Despite speculation about the United States (US) potentially exiting the Paris Agreement, the Department of Energy (DoE) remains resolute in prioritizing efforts to accelerate renewable energy (RE) development.
In a recent interview, Energy Secretary Raphael Perpetuo Lotilla said tapping indigenous resources will enable the country to significantly reduce its reliance on imported fossil fuels and diversify its energy mix.
Currently, 60 percent of the country’s electricity is generated from coal, with over 80 percent of the supply imported, while nearly all petroleum products are sourced internationally. Lotilla said this dependence must decrease as the economy grows.
“Transitioning to renewable energy is crucial not just for self-reliance but for promoting a sustainable future,” Lotilla said.
“The Philippines is the only Southeast Asian nation without a net-zero target, but we are determined to over-deliver rather than under-deliver,” he added.
US President-Elect Donald Trump was reported to be inclined to withdraw the US from the Paris climate agreement, a move he previously made in 2017 during his presidency.
Trump has dismissed climate change as a “hoax” and emphasized boosting fossil fuel production with slogans like “Drill, baby, drill.”
In 2017, the withdrawal’s impact was limited since it took effect in late 2020 and was quickly reversed by Joe Biden upon taking office. However, under current rules, Trump will only need one year to complete the withdrawal if he proceeds with the move.
Withdrawing from the Paris Agreement would leave the US among the few nations not party to the 2015 pact, where nearly 200 governments committed to non-binding pledges to cut carbon emissions.
The energy chief reiterated that energy security and sustainability will remain central to the Philippines’ energy strategy, regardless of international developments.
Meanwhile, as part of the latest efforts to augment the RE share in the total power mix to 50 percent by 2040 from the current 22 percent, the DoE is finalizing two service contracts for exploring naturally occurring hydrogen, a move aimed at leveraging both renewable and petroleum sector expertise.
“This will be a marriage between technical expertise from the petroleum sector and renewables. If successful, it could enable us to utilize naturally occurring hydrogen instead of producing it ourselves,” Lotilla said.
While acknowledging the higher initial costs of RE, Lotilla said the DoE, moving forward, is optimistic about bridging funding gaps through the implementation of mechanisms like the green energy auction.
He also cites the private sector’s role in advancing renewables, given the country’s market-driven, unsubsidized energy sector.