Approximately US$1 million is required to maintain blue carbon economy projects in the Philippines, according to a British conservation charity.
The Philippines is taking strides in its commitment to combat climate change, with a focus on ecosystem restoration and the integration of blue carbon initiatives into its nationally determined contributions (NDCs) under the Paris Agreement.
One such initiative involves the conversion of abandoned, undeveloped, and underutilized (AUU) areas across the archipelago into mangrove sites. This move is part of a broader blue carbon roadmap, which requires significant funding for implementation and mainstreaming.
The United Kingdom's Blue Planet Fund has already granted over US$450,000 to the Philippines for a program focused on deriving economic benefits from carbon captured by marine ecosystems between 2024 and 2026. However, additional financing is required to sustain and implement the blueprint, with double the amount needed compared to the initial grant.
The exact amount of additional funding needed beyond the UK grant is not explicitly stated, but potential funding sources could include domestic public resources, domestic private finance, international public finance, and international private finance.
Domestic public resources could come from ministries of finance, national development banks, and local government units (LGUs), providing foundational investments and de-risking projects. Private investment in sustainable aquaculture or ecotourism linked to mangroves is an example of domestic private finance.
International public finance could come from multilateral climate funds such as the Green Climate Fund, bilateral donors, and MDB concessional loans. These sources could provide grants or concessional loans aligned with NDC goals, like the ADB's recent $500 million policy-based loan to support the Philippines' climate action efforts.
International private finance could involve institutional and impact investors providing large-scale capital. Foreign direct investment in sustainable coastal fisheries or carbon markets under Article 6 of the Paris Agreement is an example of this type of funding.
Leveraging these funds effectively will depend on strengthening institutional capacity, project development, and innovative financing mechanisms aligned with national climate goals. The Climate Change Commission (CCC) and Global Green Growth Institute (GGGI) in the Philippines are actively building capacity and stakeholder coordination to help attract and manage diverse funding sources.
Scaling up climate finance for blue carbon projects requires strengthening project pipelines, technical capacity, and transparency to unlock various funding instruments, including grants, loans, and green bonds. Innovative financing instruments are also being explored in the Philippines to mobilize private sector and international funds for climate-resilient development.
The Philippines is expected to submit its updated NDCs in November, coinciding with the United Nations Climate Change Conference (COP30) in Belém, Brazil. The updated NDCs will include blue carbon ecosystems as part of its climate action plan under the Paris Agreement.
Conservation International is initiating pilot projects in the Philippines to demonstrate the feasibility of blue carbon credits. Meanwhile, the government is planning to introduce a blue carbon economy legislation to mandate the execution of the program at the local level.
BDO Unibank has issued blue bonds to tackle ocean litter and preserve clean water in the Philippines. One example of an ecosystem restoration initiative is the conversion of abandoned, undeveloped, and underutilized (AUU) areas across the archipelago into mangrove sites.
Under Article 6.8, the government is exploring non-market approaches for recognising and supporting blue carbon, including knowledge sharing, capacity building, technology transfer, and financial assistance, without relying solely on carbon trading. The Zoological Society of London (ZSL) estimates that approximately US$1 million is needed to build and implement a blue carbon roadmap in the Philippines.
- The Philippines' blue carbon roadmap, which includes the conversion of AUU areas into mangrove sites, requires significant funding for implementation and mainstreaming.
- The Climate Change Commission (CCC) and Global Green Growth Institute (GGGI) in the Philippines are actively building capacity and stakeholder coordination to attract and manage diverse funding sources.
- The United Kingdom's Blue Planet Fund has provided over US$450,000 for a program focused on deriving economic benefits from carbon captured by marine ecosystems, but additional financing is required to sustain and implement the blueprint.
- Potential funding sources for scaling up climate finance for blue carbon projects in the Philippines could include domestic public resources, domestic private finance, international public finance, and international private finance.
