CANADA has pledged $5.3 billion to help plug the country’s “climate finance gap,” Malacañang announced last Wednesday.
A statement issued by the Presidential Communications Office (PCO) read that the government is now coordinating with the United Nations Development Program (UNDP) to finalize the arrangement with Canada.
The proposed fund will be used for “nature-based projects” such as promoting biodiversity conservation, climate change mitigation, adaptation and resilience with consideration for gender equality.
Global Affairs Canada Climate Finance Executive Director Andrew Hurst was quoted in the statement as saying that the initiative has components for research and knowledge sharing.
Through the collaboration, we hope to reduce poverty, address gender inequality, and provide nature-dependent communities with sustainable livelihoods, Hurst reportedly said.
“It’s also looking at ways to encourage private sector both international and Philippines investors looking for opportunities to invest in these kinds of solutions,” he added.
While the statement didn’t say if the commitment is a loan or grant, an article on the website of the government of Canada read that the international climate finance “is delivered through a mix of funding mechanisms that respond to the unique needs of different development contexts.”
“The $5.3-billion climate finance commitment consists of 40 percent grants and contributions, and 60 percent unconditionally repayable contributions (URCs), an innovative finance instrument akin to concessional loans.”
The article added that URCs “are contributions that must be repaid according to the specific repayment terms negotiated with the partner, and are used to incentivize much-needed private sector investments in low-carbon activities, primarily in middle-income and lower-middle-income countries.”
While the finance commitment from Canada will end in 2026, Hurst said they may provide additional climate finance and bilateral aid to the country in the succeeding year.
“To the extent that good things come out of this project, then the results that are generated will continue to look for opportunities to build on and also work together in the future,” he added.
President Ferdinand R. Marcos Jr. earlier said the country is pushing for more international funding to help in the adaptation and mitigation initiatives for countries, including the Philippines, which are vulnerable to the impact of climate change.