IFC funds P16-B clean energy projects

MANILA, Philippines - The International Finance Corp. (IFC) in the Philippines has invested a total P16 billion on clean-energy projects in the country since 2008.

In the process, an estimated one million metric tons of carbon emission was potentially eliminated.

The United Nations Climate Change Secretariat has, thus, recognized IFC for its Sustainable Energy Finance program.

IFC Philippines’ Sustainable Energy Finance program has helped client banks identify and develop nearly 300 energy projects in their pipeline, 87 of which were financed by the banks.

The loans saved nearly 100,000-megawatt hours (mWh) of electricity per year, and generated renewable energy of 843,613 (mWh) per year.

The program, supported by the Global Environment Facility and the Clean Technology Fund, is implemented in partnership with Bank of the Philippine Islands (BPI), BDO Unibank Inc. (BDO), China Banking Corp. (China Bank), and BPI Globe BanKO Inc. (BangKO).

“Through our bank partners, the Sustainable Energy Finance program has been providing financing support and IFC’s global knowledge to investments that would help businesses bring down their electricity costs and improve their competitiveness,” said Jesse Ang, IFC Philippines resident representative. “The program promotes efficient use of energy and renewable-energy sources to help reduce carbon emissions.”

A 16-member, international advisory panel selected 17 inspiring projects as 2013 Lighthouse Activities under the Momentum for Change initiative of the United Nations.

IFC Philippines’ Sustainable Energy Finance program was described as “an innovative solution that supports private banks through capacity-building, technical evaluation and product development to help them finance energy-efficient and renewable-energy projects.”

The program helped commercial banks view climate-friendly projects as environmentally important while equally boosting the business and increasing shareholder value.

United Nations Framework Convention on Climate Change executive secretary Christiana Figueres said that the 2013 Lighthouse Activities are true beacons of hope, demonstrating what happens when innovation and passion come together to address the biggest challenge of the times.

“There are thousands of examples of people taking action to address climate change all over the world. The Lighthouse Activities highlight some of the most practical, scalable and replicable examples of what people, businesses, governments and industries are doing to tackle climate change, which I hope will inspire others to do the same,” Figueres added in a statement.

The Global Environment Facility unites 183 countries in partnership with international institutions, civil society organizations, and the private sector to address global environmental issues while supporting national sustainable development initiatives. The facility provides grants for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants.

Meanwhile, the $5.2-billion Clean Technology Fund (CTF) provides middle- income countries with resources to scale up the demonstration, deployment, and transfer of low-carbon, clean technologies with a high potential for long-term greenhouse-gas-emissions savings. Channeled through the multilateral development banks, CTF financing focuses on renewable energy, sustainable transport, and energy efficiency.