Climate Finance Network

Financing a climate-resilient future in the Philippines

 

Introduction

UNDP Philippines is working to create a transparent, accountable, and effective climate finance ecosystem. By supporting the development of the country’s national climate finance strategy, strengthening public finance tracking systems, and improving access to international funds, the aim is to ensure that financial resources deliver measurable resilience for all Filipinos. This work is part of the UNDP Climate Finance Network, supported by the UK FCDO CARA Programme.

 

What we do

Enhancing climate finance transparency  

  • The challenge: Making climate expenditure data easily accessible and useful for decision-makers and the public. 
  • The approach: Supporting the development of a central climate finance dashboard to track investments, including the analysis of public data under the national climate change expenditure tagging (CCET) system.  
  • The impact: Stronger public accountability and optimized use of climate finance that delivers measurable, evidence-based resilience outcomes. 

Driving results-based climate action  

  • The challenge: Accurately measuring the tangible impacts of climate-related spending against national resilience goals. 
  • The approach: Developing a results-based budgeting framework for the Department of Environment and Natural Resources in coordination with the Department of Finance, the Department of Budget and Management, and the Climate Change Commission to ensure spending is aligned with national climate plans. 
  • The impact: A clear link between budget allocations and tangible resilience outcomes, maximizing the effectiveness of every peso spent. 

Scaling climate-adaptive finance for MSMEs 

  • The challenge: MSMEs often cannot access adaptation and resilience financing for investments in climate-adaptive practices and technologies because loans are perceived as too risky, insufficiently collateralized, or too large for traditional MSME lending products. 

  • The approach: Establishing a blended guarantee facility, supported by catalytic funding and implemented with domestic financial institutions, to reduce lending risks and expand financing for climate-resilient and green MSME investments.  

  • The impact: Increased access to finance for climate-adaptive MSMEs, mobilizing private sector lending for adaptation and resilience, and other productive green investments through a scalable and replicable financing model. 

Our impact in action

Unlocking access to international climate funds  
Providing support to the Department of Finance and the Department of Environment and Natural Resources in their accreditation process for the Adaptation Fund. Once complete, this will enable the Philippines to directly access up to $40 million for climate resilience projects. 

Crafting the National Climate Finance Strategy 
In partnership with the Department of Finance, we are developing the national Climate Finance Strategy. This foundational framework is designed to align the country's financial flows with the National Adaptation Plan (NAP), the NDC Implementation Plan, and the Sustainable Finance Roadmap, creating a clear, whole-of-government pathway to mobilize climate investment. 

Embedding climate risk in national economic planning
An economic modeling tool for climate impacts has been presented to the members of the Interagency Taskforce for Sustainable Finance and the Development Budget Coordination Committee, the country's primary body for economic planning. The tool embeds climate risk analysis directly into national expenditure planning.