The World Bank has granted a development policy loan (DPL) worth $750 million (around Php 41.9 billion) to enhance environmental protection and climate resilience in the Philippines.

In a statement, the World Bank expressed that the First Sustainable Recovery Development Policy Loan (DPL) in the Philippines would assist in implementing government reforms to attract private investments.

The loan aims to enhance various government reforms, including promoting renewable energy, improving plastic waste management, encouraging green transport like electric vehicles (EVs), and mitigating 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,” World Bank country director for Brunei, Malaysia, Philippines, and Thailand Ndiamé Diop said. 

Under the Philippine Energy Plan, the country looks to achieve a 50% renewable energy share in its power generation mix by 2040. 

“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. 

World Bank said that achieving this target would necessitate substantial investments in solar and wind technologies, as well as the establishment of a favorable policy framework to attract renewable energy investments.

In addition, the financing program will support the introduction of new insurance products to aid vulnerable farmers in managing climate-related risks, as well as initiatives aimed at reducing plastic waste.