DBM allots P543.4B for climate change mitigation in 2024 proposed budget

The Department of Budget and Management (DBM) has set aside over half-a-trillion pesos under the proposed P5.768-trillion 2024 National Expenditure Program (NEP) for programs and projects aimed at addressing the impact of climate change.

In a statement, the DBM said it set aside P543.45 billion under next year’s spending program “to mitigate the repercussions of severe weather patterns, such as intense typhoons and worsening floods, within the Philippines.”

The amount, which constitutes 9.4% of the total proposed budget, would be used for climate change mitigation and adaptation strategies. The allocation also surpasses the anticipated 8% contribution stipulated in the Philippine Development Plan for addressing impacts of climate change.

“Recognizing its fundamental importance, the bulk of climate change expenditures will be allocated for water sufficiency projects with P294.46 billion to benefit communities all over the country,” said Budget Secretary Amenah Pangandaman.

Likewise, in his 2024 Budget Message, President Ferdinand Marcos Jr. underscored the administration's efforts in tackling climate change.

“With global temperatures reaching record highs, with floods and droughts that displace millions, we have made future-proofing a top priority of this administration to address climate change. In fact, for Fiscal Year (FY) 2023, the allocation for this purpose was increased by over 60% to P464.5 billion. For FY 2024, this has been increased even further to reach P543.4 billion. Of this amount, P168.6 billion will be allotted for mitigation, while P374.9 billion will be for climate adaptation,” said the President.

The DBM said the government prioritizes adaptation measures due to the country’s vulnerability to the impacts of climate change.

The agency said this was outlined in the National Climate Change Action Plan (NCCAP).

In particular, the DBM said the NCCAP’s list of strategic priority areas includes the following:

• Water Sufficiency (streamlining of water governance structure, improving sanitation in infrastructures), P294.46 billion
• Sustainable Energy (promotion and expansion of energy efficiency and conservation, development of sustainable and renewable energy and transport), P180.72 billion
• Food Security (climate-resilient crop and livestock production systems and technologies, early warning systems), P40.18 billion
• Knowledge and Capacity Development, 12.97 billion
• Climate Smart Industries and Services, P6.02 billion
• Ecosystem and Environmental Stability, P5.95 billion
• Human Security, P2.58 billion
• Cross-Cutting, P550 million

Climate Change Expenditure Tagging

The DBM, meanwhile, said it has institutionalized Climate Change Expenditure Tagging (CCET) together with the Climate Change Commission (CCC).

The CCET) provides guidelines for tracking and reporting government agencies’ climate-related budgets and has been helping government agencies and local government units (LGUs) plan their respective climate-and-disaster responsive budgets.

The Budget Department has also adopted the Program Convergence Budgeting (PCB) into the allocation process.

The PCB is a budgeting approach that utilizes government resources for key programs and projects in coordination with attached departments and agencies.

It said that one of PCB’s undertakings is the Risk Resiliency Program (RRP) which aims to reinforce the government’s crisis management and adaptive capabilities.

The PCB has a proposed budget of P424 billion and is expected to adapt to and mitigate the damaging effects of climate change and disasters in the country.

The DBM said the Department of Public Works and Highways (DPWH)—which will receive the highest climate change expenditure budget at P308.08 billion—will also get P215.643 billion for flood management, which includes the construction, rehabilitation, and maintenance of various flood mitigation and control structures, as well as for water supply/septage and rainwater collection infrastructure.

“Under the DPWH project, there’s a flagship project called Flood Management Program. This year, we have a budget of P185 billion, and for 2024, we proposed P215.643 billion,” Secretary Pangandaman said, adding that two other projects will be supported by a loan from Korea Eximbank, the credit agency of South Korea.

Other proposed allocations include P1.397 billion for the Pampanga Integrated Disaster and Risk Resiliency Project; P7.4 billion for the Bulacan Angat Water Transmission Project; and over P1 billion for the Metropolitan Manila Development Authority’s (MMDA) flood control initiatives.

Quick Response Fund

The DBM added that a separate P7.425 billion allocation for the Quick Response Fund (QRF) will go to “first-responder agencies” during calamities and disasters such as typhoons, earthquakes, and fires, namely:

• Department of Education (DepEd), P3 billion
• Department of Social Welfare and Development (DSWD), 1.250 billion
• DPWH, P1 billion
• Department of Agriculture (DA), P1 billion
• Department of National Defense (DND), P500 million
• Department of Health (DOH), P500 million
• Department of Transportation-Philippine Coast Guard (DOTr-PCG), P75 million
• Department of Interior and Local Government-Bureau of Fire (DILG-BFP), P50 million
• DILG- Philippine National Police (DILG-PNP), P50 million

Under the law, once their QRF dips to 50% or less, the DBM said the agencies may request the Budget Department, subject to the President’s approval, for a replenishment via the National Disaster Risk Reduction and Management Fund (NDRRMF), which has an allotment of P31 billion.

Aside from the aforementioned funds, there’s also the Local Government Support Fund (LGSF).

Under Republic Act (RA) No. 11936, Special Provision No. 1 of the LGSF in the FY 2023 General Appropriations Act (GAA), provides the amount of P1,925,500,000 for financial assistance to LGUs and P7,236,336,000 as support for Capital Outlays and Social Programs to LGUs. — RSJ, GMA Integrated News