Your location: Home > Secretariat > Momentum for Change

image

The groundbreaking Sustainable Energy Finance (SEF) Program is the first of its kind in the Philippines and is paving the way for more private financial sector investment in sustainable energy projects. These projects are reducing greenhouse emissions, improving energy security and boosting economic development in the Philippines. The SEF is an advisory programme being implemented by the International Finance Corporation in different regions around the world.

Fast facts:

  • USD 326 million financed for sustainable energy projects as of December 2012;
  • The Philippines SEF Program has catalyzed investments in 66 sustainable energy projects, which will cut CO2 emissions by more than 740,000 tonnes a year;
  • Financing for energy efficient technologies can reduce a company’s operating and energy expenses by at least 30 per cent and cut CO2 emissions by at least 25,000 tonnes each year.

Momentum for Change Media
Urban Poor Women for Results Finance for Climate Friendly Investment ICT Solutions Contact
Lighthouse Activities Activity Database Advisory Panel Events Publications

The problem

The Philippines has been experiencing rising power costs, growing demand for energy, looming power shortages and an increasing concern for environmental sustainability due to the country’s vulnerability to climate change. Compounding the country’s vulnerability was the lack of available financing for energy efficiency and renewable energy projects in the country.

image

The solution

The SEF Program is an innovative solution that supports private banks through capacity building, technical evaluation and product development to help them finance energy efficiency and renewable energy projects. The SEF Program has helped change the traditional way private banks view energy efficiency and renewable energy investments — no longer just for corporate social responsibility, these investments increase shareholder value.

Companies can apply for loans at select Philippine banks through the SEF Program, which allows them to invest in technologies that make energy generation, distribution and use more efficient. These technologies can reduce a company’s operating and energy expenses by at least 30 per cent and cut CO2 emissions by at least 25,000 tonnes each year.


Helping the planet

The Philippines SEF Program has catalyzed investments in 66 sustainable energy projects, which will reduce more than 700,000 tonnes of CO2 each year. Eligible projects include energy efficiency measures in buildings (retrofit or replacement of lighting, space cooling, air compression and building management systems) and industrial/manufacturing processes (boiler upgrades, motors and manufacturing equipment).

BPI, a partner bank, decided to “walk the talk,” proving that even small actions can have a big effect. It replaced its 30-year-old space cooking units at its headquarter building. As a result, BPI’s electric bill dropped by USD 25,000 a month.
image

Spillover effect

The SEF Program’s technical assistance package and risk-sharing facility model is highly replicable and can be tailored to respond to a bank’s needs. The model also supports a bank’s strategy, strengths and portfolio characteristics. Two of the largest banks (BPI and BDO) in the Philippines have participated in this programme, catalyzing the sector.


 


icon twitter vimeo icon


Images owned by the activity partners, all rights reserved.

Ready for some Climate Change News?

Visit the
NEWSROOM