A report on the Asean Economic Community (AEC) by the Philippine Institute for Development Studies said that the country has shown a “steady but moderated level” of renewable energy investments over the past two decades, amounting to $20 billion, yet it still needs to scale up investments in the sector to meet rising Asean sustainability standards and long-term demand.
“The [Philippines’] consistent efforts suggest a maintained focus on renewable energy projects, although there is no significant surge in investment,” the state run think tank said, noting that the Association of Southeast Asian Nations have ramped up clean energy spending, with Vietnam alone racking up $32 billion in 2023, highlighting a widening gap in the pace of investment.
PIDS said the country’s Public-Private Partnership (PPP) Center and the Board of Investments (BOI) should coordinate to develop a unified sustainability scorecard, a tool to track and measure the environmental, social, and governance (ESG) performance of public and private investments.
“Public and private investments should be required to assess climate risk exposure and green growth multipliers,” PIDS said.
It also recommended the Philippines to introduce stronger measures to align with Asean green standards, including carbon border measures and ESG incentives for exporters.
“Investment in renewables, green infrastructure, and climate-smart agriculture not only serves domestic sustainability goals, but can also reposition the country as a supplier of green services and products,” it said.
The Department of Energy has been pursuing programs aimed at expanding renewable energy. The 2026 agenda is anchored on cleaner energy and energy security.
Renewable energy so far accounts for about 32 percent of the country’s total energy mix, which approaches the 35 percent target by 2030.
Trying hard but still always playing catch up, the Philippines efforts in green and renewable energy would appreciate a boost in investments. It is up to government to create an environment where we can reach our RE and sustainability goals, and hopefully the private sector can follow its lead.*
