UN-backed GCF accredits DBP

MANILA, Philippines — State-owned Development Bank of the Philippines (DBP) has secured the accreditation of United Nations-backed Green Climate Fund (GCF)  for environment and climate-related programs and advocacies.

DBP president and chief executive officer Emmanuel Herbosa said the DBP is only the second Philippine institution, and one of 10 foreign institutions, approved recently as accredited entities of the GCF, an international fund created by the United Nations Framework Convention on Climate Change (UNFCCC) to support climate mitigation and adaptation initiatives in developing countries.

As an accredited entity, the bank may apply for financing of up to $250 million per project and program from the GCF.

With the accreditation, Herbosa said the DBP became one of just 113 entities globally, 57 of which are state agencies, that can obtain support from the UN-backed fund.

At present, Herbosa said the DBP engages development partners that can collaborate with the bank in developing projects that the GCF can bankroll. The state-run firm looks into the areas of green energy, power efficiency, waste management and disaster resilience for possible tie-ups.

Accredited entities and delivery partners can acquire support from the GCF through grants, loans, guarantees or equities that can be used to upsize private sector investment on climate action in developing economies.

“We envision the GCF as an additional source of highly concessional loans – or even grants – to expand the reach and to scale up the DBP’s environmental and climate-related programs and advocacies,” Herbosa said.

“This includes complementing the programs of other government and non-government agencies in line with the ‘Build Back Better’ strategy and whole-of-government approach,” he said

The GCF has committed $8.9 billion to finance a total of 177 projects worldwide as of July. These undertakings prevented at least 1.8 billion tons of carbon emissions, benefitting  more than 500 million people across continents.