Philippines to receive $500m in CIF funding to accelerate coal plant retirements

Coal-fired plants accounted for 44% of the country’s installed capacity.

The Climate Investment Funds (CIF) will be providing $475m in loans and $25m in grants to support the Philippines' goal to shut down coal power plants and transition to renewable projects.

In a statement, CIF said it endorsed the new Accelerating Caol Transition investment plan presented by the Philippine government which aims to retire early or repurpose the Mindanao plant and other privately-owned coal-fired power plants.

The plan includes the retirement of up to 900 megawatts (MW) of coal-fired power plants by 2025 and ensuring that 80% of the affected employees will have sustainable income.

“The Climate Investment Funds’ concessional resources will help ensure private sector buy-in, increased renewable energy development, and a just transition, for the benefit of the Filipino people and our planet,” CIF CEO Tariye Gbadegesin said.

CIF added that its funding will support the installation of 1,500 MW of renewable energy projects by 2030, including battery systems, offshore wind, floating solar, and pumped hydro projects.

The country’s plan will also reduce 33 million tonnes of carbon dioxide in greenhouse gas emissions. Coal comprised 44% of the Philippines’ installed capacity and 60% of the total generation in 2022.

The total co-financing for the Philippines is projected to reach over $2.3b, backed by investments from the Asian Development Bank, the World Bank Group, as well as the public and private sectors.