LGU syncing key to WtE push — MBC

The Makati Business Club (MBC) has called for tighter cooperation among local government units (LGUs) to address supply challenges and unlock the potential of waste-to-energy (WtE) projects.

In a new policy note released after a recent roundtable with government agencies, private firms, and development partners, MBC said most LGUs do not generate enough waste individually to support a WTE facility.

As such, it stressed that “regional cooperation through LGU clustering will be essential to sustain larger-scale operations.”

The business group also warned that unresolved cost, regulatory, and supply issues continue to threaten the viability of the technology, even as interest in the sector grows.

Cost remains the biggest hurdle, with WtE still significantly more expensive than landfill disposal. “Landfill disposal continues to dominate LGU waste management decisions due to its lower upfront cost,” the policy note said.

MBC also flagged the lack of regulatory clarity and coordination between agencies and LGUs. It emphasized the need for “well-defined rules and improved coordination between national agencies and LGUs” to support project implementation.

“A system-wide view of procurement, infrastructure, and governance can help reduce risks and improve project outcomes,” the note added.

The policy note was released ahead of the Department of Energy’s (DoE) plan to include WtE and biomass in its next renewable energy auction in the fourth quarter of the year.

Wide representation in review

The roundtable, which included representatives from the Department of Energy, Department of Environment and Natural Resources, Department of Interior and Local Government, along with technology developers, and utilities and waste service providers.

The discussion highlighted a shared commitment to resolve persistent barriers facing the sector, including high project costs, regulatory uncertainty, and challenges in ensuring that WtE plants consistently receive enough waste to operate. The dialogue was candid and forward-looking, with stakeholders recognizing key challenges while highlighting opportunities for coordination and reform to enable scalable, policy-aligned projects.

Including WtE and biomass in its next renewable energy auction by the fourth quarter could open the door for more projects to access long-term power contracts.