Sep. 30--The World Bank's private sector lending arm has launched a financing program to help steer local lenders into investing in renewable energy projects in the country. Jesse Ang, International Finance Corp. (IFC) country representative, said that the program, dubbed

Sustainable Energy Finance Program, would assist banks in moving loan financing away from the high energy consuming projects toward those favoring energy efficiency and emission reduction.

"IFC's program is based on the idea that financing sustainable energy projects can be good business while at the same time helping to combat climate change," he said.

Through the Sustainable Energy Finance Program, the IFC will provide financial and technical support and, in selected cases, enter into risk-sharing agreements.

In particular, "we will be providing money and know-how to Philippine banks so that they can provide capital to renewable energy and energy efficiency projects," Ang said.

IFC will also work with end-users, service and technology providers and engage regulators to help create a policy environment that is conducive to sustainable energy investments. The IFC will also help raise market and public awareness of sustainable energy benefits.

The multilateral lender will finance the project through a $3-billion funding in the next two years.

The program is funded by the Global Environment Facility, a global partnership among countries, international institutions, non-government organizations, and the private sector to address environmental issues.

The facility is expected to help the government meet its goal of developing renewable energy sources, whose investment costs remain high compared with fossil fuel-based power plants because of a limited market and intermittent generating capacity.

"Overall here in the Philippines, we see tremendous opportunities in the renewable energy space. We're the second largest geothermal user in the world. We already have Northwind in the northern coast of Ilocos. And biomass, we're an agricultural country and a lot of waste products in the agricultural area can be used for biomass," Ang said.

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