, and downstream to align investment programs with national emission reduction goals. At the same time, we aim to establish a policy and investment environment that provides the private sector stability and a level playing field as it transitions to a low-carbon, climate-resilient economy.

It is clear that the private sector’s involvement in climate adaptation is crucial for the sustainability of businesses, communities and the planet. The Philippines stands at a crossroads, and with the right partnerships, we can build a resilient future that benefits all.