State-owned Development Bank of the Philippines (DBP) has secured the accreditation of a United Nations-backed institution that provides financing support for environment and climate-related programs and advocacies in line with the Paris Agreement and Kyoto Protocol.
In a statement, Emmanuel Herbosa, president and CEO OF DBP, said the bank was only the second Philippine institution named as accredited entities of the Green Climate Fund, an international fund created by the United Nations Framework Convention on Climate Change (UNFCCC) to support climate mitigation and adaptation initiatives in developing countries.
“We are honored to be in the select roster of international and national commercial banks; multilateral, regional and national development finance institutions; and civil society organizations that are working together for the implementation of climate change mitigation and adaptation projects on a global scale,” he said.
DBP is the sixth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy: infrastructure and logistics; micro, small and medium enterprises; the environment, and social services and community development.
The Green Climate Fund was created in 2010 by the UNFCCC, along with 194 governments, to provide financing and technical support to developing countries to shift to low-emission and climate resilient development while helping vulnerable societies adapt to the inevitable impacts of climate change.
Under the mechanism, the fund may be tapped by accredited entities and delivery partners, which work directly with developing countries for project design and implementation. The fund provides financial support through a combination of grants, concessional debt, guarantees or equity instruments to leverage blended finance and crowd-in private investment for climate action in developing countries.
Herbosa said DBP ws one of 113 accredited entities globally, 57 of which are national agencies, which would allow the bank to channel support of up to $250 million per project or program.
He said DBP was in talks with potential development partners who could work with the bank in formulating and implementing responsive projects centered on green energy, energy efficiency, waste management, and disaster resilience projects, among others.