Germany eyes RE, raw materials supply agreements with PHL

GERMANY is seeking renewable energy (RE) and raw materials agreements with the Philippines this year, German Foreign Minister Annalena Charlotte A. Baerbock said at a briefing on Thursday.

“Of high importance for us is the deepened cooperation in the renewable energy sector and we in the German government support heavily investments in these areas,” she said in Makati after meeting with Foreign Affairs Secretary Enrique A. Manalo.

“The Philippines, like Germany, is a country with resources and raw materials, and we want to diversify and enhance imports of these,” Ms. Baerbock said.

She said the focus on renewable energy is a key component of Germany’s national security policy.

Ms. Baerbock said Germany is looking forward the resumption of negotiations for a free trade agreement (FTA) between the European Union and the Philippines.

Trade Secretary Alfredo E. Pascual has said that the FTA talks are in the “scoping stage,” in which both sides determine what the agreement will cover.

In 2022, Germany was the Philippines’ 12th largest trading partner, 10th largest export destination and 15th largest source of imports.

Philippine trade with Germany was $4.7 billion last year, with $2.8 billion in exports and $1.9 billion in imports. Germany was also the Philippines’ top trading partner in the European Union.

Ms. Baerbock said the Philippines is seen as an attractive location for German companies to explore for RE resources.

“Germany and the Philippines are also key countries in global climate protection initiatives, especially since the Philippines is vulnerable to climate catastrophes,” she said.

The Philippines is aiming to increase the share of RE in the power generation mix to 35% by 2030 and to 50% by 2040.

Renewable energy currently accounts for 22% of the Philippines’ energy mix.

As of June, the Energy department had awarded 1,087 RE service contracts with a total potential capacity of 113.5 gigawatts. —