The EIB, the lending arm of the European Union, will extend the facility to the state-owned Land Bank of the Philippines "which will manage a credit line for projects linked with climate change mitigation," said EIB vice-president Carlos Da Silva Costa.

This credit line will be open to "local enterprises, local cooperatives and local governments" that have projects that could slow down global warming and climate change, he said in Manila.

This could include reforestation, water treatment, renewable energy and improved efficiency, especially in the transport sector, he said.

"It depends on the policy of the country and the willingness of the actors," Da Silva Costa said, adding that the European Union would also assist by providing technical expertise and advice.

The EIB has already extended a €500m facility to China for climate change mitigation, he said, adding this had gone into loans for wind farms, reforestation and energy efficiency projects.

A similar facility is being prepared for Vietnam, Da Silva Costa said.

"The EIB is in a position to bring to the Philippines long term financing at favourable terms," despite the world financial turmoil, he said.