EU, Philippines sign €60 million financing deal for Green Economy Programme

The Philippines and the European Union (EU) on Wednesday inked a €60-million financing agreement for the Green Economy Programme.

In a statement, the European Commission (EC) said the grant under the Green Economy Programme “aims to assist the Philippines in renewing its economy.”

It also forms part of the EU’s Team Europe Initiative on Green Economy.

The EC said the program 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.

It said the EU will collaborate with the Philippines’ national government, local government units, and the private sector to promote green investments, bonds, and skills, focusing on greener supply chains and production processes.

The EC said the implementers of the Green Economy Programme will include the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Expertise France, bringing their considerable expertise to the initiative.

Moreover, Spain, Finland, Germany, and France have also made financial contributions to the Team Europe Initiative, further cementing the EU's commitment to fostering a sustainable green economy in the Philippines.

Other European Member states, including Austria, Netherlands, and Sweden, will contribute their expertise to ensure the success of this initiative, according to the EC.

"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 through the Green Economy Programme, we are helping to build a circular economy, promoting sustainable practices, and supporting climate change mitigation,” said European Commissioner for International Partnerships, Jutta Urpilainen.

For his part, Finance Secretary Benjamin Diokno said, “The Philippine Government is grateful for the EU’s generosity and staunch support to 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% by 2030. Through this €60-million 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.

Additionally, the EC said the bloc is supporting the Philippines in becoming a regional digital hub through the €20-million Digital Economy Package and a Digital Connectivity Team Europe Initiative with the aim of bringing secure and reliable connections to the country.

The EU is also looking into the potential for a free trade agreement (FTA) with the Philippines, “which could generate significant growth and job opportunities, as well as diversify and fortify supply chains.”—AOL, GMA Integrated News