The Philippines should begin taking voluntary Renewable Energy Certificates (RECs) more seriously as companies face growing pressure to prove their use of clean energy, according to Arthur D. Little Southeast Asia principal Anna Rellama.
Rellama said RECs, which represent the environmental attributes of renewable electricity, are becoming increasingly important for exporters, manufacturers, business process outsourcing firms, and data centers facing sustainability and supplychain requirements.
While the country's compliance REC market has advanced through the Department of Energy-led Philippine Renewable Energy Market System (PREMS), she argued that the next challenge is developing a stronger domestic voluntary Renewable Energy Market (VREM).
"Companies want credible clean-energy claims, generators need better revenue signals, and the country needs more renewable investment," Rellama said. "A well-designed VREM can help connect these needs."
She noted that Philippine I-REC issuance reached 4.7 million certificates in 2024, though most activity still relies on international systems instead of a local framework.
Rellama warned that the market would only succeed if supported by strong safeguards against double counting, clear ownership rules, and reliable tracking systems.
She added that neighboring ASEAN markets such as Singapore, Vietnam, Thailand, Malaysia and Indonesia are already moving toward crossborder REC systems, increasing pressure on the Philippines to catch up.