According to the first Southeast Asia Green Economy Index recently unveiled in Singapore, which examines how each country is progressing across five metrics: ambition, progress, roadmap, accelerator, and investment, the Philippines is fifth among the 10 countries evaluated.
“The index helps provide an objective snapshot of how each country is performing year-on-year and relative to peers. It shows an overview of areas where they are doing well and recognizes where progress is being made. It is important to note that this index is constantly evolving as the region continues to tweak initiatives to fit the respective markets’ needs,” said Dale Hardcastle, director of the Global Sustainability Innovation Center and Singapore-based Bain & Company.
The report says the Philippines has made great strides in increasing investments towards greening the economy and in formulating roadmaps. However, it scored low in terms of ambition, which suggests the need for it to be more ambitious in its goals to decarbonize.
In the Philippines, coal still accounts for some 42 percent of the energy mix, therefore requiring massive investments if it is to wean itself from fossil fuels.
Across ASEAN, an additional $1.5 trillion will be required by 2030 to support such transitions and achieve ambitious climate goals, according to Tracy Wong Harris, head of Sustainable Finance Asia, Standard Chartered Bank.
The report noted that while renewable energy remained the predominant green investment in 2023, there was also a marked rise in green data centers, especially in Singapore and Malaysia, thanks to their energy efficiency regulations, as well as investments in waste water treatment and plastic recycling.
For the Philippines, its transition story is still largely driven by new ventures in renewable energy, particularly solar and wind.
If we can add ambition into the mix, which could actually be the easiest to achieve, granted that our leaders and policymakers have enough of it, perhaps we can make bigger strides in greening the economy of a country that is among the most vulnerable to the negative effects of a changing climate.*
