Strengthening resilience: Scaling the Philippine private sector’s net zero ambitions

Scientific evidence on the feasibility of renewable energy sources powering the Philippines’ rapidly developing economy is increasingly becoming harder to disprove. By harnessing clean energy, the nation can also shield itself from the volatility of global coal, oil, and natural gas markets, which are often impacted by geopolitical disruptions.

However, fossil fuels still meet most of the Philippines’ energy demand, accounting for up to 78 percent of power generation in 2022. If current trends continue, emissions from the energy sector are projected to quadruple by 2030, with the transport sector expected to see a similar surge in emissions.

Without a strong policy push for decarbonisation, the Philippines risks missing out on the necessary financing to meet its target of increasing the share of renewables by up to 35 percent by 2030. Additionally, the country may fail to meet its Paris Agreement commitment to reduce and avoid greenhouse gas (GHG) emissions by up to 75 percent between 2020 and 2030.

How can the Philippines accelerate the pace of decarbonising its economy? What steps are needed for the country to establish a net-zero target?

To achieve a clean energy transition, the Philippines needs an estimated cumulative investment of over USD 300 billion between now and 2040.
Unlocking this finance requires creating favorable domestic conditions, particularly in two clean energy growth sectors that are yet to be fully leveraged: offshore wind power and energy efficiency in the building sector, with a focus on public buildings.

With over 17 thousand kilometers of coastline, offshore wind presents a significant opportunity to decarbonize the Philippines' power sector, potentially supplying 23 percent of the country’s electricity by 2050. Additionally, promoting energy efficiency and conservation in buildings, which are among the country’s top energy consumers, will reduce energy consumption and emissions, while also proving to be economically beneficial.

How can banks, financial institutions, and corporations in the Philippines collaborate to mobilize finance for decarbonizing supply chains? What sustainable finance models are available to the country’s private sector, especially for clean energy investments?

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Breakout room 1 |  Session 1: Commit and Measure

Breakout room 2 | Session 1: Track and Validate

Breakout room 1 |  Session 2: Plan and Act

Breakout room 2 | Session 2: Communicating Net Zero

While the Philippines may lack a formal net zero target, climate technology may mean the difference between a nation that is at the mercy of extreme temperatures and rising sea levels, and one that is resilient, low-carbon, and capable of achieving positive economic growth.

Indeed, the Philippines incurs around PHP 200 billion annually in economic losses due to extreme weather events, highlighting the urgent need for investments in climate resilience and adaptation measures.

While there has been an increase in climate tech deals in the region as a result of growing awareness of climate risks among corporates, barriers such as inadequate regulation; funding for mid-stage start-ups; and an unshakeable reliance on fossil fuels, remain in the way.

What forms of climate-focused innovation does the Philippines need to weather worsening climate events? How can companies take responsibility and voluntarily decarbonise? What partnerships are key to unlocking sustainable investments in the long term?