Climate Change Financing in the
Philippines
JEAN R. CENTENO
National Economic and Development Authority
24-26 June 2012
Bangkok, Thailand
Outline of Presentation
I.
Mainstreaming Climate Change (CC) in the 2011-2016
Philippine Development Plan and the 2011-2016 Public
Investment Program
II. Reported Programs and Projects (PAPs) in the 2011 Official
Development Assistance (ODA) Report
a. Percentage Share of CC PAPs in the 2011 ODA
b. Percentage Distribution of CC PAPs per Sector
c. Sources of CC Financing / Existing Financing Window
III. Potential Sources of Climate Change Finance
IV. Opportunities and Challenges in programming and
mobilizing public investment for CC
+
NARD (16-POINT AGENDA)
ACHIEVE INCLUSIVE GROWTH,
CREATE EMPLOYMENT OPPORTUNITIES AND
REDUCE POVERTY
• Anchored on President Benigno S. Aquino III’s “Social
Contract with the Filipino People”
• Overarching theme: inclusive growth and good
governance
I. Mainstreaming Climate Change in the 2011-2016 Philippine
Development Plan
 6 out of 10 chapters of the PDP are CCA/DRR
proofed .
 Strategies espoused in the PDP are consistent
with the actions required in the 2011-2028
National Climate Change Action Plan
(NCCAP).
 PDP is currently being revalidated to ensure
that strategies remain relevant and
achievable.
Major CC/DRR/M Strategies in the 2011-2016 PDP
• Strengthening institutional capacities of national and
local governments for CCA and DRR
• Improving adaptive capacities of communities to the
impact of climate change
• Building resilience of the natural ecosystems
• Promotion of environment friendly technologies for
industry and transportation sectors
• Promotion of clean and renewable energy
Mainstreaming Climate Change Adaptation and Disaster Risk
Reduction in the 2011-2016 Public Investment Program
Sector
# of
%
(US$ billion) Projects Share
Cost
Agriculture &
Agrarian Reform
0.06
25
<1
ENR
1.32
21
17.75
CCA and DRR/M
(including flood
control)
3.30
91
45
Energy and Power
Total
2.74
7.42
32
169
37
100
Typology of activities
• formulation/enhancement of AFM plans
• promotion of technologies for CC in
agriculture
• capacity building including IEC on CC
• formulation/enhancement of ENR
framework plan;
• integration of CC technologies in watershed
management/forestry, biodiversity
conservation, solid waste management, and
sewerage system activities; and
• capacity building including IEC on CC
• formulation/enhancement of local land
use plans;
• installation of early warning system,
forecasting/modeling device, hydrometeorological equipment; and
• capacity building including IEC
• construction of dams
• promotion of Renewable Energy
II. ODA Programs and Projects (PAPs) with CC Components
Percentage Share of CC PAPs in the 2011 ODA
CC PAPs
Adaptation
Loan
Grant
Mitigation
Loan
Grant
Adaptation and
Mitigation
Loan
Grant
Total
No. of Projects
43
11
32
13
3
10
22
Cost (US$ billion)
1.84
1.75
0.09
0.18
0.14
0.04
0.19
% Share
83.2
94.6
5.4
8.3
80
20
8.5
4
18
78
0.12
0.07
2.21
64
36
100
Source
No. of Projects
% Share
Loan
18
23
Grants
60
77
Total
78
100
Percent distribution of 2011 CC PAPs per sector/category
Percentage Share of CC PAPs in the 2011 ODA
8%
8%
Adaptation
Mitigation
Adaptation & Mitigation
Percentage Distribution of CC PAPs per Sector
83%
14%
42%
Rural Development
ENR
Energy and Power
CCA/DRR/M
36%
7%
Sources of 2011 CC PAPs Financing
1. Multi-lateral Sources
ADB, FAO, GEF, IFAD, MDGF, UNDP, UNEP, UNIDO, and WB (e.g., through
the climate change window on Special Climate Change Fund – SCCF)
2. Bilateral Sources
AUSAID, Austria, China, Czech Republic, Germany (BMZ, GIZ, KfW or
through Initiative for Climate and the Environment - IKLU), Japan (JICA,
KOICA, JIRCAS or through Cool Earth Partnership ) New Zealand, Norway,
Spain, and USAid
Percentage of CC Allocation per Fund Source
44%
56%
Multilateral
Bilateral
III. Potential Sources of CC Finance
Name of Facility
Philippine Survival Fund
(PSF)
- Republic Act 10174
Features/Terms and Conditions
Status
• Domestic “rewards fund”
Implementing Rules and
aimed at addressing urgent
Regulations for RA 10174
adaptation needs
submitted to the President
• Finance adaptation programs
for his review and approval.
and projects that are directly
supportive to the NCCAP
• Sources of the PSF managed by
the Fund Board
 PhP1 billion from the
national budget
 Augmented by donations,
grants, endowments
III. Potential Sources of CC Finance
Name of Facility
Features/Terms and Conditions
Status
Adaptation Fund (AF)
 About USD 109.3M funds available as • Available but there is a need
- Established to finance
of 2011 and expected to increase to
concrete adaptation
for the country to establish
about
USD
204M
by
end
2012
projects and programmes in
the NIE to directly access the
developing country-Parties
AF.
 It has three modalities, namely:
to the Kyoto Protocol and
a) National Implementing Entity (NIE)
are particularly vulnerable
- Requires a Designated Authority
to the adverse effects of
to endorse adaptation programs
climate change
and projects for the country
- USD 10M cap per country
- Financed from voluntary
contribution of Annex1
b) Multilateral Implementing Entity
country-Parties and (2%)
(MIE)
share of proceeds of CDM
- Cap of 50% of the total
project
adaptation fund
c) Regional Implementing Entity (RIE)
III. Potential Sources of CC Finance
Name of Facility
Features/Terms and Conditions
Green Climate Fund
• A total of USD 100B annual
(GCF)
funds from developed
- Established as an
countries for climate change
operating entity of the
adaptation and mitigation
financial mechanism of activities.
the Convention under
Article 11.
- The GCF will support
projects, programmes,
policies & other
activities in developing
country Parties. The
Fund will be governed
by the GCF Board.
Status
• Mechanism to access
funds and institutional
arrangement are still
being determined.
• Designation of the
Philippines as
member/alternate to the
GFC Board.
IV. Opportunities and Challenges in programming and
mobilizing public investment for CC
A. Opportunities
• CC strategies are already identified as priority in the
2011-2016 PDP as well as local and sectoral plans
• Availability of success stories on pilot
projects/interventions on CC/DRRM which can be upscaled
• CC projections and sectoral vulnerability assessment
conducted as basis for CC interventions design
• Availability of funding window to support
implementation of CC/DRR/M initiatives
IV. Opportunities and Challenges in programming and
mobilizing public investment for CC
B. Challenges
• Logical tagging/classification of CC and DRR/Mrelated PAPs
• Harmonization of PAPs identified in the 2011-2016
PIP with the interventions/PAPs geared toward
achieving the immediate outcomes of the NCCAP
• Capacity building for implementing climate change
actions
• Further involvement of sub-national actors at the
planning stage
End of Presentation