Since 2023, a significant portion of the Philippines’ climate-tagged flood control budget has been exposed to alleged misappropriation, with losses potentially exceeding US$ 19 billion. In 2025 alone, US$ 3 billion of flood-related climate projects might have been lost to corruption. The funds, managed primarily by the Department of Public Works and Highways (DPWH), were intended to build resilience in highly climate-vulnerable areas through flood-control infrastructure.

The accusations involve the diversion of public funds by officials and contractors, undermining the integrity of government programmes designed to protect communities from increasingly frequent and intense flooding. The scale of the alleged misappropriation has contributed to both financial inefficiencies and weakened climate adaptation capacity, leaving millions of Filipinos exposed to disaster risks. The emphasis on large-scale gray infrastructure projects, rather than nature-based or community-led solutions, has further compounded the vulnerability of communities while offering opportunities for inflated costs, overpricing, and substandard project delivery.

If these allegations of corruption prove to be true, the impact would extend beyond immediate financial losses. It erodes public trust in climate governance, impairs the country’s ability to implement effective adaptation strategies, and risks compromising future public and private investments in climate resilience. The scandal illustrates how mismanagement and opaque use and distribution of funds in public sector adaptation projects can directly undermine climate goals, as it can create conditions in which resources meant to protect communities from climate change may be diverted for personal gain.