The Philippines and the European Union (EU) have signed a bilateral agreement on the Joint Declaration of the Green Economy Program, which aims to support the Philippines in its path to a "sustainable future."

GREEN ECONOMY — President Marcos and European Commission (EC) President Ursula von der Leyen witness the signing of the Joint Declaration of the Green Economy Program in Malacañang on July 31, 2023. Department of Environment and Natural Resources (DENR) Secretary Maria Antonia Yulo-Loyzaga and European Union Ambassador to the Philippines Luc Veron signed the agreement. (RTVM Screenshot)

President Ferdinand "Bongbong" Marcos Jr. and European Commission (EC) President Ursula von der Leyen witnessed the ceremonial signing of the agreement in Malacañang on Monday, July 31.

Signatories of the bilateral agreement are Department of Environment and Natural Resources (DENR) Secretary Maria Antonia Yulo-Loyzaga and EU's Ambassador to the Philippines Luc Veron.

During their joint statement, Marcos said he and von der Leyen sealed the deal on Europe's role in the Philippines' transition to a circular economy and the generation of green energy.

"On development cooperation, we committed to conclude a financing agreement on the green economy program in the Philippines, a grant worth 60 million euros which aims to support the Philippines in areas such as circular economy, renewable energy, and climate change mitigation," he said.

Aside from financing, von der Leyen said Europe would also provide expertise, training, and technology transfers to empower local communities, which is part of the EU's Team Europe Initiative on Green Economy.

According to the European Commission, The Team Europe Initiative on Green Economy will develop an industry-led alternative to the plastic waste management approach to achieve more sustainable plastic value chains and a reduction of plastic waste and marine litter.

"In close cooperation with the Philippines authorities, the initiative will help to develop a circular economy policy, in particular tackling plastic waste, to complement the national strategy to combat marine litter," the EC said.

The EC added that there would be a policy dialogue platform at the government level to promote the circular economy, renewable energy, and energy efficiency.

There would also be capacity-building for the Department of Energy and other key stakeholders to support the clean energy agenda. New private energy sector investments focusing on climate change mitigation will likewise be identified.

Before the ceremonial signing, the two leaders held a bilateral meeting to discuss mutual interests in trade, investment, and cooperation within the Global Gateway strategy.

According to Malacañang, the EU's Global Gateway strategy addresses the partner countries' infrastructure needs in the digital, energy, and transportation sectors while addressing the most pressing global challenges, particularly in narrowing the global investment gap.