Concessional loan seen to induce $2.75B in investments

P TO GET $250M CLIMATE CHANGE FUND

THE Philippine government expects to receive $250 million from the Clean Technology Fund to help the country implement projects that will mitigate climate change, according to Energy Secretary Angelo T. Reyes.

Reyes said the fund would help leverage an estimated $2.75 billion worth of investments needed to implement key programs and projects that would significantly reduce greenhouse gas emissions.

The Clean Technology Fund is as part of a broad global initiative to help developing countries meet the cost of actions needed to combat climate change.

To be issued as concessional loans, the CTF will largely support the deployment of low carbon energy technologies as well as energy efficiency measures for industry, commercial buildings and municipalities.

Activities supported by the fund will get co-financing from the Asian Development Bank’s regular operations and this is expected to mobilize additional financing from both the government and the private sector.

Reyes pointed out that the $251-million funding–endorsed by the Trust Fund Committee of the CTF and supported by the ADB and the World Bank–was expected to develop a wide range of energy efficiency and renewable energy projects in the Philippines.

The Philippines is one of the leading countries in the use of renewable energy. Forty-three percent of its total primary energy supply comes from such sources, although the country still has one of the lowest per capita electricity consumption in the East Asia region.

The energy chief explained that the CTF co-financing scheme would support government efforts in transforming the energy sector through scaled-up distributed generation with renewable energy resources and energy efficiency through demand side management.

“Demand side management will be able to keep electricity prices competitive by lowering peak demand, and reduced use of power will reduce the fossil fuel used for power generation,” he explained.

“The funding, which amounts to $250 million, will aid the country in combating the rising greenhouse gas emissions [GHGs] due to various developmental issues stemming from increased vehicle ownership, rapid urbanization rate and land use change,” Reyes said.

The $250-million funding will become part of the Philippine CTF Country Investment Plan, which was developed by the government in agreement with the ADB and WB.

It builds on the Medium-Term Philippine Development Plan (2004-2010), the Philippine Energy Plan (2008-2030), the National Environmentally Sustainable Transport Strategy, and other relevant sector plans. The plan would identify priority sectors for GHG emission reduction. –Amy R. Remo, Philippine Daily Inquirer