Philippines: Accelerating Climate Resilience in Agriculture, Natural Resources and the Environment

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

The Philippines is highly vulnerable to climate change, which is manifested through rising temperatures, variability in rainfall, sea level rise, groundwater salinity, and increased frequency and intensity of extreme weather events. According to a 2021 study, the Philippines economy ranks among the most vulnerable of 48 economies to the increasing risks posed by climate change, placing 21.6% to 45.0% of gross domestic product at risk by 2048. Poorer households are disproportionately impacted, and in particular, women are among the highest risk groups due to unequal access to resources, education, employment, assets, credit, and formal institutions.

Climate change is adversely affecting agriculture, natural resources, and the environment. Food production is affected by the decline in the availability and quality of arable land resulting from submergence of coastal land and changes in temperature, precipitation, water resources, soil characteristics, and pest and disease profiles. Climate change is also worsening the impact of unsustainable resource use on terrestrial and marine ecosystems. Changes to forest cover, biodiversity loss, saltwater intrusion in rivers and estuaries, and deterioration of mangroves and coral reefs all affect the ability of ecosystems to provide life-sustaining services.

The Philippines has over time articulated a policy environment to address climate change, centered on the Climate Change Act of 2009 which established the Climate Change Commission as the lead policymaking body, and the National Climate Change Action Plan (NCCAP) 20112028 which adopted adaptation and mitigation as top national priorities. It submitted its first Nationally Determined Contribution (NDC) in April 2021, which aims to peak greenhouse gas emissions by 75.0% from business-as-usual by 2030, contingent on external financing and support, and scale up climate adaptation and disaster resilience. However, implementation of climate policies across key sectors and at the local government level has been slow. Challenges include weaknesses in institutional and planning systems that lead to a disconnect between commitments and sector policies, and significant financing gaps for climate action.

Efforts to improve the climate resilience of agriculture and ecosystems have not yet been widely implemented, as: (i) the Department of Agriculture (DA) and the Department of Environment and Natural Resources (DENR) lack coordinating capacity, clear organizational roles, and funding to address climate change; (ii) decentralized capacity to deliver climate services is insufficient; (iii) climate risk vulnerability assessments are not widely available; (iv) climate risk management instruments for agriculture are limited; and (v) regulatory bottlenecks constrain research and development of climate-smart agricultural technologies.

To address these challenges and implement national climate policies, the government and ADB agreed to launch a new Climate Change Action Program (CCAP) that targets adaptation in highly vulnerable sectors (agriculture, natural resources, and environment), and mitigation in emissions-intensive sectors (energy and transport). It applies a programmatic approach of long-term support for the implementation of climate priorities, and enables sequenced reforms to strengthen institutions and integrate climate into sector development. The CCAP consists of three reform areas: (i) planning, financing, and institutional linkages for climate action strengthened; (ii) resilience to climate impacts enhanced; and (iii) low-carbon pathways strengthened.

Indicative packages to be engaged by ADB:

1. Consulting firm through QCBS (90:10) 26 international person-months + 111 national person-months ($2.2 million)

2. Consulting firm through QBS 6 international person-months + 12 national person-months ($0.34 million)

3. Individual / Resource persons - 8 national person-months ($0.075 million)

Indicative packages to be procured by ADB/Consultants:

Goods / Equipment (multiple contracts) - $0.18 million