The World Bank has approved a USD 800 million loan to support the Philippine government’s ongoing shift toward clean energy and greater climate resilience. The funding will underpin key policy reforms focused on expanding the use of renewable energy, improving competition in the electricity sector, and strengthening water resource management.
Through the First Energy Transition and Climate Resilience Development Policy Loan, the government aims to raise the share of renewable energy in the country’s total installed capacity from 30% in 2023 to 42% by 2027. The loan will also help finance the procurement of 1,000 megawatts of offshore wind capacity and the rollout of new energy efficiency initiatives.
Other components of the program include supporting the transition to electric vehicles in the public sector and advancing reforms to improve coordination between national and local governments in managing water supply, sanitation, and resources.
The World Bank highlighted that this support comes at a time when the Philippines faces challenges such as high electricity prices, dependence on imported energy, and vulnerability to natural disasters. The reforms are expected to reduce electricity costs, enhance energy security, and make the power supply more stable and reliable for households and businesses alike.
(Source: The Philippine Star)
