On Wednesday, the World Bank (WB) said that it has approved a 750 million U.S. dollars loan to finance The Philippines' programs to boost environmental protection and climate resilience due to the Southeast Asian country intentions of accelerating its economic recovery and promoting long-term economic growth.
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"The Philippines First Sustainable Recovery Development Police Loan supports ongoing government reforms to attract private investment in renewable energy; enhance plastic waste management through reduction, recovery, and recycling; promote green transport, including electric vehicles; and reduce climate-related fiscal risks from the agriculture sector," the World Bank said in a statement.
The WB also stated that the financing program also supports the introduction of new insurance products targeting vulnerable smallholder farmers, and it strengthens the coverage and operations of the Philippine Crop Insurance Commission.
"The aim is to help mitigate climate-related disaster risks to the country's budget and the farming sector. If properly designed and targeted, crop insurance can help stabilize farm income, reduce poverty, and provide a climate safety net for food producers," the WB said.
"The Philippines has tremendous potential for renewable energy generation, especially solar and wind. Government actions to encourage investments in this sector, such as promoting foreign direct investments and streamlining the permitting process, could unlock this potential," said Ndiame Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand.
According to WD, the DPL (development policy loan) helps countries solve problems that stop them from developing by making changes.
Official data states that DPLs are tools that help countries make changes to their policies and institutions so that they can grow fairly. These changes are based on the country's own plans for development.