Carlos G. Dominguez
Secretary of Finance
(Pleasantries)
Today, we are launching a landmark project that will allow the Philippines to accelerate its transition from coal to clean energy in a just and affordable manner. This is one of the practical projects we are ready to implement to fully realize our ambitious goal of reducing greenhouse gas emissions by 75 percent in 2030.
The Philippines accounts for only three-tenths of one percent of global carbon emissions. But as an archipelago sitting on the typhoon belt and the Pacific Ring of Fire, we are most vulnerable to the adverse effects of climate change.
The Philippines is ranked ninth over 181 nations in the world as the most affected country from extreme weather events in the 2020 World Risk Index. Each year, an average of 20 typhoons hit the country, bringing torrential rains, violent winds, and extreme floods. Due to rising sea levels, we are sinking four times faster than the global average. Weather-related events cause losses and damages amounting to about 1 billion US dollars every year.
The Philippines is, therefore, very determined to do its utmost to fulfill its commitment to combat climate change through practical projects on the ground.
Coal accounts for 54 percent of our energy mix which makes it the largest source of greenhouse gases in the Philippines. In 2019, coal accounted for 48 percent of carbon dioxide emissions in the country. Thus, reducing dependence on coal power is the fastest way to cut our carbon emissions.
The shift from coal-dependent to renewable energy sources requires an effective financing framework to be even imaginable. We are happy to be working with the Asian Development Bank and some private sector partners in developing this innovative ETM or Energy Transition Mechanism project. This is envisioned to become the largest emission-mitigation program in the world.
This project will help us accelerate the retirement of coal plants in the country by at least 10 to 15 years on average through innovative financing mechanisms. It is intended to boost the growth of renewable energy using an equitable, scalable, and market-based approach.
In the coming period, the ETM partners will jointly conduct a full feasibility study focusing on the optimal business model for the Philippines. The project will bring together financial resources from multilateral banks, private institutional investors, philanthropic contributions, and long-term investors to trigger our decisive shift towards de-carbonization. A clean energy transition in the Philippines will attract investments in renewable energy, create jobs locally, and promote national growth.
We have a unique opportunity in Mindanao, an island in the southern part of the Philippines, to demonstrate our carbon-reduction commitment. In Mindanao, the hydropower source has a huge potential. The government is in the process of rehabilitating the Agus-Pulangi hydropower plant to improve its generating capacity. As we increase its generating capacity, the ETM project will help us acquire coal-fired power plants on the island to repurpose them.
This will shift most of our energy requirements in Mindanao to hydropower. There will soon be numerous investment opportunities for renewable energy in the region. Mindanao will showcase an Earth-friendly future that can be replicated in other areas in the Philippines–and even countries around the world.
Together with the Asian Development Bank, the Philippines is pioneering an innovative model that will set a global standard in transitioning to a cleaner energy future.
The time for debate and merely discussing climate change theories is over. Today, we are focusing on applied solutions and workable programs to quickly reduce greenhouse gas emissions. We have a planet to save and we do not have much time to do it.
Thank you.
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