Tuesday, September 23, 2008
The Development Bank of the Philippines (DBP) has been given access to a ¥10-billion (P4.535 billion) facility from the Japan Bank for International Cooperation (JBIC) to implement the Clean Development Mechanism (CDM) projects.
The facility will be made available to both private and public enterprises at competitive terms through the retail and wholesale lending windows of DBP.
This marks JBIC’s and DBP’s strengthened partnership in financing CDM projects that contribute to the reduction of global greenhouse emissions, and at the same time, interest investors to monetary incentives through CDM participation,” Reynaldo G. David, DBP president and chief executive officer, said.
The facility finances the acquisition of fixed assets, machinery and equipment; building and plant construction; rehabilitation, modernization or expansion of existing facilities; civil works; and working capital requirements of environment projects.
To qualify for the facility, a project should either be eligible as a CDM project, or have direct or indirec business relations with Japanese enterprises or market.
The CDM is an arrangement under the Kyoto Protocol, which allows industrialized countries with a greenhouse gas reduction commitment like Japan to invest in initiatives that lessen emissions in developing countries as an alternative to more costly emission reduction measures.
The Philippines can shift to new and renewable energy (NRE) projects and in turn, capture the carbon credits to sell as pollution rights to other industrialized countries.
“We should fund climate change programs. We need to invest further in clean technologies especially those that enable carbon capture and sequestration,” David added.
Eighty-seven percent of DBP’s official development assistance (ODA) funds come from JBIC, which has been directed in infrastructure, logistics environment and SME development. — Ted Torres
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