France commits ₱16.9B for Philippines’ climate agenda

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Paris, France - France is strengthening its role as a development partner of the Philippines, with the French Development Agency (AFD) committing more than €251 million or ₱16.9 billion to support the country’s climate and energy transition.

The flagship Climate Change Action Program, launched in 2021 at the request of the Philippine government, includes a €250 million (₱16.8 billion) concessional loan and a €1 million (₱67.3 million) technical assistance grant. The program is co-financed with the Asian Development Bank and the Japan International Cooperation Agency.

The initiative supports three key reforms: strengthening climate governance, improving resilience in agriculture and natural resource management, and reducing emissions in the energy and transport sectors.

In a meeting with select Indo-Pacific journalists, officials said the program has already helped the Philippines implement half of its nationally determined contributions under the Paris Agreement. The renewable energy share of the power mix has increased by 42 percent, and electricity access is expected to reach 99 percent of previously unconnected communities.

Broader Indo-Pacific strategy

Across the Indo-Pacific, the French agency has committed between €2.7 billion (₱181.7 billion) and €3 billion (₱201.8 billion) from 2021 to 2023. The region accounts for about 30 percent of AFD’s global activity.

Philippe Orliange, AFD executive director for geographies, said France’s work in the Philippines reflects its global climate priorities.

“Working in the Indo-Pacific is absolutely essential, even from a purely climate perspective,” Orliange said.

“For us, development is not only international policy - it is also domestic, given France’s overseas territories in the Pacific,” he said

He added that AFD’s approach in the Philippines combines national reforms with project-level support.

“In a country like the Philippines, we use the full toolbox - from budget support to financing projects in energy and transport,” Orliange said. “These sectors are critical not just for reducing emissions but also for tackling air pollution and improving people’s lives.”

Local impact

In addition to national reforms, France supports community-level projects. In Taytay, Palawan, a €1.2 million (₱80.7 million) program backed by the French Global Environment Facility is restoring marine ecosystems, improving food security, and establishing community-managed marine protected areas.

French officials said new projects focused on clean energy and disaster resilience are expected in 2025.

“The Philippines is certainly a country in which we’d like to work more, combining climate finance with strong local partnerships,” Orliange said.

With climate change posing a major challenge for the Philippines, officials said the partnership with France is set to deepen, linking sustainable growth, resilience and global climate action.