MANILA ) — The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support the sustainable management of the Philippines’ marine ecosystems, help rejuvenate coastal areas, and foster vibrant, resilient, and low-carbon blue economy development.
The Marine Ecosystems for Blue Economy Development Program (Subprogram 1) seeks to strengthen the productivity and diversity of the country’s ocean-based economy, and improve the health and adaptability of coastal areas and communities. It also aims to enhance the plastic and solid waste management value chain and promote investments in the country’s natural capital. These efforts will ensure long-term ecological and economic resilience and protect millions of Filipinos from the worsening impacts of climate change.
“More than half of the Philippine population is dependent on the country’s oceans and rich marine biodiversity for food and livelihoods, with the blue economy having great potential to be central to attaining inclusive, resilient, and low-carbon development,” said ADB Philippines Country Director Andrew Jeffries. “This is ADB’s first extensive cross-sector program focused on fostering national blue economy development in the region. We are committed to assisting our host country in achieving its climate resilience and low-carbon objectives.”
In national statistical accounts, the blue economy includes fisheries, manufacturing of ocean-based products, tourism-related services, shipping, and offshore energy. In 2024, key blue economy sectors contributed Php1.01 trillion ($17.17 billion) to the country’s economy, equivalent to 3.8% of gross domestic product.
However, marine ecosystems are increasingly under threat from unsustainable practices, including plastic and solid waste pollution, as well as the severe effects of extreme weather changes. The world’s second-largest archipelagic nation is hit by at least 20 typhoons annually, with cyclones becoming fiercer in recent years. Two strong typhoons struck the country within a week in November, leaving hundreds of casualties and millions of dollars in property damage due to flash floods and storm surges.
The program is aligned with the Philippine Development Plan 2023–2028 and supports the implementation of the government’s National Adaptation Plan 2023‒2050 and its nationally determined contribution, with a focus on nature-based solutions, climate-resilient livelihoods, and blue carbon ecosystems. It builds on ADB’s long-standing engagement on natural resources management in the Philippines and Southeast Asia. ADB has previously supported government initiatives on watershed management, coastal community development, and marine plastic pollution management.
The program also leverages ADB’s support for climate action in the country under the Climate Change Action Program, the bank’s first climate policy-based loan in the region. It complements the Philippines Flyway Project aimed at conserving and sustainably managing three priority wetlands—Candaba in Luzon, and Lake Mainit and Sibugay wetlands in Mindanao—to enhance biodiversity, promote sustainable livelihoods, and boost climate resilience.
Agence Française de Développement and Germany’s KfW Development Bank will provide cofinancing of up to €200 million (about $235 million) each for subprogram 1.
ADB is a leading multilateral development bank supporting inclusive, resilient and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
