Think tank urges nat'l gov't to consider impact of AZEC

A clean energy think tank is urging the national government to consider the potential impact of the Japanese-led Asia Zero Emission Community (AZEC) platform on the Philippines' ambitious renewable energy goals.

The platform, a project involving the Japan Bank for International Cooperation (JBIC), Southeast Asia's primary source of fossil gas funding, aims to promote clean energy cooperation among Asian countries.

However, the Center for Energy, Ecology, and Development (CEED) is concerned that AZEC may hinder the Philippines' efforts to rapidly transition to renewable energy sources.

"AZEC has been repeatedly denounced as a ploy to promote detrimental energy in developing countries in Asia, particularly with fossil gas and unproven fossil-friendly technologies," CEED executive director Gerry Arances said on Wednesday.

"That critique is affirmed by JBIC's partnership with the Philippines' biggest fossil fuel champions. Japan is championing gas as 'bridge fuel' deception at the cost of the Philippines' climate ambitions," he added.

The AZEC was proposed by Prime Minister Kishida Fumio in 2022, and launched by 11 partner countries in 2023.

Arances, thus, pointed out that the government regulators should instead work on unlocking the vast potentials of indigenous energy supply instead of putting up more gas plants.

CEED cited that JBIC is the biggest source of financing for fossil gas in Southeast Asia providing 47 percent of total funds for fossil gas in the region.

To recall, three of the country’s major energy players have joined forces in a historic landmark deal to push for 23 gigawatts of new gas-fired power generating facilities.

The three companies are also negotiating the acquisition of the first domestic LNG import terminal, owned by the Atlantic Gulf & Pacific Company.

The terminal was funded by JBIC and is currently undergoing an internal investigation by the bank due to environmental violations and community impact concerns.