France Supports Philippines with €250 Million Loan for Climate Action
France is providing a €250 million loan to the Philippines to boost its climate change adaptation efforts and reduce economic losses caused by the climate crisis. This significant funding, amounting to roughly P15.89 billion, aims to scale up the country’s climate resilience and mitigation programs.
The Department of Finance (DOF) and the Agence Française de Développement (AFD) marked the loan’s approval with a ceremonial exchange on June 2, 2025. The Embassy of France to the Philippines and Micronesia also participated as co-signatories. The loan supports the Climate Change Action Program – Phase 2 (CCAP2), a policy-based initiative facilitated by France’s development aid agency, AFD.
Strong Partnership for Climate Protection
“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,” French Ambassador Marie Fontanel said. She emphasized the enduring partnership between the two nations in environmental efforts.
AFD Country Director Bénédicte Gazon highlighted the collaboration with other development partners, stating, “Alongside ADB and JICA, we are proud to support the Philippines in building a greener, more resilient future.”
Multilateral Support and Strategic Reforms
The CCAP2 program is co-financed by the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA), reinforcing strong multilateral support for the Philippines’ climate agenda. The initiative aims to drive crucial reforms and elevate national climate ambitions.
The program specifically promotes a just transition by enhancing rural resilience and integrating gender-responsive approaches. This acknowledges the disproportionate impact climate change has on marginalized groups, a key focus of the project.
According to sources, the total financing package amounts to €917 million (around P58.3 billion). This includes €250 million from AFD, €449 million from ADB, and €218 million from JICA.
Building on Previous Successes
The new funding builds on the momentum from the first phase of the Climate Change Action Program. It supports the government’s efforts to expand climate adaptation and mitigation, particularly through policy reforms and strengthening institutional frameworks to implement the country’s Nationally Determined Contributions (NDCs).
Addressing Economic and Environmental Risks
The Philippines is considered one of the world’s most vulnerable countries to climate change. Economic losses could reach up to 13.6 percent of the nation’s GDP by 2040 if significant climate actions are not taken, local experts noted.
Sectors like agriculture and natural resources remain highly sensitive to climate disruptions. Meanwhile, energy and transport sectors, which contribute over half of national emissions, require urgent shifts toward renewable and sustainable systems.
DOF Secretary Ralph Recto expressed optimism about the agreement, saying it would strengthen strategic cooperation on climate change. He noted that the partnership would deliver “real, lasting change” to Filipinos, especially those in vulnerable communities.
For more news and updates on climate change action, visit Filipinokami.com.