The World Bank said it has approved a $750 million (P41.9 billion) loan to boost the Philippines' environmental protection and climate resiliency reforms.
In a statement, the World Bank said the Philippines' First Sustainable Recovery Development Policy Loan (DPL) would support government reforms to attract private investments in the sector.
Among the government reforms that the financing targets to enhance are renewable energy, plastic waste management. promotion of green transport such as use of EVs and lowered climate-related fiscal risks from the agriculture sector.
"The Philippines has tremendous potential for renewable energy generation, especially in solar and wind. Government actions to encourage investments in this sector, such as promoting foreign direct investments and streamlining the permitting process, could unlock this potential," said Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, Philippines and Thailand.
"Renewable energy can help the Philippines mitigate climate change and bring numerous benefits, including enhanced energy security, the creation of green jobs, and improved access to electricity. It is a crucial step towards a more sustainable and resilient future for the country," Diop said.
The financing program also supports the introduction of new insurance products for vulnerable farmers to alleviate the impact of climate-related risks, and would also support measures aimed at reducing plastic waste, according to the World Bank
The Philippine government aims to grow the share of renewable energy in power generation to 50% by 2040, among others. Achieving this goal will require a huge increase in investments in solar and wind technologies and a strong policy environment conducive to RE investment, the multilateral lender said.