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What We Want from COP26: The Philippines

What We Want from COP26: The Philippines

We talked to our counterparts in The Climate Reality Project in the US to lay out what’s at stake for the country in the ongoing #COP26 in Glasgow. You can also read this article here.

Although it only accounts for about 0.3% of global emissions, the Philippines is extremely vulnerable to the impacts of climate change and disasters due to its geographic location.

Underscoring this vulnerability, Germanwatch’s 2021 Global Climate Risk Index ranked the Philippines as the fourth most affected country by weather-related events from 2000–2019. This trend is expected to continue with scientists projecting that increasing temperatures will increase the intensity of storms and extreme rainfall events.

Numerous developmental factors – such as poverty and inequality, unplanned and rapid urbanization, and the lack of resources and capacity of communities to adapt to the changing environment – further exacerbate these impacts.

As just one example, in 2020, a series of typhoons and storms – which climate scientists confirmed bear the imprints of climate change – submerged many provinces and communities, resulting in billions in damage to agriculture and infrastructure, affecting millions already struggling with the social, health, and economic impacts of the COVID- 19 pandemic.

Dramatic storms are not the only threat. The Philippines is also suffering from slow-onset impacts that slowly transform lives and livelihoods in vulnerable communities. For example, in the bay off metropolitan Manila, seas are rising more than 1.2cm each year, more than four times the global average. If this rate continues, seas could rise nearly 11 cm, threatening the homes of the nearly 13 million Filipinos living in the region.

THE POLITICAL CLIMATE

Across different political administrations, the Philippine Government has addressed these disaster and climate risks in the past two decades largely by enacting laws.

Key measures passed in recent decades include:

  • The National Integrated Protected Areas Act of 1992 for ensuring ecosystems integrity.
  • The Clean Air Act of 1999 for reducing black carbon.
  • The Renewable Energy Act of 2008 for promoting clean, sustainable, and renewable energy.
  • The Climate Change Act of 2009 for strengthening climate governance.
  • The People’s Survival Fund Act of 2012 for financing local adaptation initiatives.
  • The Green Jobs Act of 2016 for creating green jobs and fostering a just transition toward a green economy.

While these laws have been in place for many years now, many of their critical provisions remain unimplemented because vital institutions lack capacity from institutions mandated, agencies lack political will, or resources have not been allocated.

KEY OPPORTUNITIES AND WINS

Several groundbreaking policies the Philippines established in the past year are expected to shape its climate agenda. The Department of Energy (DOE) announced a moratorium on all new coal projects in 2020 and announced plans this year to accelerate the country’s energy transition program.

The DOE is set to issue a set of improved rules for its Green Energy Auction Program (GEAP), which would introduce greater transparency and competition in power generation leading to lower electricity prices and more variable renewable energy available throughout the country. Moreover, 13 years since the enactment of the Renewable Energy Act, the Energy Regulatory Commission has finally issued the rules governing the Green Energy Option Program (GEOP), a game-changing provision that allows electricity consumers using 100kW or more to source their electricity from renewable energy sources.

The Philippine Central Bank has issued a circular directing all banks and financial institutions to fully incorporate environmental, social, and governance and sustainability principles into their operations. This means that all financial institutions are now required to safeguard their operations from evolving material hazards of climate and energy transition risks.

Later this year, the Climate Change Commission and the Department of the Interior and Local Government will begin a quality assurance system to help local governments develop climate action plans.  Through this system, the national government could provide local governments with technical assistance to help improve these plans and ensure they respond to the specific needs of communities.

OBSTACLES TO OVERCOME

The rapid construction of fossil gas import infrastructure happening now will be a challenge to the country’s clean energy transition. Building fossil gas terminals requires long-term contracts that could lock the country into expensive fossil gas for 25 years or more – a scenario we must prevent. Especially with the danger of gas reserves becoming stranded assets and raising energy prices for consumers.

Local governments need more resources and support for science-based development and action planning to enable vulnerable communities to survive and thrive in the face of climate disasters.

