Phl in mid-range on energy shift
WEF underscored that an effective energy transition should be more inclusive, sustainable, and affordable
The Philippines ranked 67th out of 115 countries in investing in the transition to renewable energy which is a ranking that is expected to improve as it studies new incentives to expedite the transition to a clean energy mix.
Despite a historic high global investments of $500 billion for energy transition, countries, including the Philippines, still need to ramp up implementation of sustainable energy policies, the World Economic Forum (WEF) study noted.
In its latest edition of Fostering Effective Energy Transition 2021 report, the WEF underscored that an effective energy transition should be more inclusive, sustainable, and affordable to ensure that the energy system provides solutions to global energy-related challenges.
The 2021 results, published 21 April, showed that 92 out of 115 countries tracked on the Energy Transition Index (ETI) increased their aggregate score over the past 10 years, which affirms the positive direction and steady momentum of the global energy transition.
Sustainable progress needed
“As countries continue their progress in transitioning to clean energy, it is critical to root the transition in economic, political, and social practices to ensure progress is irreversible,” the study said.
92 out of 115 countries tracked on the Energy Transition Index increased their aggregate score over the past 10 years.
Earlier, Energy Secretary Alfonso G. Cusi encouraged participants to avail themselves of the Green Energy Option Program (GEOP) to attract more Renewable Energy (RE) investments.
GEOP is an RE policy mechanism that allows end-users to choose RE resources as their source of energy. It is a non-fiscal incentive mechanism under Section 9, Chapter Ill of Republic Act 9513 or the Philippine RE Act of 2008.
The program seeks to promote the development, utilization, and commercialization of RE resources.
Opportunity for local firms
Cusi said the Philippines’ transition to the new normal presents an opportunity for local and foreign businesses to invest in climate-friendly, efficient, and clean energy resources.
From 2021 to 2040, the government targets to expand the country’s power capacity by 65,000megawatts (MW), 40,000 MW of which should come from renewable sources.
Eight out of the 10 largest economies have pledged net-zero goals by midcentury.
The study also noted people without access to electricity has declined to less than 800 million, compared to 1.2 billion people 10 years ago.
“Increasing renewable energy capacity has in particular helped energy importing countries achieve simultaneous gains on environmental sustainability and energy security,” the report noted.