DBP joins the Green Climate Fund

The Development Bank of the Philippines (DBP) has been accredited to join the United Nations (UN) Green Climate Fund (GCF) and can now finance environment and climate change-related programs in developing countries. 

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

He added that the bank is currently in discussions with potential development partners to help it create and roll out multiple projects ranging from green energy to energy efficiency, waste management, and disaster resilience.

The GCF, established in 2010, aims to extend financial and technical support to developing economies looking to reduce their carbon emissions and adapt climate-resiliency programs and assist vulnerable nations in adapting to the impact of climate change. 

Participating banks are given access to the fund to help channel grants, concessional loans, guarantees, or equity instruments for proposed projects. 

The GCF currently has 113 accredited entities, 57 of which are government agencies, that can provide support of up to $250 million per project. 

“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, among others, that are working together for the implementation of climate change mitigation and adaptation projects on a global scale,” said Herbosa.

The DBP is the sixth-largest bank in the country in terms of assets and has been designated the lead bank for infrastructure.

Net profit, however, fell 30% to ₱3.9 billion in 2020 on increased loan loss provisions and operating expenses.

The DBP will be the second Philippine entity to join the GCF.

SOURCE: Business World