The Philippines still needs a comprehensive roadmap for implementing its nationally determined contribution (NDC) under the Paris Agreement. This roadmap should spell out detailed plans and timetables, as well as financing for the transition to a low-carbon economy. It should also include strategies for accessing international climate finance, transferring transformative low-carbon technologies, and developing systems to monitor, report, and value mitigation actions.

WHERE WE STAND

The Philippines’ first NDC commits key sectors to reduce and avoid 75% of business-as-usual emissions from 2020–2030.

In this pledge, the government committed to reduce emissions unconditionally 2.71%, using local resources. The remaining 72.29% is conditional on financial, and technology transfer, and capacity-building support from developed countries.

Alongside these efforts, the Philippines is undertaking adaptation measures across a wide range of areas and sectors to preempt, reduce, and address residual loss and damage from climate change.

Activists expect the government to improve this NDC to increase both its ambition and mitigation potential across the economy, based on the growth directions and projected adaptation needs of the Filipino people.

WHAT WE WANT FROM COP 26

First, COP 26 must address the failure of the developed world to deliver its commitment to mobilize $100 billion USD annually in climate finance for the adaptation and mitigation needs of developing countries.

We echo the call of the Climate Vulnerable Forum’s Vulnerable Twenty (V20) Group of Finance Ministers for the developed nations to develop a joint plan that will deliver $100 billion USD in climate finance each year from 2020–2024.

Second, COP 26 must consider developing countries’ urgent need for evidence-based national climate risk assessments. This process requires a massive amount of financial support that should be on top of the annual $100 billion USD in climate finance initially committed by developed nations.

Support for these national climate risk assessments will enable vulnerable developing countries to establish appropriate climate change adaptation and mitigation programs. This will help the global community streamline and strategically manage the flow of climate finance to those who need it the most.

Supporting these assessments will also help institute a baseline for incremental loss and damage in developing nations. Going forward, this baseline could then serve as a basis for compensating developing countries for actual loss and damage from climate change.

Third, COP 26 must acknowledge the critical role that youth leaders play in our climate movement respond to their demands and needs at local, national, and global levels. We cannot frame climate change as an intergenerational responsibility if we exclude younger generations and limit these discussions to those who have allowed the climate crisis to consume our planet. We hope that COP 26 will genuinely provide a meaningful space and platform for our young climate leaders to communicate their thoughts, exchange ideas, and seek support for their initiatives.

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From Our Partner Press Releases

Private sector urged to support local climate resilience and 1.5 degree Paris goal

Private sector urged to support local climate resilience and 1.5 degree Paris goal

MAKATI—Corporate directors in the Philippines explored opportunities to accelerate climate action and resilience in coastal communities, as world leaders underscore greater climate action from the private sector in the ongoing climate talks in Glasgow. Business officials were presented with corridors where they could contribute to meeting the country’s Nationally Determined Contribution (NDC) and the 1.5 degrees Celsius global warming threshold set in the Paris Agreement.

“The bulk of the 75 percent emission reductions committed in the Philippine NDC is contingent upon foreign support and only 2.71 percent will be implemented through domestic means, underscoring the necessity for greater participation from the private sector. We need to send far stronger signals to businesses that they can also step ahead to enjoy first and reap the benefits of climate action to their bottom line and brand,” said Nazrin Camille Castro, branch manager of The Climate Reality Project Philippines, in the second installment of Pilipinas: Aspire, Rise, Sustain.

“The private sector is a critical player in the climate action industry. In the Philippines, projections from 2020 to 2030 put the industrial, energy, transport, and agricultural sectors as the topmost emitters of greenhouse gases. I invite you to think beyond business-as-usual and to take ambitious action,” said United Nations Philippines Resident Coordinator and Humanitarian Coordinator Gustavo González in his keynote.

Small islands and coastal communities are among the most vulnerable to climate impacts, with sea levels rising four times higher than the global average that may be irreversible for hundreds or thousands of years, and the lack of energy security due to the country’s reliance on imported diesel, resulting in high electricity costs. 

