Manila, 9 December 2024: The European Commission has committed an additional EUR 10.7 million to Climate Fund Managers’ (CFM) EU-supported Climate Investor Two (CI2) Fund, a USD 1 billion blended finance facility focused on water, waste and oceans infrastructure in emerging markets. This funding will catalyse climate mitigation and adaptation efforts in the Philippines, a nation acutely affected by climate change, driving long-term socio-economic growth and climate resilience.
The announcement was made on Friday at a ceremony attended by the EU Delegation’s Head of Cooperation and government officials. A portion of the funding will support the development of the Isabela project, a state-of-the-art bioenergy facility in San Manuel, Isabela, due to start construction in Q4 2025. The project includes a 10MW biomass plant and 4MW biogas plant that will produce renewable electricity and gas for local consumption or sale to the grid, reducing emissions by 40,000 tCO2eq annually.
CFM, a climate-focused blended finance investment manager operating across Africa, Asia, and Latin America, is co-developing the project through BioAsia Energy Holdings, its joint venture with bioenergy developer Anvirya Ventures Pte Ltd, and La Suerte Rice Mill Corporation (LSRM), one of the largest paddy milling operators in Isabela. The EU commitment will be channelled through FMO, the Dutch Entrepreneurial development bank, development finance institution, as an EU pillar-assessed entity.
Jeb Victorino, Investment Director at CFM said: “Communities in the Philippines are amongst the most impacted by global warming. Only with public sector commitments like the EU’s can we unlock private investment at a sufficient scale to drive meaningful change. This funding will enhance CI2’s capacity to mobilise private sector investment in critical sectors, including transformative circular economy projects like the Isabela bioenergy facility, while supporting vulnerable communities and advancing the Philippines’ green energy transition.”
Massimo Santoro, Ambassador of the European Union to the Philippines said: “The European Union is steadfast in its support for the world’s most vulnerable regions. In the Philippines, communities face extreme weather events, rising sea levels and water scarcity on an increasing basis. This additional commitment enables essential investments in projects like the Isabela facility that mitigate these challenges, building climate resilience that will benefit the Philippines for generations.”
Ambassador Marielle Geraedts of the Netherlands said: “The Philippines is one of the countries most affected by climate change. But we are all experiencing its effects, also in the Netherlands. CI2 is a showcase example of how the public and private sector can work together, each optimally using its added value. Public funding will contribute to project development and de-risking where necessary, facilitating private sector investment”
Richard Tan, President of La Suerte Rice Mill Corporation said: “We are proud to welcome Climate Fund Managers and the European Union as partners in the Isabela bioenergy project. This initiative represents a significant step forward in sustainable energy development for our region, addressing the dual challenges of agricultural waste and renewable energy generation. By working together, we can create a lasting impact for the farmers and communities of Isabela, while contributing to the Philippines’ broader climate resilience and renewable energy goals.”
