By Beatriz Marie D. Cruz, Reporter

THE Philippine government must tap climate financing to fast-track its transition towards greener modes of transport, but before it can do so, it needs to commit to a certain level of emissions reduction over the medium term, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) said.

“Green financing and climate financing are tied to emission reductions,” Madan B. Regmi, who heads UNESCAP’s sustainable mobility, transport and climate change and low carbon transport portfolio, said in a video interview. 

“So the (government) needs to develop projects to demonstrate that it is planning to reduce emissions within five years or 10 years after implementation (by quantifying) how much emissions can be saved so they can qualify (for the financing),” he said.

Adopting electric vehicles (EVs) would be cost efficient in the long run after an initial period of high costs, Mr. Regmi said.

The Department of Finance has said it is planning to tap the Green Climate Fund to support four priority projects in the pipeline worth $124 million.

The government has been promoting “greener” forms of transport as it committed to reduce greenhouse gas emissions by 75% by 2030 under the Paris Agreement.

To achieve this, the government should also fast-track the inclusion of renewables in its energy mix to ensure sufficient power supply for EVs, Mr. Regmi added.

The Philippines hopes to bring the share of renewables in the power generation mix to 35% by 2030 and to 50% by 2040.

It is also a key producer of critical minerals like nickel, chromite, cobalt, and copper for EVs.

The National Economic and Development Authority Board has expanded tariff cuts to electric motorcycles (e-motorcycles), electric bicycles (e-bicycles) and hybrid EVs.

However, the adoption of safe and environment-friendly public transport is hampered by the lack of coordination between local officials, especially in the capital region.

“Many things are done in isolation,” he said, noting that local governments as well as the Department of Transportation should come up with a development master plan that would be applicable across changes in leadership.

He also cited the need to develop critical infrastructure that would encourage a shift from a “car-centric” behavior to public modes of transport.

ASIA-PACIFIC countries must build up their reserves of rice while ensuring there is no market abuse to take advantage of shortages, the Asian Development Bank (ADB) said.

“To address these challenges, governments and stakeholders must adopt a multifaceted approach that addresses both short- and medium-term concerns,” Pilipinas F. Quising, senior economics officer, and Shiela Camingue-Romance, economics officer at the ADB Macroeconomics Research Division, said in a blog.

“Consistently adopting a reactive rather than proactive approach often results in short-term fixes that can worsen long-term problems,” they said.

Rice is a major staple in the Asia-Pacific, where the Philippines is projected to remain the world’s biggest rice importer next year, according to the US Department of Agriculture (USDA).

The commodity accounts for up to 70% of daily caloric intake and a major share of the food price basket across Asia.

Global rice prices have risen 38% between December 2022 and December 2023, the bank said. “Despite a slight decline to an average of $613/metric ton in March, prices remain 29% higher than they were a year ago,” the ADB said.

Continued shocks from the El Niño weather phenomenon have also yet to become apparent in the region, it added.

“The persistence of El Niño until the second quarter, coupled with the possibility of transitioning into La Niña later in the year, poses continued risks to rice production.”

To curb risks to rice supply and prices, the government must strengthen market transparency and monitoring to prevent price manipulation and hoarding, the ADB said. It  must provide targeted subsidies to vulnerable populations.

President Ferdinand R. Marcos, Jr. has yet to sign a bill seeking harsher sanctions against agricultural hoarding, smuggling, and other forms of market abuse.

Asia-Pacific countries must also build up rice reserves to ensure steady supply and dampen volatile prices in the medium term, Ms. Quising and Ms. Camingue-Romance said.

“However, efficient management, transparency, and proper storage and distribution infrastructure are crucial for ensuring effectiveness, preventing corruption and spoilage, and guaranteeing quality and accessibility of the reserved rice,” they added.

Philippine rice inflation eased slightly to 23.9% in April after peaking at 24.4% in March, the Philippine Statistic Authority reported.

Governments should also invest in modern agricultural technology and infrastructure, and push for crop diversification to strengthen resilience against climate shocks, Ms. Quising and Ms. Camingue-Romance said.

Damage to agriculture caused by the El Niño dry spell has topped P9.5 billion, the Philippines’ Department of Agriculture (DA) said last month.

Countries must also share best practices and ensure open trade to better manage rice supply and prices in the region.

The Department of Finance is studying a proposal to cut tariffs on rice imports to 17.5% or 20% from the current 35% rate.

“Countries in Asia and the Pacific can effectively foster stable and sustainable rice markets by promoting international collaboration, sharing knowledge, implementing focused interventions, and using financial assistance and technical expertise from their partners,” the ADB said.

Regular-milled rice was selling for P49.55 a kilo and well-milled rice P51.42, according to DA price monitors. Imported well milled rice was P52.98/kilo. — Beatriz Marie D. Cruz