PH close to ‘upper middle-income’ status, but is behind climate action goals

Achieving goals related to climate action has regressed since 2015, according to a UN report

MANILA, Philippines – The Philippines is inching “closer” to becoming an upper middle-income country, but is behind its climate action goals, according to the 2024 progress report of both the United Nations (UN) and the national government.

“It’s just a matter of time, I think it’s really close,” UN resident coordinator to the Philippines Arnaud Peral told reporters on June 5, responding to a query on whether the country’s chances will be impacted by the uncertainties brought about by United States tariffs.

“Even if the country is close to reaching the upper middle-income country status, there are still some gaps, there are still some areas and challenges, national challenges, and they welcome the support of the international community to continue to work to close the gap and accelerate results,” Peral said.

Reaching upper middle-income country status has long been a goal for the Philippines, which has been stuck in the lower middle-income country status since 1987.

Rappler’s resident economist JC Punongbayan has argued that reaching upper middle-income country status “will make little difference to the poor.” Outgoing Foreign Affairs Secretary Enrique Manalo also acknowledged it could come with some downsides, like losing access to certain Official Development Assistance (ODA) and tariff privileges.

The Philippines is making headway in its SDGs or Sustainable Developments Goals, except for three goals where regressions were recorded — the biggest regression being on climate action. SDGs are United Nations progress indicators for its members countries to collectively tackle problems like poverty, inequality, and climate change.

Climate action or SDG Number 13 has regressed since 2015, backsliding at 3.8% according to data from the Philippine Statistics Authority (PSA). There are only five years left to achieve the SDGs. Other regressions include targets on sustainable communities and health, both of which are inextricably linked to the climate crisis.

Climate action is measured by three outcomes: resilience to climate-related hazards and natural disasters, integration of climate change measures into national policies, and improving education and awareness on climate change mitigation.

The PSA noted that this regression has insufficient indicators. Matija Kovač, head of office of the UN Resident Coordinator in the Philippines, said there are only two indicators on climate action: number of deaths or persons missing due to disaster, and number of local disaster risk reduction (DRR) strategies.

“At least one of these two can be significantly impacted by the intensity of disasters,” said Kovač.

Kovač explained that this could be due to factors beyond our control “because this is actually an area where it’s difficult to deliver for the Philippines because it is so under-stressed and impacted.”

“I’m not saying that whatever you do it doesn’t make a difference,” said Kovač. “It, of course, makes a difference, but I think if there was no action, it would look even worse.”

Money can’t keep up with disasters

Money is needed to combat climate change. According to the UN report, the Philippines spent $10.7 million of $14.5-million in contributions to achieve its goals under climate action.

And one of the three key pillars of the SDGs, which is environmental protection, had a total expenditure of $25.7 million, 65% of its $39.4-million fund.

There’s a global clamor for more funds, as seen in the climate summit in Azerbaijan last year given the worsening warming of the planet. The Philippines in particular remains one of the top countries vulnerable to disasters. On average, the country experiences 20 storms every year.

Climate change exacerbated the back-to-back storms that hit the Philippines from October to November in 2024 and killed more than 170 people, according to a report by global research network World Weather Attribution.

The study noted that the storms hit Luzon, a “comparably affluent” area that still suffered the harsh impacts of climate change.

“Despite having the country’s lowest household poverty rates, cities on the island remain highly vulnerable to flooding, particularly due to urban sprawl, river silting, and deforestation,” scientists said in the report.

The Philippines may need more funds to finance its climate action goals to protect its upper middle-class aspirations. Experts have said that climate change is only bound to worsen poverty and inequalities.

– Rappler.com