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ADFIAP, USAID ESP, and DOE explore a new Climate Finance Mechanism

From Top (L-R): Enrique Florencio (Secretary General, ADFIAP); John Alianza (ADFIAP); Claire MY Lee (USAID ESP); Magnolia Olvido (DOE); Noel Verdote (DOE); Silver Navarro Jr. (ADFIAP); Director Michael Sinocruz (DOE); Phaebe Anne Nambatac (DOE); Maria Teresita Lacerna (ADFIAP); Vince Villones (DOE)

July 9, 2024: In a bid to bolster the Philippines’ power sector’s resilience against climate challenges, USAID’s Energy Secure Philippines (ESP), alongside the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), met with the Department of Energy led by Director Michael Sinocruz to discuss a groundbreaking initiative: the Climate Resilience Finance Mechanism (CRFM). This novel program, developed through collaboration between ADFIAP and USAID ESP, specifically targets the financial obstacles faced by distribution utilities and Small Power Utility Groups (SPUGs).

The CRFM seeks to bridge the funding gap by offering accessible financing solutions. These funds will empower utilities to invest in crucial infrastructure upgrades and cutting-edge technologies, ultimately bolstering their resilience against climate disasters. The mechanism is designed to seamlessly integrate with both development and commercial banks, maximizing the reach of these financial resources. A stakeholder meeting is set for July 17, 2024, at the Holiday Inn, Makati, for representatives from the government, financial institutions, and power utility groups.

The Department of Energy (DOE) will play a pivotal role by fostering a regulatory environment that supports the CRFM. This collaboration between government, development partners, and financial institutions represents a significant step forward in securing a climate-resilient future for the Philippine power sector. Further, ADFIAP’s Climate Resilience Financing Mechanism project can play a crucial role in promoting sustainable energy development, enhancing climate resilience, and improving energy access in underserved areas.

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