Climate or debt? Between the devil and deep blue sea
The Philippines is grappling with rising national debt, which closed 2025 at P17.71 trillion, amidst increasing global borrowing costs. Concurrently, the government allocated P1.15 trillion for climate spending in 2025, more than double the prior year, while facing warnings of a potential super El Niño and concerns over project effectiveness.
The Philippines' economic landscape is tightening, with global interest rates making foreign debt more expensive and national debt growing. This financial pressure coincides with acute climate challenges, including forecasts of drought and water scarcity. The article highlights the difficult balance between fiscal management and the urgent need to invest in climate resilience.
A central issue is the effectiveness of the government's substantial climate budget. Despite allocating P1.15 trillion for climate initiatives in 2025, the article questions whether these funds are yielding tangible results. Concerns are raised about alleged 'ghost flood control projects' and corruption, suggesting that the current spending mechanisms may be inefficient, leading to wasted public funds and continued vulnerability.
The piece advocates for a strategic shift in how climate adaptation funds are deployed. It suggests channeling resources through lean, transparent, public-private partnership (PPP)-oriented mechanisms that work directly with local government units (LGUs), rather than relying on agencies described as 'graft delivery systems.' This approach aims to ensure investments in areas like irrigation, water management, and resilient infrastructure directly benefit communities and stimulate the economy.
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