The World Bank has granted its approval for a substantial financing package totaling $750 million to offer vital support for the policy reforms undertaken by the Philippines.
The main objective of these reforms is to strengthen environmental protection measures and promote climate resilience, with the ultimate aim of fostering sustainable long-term economic growth in the country.
The Philippines First Sustainable Recovery Development Policy Loan will aid ongoing government initiatives to attract private investment in renewable energy, improve plastic waste management, promote green transport, and reduce climate-related fiscal risks in 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 added.
This is a development policy loan which provides assistance to countries undertaking reforms to address development constraints, the World Bank said.
It typically supports policy and institutional changes needed to create an environment conducive to sustained and equitable growth as defined by borrower-countries’ own development agenda.