Institute for Climate and Sustainable Cities (ICSC) associate for community resilience Arturo Tahup cited the case of Sulu-an Island in Guiuan, Eastern Samar, the very first community hit by Typhoon Haiyan in 2013, where community leaders acted as “champions of climate resilience” despite having limited resources and geographic isolation.

“It’s not just about providing physical power to communities, but building and strengthening people’s power. This is energy democracy, which means people in the community are innovators, planners, and decision makers on how to use and create energy that is local, renewable, and community-owned,” he said.

Mindanao has been experiencing power supply issues this year. Philline Donggay, co-founder of Greenergy Solar, said that electricity access in Mindanao is lowest in the Philippines and grid infrastructure is limited and underdeveloped, but she viewed these challenges as an opportunity to provide clean energy systems in the region.

“I recognized that the power passing through gridlines was mostly generated by Mindanao’s great rivers and the country’s tallest volcano. Reclaiming the throne of a renewable energy-based power grid will provide a sense of agency and renewed pride to the region,” she added.

Motorized transport is a significant contributor to the country’s emissions, which makes it a crucial point of intervention for the private sector. A recent Metro Manila bike count estimated that 4.2 metric tons of carbon dioxide will be avoided if approximately 39,000 people will use bicycles instead of private cars.

“There needs to be a shift in the most efficient modes. This is where efforts to promote and enable active mobility are central. Not only does it abate emissions and tap into concerns for sustainability, but it also takes into consideration issues of equity and accessibility. And in order to do this, we need to mobilize both public and private sectors,” said Celine Tabinga, urban transitions analyst of ICSC.

Greenhouse gas emissions contribute as well to air pollution, the leading environmental health threat in the country. Long-term exposure to air pollution has been linked to an increased risk of COVID-19 infection, according to Center for Research on Energy and Clean Air (CREA) analyst Isabella Suarez. 

Both climate change and the COVID-19 pandemic have exposed systemic weaknesses in global economies, hence addressing air pollution makes economic sense. “Companies that invest in solutions to address air pollution can simultaneously reduce their carbon footprint. By targeting health and climate co-benefits together, businesses can set priorities, build support and momentum, and demonstrate greater impact, faster,” she added.

ICSC and CREA examined the air quality status in the Philippines for the past 20 years. Findings from the report, which includes health and economic impacts of air pollution today, will be released on November 10, 2021.

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This press release was originally published at the ICSC’s website.

“Pilipinas: Aspire, Rise, Sustain” is a three-part series certified by the Securities and Exchange Commission, as participation in this webinar meets the recommended best practices for continuing directors education prescribed by the SEC. The next two webinars will be on November 5 and November 12. For more information, visit this site.

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Eleventh Hour at the Manila Bulletin

Eleventh Hour: Veganism, the climate crisis, and a multi-billion-dollar opportunity

Eleventh Hour: Veganism, the climate crisis, and a multi-billion-dollar opportunity

By Shiela R. Castillo

A few years ago, this statement came splashed all over the newspaper, magazines, and social media: “A vegan diet is probably the single biggest way to reduce your impact on planet Earth, not just greenhouse gases, but global acidification, eutrophication, land use, and water use.” It came from Joseph Poore, an Oxford researcher. Poore looked at the overall impact of our food systems on the environment.

 

But first, what is veganism? The Vegan Society defines veganism as “a philosophy and way of living which seeks to exclude—as far as is possible and practicable—all forms of exploitation of, and cruelty to, animals for food, clothing, or any other purpose; and by extension, promotes the development and use of animal-free alternatives for the benefit of animals, humans, and the environment. In dietary terms, it denotes the practice of dispensing with all products derived wholly or partly from animals.”

There is indeed diet in the definition, but clearly, it shows that veganism is not just about diet, but a way of life that seeks to end animal exploitation.

The Oxford study examined 40,000 farms in 119 countries and some 40 agricultural products consumed by humans. They found that the production of animal-sourced food (ASF) like meat and dairy accounts for the use of 83% of all farmland. It also produces 60% of agriculture’s greenhouse gas (GHG) emissions while only providing 18% of calories and 37% of protein for humans. So where do we get the 82% of calories and 63% of proteins? You guessed it right, from plants.

