MANILA, Philippines – The Government of France, represented by the Agence Française de Développement (AFD), together with the Department of Finance (DOF), approved Tuesday a €250 million (about PHP15.79 billion) policy-based loan for Phase 2 of the Climate Change Action Program (CCAP2), which aims to support the Philippine government’s efforts to “scale up” climate adaptation and mitigation.
The ceremonial exchange was attended by the Embassy of France to the Philippines and Micronesia as co-signatory, while the program is co-financed by the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA), reinforcing a strong multilateral partnership in support of the Philippines’ climate resilience agenda, the Embassy stated.
“As one of the most climate-exposed countries in the world, the Philippines faces mounting risks. Without significant climate action, economic losses could reach up to 13.6% of GDP by 2040,” the Embassy mentioned.
Key sectors like agriculture and natural resources remain especially susceptible to climate disruptions, while energy and transport — responsible for over half of national emissions — require urgent transitions toward renewable and sustainable systems, the Embassy added.
Through this collaborative effort, France (via AFD), ADB, and JICA are mobilizing a combined loan package totalling €917 million: €250 million from AFD, €449 million from ADB, and JPY 35 billion (€218 million) from JICA.
“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” said Finance Secretary Ralph G. Recto.
The Embassy also mentioned that building on the momentum of CCAP Phase 1, the new financing operation supports the government’s efforts to scale up climate adaptation and mitigation, particularly through policy reforms and institutional frameworks necessary to implement its Nationally Determined Contributions (NDCs).
Meanwhile, the CCAP2 aims to accelerate critical reforms and elevate national climate ambitions while addressing social disparities. It promotes a just transition by enhancing rural resilience and integrating gender-responsive strategies, recognizing the disproportionate impacts of climate change on marginalized groups, the Embassy explained.
“France and the Philippines share a strong commitment to protecting the climate and the environment — from the Manila Call to Action on Climate Change in 2015 to the upcoming Third UN Ocean Conference in Nice in just a few days” said Marie Fontanel, Ambassador of France to the Philippines and Micronesia.
“AFD, alongside our partners ADB and JICA, are proud to support the Philippines in building a greener, more resilient future,” AFD Country Director Bénédicte Gazon added.
