MANILA – The European Union (EU) and the Philippines signed on Wednesday a 60-million-euro Financing Agreement for the Green Economy Program, the EU Commission and the Department of Finance (DOF) said.
In a statement, the EU Commission said the agreement signed during the Global Gateway Forum in Brussels, which is part of the EU's contribution to the Team Europe Initiative on Green Economy, aims to assist the Philippines in renewing its economy.
This includes embracing the circular economy, reducing waste and plastic usage, ensuring water supply and wastewater treatment, promoting energy efficiency, and deploying renewable energy to address the impacts of the climate crisis.
To achieve this, the EU will collaborate with the national government, local government units, and the private sector to promote green investments, bonds, and skills, focusing on greener supply chains and production processes.
Implementers of the Green Economy Program will include the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Expertise France, bringing their considerable expertise to the initiative.
Spain, Finland, Germany, and France made financial contributions to the Team Europe Initiative.
Other European member states, including Austria, the Netherlands, and Sweden, will contribute their expertise to ensure the success of the initiative.
"The Team Europe Initiative on Green Economy is a testament to the power of cooperation in addressing today’s pressing challenges. With a significant contribution of 60 million euros through the Green Economy Program, we are helping to build a circular economy, promoting sustainable practices, and supporting climate change mitigation,” European Commissioner for International Partnerships Jutta Urpilainen said.
Finance Secretary Benjamin Diokno, meanwhile, said the Philippine government was grateful for the EU’s support for the country’s climate change agenda.
"The financing support from the EU will help the country in fulfilling its Nationally Determined Contribution commitment to reduce and avoid greenhouse gas emissions by 75 percent by 2030. Through this 60-million-euro grant, the country will benefit from various measures in reducing the production of wastes and plastics, deploying renewable energy, and improving energy efficiency,” Diokno said.
Investment in infrastructure
In a separate statement, the DOF said the European Investment Bank (EIB) has expressed keen interest in partnering with the Philippines to co-finance infrastructure and other sustainable projects.
The DOF said EIB Vice President Kris Peeters made the statement during Diokno’s visit to their headquarters in Luxembourg on Oct. 24.
Peeters said the EIB has already begun looking into the government's “Build Better More” projects that are aligned with the EU's priority areas, including climate, digital connectivity, sustainable cities and regions, and renewable energy.
Diokno also highlighted the opportunities for the EIB to co-finance some of the 197 infrastructure flagship projects prioritized by the government.
Established in 1958, the EIB is the lending arm of the EU.
It is the biggest multilateral financial institution in the world and one of the world’s main financiers of climate action and environmental sustainability. (PNA)