IFC lends support to eco-friendly projects

MANILA, Philippines - The International Finance Corp. (IFC), the investment arm of the World Bank Group, is continuing its support on eco-friendly projects in the Philippines.

In a statement, IFC said it signed a memorandum of understanding with Mandaluyong City “to develop building regulations that will help reduce greenhouse-gas emissions and mitigate the impact of climate change.”

Specifically, the IFC will help the city in drafting a green building ordinance requiring new buildings in Mandaluyong City to include environmentally-friendly features in their design, construction and operation.

“These features will promote more efficient use of energy, water, and construction materials and better waste management,” IFC said.

“This project will eventually help all of us in adapting to the impact of climate change as well as in reducing the city’s operational costs,” said Mandaluyong Mayor Benhur Abalos, adding that power rates are continuously increasing.

The IFC will help build local capacity and promote public awareness for local regulators, developers and other stakeholders.

Such projects will show the financial viability of environment-friendly construction, IFC said.

“This green building initiative will help attract environmentally responsible businesses to the city and make it a healthier and safer place to live and work in,” said Jesse Ang, IFC’s resident representative in the Philippines.

Commercial and residential buildings in the country consumed more than 35 million megawatt hours of electricity in 2010, accounting for about 50 percent of the country’s total electricity supplied from the grid, data from the Department of Energy show.

The Philippines ranks third in the list of countries most vulnerable to climate change, according to a study of the UN University’s Institute for Environment and Human Security.

The World Bank earlier said losses from natural disasters account for more than 0.5 percent of the Philippines’ gross domestic product annually. Climate change is expected to increase these losses further.

In June, China Banking Corp. signed an agreement with the IFC, with the bank committing to develop a financial lending program for clean energy and energy efficient projects.