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.
- 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.
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.
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
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.
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.
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