The Asian Development Bank (ADB) has approved a $500 million policy-based loan to the Philippines to support the sustainable management of its vital marine ecosystems, revitalize coastal areas, and champion a vibrant, resilient, and low-carbon blue economy.
The funding is provided under the Marine Ecosystems for Blue Economy Development Program (Subprogram 1), ADB’s first extensive cross-sector program in the region focused on fostering national blue economy development. It aims to strengthen the productivity and diversity of the country’s ocean-based economy while enhancing the health and adaptability of coastal communities.
“More than half of the Philippine population is dependent on the country’s oceans and rich marine biodiversity for food and livelihoods,” said ADB Philippines Country Director Andrew Jeffries. “The blue economy has great potential to be central to attaining inclusive, resilient, and low-carbon development. We are committed to assisting our host country in achieving its climate resilience and low-carbon objectives.”
The program is designed to deliver long-term ecological and economic resilience, helping to protect millions of Filipinos from the escalating impacts of climate change. The Philippines, the world’s second-largest archipelagic nation, is hit by an average of 20 typhoons annually, with recent years seeing fiercer cyclones and devastating storm surges.
Key areas of focus include:
Ecosystem Health: Strengthening the health and adaptability of coastal areas.
Waste Management: Enhancing the entire plastic and solid waste management value chain to combat marine pollution.
Natural Capital Investment: Promoting investments in the country’s natural capital, including blue carbon ecosystems.
Climate Resilience: Supporting nature-based solutions and climate-resilient livelihoods, aligning with the country’s National Adaptation Plan and nationally determined contribution.
The Philippine blue economy—encompassing fisheries, ocean-based manufacturing, tourism, shipping, and offshore energy—contributed an estimated Php1.01 trillion ($17.17 billion) to the economy in 2024, representing 3.8% of Gross Domestic Product.
The initiative is closely aligned with the Philippine Development Plan 2023–2028. It builds on ADB’s long-standing support for natural resources management and complements other key initiatives, such as the Climate Change Action Program and the Philippines Flyway Project for wetland conservation.
The program has attracted significant support from development partners. 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.
