CIF to allocate USD 500m for Phillipine coal-to-renewables transition

The Climate Investment Funds (CIF) has agreed to provide USD 500 million (EUR 461.1m) in loans and grants to the Philippines to support the country in its retirement of existing coal generation capacities and the addition of 1,500 MW of renewables.

The allocation will be made as part of the USD-2.2-billion Accelerating Coal Transition (ACT) investment programme, which helps middle-income countries transition away from coal and to clean energy, CIF said on Tuesday.

The multilateral climate fund has endorsed the Philippine government's plan to retire up to 900 MW of existing coal generation capacity by 2027, including the Mindanao plant and other privately owned coal-fired sites.

CIF will provide USD 475 million in loans and USD 25 million in grants. It estimates that the total co-financing will exceed USD 2.3 billion, including investments from the Asian Development Bank, the World Bank Group and the public and private sectors.

The funding will support efforts to add new renewable energy capacities, including battery energy storage systems (BESS), offshore wind, floating solar and pumped hydro projects by 2030.

(USD 1 = EUR 0.922)

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