Philippines - Second Energy Transition and Climate Resilience Development Policy Financing Program

Overview & Synopsis

The development objective of Second Energy Transition and Climate Resilience Development Policy Financing Program is to support Government of the Philippines reforms to (1) scale up adoption of clean energy technologies; (2) increase the security, flexibility and competition of electricity markets; and (3) improve water management across water uses. The Philippines Development Plan (2023–2028), anchored in AmBisyon Natin 2040, sets out the Government’s vision for a prosperous, inclusive, and climate-resilient economy, focusing on poverty reduction, job creation, and economic transformation while strengthening resilience to climate and disaster risks. The program is structured around three pillars. Pillar 1 focuses on scaling up adoption of clean energy technologies, with renewable energy expansion and efficiency measures central to the country’s energy transition and climate goals. Pillar 2 supports increasing the security, flexibility, and competition of electricity markets, recognizing that a well-functioning and competitive electricity system is essential to ensure reliable and affordable power. Pillar 3 aims at improving water management across water uses through governance reforms and institutional strengthening at national and local levels. The program aligns with the World Bank Group’s Country Partnership Framework and corporate priorities by supporting private sector–led growth, climate action, and improved service delivery, while advancing gender inclusion and mobilization of private capital. It builds on prior reforms in the energy and water sectors and supports the Maximizing Finance for Development approach by addressing policy, regulatory, and institutional constraints, enabling increased private investment and strengthening climate resilience and sustainable infrastructure development in the Philippines.