The Philippines Falls Behind Neighbors in Green Goals
MANILA, Philippines — Over the years, the Philippines has made significant progress in advancing the energy and green transition agenda but there is still much ground to cover.
According to the first-ever Southeast Asia Green Economy Index, the country ranked 5th among its regional peers. The report entitled “Southeast Asia’s Green Economy 2024–Moving The Needle” was jointly published by Bain & Company, GenZero, Standard Chartered, and Temasek.
While the Philippines scored high in terms of investment, with many companies contributing to the green economy, it recorded the lowest score in ambition. This indicates that the government has not presented a clear plan to achieve its decarbonization goals.
Despite some large corporations taking the initiative to reduce carbon emissions, the country has yet to commit to reaching a “net-zero” target or outline concrete plans for achieving it.
The government outlined both “unconditional and conditional” targets in the report. This includes slashing greenhouse gas emissions by 75 percent by 2030 and increasing the share of renewable energy in the energy mix to 35 percent by 2030.
Coal-fired power plants remain the primary source of energy in the Philippines, accounting for 43.9 percent of the power generation mix, while renewables hold a 29.7 percent share.
Despite the slow adoption of renewables and the absence of specific emissions targets, the report acknowledged the government’s efforts to attract foreign investment in renewable energy projects.
In recent years, the Department of Energy revised regulations to allow greater foreign ownership in renewable energy projects. Additionally, President Marcos issued Executive Order No. 18 to streamline the approval processes for strategic investment projects.
The report noted a 57 percent increase in private green investments, reaching $1.5 billion, driven by domestic investments in infrastructure. However, this represents only a fraction of the required $16.6 billion capital investment needed to advance the green economy.
On a regional level, the report highlighted varying progress among Southeast Asian countries in decarbonization efforts, with Singapore and Vietnam leading the way.
To transition away from fossil fuels, the report emphasized the need for Southeast Asia to balance economic growth with renewable energy investments. It estimated that $1.5 trillion in investment is required to reach emissions targets by 2030.
The green economy index assessed 10 Southeast Asian countries based on ambition, progress, roadmap, accelerators, and investment. The countries included in the assessment were Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
Overall, the report serves as an objective snapshot of each country’s performance in transitioning to a green economy and identifies areas for improvement. Dale Hardcastle, director of the Global Sustainability Innovation Center at Bain & Company, highlighted the index’s role in recognizing progress and areas where countries need to focus on in their green goals.
