Tara Climate Foundation
Exit Signals - Engaging top PH banks for potential coal plant retirement transactions
Background of the Project/ Challenge
CSV was engaged by TARA to directly engage top Philippine universal banks with the view of starting discussions on potential coal plant retirement discussions to align with existing no coal/ green policies.
What We Did
CSV conducted the following workstreams:
- Develop high-level “energy transition instrument” (ETI) framework for banks
- Strategic discussions with banks on relevant policy and strategic requirements for an ETI
- Assessment and workplan development for offloading coal and ramping renewables through an ETI
In starting discussions, existing laws and policies, latest banking practices, and global trends in lending to coal plant projects including requirements of multilateral development banks. During discussions, CSV understood Philippine universal bank considerations and pain points in maintaining existing and new loans to coal plants – noting these banks’ scale and commitments to its existing ESG frameworks and applicable laws and regulations. CSV also engaged in discussions with existing prominent power generating companies to similar issues and appetite for a future coal plant retirement discussion.
Outcome
- After completion of the engagement, ACEN Corporation and the Bank of the Philippine Islands came out with their first energy transition mechanism aligned with Asian Development Bank’s Energy Transition Mechanism.
- Both organizations were part of CSV’s sample pool.
Testimonials
Antonio Mariano C. Almeda
National Electrification Administration Administrator
“I want to emphasize that achieving sustainable energy access in off-grid areas is not merely an option, rather, it is an essential step for building resilient communities and ensuring social equity. This pursuit requires the collective effort of stakeholders across various sectors to make it into a reality.”
Mario Marasigan
Department of Energy Undersecretary
“Think bold, act collaboratively and commit firmly. Let us empower our cooperatives, support our investors, and work together to light up every corner of the country.”
Lawrence Ang
CSV Managing Partner
“This project builds on momentum generated by the Department of Energy leadership towards a more ambitious climate goal and complements the government’s work in transitioning the Philippines towards cleaner sources of energy. It also helps ensure that our off-grid islands are not left behind and are given access to more affordable, reliable, and cleaner electricity.”