The Philippines has been issued with a US$500 million loan by the Asian Development Bank (ADB), which will finance projects that support the management of the country’s marine ecosystems, including promoting investments in the country’s natural capital as well as curbing ocean litter.
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Apart from ADB, Agence Française de Développement and Germany’s KfW Development Bank has also pledged to provide co-financing of about US$235 million each to back the Philippines’ blue economy push.
The move aligns with the country’s drive to measure its natural resources, and put more scrutiny on activities with negative environmental impacts, after it signed into law the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act last year. PENCAS establishes “a comprehensive information system and accounting framework that will take into consideration the role of the country’s natural capital” and its impact on the economy. Additionally, the funding will reinforce the Philippines’ integration of its blue carbon ecosystems into its updated nationally determined contributions (NDCs) to the Paris Agreement.
Lending from the three institutions also aims to address the Southeast Asian nation’s efforts to curb plastic waste, as it is considered the third largest global contributor of marine litter with an estimated 0.75 million metric tonnes of mismanaged waste entering the ocean every year, according to a 2021 World Bank study.
It is slated to raise money for restoring mangroves, enhancing management and circularity of plastic waste, improving sustainable management practices in industry, fisheries, and tourism, among others, ADB said on Thursday.
“More than half of the Philippine population is dependent on the ocean for food and livelihoods, with the blue economy key to attaining inclusive, resilient, and low-carbon development,” said ADB Philippines country director Andrew Jeffries.
The blue economy contributes US$17.17 billion to the Philippines’ economy, equivalent to 3.8 per cent of gross domestic product.
However, marine ecosystems are increasingly under threat from unsustainable practices, including waste pollution, as well as the severe climate impacts. The world’s second-largest archipelagic nation is hit by at least 20 typhoons annually, with cyclones intensifying 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.
The blue economy, which includes livelihoods and other economic benefits derived from oceans, is expected to reach US$3 trillion and employ 40 million people by 2030, giving it critical role in pivoting the global economic system towards regenerating ocean health, said the World Bank.
