The European Union (EU) and the Philippines launched an initiative that will accelerate the country’s transition to a green, circular and inclusive economy.
The EU and the the Philippines (PH) Green Economy Partnership started the Circular Solutions Innovation Challenge in Pasig City, one of the flagship activities under the Green Local Government Units (LGUs) objective of the the initiative.
It is funded by the European Union in partnership with the Department of Environment and Natural Resources (DENR) and the Department of the Interior and Local Government (DILG) and implemented by the United Nations Development Program (UNDP).
“The European Union-Philippines Green Economy Partnership will support innovative solutions to address environmental challenges at local level that will improve the lives of the people in the Philippines and create green jobs,” said Marco Gemmer, head of the cooperation section at the delegation of the EU to the Philippines.
“We count on the knowledge, creativity and funding of MSMEs (micro, small and medium enterprises) across the Philippines to put solutions into action and to promote circular economy. The Philippine people can count on our experience in Europe, and we are here as Team Europe to support Philippine solutions,” he said.
DILG Assistant Secretary for International Relations Lilian De Leon said that as the Philippines positions itself as a global leader in circularity, collaborations and partnerships among partners like the EU, LGUs, civil society and the business sector are more important now than ever.
“We are building together a future where sustainability is not just a goal but a shared responsibility, one that is deeply practiced in our local realities and communities,” she said.
The first 10 LGUs supported by the partnership, namely Baguio, Pasig, Quezon City, Caloocan, Iloilo, Ormoc, Davao, Puerto Princesa, the Island Garden City of Samal and Del Carmen, have developed their circular economy portfolios to identify system gaps and opportunities where innovation can make a meaningful difference.
These range from plastic waste reduction and organic waste management to sustainable tourism.
The challenge will finance innovative business solutions aligned with local priorities. Proposals must be technically sound, financially viable and inclusive by design. Innovations should deliver measurable impact, strengthen local economies and have the potential to scale or be replicated.
Each selected innovation may receive up to P2.28 million or € 35,000 in funding and implementation support from the European Union.
The initiative reinforces the critical role of local actors as enablers. It encourages partnerships and the co-creation of solutions that respond to on-the-ground contexts: economically viable, technically feasible and socially inclusive.
‘We’ve seen that when national and local governments, communities, and the private sector move together, the results are lasting and more impactful,’ said Assistant Director Maria Dorica Naz-Hipe of the DENR’s Environmental Management Bureau.
The opening of the Innovation Challenge builds on the momentum of the 27 civil society organizations that received funding under the EU-PH Green Economy Partnership’s Community Grants and Circular Economy Education & Behavioral Change Grants.
Launched in April 2025, these grants empower grassroots actors and their initiatives in driving awareness and inclusive actions across circular transition efforts. UNDP Philippines News
