The Climate Investment Funds (CIF) has pledged USD 500 million (EUR 461.1m) in loans and grants to bolster the Philippines' endeavor to phase out existing coal generation capacities while ushering in 1,500 MW of renewables.
This financial support is part of the USD 2.2 billion Accelerating Coal Transition (ACT) investment program, aimed at aiding middle-income nations in transitioning from coal to clean energy, CIF disclosed on Tuesday.
Underlining its commitment to this transition, CIF has endorsed the Philippine government's plan to retire up to 900 MW of current coal generation capacity by 2027, encompassing the Mindanao plant and other privately operated coal-fired facilities.
CIF's assistance will comprise USD 475 million in loans and USD 25 million in grants, with total co-financing anticipated to surpass USD 2.3 billion, inclusive of contributions from the Asian Development Bank, the World Bank Group, and both public and private sectors.
In alignment with these initiatives, the allocated funds will facilitate the expansion of renewable energy capacities, spanning battery energy storage systems (BESS), offshore wind farms, floating solar installations, and pumped hydro projects, by the year 2030.
