Over $4.12 Billion Investments Needed to Mitigate Climate Crisis Risks by 2030

The Philippines’ energy industry continues to make the necessary transition into renewables. To fully support this shift, the Department of Finance (DOF) has said that it is engaged in talks with certain development partners like the Asian Development Bank (ADB), the UK government, and the World Bank.

According to DOF assistant secretary and spokesperson Paola Alvarez, a pilot implementation of the Coal Replacement Fund is in the works with the ADB.

In April, finance secretary Carlos G. Dominguez III also said that all coal-power plants in Mindanao will have to be acquired by the government and eventually shut down as the  Agus-Pulangi hydropower plant’s generation capacity increases.

By 2030, the Philippines aims to cut 75% of its greenhouse gas emissions as part of its first Nationally Determined Contribution. This is the country’s commitment to the Paris Agreement. Additionally, the government plans to substantially increase renewable energy shares in the power mix to 55.8% by 2040.

According to 2015 estimates made by the DOE, coal accounted for 44.5% of the power generation mix, natural gas made up 22.9%, while renewables had a combined share of 25.4%.

“What we understand from the Department of Energy (DOE) is the Philippines needs to balance its economic stability in terms of energy security, while at the same time (effecting a) transition towards low-carbon energy development,” said Alvarez.

Projections from the DOF estimate that the country has to invest over $4.12 billion in 2015-2030 to significantly mitigate the risks of the climate crisis on energy, forests, industry, and transport.

Source: BusinessWorld