The Philippines has cut its climate change budget by nearly 15 per cent this year, drawing criticism from environmental groups who say the reduction weakens already fragile protections while funnelling the bulk of funds into infrastructure projects vulnerable to corruption.
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Philippine president Ferdinand Marcos. Jr signed into law on Monday the national budget, which allocates P983.8 billion (US$16.7 billion) for climate-related expenditure, down from last year’s record-high P1.156 trillion (US$19.6 billion) allocation.
The overall national budget stands at P6.793 trillion (US$115.5 billion), with climate financing covering both mitigation and adaptation efforts, including disaster resilience programmes and the people’s survival fund for local government projects, according to the Department of Budget and Management (DBM).
While US$16.7 billion of the total budget is tagged as climate-related spending under the government’s climate budget tracking system, environmental groups argue that the allocation masks a heavy skew toward infrastructure rather than genuine environmental protection.
Center for Environmental Concerns (CEC), a nonprofit which represents fisherfolk, farmers, indigenous peoples, women, urban poor and professional groups, said that about 76.7 per cent of the tagged climate budget is allocated to the Department of Public Works and Highways (DPWH), while only around 1 per cent goes to the Department of Environment and Natural Resources (DENR).
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Larger allocation for infrastructure represents the lack of prioritisation of environmental protection and climate justice, the proliferation of false solutions, and the prioritisation of profit and kickbacks over the real needs of the people.
Center for Environmental Concerns (CEC)
CEC said the imbalance raises concerns about the effectiveness of the government’s climate response, noting that the DENR, the primary agency responsible for environmental protection, receives just P29.3 billion (US$498.6 million), or 0.43 per cent of the total P6.793 trillion national budget. By contrast, the DPWH has been allocated P530.9 billion (US$9 billion), the second-largest share of the national budget.
Allocating such a large portion of public funds to infrastructure projects is a “recipe for corruption and environmental neglect”, the group warned.
“Larger allocation for infrastructure represents the lack of prioritisation of environmental protection and climate justice, the proliferation of false solutions, and the prioritisation of profit and kickbacks over the real needs of the people,” it said in a statement published in September when the budget was going through Senate and Congressional hearings.
The DPWH came under fire last year over a massive flood control projects scandal, involving billions in misappropriated funds. Allegations centered on “ghost” projects, overpricing, substandard construction, rigged bidding, and kickbacks to politicians, contractors, and officials.
Despite criticism, the DBM reported that P1.556 trillion (US$26.46 billion) has been allocated this year for the continuation of the government’s flagship infrastructure programme, covering nearly 200 approved infrastructure projects across public transport, power, health, information technology, water resources and agriculture.
The DENR earlier said its areas of focus would include climate risk, regreening forests, preserving biodiversity, water security, air quality, and sustainable mining. But under its new budget, funding for biodiversity and landscape protection decreased by 65 per cent, from P8.83 billion (US$150.2 million) in 2025 to P3.08 billion (US$52.4 million) in 2026.
Spending on solid waste management also remains limited, with just P349 million (US$5.94 million) allocated despite mounting pressure on disposal system, including Manila’s need to dump its garbage at New San Mateo Sanitary Landfill in Rizal province. The DENR had intended to target 4,164 barangays or villages for assistance in establishing materials recovery facilities and 72 local government units to be assessed on their waste management practices. The country has been facing chronic solid waste management issues, generating about 40,000 tonnes daily with low recovery rates.
CEC also flagged concerns over the P1.24 billion (US$21.09 million) allocated for rehabilitation of Manila Bay, calling the amount “insubstantial” given that harmful reclamation projects and dredging persist. Manila Bay is home to the country’s largest port and serves as the Philippines’ main maritime gateway.
“The government’s allotted budget for genuine environmental protection and rehabilitation reflects a devastating reality of weak climate action,” the group said, adding that the administration’s green branding contrasts sharply with policies that “enables greed and corruption at the expense of communities.”
