The Development Bank of the Philippines (DBP) has become the second local institution and one of ten foreign institutions to be authorized by the UN-backed Green Climate Fund (GCF) for climate mitigation and adaptation projects in developing countries.
This enables the bank to provide up to $250 million in funding per project or program. The GCF was established in 2010 by the United Nations Framework Convention on Climate Change (UNFCCC) and 194 nations.
The GCF’s aim was to give funding and technical assistance to developing nations in order to enable them to transition to low-emission, climate-resilient development while also assisting vulnerable communities to adapt to climate change’s unavoidable effects.
The GCF can be accessed by accredited entities (AEs), such as the DBP, and delivery partners who work directly with developing nations on project design and implementation.
To leverage blended financing and crowd-in private investment for climate action in developing countries, the fund provides support in the form of grants, concessional debt, guarantees, or equity instruments.
According to Herbosa, the DBP is one of only 113 recognized AEs worldwide, with 57 of them being national organizations.
DBP is now in discussions with possible development partners that can help design and implement projects based on green energy, energy efficiency, waste management, and disaster resilience, among other things.
DBP is the country’s sixth-largest bank by assets and provides financing to four key economic sectors: infrastructure and logistics, micro, small and medium enterprises, the environment, and social services, and community development.