ADB eyes facilitating Philippines entry into partnership for clean energy shift

Manila-based Asian Development Bank (ADB) has expressed interest in facilitating the Philippines' entry into a financing scheme wherein wealthier nations help coal-dependent developing countries shift to clean energy.

In a media briefing at the sidelines of Asia Clean Energy Forum in Mandaluyong City on Wednesday, ADB Just Energy Transition Partnerships (JETPs) advisor Andrew Jeffries said the Department of Energy (DOE) has reached out to the multilateral lender regarding the country’s intent to join the JETPs.

JETPs are financing cooperation schemes that aim to help coal-dependent emerging economies shift towards clean energy. They were launched in November 2021 during the United Nations Climate Change Conference or COP26.

The first three three countries to receive funding from the JETP mechanism are South Africa, Indonesia, and Vietnam.

The donor pool includes the so-called International Partners Group (IPG), composed of the US, Japan, France, Germany, Italy, Canada, Norway, Denmark, the UK, and the European Union.

“The Department of Energy has asked us. It has expressed interest… I passed that interest with some of the IPG people I know because we worked with them in Indonesia,” Jeffries said.

“The Philippines has to reach out to this IPG. All we can do is try to facilitate that,” he added.

The ADB official said the Philippines would qualify for the JETP as it is a fast-growing economy and has a lot of coal-fired power plants.

The Philippines relies heavily on coal—the highest contribution to the power generation mix at nearly 60%, while renewable energy contributes only over 20% to the energy mix.

The government is targeting to increase the share of renewable energy in the power mix to 50% by 2040.

Energy Secretary Raphael Lotilla earlier said the Philippines is “not [yet] part of any of the Just Energy Transition Partnerships that have already been put in place.” 

“I think the reason for that interest there is it could raise potential funding for ETM [energy transition mechanism] or other kinds of transitions,” Jeffries said. — BM, GMA Integrated News