The Department of Finance (DOF) ensures the country’s sustainable future by funding the adaptation projects of local communities through the People’s Survival Fund (PSF), mobilizing local and international climate finance, and facilitating sustainable investments that build resilience and create more quality jobs for Filipinos.

“Trabaho namin sa DOF na siguraduhing may pondo ang buong bansa, lalo na ang ating mga lokal na komunidad, para maging mas matatag at handa tayo sa anumang hamon ng kalikasan,” Finance Secretary Ralph G. Recto said.

“This is in line with President Ferdinand R. Marcos, Jr.’s commitment to deliver the Bagong Pilipinas through sustainable, inclusive, and climate-resilient development for all Filipinos,” he added.

The PSF is the government’s flagship financing mechanism to support local government units (LGUs) and accredited community organizations in designing and implementing climate adaptation projects. These include mangrove rehabilitation, coastal protection, capacity building, and the establishment of early warning systems in climate-vulnerable areas.

The PSF provides long-term financing with an annual allocation of at least PHP 1 billion from the national budget—on top of the government’s regular funding for climate-related programs secured by the DOF.

Chaired by Secretary Recto, the PSF Board has already approved 24 climate adaptation initiatives, comprising 15 full projects and nine Project Development Grants (PDGs), with a total financing commitment of over PHP 1.42 billion.

Among the flagship projects is the Establishment and Sustainable Management of River Ecosystem in Kitcharao, Agusan Del Norte, with a PHP 33.48 million worth of PSF grant.

This initiative promotes watershed management, resilient livelihood, and settlement protection with its farmers and fisherfolk as the main beneficiaries.

Another notable project is the Building Resilience through Community-based Ecological Farming, which received PHP 33.89 million to establish rainwater catchment facilities, expand water distribution systems, and formulate a Water Development and Management Framework. This project has significantly improved the community’s water resource management and its agricultural production.

Since assuming the PSF Secretariat role in 2017, the DOF has streamlined fund utilization and simplified project proposal processes to accelerate access to financing.

The Secretariat is set to call for new proposals to be funded under the PSF within the year. Details, templates, and requirements to guide applicants will be published through the DOF’s social media channels and PSF Microsite.

The DOF also conducts Capacity Building Programs and the nationwide PSF Caravan, which equip LGU personnel with tools and methodologies to develop high-quality climate adaptation proposals.

The first leg was held in Mindanao last September 2025 (Butuan City), followed by the Visayas leg in October (Tacloban City). There will be sessions to be held in Luzon and the BARMM regions.

The PSF only forms part of the government’s broader strategy to ensure a sustainable and climate-resilient future.

In April 2025, the Philippines, through the DOF, was elected as a member of the Adaptation Fund (AF) Board and secured its first AF-financed project worth USD 10 million (approx PHP 585.80 million) to enhance climate-resilient water access in Tawi-Tawi.

This was followed by a USD 150,000 (approx PHP 8.78 million) grant approved by the AF Board in October 2025 for developing a project to strengthen the resilience of Mindanao’s farmers and safeguard national food security. DOF is also currently applying to be the direct access entity for the AF.

As the National Designated Authority (NDA) and an alternate member of the Board of the Green Climate Fund (GCF), the DOF facilitates the country’s access to GCF financing and oversees the programming of GCF-funded projects and readiness grants, both ongoing and pipeline.

To date, the Philippines is benefiting from two single-country grants worth USD 36.3 million (approx PHP 2.12 billion), five readiness grants, and is part of eight multi-country projects.

The DOF also supports the country’s renewable energy transition by generating investments through local and international investor roundtable meetings and Philippine Economic Briefings.

Through the CREATE MORE Act, the Fiscal Incentives Review Board (FIRB), which is under the DOF, facilitates fiscal and non-fiscal incentives for renewable energy investments. As a member of the Technical Working Group implementing the Green Lane system, the DOF also helps in fast-tracking clean energy investments across the country.

DOF HEARTS Series

This series showcases how the DOF is funding the nation’s HEARTS (H-health, E-education, A-agriculture and environment, R-roads and infrastructure, T-technology, and S– security and social protection) to bring us to Bagong Pilipinas.