ADB backs moves on climate change

MULTILATERAL and private institutions will be pledging billions of dollars to finance various initiatives of the Philippines to mitigate climate change, the Asian Development Bank (ADB) said on Thursday.

Ursula Schaefer-Preuss, ADB’s vice president for Knowledge Management and Sustainable Development, told a news briefing that the Philippines’ Clean Technology Fund (CTF) Investment Plan is estimated to cost about $2.5 billion, the funding of which will be provided by the ADB, World Bank (WB) and other multilateral agencies as well as private-sector participants.

Preuss said that the projects that will be funded by CTF are those on solar and renewable energy and the Bus Rapid Transit (BRT) system in Cebu and Metro Manila.

The BRT system, which emulates light-rail transit operations using buses, is among the most efficient public transport systems in the world. It combines the reliability of rail and the versatility of conventional bus systems at a fraction of the cost of rail.

Emerging metropolitan areas, such as Metro Davao and the cities of Naga, Bacolod, Iloilo and Cagayan de Oro, have been identified as potential sites for BRT project implementation.

“We are looking forward to start these innovative projects very soon,” Preuss said.

The investment plan is a “business plan” developed by the Philippine government in agreement with the ADB, the International Bank for Reconstruction and Development (IBRD) and the International Finance Corp. (IFC).

It is based on the Medium-Term Philippine Development Plan 2004-2010 and the Comprehensive Integrated Infrastructure Program 2009-2013, the Philippine Energy Plan  2008-2030, the Climate Change: Philippine Response, Strategic Framework and Action Plan (2007), the National Environmentally Sustainable Transport Strategy and other relevant sector development policies and programs.

“The Climate Investment Funds were designed to bridge the gap between developed and developing countries for climate change funding and knowledge,” Preuss said.

Hauriko Kuroda, ADB president, said that the bank would continue its commitment to helping build low-carbon economies in Asia and the Pacific.

“Our Energy Policy sets an ambitious target of $2 billion per year of clean energy investments starting from 2013—which we expect to achieve by working closely with the Climate Investment Funds, our development partners and, increasingly, the private sector,” Kuroda added.

The CIF was created in July 2008 and has since received donor pledges of over $6 billion. It provides scaled-up financing for the demonstration, deployment and transfer of low-carbon technologies that have a significant potential for long-term greenhouse gas emissions savings. –DARWIN G. AMOJELAR Senior Reporter, MAnila Times