Finance Secretary Ralph G. Recto has announced the successful acquisition of EUR 250 million (approximately PHP 15.79 billion) in concessional funding from France through the Agence Française De Développement (AFD) to further advance climate action initiatives in the Philippines.

This accord is aligned with President Ferdinand R. Marcos Jr.’s advocacy for innovative strategies aimed at addressing climate change and fostering resilience within the nation.

The formal agreement for the Climate Change Action Plan, Subprogram 2 (CCAP2), was executed on June 2, 2025, at a ceremonial exchange between Secretary Recto and Her Excellency Ambassador Marie Fontanel, the Ambassador of the French Republic to the Philippines.

CCAP2 builds on the foundation established by its predecessor, CCAP1, and is designed to assist the Philippines in meeting its Nationally Determined Contribution (NDC) commitments while also supporting vulnerable sectors in their transition toward a resilient, low-carbon economy.

The overarching CCAP framework includes three subprograms, focusing on: (i) strengthening planning, financing, and institutional linkages for climate action; (ii) enhancing resilience to climate impacts; and (iii) promoting low-carbon pathways.

CCAP1 was in effect from January 2020 to March 2022, receiving previous funding of USD 250 million (around PHP 13.90 billion) from the Asian Development Bank (ADB) and EUR 150 million (about PHP 9.47 billion) from AFD.

In cooperation with AFD, CCAP2 is also co-financed by the ADB, contributing EUR 449.12 million (approximately PHP 28.36 billion), and by the Japan International Cooperation Agency (JICA), with funding of JPY 35 billion (about PHP 13.3 billion).

During the ceremony, Secretary Recto emphasized the importance of this agreement in strengthening strategic cooperation on climate action and bolstering institutional capacities to achieve sustainable outcomes, particularly for the most vulnerable populations.

Ambassador Fontanel reiterated France’s commitment alongside the Philippines to confront pressing challenges related to climate change, environmental degradation, and ocean protection.

Benedicte Gazon, AFD Country Director, highlighted the necessity of addressing systemic change to meet the urgent demands of current climate challenges, reaffirming the institution's role as a development partner.

Secretary Recto also assured the French Government of the Philippine administration's commitment to the timely and effective implementation of the program, pledging that the funding will lead to positive impacts in the lives of ordinary Filipinos.

The AFD serves as a public financial institution focused on advancing French government policy to combat poverty and promote sustainable development.

Joining Secretary Recto during the ceremonial exchange were other officials from the Department of Finance, including DOF Chief of Staff Maria Luwalhati Dorotan Tiuseco, International Finance Group Undersecretary Joven Balbosa, Assistant Secretary Donalyn Minimo, and Director John Adrian Narag.