The Philippines is expected to receive funding worth over $2.3 billion from the Asian Development Bank, the World Bank Group, the Climate Investment Fund (CIF) and various public and private sectors to support its Accelerating Coal Transition (ACT) investment plan. This is a first-of-its-kind multilateral investment platform pioneering a transition away from coal toward clean energy utilising concessional finance in key middle-income countries.
The Philippines’ ACT investment plan will utilise the funds to facilitate the early retirement or repurposing of the Mindanao plant and other privately-owned coal-fired plants. The country aims to retire up to 900 MW of existing coal generation capacity by 2027. To ensure a just transition, it is projected that 80% of affected employees will gain access to sustainable income sources.
CIF, a multilateral climate fund delivering low-cost finances to developing countries, has allocated $500 million for the Philippines to support the country’s transition from coal to renewable power.
The funding will also support efforts to add 1,500 MW of renewable energy capacity by 2030, potentially incorporating battery systems, offshore wind, floating solar, and pumped hydro projects. Overall, the ACT investment plan aims to reduce GHG emissions by 33 million tons of CO2 by 2030, while enhancing the health and livelihoods of affected communities.
