On March 31, 2025, the World Bank approved the First Energy Transition and Climate Resilience Development Policy Loan (DPL) in the Philippines. According to the Bank, this is the first package in a series of two loans that seek to enable more private investment and savings in renewable energy, increase flexibility and competition in the electricity sector, and strengthen institutions for water resources management, sanitation, and the resilience of agriculture and water systems. 

This DPL is also the continuation of the First Sustainable Recovery DPL(FSR), which was implemented from 2023 through 2024. Local CSOs criticized FSR for its lack of meaningful consultation and for promoting natural gas expansion, undermining the Bank’s climate commitments. Local organizations also opposed FSR’s Prior Actions – policy and institutional measures that the Philippines had to implement before the Bank approved the loan – which sought to remove a foreign equity cap on energy investments. Local organizations denounced that it would contravene the Philippines’ 1987 Constitution, which requires Filipinos to hold a minimum of 60% ownership and management of public utilities.