The fight versus climate change menace puts the supply side of the Philippine power industry in the echelon of having immense potential to mitigate greenhouse gas emissions that threaten the environment.

The emissions contribution of the energy sector, primarily power generation and transport segments, are set on sharper focus as world leaders make every effort at next month’s Copenhagen debates to craft a viable Climate Change framework to succeed the Kyoto Protocol.

Outcomes of a study by the Asian Development Bank (ADB) indicated that until year 2020, on the supply energy side, “efficiency improvements in power plants and system loss reduction have the potential to mitigate about 227 MtCO2 (million tons of carbon dioxide) in the Philippines.”

The application of high-efficiency transport systems in the country is also seen yielding mitigation potential for about 40 MtCO2 until the turn of the decade.

The study examined CO2 emissions of various Asean countries from year 2000 until 2020. Apart from the Philippines, it also covered Singapore, Thailand, and Vietnam.

The four countries have demonstrated various CO2 mitigation strategies. Singapore’s approach was anchored on shifting fuel use in its power generation; while Thailand focuses on energy demand-side, primarily on mitigating emissions at residential and commercial building sectors.

Vietnam’s strategy is switching from oil to gas in running its power plants to potentially mitigate about 4.0 MtCO2 until year 2010.

The study also unearthed significant potential for energy-related CO2 reduction for the four countries, with mitigation prospects reaching 903 MtCO2 at a carbon price of $50 per metric ton.

With the next wave of required investments though, the ADB study raised apprehensions that the four countries may be lured back into solutions that lack mitigation measures, such as heavy reliance on oil and coal for future energy needs.

“Energy modeling commissioned under this study finds that under a medium emissions scenario, without mitigation action, the four countries (Indonesia, Philippines, Thailand and Vietnam) are likely to rely heavily on oil and coal as primary energy sources, and coal for power generation, due to their relatively low costs when environmental externalities are not considered,” the ADB study cautioned.

It was further noted that if such energy supply solutions would be embraced, the emissions of the four countries will likely swing up 3.0-percent per year until 2050.

The ADB study qualified though that “with participation in global stabilization efforts at 450-550 ppm (parts per million), the four countries as a whole are projected to shift from coal and oil toward natural gas and renewable energy sources.”

Similarly expected are bandwagon shift from “currently dominant gasoline-powered vehicles to cleaner fuels and innovative low carbon vehicles such as different types of hybrid electric vehicles.”

Meanwhile, the Philippine Business for the Environment (PBE) has urged local businesses to support a covenant that would require them to take extensive actions to prepare and reduce risks from climate change.

PBE president Howard Belton said the business covenant for the environment outlines their commitments towards helping develop an environmentally sustainable business.

Belton said this goal could be achieved through focusing on waste reduction and management, greening the supply chain, and carbon accounting and reduction.