Nation's climate financing at 'crucial point,' PIDS says

The Philippines is at a critical juncture for developing climate finance, state-run policy think tank Philippine Institute for Development Studies (PIDS) said in a new report, highlighting both strong public awareness and institutional limitations.

- By RICARDO M. AUSTRIA

In a Dec. 10 discussion paper titled “Climate Change Perceptions and Climate Finance Mechanisms in the Philippines: A 2025 Assessment,” PIDS senior research fellows Jose Ramon G. Albert and Sonny N. Domingo, supervising research specialist Deanne Lorraine D. Cabalfin, and research analysts Mohammad A. Mahmoud and Roselle F. Guadalupe said the Philippines is at a crucial point in advancing climate finance.

PIDS noted that strong public awareness of climate change offers significant opportunities to implement related policies, but existing institutional limitations could prevent the country from fully capitalizing on this potential.

“Successful climate finance development requires careful attention to both social acceptance factors and institutional capacity constraints, with policy interventions that can bridge the gap between public readiness and institutional capability,” the think tank said.

It recommended “enhancing public engagement and climate communication,” saying the Philippines’ exceptionally high climate awareness—90 percent of respondents recognizing climate change as a serious problem and 81 percent viewing it as very serious—offers an unprecedented foundation for implementing climate policies through targeted communication strategies.

“The strong public concern about flooding (71 percent of respondents) should guide adaptation finance priorities, ensuring that climate finance mechanisms prioritize flood protection infrastructure and early warning systems that resonate directly with public concerns and maintain political support for climate finance initiatives,” it added.