UK Launches Climate Fund to Support the Philippines’ Clean Energy Transition

January 2026

The United Kingdom has launched its flagship climate program, UK Partnering for Accelerated Climate Transitions (UK PACT), in the Philippines, committing an initial GBP 700,000 (USD 890,000) to support the country’s shift toward clean and renewable energy. The program was officially launched in Makati in December 2025 by the UK Embassy alongside key Philippine energy and environment agencies.

UK PACT Philippines will support government institutions and industries by strengthening policies, tools, and technical capacity to de-risk investments and accelerate scalable renewable energy solutions. Initial activities will focus on updating the pricing model for offshore wind projects under the Green Energy Auction Program, developing power system cost simulation tools, advancing national marine spatial planning, and accelerating microgrid deployment in unserved and underserved areas.

The initiative aligns with the Philippines’ climate and energy targets, including reducing greenhouse gas emissions by 75% and increasing the share of renewable energy to 35% by 2030 and 50% by 2040. The UK government has indicated further funding of GBP 1.2–GBP 1.4 million (USD 1.5–1.8 million) in the next fiscal year, with potential expansion into carbon market development. Philippine agencies welcomed the program, citing its role in strengthening energy security while supporting long-term environmental sustainability.

(Source: Philippine News Agency)

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