WB’S IFC to help Peza cut ecozone carbon emissions, boost competitiveness

THE World Bank International Finance Corporation (IFC) will assist the Philippine Economic Zone Authority (Peza) to reduce carbon emissions in economic zones to help the investment promotion agency become more competitive, according to Peza.

“IFC will first conduct a regulatory gap analysis for the implementation of the Eco Industrial Park framework,” Peza told the Businessmirror in a viber message on Wednesday.

While IFC will not be investing in Peza ecozones, it will instead assist Peza in “imbuing Eco Industrial Development and Circular Economy principles, not only as a form of competitiveness but also as a way to reduce carbon emissions in the ecozones.”

To date, Peza said per capita greenhouse gas (GHG) emissions from the Philippines, which is at 1.3 TCO2E/ capita, has remained “far lower” than the global or Asian averages which is at 6.2 tco2e/per capita.

“However GHG emissions have the potential to expand significantly due to economic growth and an energy system that is still carbonintensive,” Peza said.

To avoid large future emissions, the investment promotion agency underscored the importance of acting on it early to lead the Philippines to a “low-carbon trajectory.”

Peza Director General Tereso O. Panga also noted that this collaboration with the IFC World Bank will assist the investment promotion agency in securing green certification of ecozones which would benefit locator companies.

“Instead of individual compliance with access global market, one certification for the whole of ecozones will redound to the benefit of locator companies,” the Peza chief said.

PEZA hosted a sustainability forum last April 22 to 23, 2024, meant to educate Peza Registered Business Enterprises (RBES) and other stakeholders about emerging technologies that help build “smart, inclusive, and sustainable eco-industrial developments and promote clean and green manfuacturing practices.”

In her speech at that forum, Senate President Pro Tempore Loren B. Legarda emphasized that Peza can “change the narrative” of industries which are “often portrayed as culprits in climate change discourse.”

“By embracing sustainability practices and prioritizing the welfare of your workforce and the environment, Peza has an opportunity to change the narrative,” Legarda said.

“Through strategic investments in people, technology, and environmental stewardship, Peza can pave the way for a more inclusive and environmentally-conscious approach to industrial development,” the lawmaker asserted.

Panga pointed to the need to “continually adapt” in order to make businesses “climate-resilient, green, sustainable, and responsive to climate change.”

“This reduces our overall carbon footprint on nature and lessens our negative impact on the environment—without compromising company efficiency and profitability.”

In a statement on Wednesday, Peza said it currently overseas 423 economic zones, hosting 4,380 enterprises in “diverse” sectors across the nation.

“By championing eco-friendly practices, Peza is committed to future-proofing its economic zones against climate change, thereby increasing its appeal to attract new investments,” the investment promotion agency noted.