Another study from the University of Minnesota shows how animal agriculture is a very inefficient system, using too much land and emitting high GHG while producing only a small percentage of food for humans. Only 59% of calories produced become food and most of the loss is shown in the feed conversion ratios (FCRs). It also found that if biofuels and animal feed are dropped to focus on only food crops, instead of feed crops for animals, we can increase food calories produced by 70%. It could feed up to four billion people and solve world hunger. It could also register significant reductions in methane emissions, which is 25% more potent as a GHG than carbon dioxide. By focusing only on food crops globally, we could free up around 75% of land being used for animal agriculture and still produce more than enough food for everyone. That’s a lot of land that can be allotted for protected areas, rewilding, and agricultural regeneration. Dropping animal feed would also mean ASF production would drop, and people would have to skip meat, dairy, and eggs and eat a whole-foods plant-based diet and vegan alternatives.

The Food and Agriculture Organization of the United Nations (FAO) estimates that animal agriculture emits 18% of all GHGs, more emissions than the transport sector. Different studies and sources estimate much higher, from 25% to 51%, and claim that many animal agriculture emissions are unaccounted for. However, even FAO’s conservative estimation still accounts for almost 1/5 of all emissions. Clearly, animal agriculture is a climate issue we could no longer ignore.

Projections show that by 2050, crop production must double to meet the demand of feeding a growing global population. If we continue to raise animals for food, they will continue competing with humans with their feed.

Considering all of these, animal agriculture is not as innocent as large producers want us to believe. Most of the subsidies that it receives pull down the price tag of ASF while increasing externalized costs. Externalized costs, or what economists call negative externalities, refer to the harmful impacts of a transaction to an unrelated third party or even the larger society. An example of an externalized cost is the pollution of water bodies where animal farms dump excretions.

In mid-September this year, the United Nations (UN) Environment Programme, FAO, and UN Development Programme (UNDP) came out with a report which reveals that 87% of all agriculture subsidies in 88 countries, including the Philippines, distort pricing and are environmentally and socially harmful.

The report titled “A Multi-Billion-Dollar Opportunity” says that around USD470 billion of this agricultural support goes to price incentives, chemical inputs harmful to humans, and the environment such as pesticides and fertilizers, among others. It was also found that the most emission-intensive products such as meat and dairy, receive the highest subsidies. On the other hand, smaller landholders, who are more efficient in producing 35% of the world’s food on only 12% of farmlands, receive less subsidy. It’s a great illustration of economic inequity and how animal agriculture has more disadvantages than advantages.

The UN report proposes the repurposing of these harmful subsidies to support climate-smart practices and innovation towards the attainment of Sustainable Development Goals (SGDs) and just climate transition.

The climate crisis requires all hands on deck. This means that every little bit helps—from reducing individual emissions through a vegan diet and more mindful, earth-friendly lifestyle to large-scale shifting to renewables and phasing out of industrial animal agriculture.

The UN says we have a multi-billion-dollar opportunity to make a difference now. By repurposing support to harmful animal agriculture and focusing more on food crops for humans, we will be reaping many benefits to our health, to the climate, and the environment as a whole.

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ABOUT THE AUTHOR 
 

Shiela R. Castillo is a social development professional, foresight practitioner, and climate advocate with 20 years of experience in the Philippines and Cambodia. She has been a Climate Reality Leader since 2011 and mentor since 2016. In 2017, The Climate Reality Project Philippines conferred to her the Luntiang Dahon for Climate Leadership Award. A passionate environmentalist and animal rights activist, Shiela is a vegan and initiator of several online communities on veganism. She also has eponymous blogs on WordPress and Medium.

ABOUT ELEVENTH HOUR
 

This article was originally published on The Climate Reality Project Philippines’ weekly column for the Manila Bulletin called Eleventh Hour.

