Word: Progress, Roadmap, Accelerators are assessed primarily based 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 —Over time, the Philippines has made important progress in advancing the vitality 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 line with the report entitled “Southeast Asia’s Inexperienced Economic system 2024–Shifting The Needle” collectively revealed by Bain & Firm, GenZero, Normal Chartered, and Temasek.
Based mostly on the report, the Philippines achieved the best rating when it comes to funding as many firms poured in more cash 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 appreciate its decarbonization objectives.
So far, the nation has neither offered a concrete plan nor professed dedication to succeed in a “internet zero” goal though sure entities, significantly massive companies, 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 p.c for the interval 2020 to 2030 beneath its up to date Nationally Decided Contribution goal. The opposite goal is to extend renewable vitality’s share within the vitality combine to 35 p.c by 2030 and lift it additional to 50 p.c by 2050.
READ: Photo voltaic funding outstrips all different energy types: IEA
As of final yr, coal-fired energy vegetation stay the main supply of vitality throughout the archipelago, accounting for 43.9 p.c of the ability technology combine whereas renewables got here second with a share of 29.7 p.c.
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 Vitality issued the revised implementing guidelines and laws of the Renewable Vitality Act that successfully eliminated the international possession restriction on tasks geared toward harnessing cleaner sources of vitality. Earlier than this, a international agency’s possession stake was capped at 40 p.c.
A yr later, in 2023, President Marcos issued Government Order No. 18 to create “inexperienced lanes” for strategic investments. Primarily, the directive is geared toward expediting the processing of permits, licenses, certifications and/or authorizations required by a enterprise enterprise to undertake vital funding tasks.
The Division of Vitality 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 the usage of non-conventional sources of vitality. The directive excludes coal amenities with agency growth plans or indicative tasks with substantial accomplishments.
‘Inexperienced investments’ up 57%
The report additionally took observe of the 57-percent rise in non-public inexperienced investments, reaching $1.5 billion within the earlier yr due to the “enhance 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 enhance in renewable vitality investments seen
“Vital enhance in waste administration funding, whereas funding momentum continues in [the] photo voltaic sector in 2023,” the report says. “Constructive efforts have been seen in blended finance and new regional collaboration efforts in the 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 internet zero targets, and whereas they’ve remained the identical because the earlier yr, greater than half of the area’s prime emitting corporates have set internet 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 vitality and electrical automobiles, 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 seek out the stability between financial progress and transition to renewable vitality. 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 primarily based on the next—ambition (20 p.c), progress (25 p.c), street map (20 p.c), accelerator (25 p.c) and funding (10 p.c).
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 exhibits an outline of areas they’re doing nicely and acknowledges the place progress is being made,” says Dale Hardcastle, director of International Sustainability Innovation Heart at Bain & Firm.
