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Group says Japan financing of fossil gas inconsistent with Philippines' clean energy push

Published Apr 8, 2024 07:15 am

The Philippine government may be treading the opposite path of its commitment towards full use of renewables following the reported signing of an agreement between the Japan Bank for International Cooperation (JBIC) and three major energy firms for the rollout of the Japanese-led Asia Zero Emission Community (AZEC) platform in the country.

In a statement, clean energy think tank Center for Energy, Ecology, and Development (CEED) said the agreement put to question the Philippines’ commitment towards genuine renewable energy transition over the fossil gas and what it described as unproven fossil-friendly technologies.

“With this development, the Japanese government and, by extension, the Philippine government are revealing a clear lack of commitment to a genuine renewable energy transition,” said CEED executive director Gerry Arances.

Arances is referring to the agreement between JBIC and SMC, Aboitiz, and MPIC which would pave the way to the rollout of AZEC, which he said was criticized before as a ploy to promote detrimental energy in developing countries in Asia.

The three companies, through Meralco’s power generation arm, are jointly pushing for 23 GW of new gas-fired power generating facilities which is equivalent to 80 percent of total installed capacity. 

The three companies are also in talks to acquire the Philippines’ first LNG import terminal owned by the Atlantic Gulf & Pacific Company, which was funded by JBIC.

“This is unacceptable for a country facing some of the worst impacts of the intensifying climate crisis and where fossil fuel-based power generation is causing death and destruction in vulnerable communities,” said Arances.

“We are a country whose abundant renewable energy resources makes a 100% transition aligned to the 1.5 °C climate goal possible. The focus should be on unlocking this, and not in putting up more gas,” he added.

In the aftermath of the deal, Arances said clean energy advocates in Japan and the Philippines are on guard over results of an upcoming trilateral meeting between Japan, the Philippines, and the United States in Washington next week.

“LNG champions in Japan and the US should use the upcoming talks to make amends and ensure the prioritization of renewables in the Philippines and other emerging economies in the region, not gas or false solutions,” said Arances.

 “This trilateral is also a test for the Marcos administration’s commitment to the Philippines’ renewable energy shift. President Marcos entered office with a pledge to make renewable energy its top climate priority, but its execution has so far been half-hearted,” he added. 

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