Description: 

An IFC advisory and investment program that seeks to promote private sector investments in renewable energy and efficient energy projects throughout the Philippines.

Background:

The Philippines has been experiencing rising power demand and costs alongside increasing power shortages and an increased climate vulnerability. A lack of available finance and financial institution capacity for renewable energy and efficiency projects has compounded the country’s vulnerability and energy challenges.

Approved in 2011 with a CTF allocation of $10 million, the Sustainable Energy Finance (SEF) Program is the first of its kind in the Philippines, and is expected to continue paving the way for private sector investments in renewable energy projects. The Philippine’s SEF, under implementation by the IFC, encompasses both an advisory and an investment component to help boost renewable and energy efficient (RE/EE) projects in the private sector. The program enables the Philippines to continue to reduce GHG emissions, improve energy security, and boost economic development.

Objectives and Outputs:

The SEF Program addresses existing market barriers through both advisory services and investment, as a means to catalyze market transformation. The Philippine’s private banks are supported through capacity-building, technical evaluation, and product development to help finance RE and EE projectsThe program’s technical assistance package and risk-sharing facility model is highly replicable and tailored to each bank. The country’s SEF Program has enabled investments in 66 sustainable energy projects, which are expected to cut CO2 emissions by more than 740,000 tons per annum. The IFC program, with CTF resources, has helped client banks identify and develop nearly 300 energy projects in their pipeline, 87 of which were financed by private banks. Nearly 100,000 MW of electricity and 843,613 MW generated renewable energy per annum have been saved as a result of the SEF program.

Beneficiaries of the program include banks and financial institutions that invest in RE/EE projects, private sector investors, and the overall population of the Philippines, as reduced emissions of greenhouse gases and other conventional pollutants improve the quality of life. The program is expected to have a trickle-down effect on poverty reduction. The program has created a network of global partnerships, as it is supported by not only CTF but the Global Environment Facility (GEF), and is implemented by the IFC in partnership with BPI and BDO, the two largest banks in the Philippines. In 2013, the Philippine’s SEF program received an award from the United Nations Climate Change Secretariat.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

Project Factsheet | Momentum for Change Lighthouse Award 

In the News:
IFC Philippines’ Sustainable Energy Finance Program Wins UN Award for Climate-Change Innovations (IFC, November 8, 2013)

Project Details
Project Proposal | Proposed Decision
Approved on February 2, 2011 (Approved Decision)
Approved amount(s):
USD 10.0 million

Comments and Responses:
Germany (February 14, 2011)
United Kingdom (February 17, 2011)