The world’s development banks have committed to increase their joint financial support for climate adaptation and resiliency among low- and middle-income countries, including the Philippines, to P7.05 trillion ($120 billion) in six years’ time.
In a Nov. 12 World Bank report titled “People in a Changing Climate: From Vulnerability to Action,” the Washington-based multilateral lender pointed out that “climate change is a direct threat to people and human capital,” especially in the education and health sectors of the most vulnerable countries like the Philippines.
“For example, Typhoon Odette in the Philippines damaged nearly 30,000 schools in December 2021, interrupting learning for around 12 million students and requiring $1.2 billion in repairs, equivalent to 10 percent of the Department of Education's annual budget,” the report noted.
As such, multilateral development banks (MDBs) such as the World Bank, the Manila-based Asian Development Bank (ADB), and the China-led Asian Infrastructure Investment Bank (AIIB), among others, announced on Nov. 12 at the ongoing COP29 meeting in Baku, Azerbaijan, that they are joining forces to set aside $42 billion (P2.47 trillion) for adaptation initiatives. They will also raise $65 billion (P3.82 trillion) with the help of the private sector by 2030 for climate financing for poor and developing nations.
In a Sept. 20 joint statement from MDBs, developing countries received P4.388 trillion ($74.7 billion) in climate financing last year, exceeding the P2.938 trillion ($50-billion) annual target for these countries.
Last year, the Philippines’ borrowing for climate change mitigation and adaptation projects reached a record-high $3.131 billion (over P174 billion).
Notably, the Philippines received the 11th-largest amount of climate finance globally last year, following countries such as France, Spain, Italy, India, Germany, Türkiye, Indonesia, Poland, Bangladesh, and Brazil, a September report showed.
At present, MDBs reported that they exceeded the 2025 goals for climate finance set before the pandemic. They increased direct funding for climate projects by 25 percent and doubled the total funds raised for climate efforts in 2023 alone.
Meanwhile, the Manila-based Asian Development Bank’s (ADB) latest climate report ranks the Philippines as the world’s most vulnerable country to extreme climate risks and natural disasters, with a risk index of 46.86, ahead of Indonesia and India.
Also, the report warns that climate change impacts in the Asia-Pacific region will worsen, with rising sea levels, higher temperatures, stronger typhoons, and increased flood losses.
Thus, over the next six years, the ADB committed to invest in irrigation upgrades, climate-resilient infrastructure, and improved flood and drought preparedness in drought-prone areas to boost rural development and food security.
Additionally, the heads of MDBs stated that they are “focused on amplifying our catalytic effect by enhancing the results and impact of our financing, deepening engagement with countries through platforms, supporting clients’ climate ambitions, and increasing private sector mobilization.”
For rich countries, the total climate financing is expected to reach $50 billion (P2.94 trillion) per year, with $7 billion (P411.27 billion) allocated for adaptation projects. MDBs also plan to raise an additional $65 billion (P3.82 trillion) from private sector investments.
The collective commitment came from the following MDBs: African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, the Islamic Development Bank, the New Development Bank, and the World Bank Group.