Observe: Progress, Roadmap, Accelerators are assessed based mostly on related indicators at each nation and sector degree
Sources: Nation NDC; LT-LEDS; Local weather Watch; BMI; IRENA; BNEF; FAO; International Forest Watch; Euromonitor; AVCJ; S&P Capital IQ; Preqin; Pitchbook; Trade participant interviews; Lit. search; Bain evaluation
MANILA, Philippines —Through the years, the Philippines has made vital progress in advancing the power and inexperienced transition agenda however there may be nonetheless a lot floor to cowl.
The primary-ever Southeast Asia Inexperienced Economic system Index confirmed that the nation ranked fifth amongst its regional friends, in keeping with the report entitled “Southeast Asia’s Inexperienced Economic system 2024–Transferring The Needle” collectively printed by Bain & Firm, GenZero, Commonplace Chartered, and Temasek.
Primarily based on the report, the Philippines achieved the best rating by way of funding as many firms poured in extra money to assist attain a inexperienced economic system for future generations. However the nation recorded the bottom rating in ambition, that means that the federal government has but to current a blueprint to comprehend its decarbonization objectives.
So far, the nation has neither offered a concrete plan nor professed dedication to succeed in a “web zero” goal though sure entities, notably giant firms, took the initiative to cut back their respective carbon emissions.
The report says that amid the absence of sector-specific emissions targets, 4 main emitting firms spelled out their net-zero and emissions targets.
‘Unconditional and conditional’ targets
Additional, the report famous that the federal government outlined “unconditional and conditional” targets. The primary is to slash economy-wide greenhouse gasoline emissions by 75 % for the interval 2020 to 2030 beneath its up to date Nationally Decided Contribution goal. The opposite goal is to extend renewable power’s share within the power combine to 35 % by 2030 and lift it additional to 50 % by 2050.
READ: Photo voltaic funding outstrips all different energy types: IEA
As of final yr, coal-fired energy crops stay the main supply of power throughout the archipelago, accounting for 43.9 % of the facility technology combine whereas renewables got here second with a share of 29.7 %.
Even with out sector-specific emissions targets or the sluggish uptick of renewables, the report acknowledged the strides made by the Philippine authorities to permit extra international firms to spend money on the native renewable house.
In 2022, the Division of Power issued the revised implementing guidelines and rules of the Renewable Power Act that successfully eliminated the international possession restriction on tasks aimed toward harnessing cleaner sources of power. Earlier than this, a international agency’s possession stake was capped at 40 %.
A yr later, in 2023, President Marcos issued Govt Order No. 18 to create “inexperienced lanes” for strategic investments. Primarily, the directive is aimed toward expediting the processing of permits, licenses, certifications and/or authorizations required by a enterprise enterprise to undertake vital funding tasks.
The Division of Power stated earlier the moratorium on the event of greenfield or new coal-fired energy tasks stays in impact. The company first introduced the ban in 2020 as a part of efforts to advertise using non-conventional sources of power. The directive excludes coal services with agency enlargement plans or indicative tasks with substantial accomplishments.
‘Inexperienced investments’ up 57%
The report additionally took word of the 57-percent rise in personal inexperienced investments, reaching $1.5 billion within the earlier yr due to the “improve in home investments in infrastructure.” Nevertheless, it represents a small fraction of the required capital funding of $16.6 billion to advance the push for a inexperienced economic system.
READ: Vital improve in renewable power investments seen
“Vital improve in waste administration funding, whereas funding momentum continues in [the] photo voltaic sector in 2023,” the report says. “Optimistic efforts have been seen in blended finance and new regional collaboration efforts in direction of coal phase-out.”
On a regional degree, the report acknowledged the “various levels of progress” of the Southeast Asian area in pushing the decarbonization plan within the final 12 months, with Singapore and Vietnam “main the way in which.”
“Eight out of 10 international locations have web zero targets, and whereas they’ve remained the identical because the earlier yr, greater than half of the area’s high emitting corporates have set web zero or emission discount targets, 15 extra in comparison with 2023,” a press launch on the report says.
“As well as, seven international locations have proven progress in adopting renewable power and electrical autos, preserving forestland, and enhancing [the] well being of cropland soil,” it provides.
Discovering the stability
To veer away from fossil fuels, the report says Southeast Asia as a rising economic system wants to search out the stability between financial progress and transition to renewable power. Kimberly Tan, Head of Investments at GenZero, says an funding of $1.5 trillion is required to succeed in emissions targets by 2030.
The inexperienced economic system index assessed the ten Southeast Asian international locations based mostly on the next—ambition (20 %), progress (25 %), highway map (20 %), accelerator (25 %) and funding (10 %).
The index coated Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
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“The index helps present an goal snapshot of how every nation is performing year-on-year and relative to friends. It reveals an outline of areas they’re doing properly and acknowledges the place progress is being made,” says Dale Hardcastle, director of International Sustainability Innovation Middle at Bain & Firm.
