THE PHILIPPINES is looking to tap the Green Climate Fund (GCF) for $124 million worth of projects, the Department of Finance (DoF) said.
In a statement, the agency said the Philippines receives funding from the GCF for projects and grants worth $139.9 million.
“Meanwhile, four priority project proposals are in the pipeline estimated at $124 million,” it added.
Established in 2010, the GCF extends financing and technical support to developing economies for low-emission development and climate resilience projects. The fund concluded a three-day mission in the Philippines last week.
The GCF has supported projects in the Philippines ranging from climate adaptation for agriculture to multi-hazard impact-based forecasting and early warning systems.
In a separate statement, the Finance department said it is working on ramping up its investment and financing strategies to better mobilize climate finance.
“This includes tapping into international finance sources such as the GCF and Global Environment Facility (GEF),” it said.
The Philippines is also working with the Vulnerable 20 Group of Finance Ministers (V20) to develop a Philippine Climate Prosperity Plan this year. The plan will “support priority adaptation and mitigation sectors, including power system and grid modernization.”
The Philippines is seeking to reduce by 75% its greenhouse gas emissions by 2030 under its Nationally Determined Contribution, which is its commitment under the Paris Agreement.
The Finance department estimated about $72 billion in investments are needed to help the country deliver.
“Particularly, $36.5 billion is needed to prioritize investments in transmission and grid improvement and expansion of financial structures to support rapid scaling up of renewable energy and energy-efficient investments,” the DoF said.
To help the country generate the investment needed to meet its climate goals, it is looking to expand its financing options and boost its use of sustainability-linked bonds and green and blue bonds.
The Philippines recently raised $2 billion from a dual-tranche dollar bond issuance. Under the offer, it issued 25-year sustainability bonds.
Proceeds from the 25-year paper will be used to support the government’s sustainable finance framework.
The Finance department will also prioritize the recently released Sustainable Finance Taxonomy Guidelines to “steer financial investments towards the attainment of the country’s climate agenda.” — Luisa Maria Jacinta C. Jocson
