Philippines Soars in Global Clean Energy Investment Rankings

The Philippines has made a significant leap in the global clean energy investment landscape, rising to the fourth position among the world’s most attractive developing economies for such investments. This remarkable jump, moving up six places from the previous year, is attributed to the strong government targets for the sector and the increased freedom for foreign entities to initiate projects. This advancement positions the Philippines just behind India, Mainland China, and Chile in BloombergNEF’s (BNEF) Climatescope report. The report underscores the Philippines’ commitment to renewable energy, citing its net-metering schemes, offshore wind roadmap, and ambitious renewable energy targets as key factors in this achievement​​​​.

The Department of Energy (DOE) in the Philippines has played a pivotal role in this progress, having auctioned 11.6 gigawatts (GW) of renewable energy capacity in its second Green Energy Auction in July. Out of this, commitments were received for 3.4 GW from various developers, with plans to make 1.2 GW available by 2025 and an additional 2.2 GW by 2026. This indicates a proactive approach by the government in boosting renewable energy capacity​​.

Further reinforcing this growth trajectory, the removal of foreign ownership restrictions on renewable energy projects has been identified as a significant development in the country’s clean energy sector. In 2022, clean energy investment in the Philippines grew by 41 percent to $1.34 billion, demonstrating the market’s responsiveness to policy changes and investment opportunities. The DOE has welcomed these developments, attributing them to a whole-of-government approach in implementing energy policies and programs strongly pushed by President Marcos. The government has set ambitious goals to increase the share of renewables in the energy mix from the current 22 percent to 35 percent by 2030 and then to 50 percent by 2040​​​​.

This advancement in clean energy investment is crucial for the Philippines, especially in light of the global emphasis on transitioning to renewable energy sources and mitigating climate change impacts. The country’s rise in the Climatescope rankings reflects its potential in becoming a significant player in the global clean energy landscape.