PH secures first Adaptation Fund-financed project

The Philippines, through the Department of Finance (DOF) and Department of Environment and Natural Resources (DENR), has received funding from the Adaptation Fund (AF) for the first time.

In a joint statement, the DOF and DENR said the country secured a $10-million AF-financed project at the the 44th Board Meeting of the AF in Bonn, Germany last April 8 to 11, 2025 for an initiative aimed at boosting the resiliency of communities in Tawi-Tawi amid the impacts of climate change.

The AF was established under the Kyoto Protocol of the United Nations (UN) Framework Convention on Climate Change in 2001.

It is the "longest-running fund to finance adaptation" with a focus on "empowering vulnerable countries to adapt and build resilience to climate change" and has grown its portfolio to about US$ 1.25 billion, after receiving US$13M from Sweden this year.  

The AF is supervised and managed by the Adaptation Fund Board (AFB), which is composed of 16 members and 16 alternates and meets at least twice a year. 

Through the DOF, the Philippines is a member of the AFB representing the Non Annex I Parties —mostly comprising developing countries.

The AF-financed project secured by the Philippines entitled “Harnessing the water-energy-food nexus to address and adapt to climate change impacts in Tawi-Tawi” aims to support communities in securing climate-resilient water access by increasing the adaptive capacity of the municipalities of Sibutu and Sitangkai, according to the DOF and DENR.

The project will be implemented by the United Nations Industrial Development Organization (UNIDO) and the Mindanao Development Authority (MinDA).

The Finance and Environment departments said the project will be implemented through various components throughout its lifespan, which includes the following:

• Deploying resilient water supply systems integrated with existing renewable energy infrastructure in Tawi-Tawi
• Supplying local capacity building for sustainable water management
• Building the local communities’ resilience and strengthening their livelihoods
• Providing knowledge management to scale up the project’s activities in the Philippines

“This project is fully aligned with our National Adaptation Plan, which emphasizes securing food supply while nurturing our natural resources and sustaining livelihoods as one of our core strategies in our fight against climate change,” said Environment Secretary Maria Antonia Yulo Loyzaga.

“By enhancing water security, we are not only safeguarding the livelihoods of our seaweed farmers but also reinforcing the economic foundations of the communities affected by climate change,” added Loyzaga.

The Environment chief that the project showcases how the water-energy-food nexus recognizes the interconnectedness of vital resources and leads to more effective climate solutions.

“This project is not only the country’s first access to the Adaptation Fund. It is, more importantly, an assertion of our promise that no Filipino will be left behind in our nation’s pursuit of climate resilience and sustainable development,” said Finance Secretary Ralph Recto.

“By placing communities like Tawi-Tawi at the forefront of global climate financing, we are doubling down on our commitment to ensure that we uplift the lives of every Filipino, especially those most at risk,” added Recto. — LA, GMA Integrated News