The Asian Development Bank (ADB) has approved a $500 million policy-based blue economy loan to support the sustainable management of the Philippines’ marine ecosystems, help rejuvenate coastal areas, and foster vibrant, resilient, and low-carbon blue economy development.
The Marine Ecosystems for Blue Economy Development Program (Subprogram 1) seeks to strengthen the productivity and diversity of the country’s ocean-based economy, and improve the health and adaptability of coastal areas and communities. It also aims to enhance the plastic and solid waste management value chain and promote investments in the country’s natural capital. These efforts will ensure long-term ecological and economic resilience and protect millions of Filipinos from the worsening impacts of climate change.
“More than half of the Philippine population is dependent on the country’s oceans and rich marine biodiversity for food and livelihoods, with the blue economy having great potential to be central to attaining inclusive, resilient, and low-carbon development,” said ADB Philippines Country Director Andrew Jeffries. “This is ADB’s first extensive cross-sector program focused on fostering national blue economy development in the region. We are committed to assisting our host country in achieving its climate resilience and low-carbon objectives.”
In 2024, key blue economy sectors contributed Php1.01 trillion ($17.17 billion) to the country’s economy, equivalent to 3.8% of gross domestic product. But those sectors, like the marine ecosystems they depend on, are increasingly under threat from warming oceans and other climate change-related events that spark storms and floods. The Philippines is hit by at least 20 typhoons annually, with cyclones becoming fiercer in recent years. Two strong typhoons struck the country within a week in November, leaving hundreds of casualties and millions of dollars in property damage due to flash floods and storm surges.
The Philippines’ blue economy also suffers from unsustainable practices. The country is one of the greatest contributors to ocean plastic and is one of the prime locations where non-profits focused on ocean plastic cleanup operate.
The program is aligned with the Philippine Development Plan 2023–2028 and supports the implementation of the government’s National Adaptation Plan 2023‒2050 and its nationally determined contribution, with a focus on nature-based solutions, climate-resilient livelihoods, and blue carbon ecosystems.
Agence Française de Développement and Germany’s KfW Development Bank will provide cofinancing of up to €200 million (about $235 million) each for subprogram 1.