This column serves a digital space to discuss our organization’s work on supporting the country’s just transition into a clean, affordable, and self-sufficient energy system; advancing sustainable urban mobility to highlight the issues of equity and democracy; and raising public awareness about the need to phase out single-use plastics. It also serves as a platform for Pinoy Climate Reality Leaders to share your stories, promote your climate initiatives, and provide critical insights to issues that matter to climate action, environmental protection, and sustainable development.

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From Our Partner Press Releases

Experts push mobility intersection with democracy, inclusivity, gender

Experts push mobility intersection with democracy, inclusivity, gender

Quezon City – “Mobility becomes essential the moment we see how it enhances fundamental development goals such as inclusivity, democracy and gender,” said Pinay Bike Commuter founder Jaramia Amarnani. “And if we want to elevate the importance of women’s rights and the right to good health, while deepening democracy, we need to elevate the importance of mobility,” she added.  

Experts tackled the crucial intersections in a webinar today showing converging pathways in the campaign for safer interconnected networks for cyclists and pedestrians across the Philippines.

The final of four parts in the Moving Towards Mobility series organized by the Mobility Awards this year emphasized the urgency to develop and implement inclusive, safe, resilient, and sustainable mobility solutions that cater to the needs of commuters and vulnerable groups such as persons with disabilities (PWDs), elderly, and children. 

Cresta Baraan-Anore, a deaf human rights advocate working at the Commission on Human Rights (CHR) Gender Equality and Women’s Human Rights Center, focused on the public transport system in Metro Manila in terms of safety and accessibility to PWDs. “Cycling is helpful but can also be dangerous. Deaf people may find it easy to go around, but that is not the case for other PWDs,” she said. 

“We need protected, lighted, and more accessible bicycle lanes. We ask the government to do their part. If you make transport facilities more inclusive to PWDs, especially those using wheelchairs, everyone benefits. Let everyone make use of their rights,” she added.

Cycling advocate and Pinay Bike Commuter community member Julieta Ramos pointed to opportunities in improving public transport in ways more deliberately inclusive of the needs of the elderly. “We hope the government includes elders in development and mobility plans. Before implementing a project, we hope to have consultations with elders, PWDs, women, and other vulnerable groups to ensure that it caters to our needs,” she said.

The Mobility Awards is organized by the Institute for Climate and Sustainable Cities (ICSC), The Climate Reality Project Philippines, MNL Moves, 350.org Pilipinas, and the Pinay Bike Commuter community with League of Cities Philippines and 27 regional partners to inspire action, involvement, and coordination among cities, workplaces, and commercial establishments aiming to improve conditions for urban mobility. Nominations are open to the public and this year’s awards focus on cities across the Philippines, excluding Metro Manila. 

Tomorrow, November 5, marks the last day of nominations for the Mobility Awards. To nominate a bicycle-friendly city, workplace, or commercial establishment, visit mobilityawards.ph or bit.ly/MAnomination. Winners will be announced on November 25, in observance of the Climate Change Consciousness Week.

Apart from development policy and infrastructure, the discussion tackled gender-based harassment and misconceptions experienced in cycling communities. Dr. Marivic Tan, an obstetrician-gynecologist based in Cebu City, cited health fallacies that have been preventing women from taking up cycling, saying it is harmful to reproductive health and that it leads to unnecessary changes in a woman’s body. 

“Cycling is in fact a very good opportunity to improve your health, especially cardiovascular health. It is also beneficial mentally and emotionally. Seeing more women cycling is a sign that the society is evolving,” she added.

Another factor inhibiting women to commute by cycling is misogyny in the streets, particularly catcalling and offensive remarks from men, according to Eloiza Regaliza, member of the Cadiz Road Bikers based in Cadiz City, Negros Occidental. “Cycling empowers me to express myself more and conquer the limits posed by society to women. I hope this empowers fellow women cyclists as well,” she said.

LGBTQIA+ and urban poor rights activist Jawo Jayme emphasized how members of the community are experiencing gender-based harassment during cycling. “To bike as a proud member of the LGBTQIA+ community, we are breaking the stereotypes. We in the cycling community must work together and reach out to the government and private sector to ensure that road plans are people-centered. Inclusivity and diversity coincides with our economic development,” they said.

