IFC mobilizes financing for green projects in Philippines

MANILA, Philippines — The International Finance Corp. (IFC) has launched a new program to help mobilize financing for climate-friendly projects in the country.

In a statement yesterday, the IFC said the 30 by 30 Zero program aims to help financial institutions include green finance strategies into their investment plans as well as reduce climate risks and greenhouse gas emissions.

The program, which was developed by IFC and the World Bank,  is funded by the International Climate Initiative and the German government. It brings together key stakeholders such as government and regulators, international finance institutions and commercial banks, and real sector partners to mobilize support for the shift toward a low carbon economy.

Through the program, the goal is to get financial institutions to increase their lending for climate-related initiatives to 30 percent of total portfolio with near-zero coal exposure by 2030.

Aside from the Philippines, the program is being implemented in other countries such as  Egypt, South Africa and Mexico.

To begin the program’s implementation in the Philippines, IFC partnered with microfinance organization CARD SME Bank.

With the partnership, the aim is to boost CARD SME Bank’s capacity to finance climate-smart agricultural solutions for farmers.

This is expected to benefit over 3,000 farmers in the country starting next month.

IFC, along with the Berlin-based and globally renowned Renewables Academy will be offering scholarships for the capacity-building of financial institutions looking to engage in green energy and climate finance.

IFC said the first batch of scholarships are likely to be offered in November this year.

“Achieving the country’s climate targets requires massive financing, which cannot be met by the public sector alone. Private financing is therefore crucial,” IFC country manager for the Philippines Jean-Marc Arbogast said.

“The financial sector, especially commercial banks, can play a key role in greening the economy by addressing climate-related risks, promoting sustainable development, and decarbonizing industries through financing,” he said.

IFC has been helping drive the development of the climate-themed bond market in the country by investing in landmark issuances.

In 2017, IFC was the sole investor in the green bond sale of BDO Unibank Inc., the first green bond issued by a financial institution in the country.

IFC also supported green bond issuances that followed in 2018 and 2019.

Last April, IFC supported BDO’s first blue bond to help address marine pollution and preserve water resources.