DOF Launches New Climate Fund Program

The Department of Finance (DOF) and the Global Green Growth Institute (GGGI) signed the implementation agreement for the Green Climate Fund (GCF) Readiness Program to speed up climate action through green finance.

Finance Secretary Benjamin Diokno and GGGI Philippines Country Representative Juhern Kim were present for the signing of the program called, Readiness Support to  Strengthen Philippines’ Capacity and Knowledge on Accessing Green Climate Fund (RPSP1) on December 6.

“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,” Diokno said.

RPSP1 aims to strengthen coordination among government agencies and enhance the capacity to govern climate action and finance in the country. The agreement will help guide the government in achieving the program’s targets starting in 2023.

The program will have capacity development activities, including training on GCF for national government agencies and government financial situations (GFIs), such as the Development Bank of the Philippines (DBP) and Landbank of the Philippines.

A handbook and a GCF Philippines website will be created to guide government agencies and key stakeholders to define roles and responsibilities in the program.

Kim expressed hopes for RPSP1 to enable the Philippines in gaining better access to international climate finance, while GGGI Philippines will help the country translate adaptation and mitigation opportunities to create effective project proposals.

GGGI is a treaty-based inter-governmental organization implementing climate adaptation and mitigation projects serving the needs of member countries, including the Philippines.

The GCF is currently the world’s largest multilateral climate fund with nearly $11 billion in approved climate funding and a total portfolio of over $40 billion.

Moreover, Diokno acknowledged the challenges in obtaining climate finance due to the complexity of the climate finance landscape, the country’s lack of structural capacity, and the rigid procedures for accessing funds and resources.

RPSP1 will help provide technical assistance in developing quality project pipelines for GCF to resolve these challenges.

Investing in climate adaptation and mitigation activities should be a priority to alleviate poverty, reduce inequality, and promote low carbon and green economy, Diokno added.

Currently, the government has allocated at least ₱1 billion, or almost $18 million, for the People’s Survival Fund (PSF) to finance adaptation projects of local government units (LGUs) and community organizations annually.

However, the Senate submitted a report saying the fund has not been fully optimized, with the disbursement rate at around 31% only.

Source: Manila Bulletin