CIF backs Philippines with $500 million investment plan for coal transition
The governing board of the Climate Investment Funds (CIF) has approved the Philippines government’s investment plan. As part of it, the government will receive an allocation of $500 million from CIF.
CIF released a factsheet, Accelerating Coal Transition (ACT) Investment Plan for the Philippines, in which it said, “The ACT investment program is a first-of-its-kind multilateral investment platform pioneering a transition away from fossil fuels and toward clean energy.”
As part of the plan, the country aims to expedite the retirement or repurposing of coal-fired plants. This initiative targets the acceleration of the retirement of up to 900 MW of existing coal generation capacity by 2027.
Moreover, it emphasizes ensuring that 80% of affected employees gain access to sustainable income, ensuring a fair and equitable transition.
Coal is not only economically costly for the Philippines but also accounts for over 55% of the country’s total greenhouse gas (GHG) emissions by fuel type.
CIF highlights the Philippine government’s goal of achieving 35% renewable energy generation by 2030 and over 50% by 2050.
Read more: Rockefeller Foundation proposes a new approach to clean energy transition in the Philippines
CIF’s financial support comprises $475 million in loans and $25 million in grants, with total co-financing anticipated to exceed $2.3 billion.
This joint initiative involves contributions from entities including the Asian Development Bank, The World Bank Group, and a mix of public and private sectors.
The investment plan has two major components. Component 1 of the initiative aims to accelerate the retirement or repurposing of existing coal-fired power plants (CFPPs).
This financial support helps operators manage the economic impacts of ending revenue streams early and transition to clean energy assets.
Component 2 of the initiative focuses on facilitating a just transition and governance reforms to shift from coal to clean energy.
CalPERS allocates nearly $10 billion to climate action...
-
The California Public Employees’ Retir...
- 05/07/2024
Eco-gamers launch online video game to target asset...
-
A team of eco-gamers known as Serious Pe...
- 01/07/2024
EU regulators push for revisions in landmark ESG...
-
Regulators overseeing the markets, banki...
- 19/06/2024
Related News
ERM, a sustainability consultancy company, announced that it has commenced offshore trials to test the key elements of its Dolphyn Hydrogen process. The trials mark […]
European Energy announced that it had acquired grid connection approvals for nearly 500 megawatts (MW) of solar and wind energy projects across Romania. The approvals […]
In its second-quarter update, Shell announced that it would incur an impairment charge of up to $2 billion following the sale of its Singapore refinery […]
The California Public Employees’ Retirement System (CalPERS) announced a commitment of almost $10 billion to advancing global efforts to transition to a low-carbon economy. This […]
The European Commission announced that it has approved a €10.82 billion French scheme to support offshore wind energy deployment. It aims to help foster a transition […]
ENGIE announced that it signed a 7-year Biotmethane Purchase Agreement (BPA) with BASF. According to the agreement, ENGIE will supply the chemicals company with 2.7 […]