Greener, Fairer, Better: Why the Philippines Needs a Just Energy Transition
When I first encountered the term “energy transition” at the ASEAN Youth Economic Forum 2023 in Jakarta, Indonesia, I thought it was simply about changing how we generate electricity. Beyond the technical aspects, I didn’t know much about it, yet this started to pique my interest.
Fast forward to 2024, this interest had evolved into a deeper understanding— through the second season of my podcast, Redefine HERstory, in partnership with Jobs That Makesense Asia. This season focused on highlighting women across Southeast Asia who are making strides in renewable energy—from women working in energy policy to those advancing wind and solar energy, our conversations revealed not only the growing presence of women in a previously male-dominated field but also that entering the renewable energy sector doesn’t necessarily require a technical background — passion and a willingness to learn can open doors.
More recently, attending the Financing a Just Energy Transition: Green and Climate Finance in the Philippines training hosted by Fair Finance Philippines in collaboration with Profundo has given me a clearer picture of what a just energy transition (JET) truly means, especially in the Philippine context. This training provided a thorough look at the role of green and climate finance and the banking sector’s potential to drive positive change by investing in sustainable projects.
Key Takeaways on Just Energy Transition for the Philippines
As someone new to this space, here are my main insights on the significance and challenges of a Just Energy Transition in the Philippines:
1/ What is a Just Energy Transition?
Just Energy Transition, or JET, goes beyond merely shifting from fossil fuels to renewable energy sources. It is a shift that aims to reduce carbon emissions in a way that is equitable, ensuring that no one is left behind. This means addressing both environmental and social aspects of the transition to make it fair for all.
2/ Why is JET Important for the Philippines?
The Philippines is among the most vulnerable countries to climate change impacts like typhoons, flooding, and rising sea levels. For this reason, transitioning to renewable energy is not just an option but a necessity. However, despite government goals to increase renewable energy’s share to 35% by 2030 and 50% by 2040, much of the country’s electricity still comes from coal — a significant contributor to pollution and carbon emissions.
3/ Opportunities and Challenges
- Government Policies: The Renewable Energy Act of 2008 is one of the policies supporting the transition, offering incentives for renewable energy projects.
- Geographical Barriers and Solutions: As an archipelago, the Philippines faces unique challenges in connecting renewable energy infrastructure across islands. However, this also creates opportunities for community-based, off-grid renewable systems that can supply power to remote areas.
- Renewable Resources: The Philippines has abundant renewable energy potential, particularly in geothermal (where it ranks third globally), as well as solar, wind, and hydropower.
4/ The Role of Green and Climate Finance
- Green Finance vs. Climate Finance: Green finance focuses on funding projects that enhance environmental sustainability, while climate finance is directed specifically at projects that reduce carbon emissions or help communities adapt to climate impacts.
- Importance of the Financial Sector: Banks and financial institutions play a critical role in supporting the energy transition. By prioritizing renewable energy projects over fossil fuels, they can help shift investments toward sustainable initiatives. Unfortunately, while global coalitions like the Net-Zero Banking Alliance (NZBA) support climate targets, no Philippine banks have joined this alliance yet.
5/ Mobilizing Climate Finance for JET
Meeting climate goals and addressing the impacts of climate change will require massive investments that cannot be met by governments alone. Private sector investments are essential, especially in countries like the Philippines that need substantial climate finance to reduce emissions and adapt to climate risks.
6/ The Need for Accountability and Community Involvement
Ensuring that green and climate finance is effectively used requires better tracking and transparency. Greenwashing — the practice of falsely claiming environmental benefits — remains a significant issue, so increased oversight is necessary. More engagement from local communities and civil society organizations (CSOs) is essential to make sure that funds reach those most affected by climate change and support local initiatives.
Looking Ahead
To truly realize a Just Energy Transition, the Philippines needs stronger strategies to attract private investments in renewable projects that also benefit local communities. Banks must not only fund renewables but also ensure these projects don’t harm local communities or ecosystems.
By working together, the government, private sector, and civil society can build a more sustainable and fair energy future for the Philippines.
