Philippines

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Background

Under the Paris Agreement, the Philiippines has committed to reducing greenhouse gas (GHG) emissions by 75% by 2030 compared to a business as usual scenario. As the country’s single largest source of GHG emissions, the energy sector will play a critical role in achieving these targets, particularly as the country’s energy demand is set to almost triple over the next two decades. Teeming with renewable resources, the Philippines has tremendous opportunities to decarbonise its energy and power supply mix, now largely dependent on fossil fuels. Unleashing the Philippines’ clean energy potential, in turn, will help achieve the country’s Philippine Energy Plan (PEP) and the sustainable development goals (SDGs) more broadly.

Conscious of this challenge and the opportunities a low carbon transition offers, the Philippines has set itself a goal to achieve a 35% share of renewable energy in its power generation mix by 2030 (50% by 2040) and to reduce by 3% economy-wide energy intensity (or a 183 Million Tonnes of Oil Equivalent/Mtoe reduction in energy consumption) over the same period. Taken together, these targets will necessitate the unlocking of around USD 337 billion to 2040. Given the tremendous needs, ensuring a sound policy framework and investment environment will be essential to mobilise domestic and foreign sources of capital to a level commensurate with the country’s clean energy ambitions.

Objectives

Given the size of the challenge, the Organisation for Economic Co-operation and Development (OECD) launched its new Philippines Clean Energy Finance and Investment Mobilisation Programme on 13 December 2021 to support the Philippines’ efforts to accelerate finance and investment for clean energy. As one of the Programme’s flagship outputs, the OECD, in collaboration with the Department of Energy (DOE) and the Inter-Agency Task Force on Sustainable Finance, is developing a Clean Energy Finance and Investment Roadmap of the Philippines, which will bring government and private sector stakeholders together to agree upon a clear action plan that identifies and addresses bottlenecks complicating or constraining finance and investment in the country.

As an input to the Roadmap, this first Workshop (in a series of three) brought together more than 200 stakeholders over two days to identify and discuss key barriers to scaling up finance and investment for clean energy in the Philippines. Day 1 of the event discussed sustainable finance and its link to clean energy; energy efficiency finance and investment as well as challenges to accelerate investment in electric vehicle deployment in the Philippines. Day 2 focused on renewable energy finance and investment challenges.

View the photo slideshow of the event

Speakers

Day 1 Accelerating Finance and Investment for Clean Energy

Moderator: Cyril C. del Callar, OECD consultant and former Department of Energy (DOE) undersecretary

Keynote address and welcome remarks

• Felix William B. Fuentebella, Senior Undersecretary, DOE
• Cecilia Tam, CEFIM Programme Team Leader, OECD

Session I: Financing the Clean Energy Transition in the Philippines

• Felix William B. Fuentebella, Senior Undersecretary: “Philippine Energy Plan - Towards a sustainable and clean energy future” 
• Roderick M. Planta, Undersecretary, Investment Programming Group, National Economic Development Authority (NEDA): “Challenges and Opportunities for Sustainable Infrastructure Planning” 
• Cecilia Tam, CEFIM Programme Team Leader, OECD: “Clean Energy Finance and Investment Roadmap of the CEFIM programme” 

Session II: Sustainable finance ambitions and linkages with clean energy 

• Maria Edita Z. Tan, Undersecretary, Policy Development and Management Services Group Department of Finance (DOF): “Role of Official Development Assistance in Supporting Financing for Clean Energy” 
• Emma A. Valencia, Assistant Director, Markets and Securities Regulation Department Securities and Exchange Commission (SEC): “SEC Sustainable Finance Regulations and Initiatives” 
• Mr. Dennis Panga, Acting Division Chief Energy Division Board of Investments (BOI): “Role of Foreign Direct Investment in Supporting the Philippines Clean Energy and Climate Goals” 
• Ms. Liza C. Po, Head, Corporate Treasury, Energy Development Corporation National Geothermal Association of the Philippines (NGAP): “Unlocking Finance and Investment for Clean Energy in the Philippines” 
• Jeddper N. de Castro, National President Energy Efficiency Practitioners Association of the Philippines (ENPAP): “Experience/Problems Encountered in Obtaining/Repayment of Loans” 

Session III: Challenges and opportunities for energy efficiency investment in the Philippines

• Patrick T. Aquino, Chairperson, Energy Efficiency and Conservation Technical Working Group (EEC TWG): “Investment Opportunities on Energy Efficiency and Conservation”
• Philip Reginald Lai, Architect II, Engineering Department Santa Rosa City, Laguna: “Experiences and Challenges Faced in Improving Government Building and Street Lighting Energy Efficiency under GEMP and EEC Law”
• Benjamin S. Borja, Director for Office & Malls Operation, Ayala Property Management Corp. (APMC): “Experience and Challenges Faced in Complying with EEC”
• Raymond A. Marquez, Managing Director, Econoserv Solutions International Inc.: “Experience in Developing EE projects in Building Sector - investment opportunities, prospects and challenges”
• Justin Aaron Sy, Senior Manager Product Marketing and Training, Daikin Airconditioning Philippines: “Experience and Challenges Faced in Complying with EEC”

Session IV: Alternative Fuels

• Patrick T. Aquino, Chairperson, Energy Efficiency and Conservation Technical Working Group (EEC TWG): “Investment Opportunities on Alternative Fuels”
• Edmund Araga, Electric Vehicles Association of the Philippines (EVAP): “Areas for Investments in the Electric Vehicle Sector”
• Rustico Noli D. Cruz, Vice President, Development Bank of the Philippines: “Current Green Energy Financing Programs”

Day 2 Renewable Energy Finance and Investment

Moderator: Cyril C. del Callar, OECD consultant and former Department of Energy (DOE) undersecretary

Session V: Challenges and opportunities to scale up renewable energy investment in the Philippines

• Mylene C. Capongcol, Chairperson, Renewable Energy Technical Working Group (RE- TWG): “Renewable Energy Policy Mechanisms and Investment Opportunities”
• Gian Karla Canales Gutierrez, RE- TWG, Philippine Independent Power Producers, Association (PIPPA): “PIPPA's Perspective on Challenges and Opportunities in Scaling RE Investments in On-Grid Areas”
• Jose Ronald V. Valles, First Vice President and Head Regulatory Management, Manila Electric Company (MERALCO): “MERALCO's Experience in Procuring Supply from RE Sources”
• Rene Fajilagutan, General Manager, Romblon Electric Cooperative Inc. (ROMELCO): “RE Project Development in Off-Grid Areas”
• Gian Karla Canales Gutierrez, Manager for Power Economics, Industry & Regulatory Affairs, First Gen Corporation: “The Power of Choice for Renewable Energy”
• Ricardo Torres, Project Manager, Development for Renewable Energy Applications Mainstreaming and Market Sustainability (DREAMS): “Promoting RE - Experience of Donor Partner”
• Eduardo V. Francisco, CEO and President, Banco de Oro Capital and Investment Corporation: “Financing Renewable Energy Projects”

Wrap-up and way forward for the Clean Energy Finance and Investment Roadmap of the Philippines

• Jeremy Faroi, Philippines Programme Co-ordinator, CEFIM, OECD
• Michael O. Sinocruz, OIC Director, EPPB