The government will implement a climate resiliency program backed by additional funding of P15.79 billion (or 250 million euros) from the Agence Française de Développement (AFD).
The Department of Finance said AFD formally granted the concessional funding for the Climate Change Action Plan Subprogram 2 (CCAP2) during a ceremony on Monday, attended by Finance Secretary Ralph Recto and French Ambassador Marie Fontanel.
CCAP2 aims to create effective policies that will help the Philippines achieve its Nationally Determined Contribution (NDC) target of reducing carbon emissions by 75 percent by 2030.
"France and the Philippines stand once again united in their commitment to address the urgent challenges of climate change, environmental degradation, and ocean protection," Fontanel said.
CCAP2 focuses on three key areas: the drafting of climate action plans, financial mechanisms for climate-related projects, and institutional partnerships for coordinated climate efforts.
Additional funding for the program also came from the Asian Development Bank (ADB), which contributed P28.36 billion (equivalent to 449.12 million euros), and the Japan International Cooperation Agency (JICA), which provided P13.3 billion (equivalent to 35 billion yen).
"With this agreement, we strengthen our strategic cooperation on climate action, reinforce our institutional capacities, and accelerate the delivery of real, lasting change, especially for the most vulnerable," Recto said.
Concessional funding offers low interest rates and extended repayment terms suited to the needs of recipient countries.
From January 2020 to March 2022, the government implemented CCAP1 with initial support from AFD amounting to P9.47 billion (150 million euros), while ADB contributed P13.9 billion ($250 million).