Climate Investment Funds (CIF), a multilateral climate fund, is endorsing the Philippines’ Accelerating Coal Transition (ACT) investment plan that aims to decommission up to 900 megawatts (MW) of existing coal generation capacity by 2027.
Philippine Star reported that in aiding the country in accomplishing this goal, the fund would deliver around USD 25 million in grants and USD 475 million in loans.
The CIF revealed that, together with the Asian Development Bank, the World Bank Group, and contributions from both the public and private sectors, the co-financing would exceed USD 2.3 billion.
This initiative is included in the USD 2.2 billion ACT investment program, which served as a multilateral platform utilizing concessional finance to support key middle-income countries.
CIF CEO Tariye Gbadegesin said that the financing firm’s concessional resources would guarantee enhanced expansion of renewable energy, a fair transition, and support from the private sector.
In line with the strategy, the Philippines aimed to tap into the climate fund’s resources to accelerate the early retirement or conversion of the Mindanao plant and other privately-owned coal-fired facilities.
Furthermore, the investment is anticipated to support projects aimed at boosting the country’s renewable energy capacity by 1,500 MW during the following six years.
The CIF stated that the ACT investment plan would also contribute to decarbonizing the private sector, which is responsible for approximately 90% of the nation’s energy capacity.
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