Page 27 - centre-justtransitionframeworkinPH.cdr

The Philippines is a developing economy. Yet compared to industrial
countries, it has committed to cut its greenhouse gas (GHG)
emissions by 70 per cent until 2030 on the condition that nancing
and other support mechanisms are made available. In other words,
the country has already assumed the obligation of making this
transition take place at the soonest time possible.

But no immediate industry restructuring and dislocation have taken
place as major players have dragged their feet, no thanks to
fragmented and contradictory policies, funding deciency,
resistance, and downright negligence. This is notable in two
particular cases – the energy and transport sectors.

The power sector

The Philippines is rich – both in renewable energy resources and the
policies involving their use. Since the 1940s, the country has begun
developing indigenous renewable energy sources such as hydro and
geothermal power. In 2008, it enacted a comprehensive renewable
energy law. Yet the shares of fossil fuel (coal, natural gas, and oil) in
energy production have outpaced the growth of renewable energy in
the last three decades.

Coal has dominated the country's power generation sector when the
power industry was deregulated and privatized in the late 1980s to
early 90s.

Besides coal facilities, other power plants run on natural gas from the
Malampaya elds in Palawan. The rest are thermal plants powered
by imported bunker and diesel fuel. The country also imports most of
its coal abroad as those produced locally are of such low quality that
these have to be mixed with high grade imported coal so that they
can be used for power generation. Currently, almost half of the total
generated power in the Philippines comes from coal-red power
plants.

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