Stronger climate action will support a sustainable recovery and accelerate poverty reduction in the Philippines
MANILA, November 09, 2022 – Climate change is taking a heavy toll on Filipinos’ lives, property and livelihoods and, if not addressed, could hamper the country’s ambitions to become an upper-middle-income country by 2040. However, the Philippines has many of the tools and instruments needed to significantly reduce damage, according to the World Bank GroupThe country’s climate and development report (CCDR) for the Philippines, published today.
With 50 percent of its 111 million people living in urban areas and many cities in coastal areas, the Philippines is vulnerable to sea level rise. Changes due to the variability and intensity of rainfall across the country and rising temperatures will impact food security and population security.
Several indices rank the Philippines as one of the countries most affected by extreme climate events. The country has experienced highly destructive typhoons almost annually for the past 10 years. Annual losses from typhoons have been estimated at 1.2 percent of GDP.
Climate action in the Philippines must address both extreme and slow-onset events. Adaptation and mitigation actions, some of which are already underway in the country, would reduce vulnerability and future losses if fully implemented.
“The impacts of climate change threaten to significantly impact the country’s GDP and the well-being of Filipinos by 2040. However, policies and investments – mainly to protect valuable infrastructure from typhoons and strengthen agriculture through climate-friendly measures – could reduce negative climate impacts by two-thirds,” said Manuela V. Ferro, World Bank vice president for East Asia and the Pacific.
The private sector plays a crucial role in accelerating the adoption of green technologies and increasing climate finance by working with local financial institutions and regulators.
“The investments required for these measures are significant but not unattainable,” said John Gandolfo, IFC Acting Vice President for Asia and the Pacific. “The business leaders and bankers who use climate as a business opportunity and offer these low-carbon technologies, goods and services will be at the forefront of our future.”
The report also conducts an in-depth analysis of the challenges and opportunities for climate-related action in the areas of agriculture, water, energy and transport. Among the recommendations are:
- Avoidance of new buildings in flood-prone areas.
- Improving water storage to reduce the risk of floods and droughts. This also increases water availability.
- Expanding irrigation in rain-fed areas and promoting climate-friendly agricultural practices such as alternate wetting and drying (AWD).
- Make social protection programs adaptable and scalable to respond to climate shocks.
- Removing barriers faced by private actors in scaling renewable energy investments.
- Ensuring new buildings are energy efficient and climate resilient.
Many mitigation actions will make the Philippines more resilient while also helping to mitigate climate change.
“The Philippines would benefit from an energy transition towards more renewable energy. Accelerated decarbonization would reduce electricity costs by about 20 percent below current levels, which is good for the country’s competitiveness, and would also drastically reduce air pollution.” said Ferro.
Even with intensive adaptation efforts, climate change will affect many people. Some mitigation actions may also have adverse impacts on specific groups, such as B. Workers displaced by moving away from high-emission activities. The report recommends strengthening and expanding the country’s existing social protection system to support affected sectors and groups.
Climate and development reports of the countries of the World Bank group: those of the World Bank Group Country climate and development reports (CCDRs) are new core diagnostic reports that integrate climate change and development considerations. They will help countries prioritize the most effective actions to reduce greenhouse gas (GHG) emissions and promote adaptation, while meeting broader development goals. Building on data and in-depth research, CCDRs identify key pathways to reducing greenhouse gas emissions and climate vulnerabilities, including the costs and challenges, as well as the benefits and opportunities that result. The reports propose concrete priority actions to support the low-carbon, resilient transition. As public documents, CCDRs aim to inform and enable governments, citizens, the private sector and development partners to participate in the development and climate agenda. CCDRs will feed into other core banking group diagnostics, country engagements and operations to help attract funds and direct financing for high-impact climate action.
PRESS RELEASE NO: 2023/025/EAP