Philippines signs deal to prepare agencies to tap climate financing

THE Department of Finance (DoF) said it has signed an agreement with the Global Green Growth Institute (GGGI) to prepare government financial institutions and agencies to tap the Green Climate Fund (GCF) for project financing.

“This program will bolster the country’s capacity in planning, accessing, delivering and monitoring climate finance through this new global financial mechanism for climate adaptation and mitigation,” Finance Secretary Benjamin E. Diokno said in a statement on Wednesday.

The agreement is known as the GCF Readiness Program, which is set to launch next year.

The program includes training on GCF for National Government agencies and government financial institutions such as the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LANDBANK).

The agreement includes technical assistance in developing a project pipeline for the GCF, the DoF added.

GGGI Philippines Country Representative Juhern Kim said the agreement will allow the Philippines to gain better access to international climate finance.

“GGGI Philippines will help the country translate adaptation and mitigation opportunities into well-crafted project proposals that will unlock doors of international climate finance,” Mr. Kim added.

The GCF has nearly $11 billion in approved climate funding.

The DoF and GGGI are also planning to launch another GCF readiness project that aims to develop projects in collaboration with the DBP and the LANDBANK.

“Investing in climate adaptation and mitigation activities is essential in alleviating poverty, reducing inequality, and promoting a low carbon and green economy,” Mr. Diokno said.

“Navigating new climate finance processes can be challenging, particularly for organizations with limited experience in international funding models. This readiness project will play an instrumental role in terms of providing technical assistance, project development, capacity building, and institutional strengthening,” he added. — Luisa Maria Jacinta C. Jocson