Recognizing the role of the youth in advancing active and inclusive mobility, Climate Reality Project Philippines youth cluster coordinator Beatrice Dolores discussed measures already underway and what can be done further to promote safer and more secure spaces for cyclists and pedestrians. 

“The youth are leaders and driving force of influence in our communities, we have the vigor that is needed in promoting active transport,” she added.

The private sector also has a responsibility to encourage employees and customers to take up active modes of mobility. “The end of trip destinations of cyclists are usually privately-owned. Businesses should provide bicycle-friendly facilities such as parking, showers and lockers, even incentives and lessons for their stakeholders,” said Sharlyn Dismas, sustainable transportation officer of Makati Business Club. 

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Press Releases

Climate Reality PH launches renewable energy campaign

Climate Reality PH launches renewable energy campaign

The Climate Reality Project Philippines launched today its energy literacy campaign called Murang Kuryente, Masiglang Pamayanan in line with its efforts to sustain the momentum gained by renewable energy development in the country in the past year. 

The launch coincides with the global day of action led by former US Vice President Al Gore, founder and chairperson of The Climate Reality Project, entitled “24 Hours of Reality: Let’s Get Real.” The goal of this global movement is to rally people around the world to demand the real policy change required to cut fossil fuel emissions and transition to a just clean-energy economy.

“For this year’s 24 Hours of Reality, we highlight the need for the country to maximize the benefits of a clean energy transition in the Philippines, which are cheaper electricity, more jobs, cleaner air, and more progressive communities, Nazrin Castro, Branch Manager of Climate Reality Philippines, said.

The Philippines has the highest electricity rates in Southeast Asia and the second highest in the whole of Asia mainly because of its excessive reliance on imported coal and diesel.

In the past year, the unreliability of the coal-fired power plants that dominate the Philippines’ energy mix has never been more pronounced. Despite the low power brought by the COVID-19 pandemic, Filipinos experienced rotating brownouts and spiking electricity prices.

By taking advantage of the systematic deflationary nature of renewable energy prices globally and capital market support and by pursuing policies that will correct outdated systems in its power sector, the Philippines has the opportunity to not only make power more affordable power to the Filipino people but also more secure and dependable.

“We have abundant sources of renewables in the country. Solar, wind, run-of-river hydro, geothermal, and biogas are viable domestic power generation options. What we need right now are policy changes that will eliminate the barriers of transitioning into more sustainable and affordable domestic solutions,” Castro said, noting that recent policy developments from the government are already addressing this need.

Castro was referring to the: (1) Department of Energy’s issuance of a moratorium on new coal-fired power plants and approval of 100% foreign ownership for large-scale geothermal power plan; (2) Bangko Sentral ng Pilipinas’ issuance of the Sustainable Finance Framework; and  (3) the Energy Regulatory Commission’s issuance of the rules governing the Green Energy Option Program (GEOP), which gives electricity end-users with an average monthly peak demand of 100kW or above the power to directly source their electricity from renewable energy sources.

“We need to sustain this growing momentum by helping more Filipinos understand that the clean energy transition affects the economic, health, and environmental aspects of their lives. If more people are aware, more will be on our side to demand decision-makers. This is the rationale behind the  Murang Kuryente, Masiglang Pamayanan,” Castro said.

During its launch yesterday, the campaign urged Climate Reality Leaders and other climate advocates to amplify an initial social media campaign that communicates the need for rapid renewable energy development in the country and to reach out to electricity end-users with an average monthly peak demand of 100kW or above to source their electricity from renewable energy sources through GEOP.

In the coming months, Climate Reality Philippines will rollout energy literacy webinars and workshops for its roster of 1,200 Climate Reality Leaders to help them have a deeper understanding of the current Philippine energy landscape and the barriers to and opportunities for renewable energy development.

For more information about the campaign, visit https://climatereality.ph/murangkuryente/.


