The Philippines and the European Union are seeking to expand investment in green projects and Mindanao development, with new initiatives to be backed by EU grants and guarantees designed to reduce risk for investors.

Officials from the two sides discussed potential cooperation on the green transition, circular economy, environmental protection and Mindanao development during the sixth Meeting of the Sub-Committee on Development Cooperation, held in Manila on Oct. 1.

"Both sides expressed their intent to deepen cooperation under Global Gateway and the Enhanced Partnership signed on July 24," according to the two sides' joint statement. "Priority areas include sustainable connectivity, the green transition, digital transformation, and inclusive growth, while continuing support for good governance and peace and development in Mindanao," it added.

Global Gateway is the European Union's flagship framework for financing infrastructure and connectivity investments worldwide and will serve as the umbrella for the expanded cooperation outlined in the statement. Launched in 2021, the program targets up to €300 billion in investments between 2021 and 2027, combining grants, guarantees and lending tools to draw public and private capital into projects in partner countries.

The European Investment Bank, other European development finance institutions and the EU private sector are expected to play key roles in financing the projects, alongside potential cooperation with multilateral lenders — particularly the Asian Development Bank, which is headquartered in Manila.

"Also covered were ongoing investment operations on climate resilience, disaster risk reduction and water access, reflecting the shared commitment to strengthening the country's adaptive capacity amid climate impacts and development challenges," according to the joint statement.

Both sides also highlighted the role of the ASEAN Power Grid, a long-standing regional initiative to interconnect the electricity networks of Southeast Asian countries, in strengthening regional energy connectivity and advancing the green transition.

The two sides additionally discussed the Philippines' transition to upper-middle-income country status — a World Bank classification based on gross national income per capita — as well as the Luzon Economic Corridor as an emerging platform for strategic connectivity and investment. The corridor, linking Subic Bay, Clark, Manila and Batangas, was announced in April 2024 as the first Partnership for Global Infrastructure and Investment economic corridor in the Indo-Pacific, backed by the United States and Japan.

The joint statement set out priority areas but did not specify funding amounts, project pipelines or timelines for individual projects.

— Justine Irish D. Tabile, BusinessWorld

Source: BusinessWorld