Presenting the city's plans and initiatives to address climate change at the C40 World Mayors…
Launch of a new climate fund initiative to speed up climate action
In order to advance climate action through green finance, the Department of Finance (DOF) and the Global Green Growth Institute (GGGI) signed an agreement for the nation’s Green Climate Fund (GCF) Readiness Program.
On December 6 at the DOF office in Manila, the agreement for the program titled Readiness Support to Strengthen Philippines’ Capacity and Knowledge on Accessing Green Climate Fund (RPSP1) was signed by Finance Secretary Benjamin Diokno and GGGI Philippines Country Representative Juhern Kim.
Through this new global funding mechanism for climate adaptation and mitigation, “this initiative will strengthen the country’s capabilities in planning, acquiring, delivering, and monitoring climate money,” stated Diokno.
In order to better manage climate action and financing in the nation, RPSP1 strives to improve cooperation amongst government departments.
Beginning in 2023, the agreement will aid the government in reaching the program’s intended results.
For national government organizations and government financial institutions (GFIs), such as the Development Bank of the Philippines (DBP) and Landbank of the Philippines, the program involves capacity development efforts, such as training on GCF (Landbank).
A guidebook and a website for the GCF Philippines will be established as additional tools to help government organizations and other key stakeholders understand their roles and responsibilities in the program.
Kim, meantime, is hoping that RPSP1 will improve the Philippines’ access to global climate funds.
According to him, GGGI Philippines would assist the nation in converting prospects for adaptation and mitigation into skillfully written project proposals that will open doors for global climate finance.
The Philippines is a member of the GGGI, an intergovernmental organization based on treaties carrying out climate adaptation and mitigation projects.
In order to build institutional capacities, governance structures, and planning and programming frameworks for a transformational long-term climate action agenda, GGGI serves as the GCF’s primary preparedness delivery partner.
The GCF, is the largest global climate fund in the world, with a portfolio worth over USD40 billion and approximately USD11 billion in approved climate funding.
Diokno acknowledged that obtaining climate funding is challenging due to the complexity of the financing landscape, the lack of institutional capability in the nation, and the demanding requirements for obtaining cash and resources.
By offering technical assistance in creating high-caliber project pipelines for GCF, RPSP1 will assist in addressing this difficulty.
According to Diokno, funding initiatives for climate adaptation and mitigation is crucial for eradicating poverty, minimizing inequality, and advancing a low-carbon and green economy.
To this purpose, the government yearly allots at least PHP1 billion, or roughly USD18 million, for the People’s Survival Fund to finance local government organizations’ adaptation programs.
But with the disbursement rate at about 31%, a study filed to the Senate claims that the fund cannot be properly utilized.
Another GCF Readiness project that aims to directly develop six impactful project concepts in cooperation with the DBP and the Landbank is now being approved at the national level by the DOF and GGGI.
For groups with little background in global funding models, navigating new climate finance systems can be difficult. According to Diokno, this readiness project will be crucial for providing technical support, project development, capacity building, and institutional strengthening.
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