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From Our Partner Press Releases

Rapid PHL energy transition best for faster economic recovery – private sector

Rapid PHL energy transition best for faster economic recovery – private sector

MAKATI, 29 October 2021 — Corporate directors stress the urgency to fast track the energy transition in the country, heeding the Code Red warning issued by the United Nations Framework Convention on Climate Change (UNFCCC) earlier this year.

 

“Evidence clearly shows even before the pandemic that coal has been intermittent and unreliable. As households and the private sector struggle with the economic impacts of COVID-19, data also shows coal is the reason behind spiking electricity bills and rotating blackouts. Continuing with coal is Code Red for businesses,” said Jephraim Manansala, chief data scientist of the Institute for Climate and Sustainable Cities (ICSC), in the first part of the Pilipinas: Aspire, Rise, Sustain corporate governance series organized by the Institute of Corporate Directors (ICD) with ICSC and The Climate Reality Project Philippines.

Deputy Speaker Loren Legarda, who opened the event, said in her keynote, “This is not the time for short-term thinking. The old world is unravelling fast. For too long we have been told renewable energy is expensive and unreliable. The reality is the opposite.”

Manansala emphasized that the Philippines has an overcapacity of baseload coal-fired power plants, yet rotating power outages were still experienced in different parts of the country in 2021, and even over the past few years, that led to significantly high electricity costs. In addition, these coal-fired power plants have not met the newly mandated allowable planned and unplanned outages set by the Energy Regulatory Commission (ERC).

This is not an isolated case, coal has continually proved to be unreliable and will soon be history globally, according to E3G programme leader Camilla Fenning. “The pipeline of proposed coal power plants has collapsed by more than three-quarters, with 1,175 gigawatts of planned projects cancelled, since the Paris Agreement negotiations in 2015, bringing the end of new coal power into view,” she said.

Fenning cited that the Philippines’ pre-construction pipeline for coal has fallen by 65 percent in July 2020, months before the Department of Energy (DOE) issued the moratorium on new coal plants. China’s pledge to halt funding for new coal-fired power projects abroad is also seen to have potential implications on five coal power projects under construction in the country.

Melissa Brown, director of energy finance studies in Asia of the Institute for Energy Economics and Financial Analysis (IEEFA), shared her insights as well, citing challenges in using fossil gas to fuel the energy transition. “Financing gas will be a heavy lift. Although we expect fossil gas to play a part in the Philippine energy mix, it is not an inevitability. Gas is very significantly expensive and with prices extremely volatile, it may be unmanageable if the power sector is not ready,” she said.

Moving forward, Manansala made the economic case for variable renewable energy, estimating 28 percent savings in electricity costs during peak hours in the noontime (11:00AM to 2:00PM), despite only having a 3 percent share in the Philippine energy mix, based on spot market merit order data from the Independent Electricity Market Operator of the Philippines (IEMOP).

“We need to shift from centralized to distributed generation. Centralized generation through coal is expensive, unreliable, dependent on imported fuels, and will soon be stranded assets. We have seen that the price of coal in the world market has already tripled since the start of 2021, and this just further reinforces the need for this shift to indigenous renewable energy sources to stabilize the electricity prices,” he said.

AC Energy President and CEO John Eric Francia, Management Association of the Philippines Energy Committee Chair Ernesto Pantangco, and Negros ENGINE Institute Senior Advisor Marlon Apanada also joined the discussion as reactors. 

“Striking the right balance is crucial in this energy transition, and we need to recognize that it will take time. AC Energy is committed to net zero emissions by 2050 and we gear our generation portfolio towards renewables,” said Francia. 

He also cited the importance of having a competitive power market. “We hope to make full use of the Electric Power Industry Reform Act (EPIRA) and renewable energy policies. There are still some gaps in the implementation. It just needs execution, and the market will step up to the plate,” Francia added.

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This press release was originally published at the ICSC’s website.

“Pilipinas: Aspire, Rise, Sustain” is a three-part series certified by the Securities and Exchange Commission, as participation in this webinar meets the recommended best practices for continuing directors education prescribed by the SEC. The next two webinars will be on November 5 and November 12. For more information, visit this site.