The Japan Bank for International Cooperation (JBIC) has signed a memorandum of understanding (MOU) for co-operation to promote the Clean Development Mechanism (CDM) with the Land Bank of the Philippines (LBP) and Japan Carbon Finance (JCF).
The MOU aims to promote greenhouse gas (GHG) reduction projects in the Philippines, helping JCF and other Japanese firms to acquire the GHG emission reduction credits generated from such projects. Specifically, the MOU establishes that all three companies share information on Kyoto Mechanisms and CDM projects in the Philippines, and that JBIC and JCF provide financial as well as advisory support for LBP concerning CDM projects.
The Philippines is thought to have a large number of CDM projects with good potential regarding energy conservation and renewable energy resources. The ‘Cebu Declaration on East Asia Energy Security’, adopted at the second East Asia Summit, cited the reduction of GHG emissions as one of its goals. The government’s consistent efforts to tackle CDM projects are expected to improve the environment and upgrade energy efficiency.
JBIC continues to advance the Kyoto Mechanisms, by using its long-cultivated ties with developing countries “governments as well as its overseas network of representative offices, and is committed to helping Japan achieve its GHG emission reduction target. Given the country’s high energy output, the Kyoto mechanisms including the CDM, are essential for reaching this.