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China vaccinates nearly 14 million people a day 

REUTERS
A woman holds a small coronavirus disease 2019 vaccine bottle in front of a China flag in this illustration taken Oct. 30, 2020. — REUTERS/DADO RUVIC

CHINA is vaccinating almost 14 million people a day, the fastest pace in the world, as the country races to protect its coronavirus disease 2019 (COVID-19) advantage in the face of major Western nations reopening their economies.

The ramp up in shots is being helped by a flareup of cases in the eastern province of Anhui and northeastern region of Liaoning. Videos on social media showed citizens rushing to get their vaccines, with long queues at inoculation sites despite heavy rain. Hefei, Anhui’s capital city, administered 360,000 doses on Friday, the most in a single day for the hub of 10 million people, Xinhua News agency reported.

Many nations in Asia, China included, are struggling to combat vaccine hesitation. Some people have been wooed into a sense of complacency due to the region’s early success in containing the virus while others simply don’t trust the safety or efficacy of the vaccines available. However, recent outbreaks in countries like Singapore and Taiwan are testing that reluctance as harsher lockdown measures are imposed, bringing into clearer focus the understanding that being vaccinated can help stop serious illness.

Beijing is loathe to lose the advantage it’s built up over the US and other major Western economies with its successful containment of the pathogen, and has added pressure through things like calling for mandatory vaccination among state-owned enterprise employees and communist party members.

The escalation of shots in China — figures from the National Health Commission show 13.7 million vaccines were administered on Friday — means the country is now closer to its target of vaccinating 40% of its population, or at least delivering 560 million doses, by the end of June. As of Sunday, some 393 million doses had been given, with 210 million of those occurring over the past month, a sign of the accelerating roll out, official data show. According to the World Health Organization, China can now administer 20 million doses a day.

“Don’t hesitate, get vaccinated,” Xinhua News agency says on its official WeChat account. “The fact that new infected people are not vaccinated is undoubtedly a wake-up call to all — to build an immunization barrier, vaccination is not an option but a must.”

It’s estimated China will have 900 million to 1 billion people vaccinated by next year, when herd immunity is expected to be reached, the head of the Chinese Center for Disease Control and Prevention, George Fu Gao, said in a recent interview. 

China has enforced some of the harshest approaches in the world in terms of putting whole regions into lockdown and people into quarantine, even when only cases in the single digits are detected. Because of the latest outbreak, schools have been halted in the northern coastal city Yingkou in Liaoning while people are banned from leaving their residential compound in certain regions of Anhui. — Bloomberg

Brain gain: New boutiques, deals surge lure expat bankers to Australia

Sydney central business district by Jorge Láscar/Flickr/CC BY 2.0

HONG KONG — Australian expatriate investment bankers are returning home in large numbers, lured by the launch of new boutique advisory firms, a sharp pick up in deal-making, and the safety of a country relatively unscathed by the coronavirus pandemic. 

Signs of a strong economic rebound from a brief pandemic- induced recession are underscoring a trend that is starting to reverse a long tradition of Australian bankers heading overseas to more tax-friendly global financial centers. 

“There is a brain gain happening in Australia, we are acquiring additional knowledge and experience,” said Nick Hughes, Australia co-head at UBS. 

Corporate Australia has set a scorching start to 2021, with $6.21 billion worth of M&A (mergers and acquisitions) deals already underway, more than seven times higher than the same period last year, according to Refinitiv data. That puts Australia second in the Asia Pacific in terms of deal value, behind only China, compared to its seventh place ranking over the same period in 2020. 

The trend is expected to continue in the near-term, with big-ticket deals such as the possible sale of casino operator Crown Resorts, and the divestment of some financial businesses in the pipeline. 

The entry of two boutique firms, Barrenjoey Capital and Jarden, into the fray has fueled a talent war in the country and pushed up wages by at least 20%, making it a rare bright spot for rainmakers. 

Jarden, the Australian offshoot of the New Zealand investment bank, has hired eight Australian expatriate bankers traders and analysts as part of its campaign to build out its local franchise, according to a spokeswoman. 

Goldman Sachs has had eight Australian staff return from offshore to work in Australia, and Swiss bank UBS has had four returnees in the recent months, according to the banks’ spokeswomen. 

Bank of America (BofA)has hired two senior expatriate bankers, the bank’s country head Joseph Fayyad said. 

“With new entrants establishing a presence and the incumbents defending their positions, there are more available seats for senior bankers,” Sydney-based Mr. Fayyad told Reuters. 

Most of the returnees are landing in Sydney from London and New York. Their experience ranges from mid-career to senior bankers and legal and compliance staff. 

They are among a lucky few currently allowed to enter Australia, which closed its international border to almost all travelers but returning nationals and permanent residents months ago as a pandemic shield. The dramatic step has appeared to pay off with Australia recording under 30,000 coronavirus disease 2019 (COVID-19) cases and 910 deaths, far fewer than many other developed countries. 

“I think Australia’s outperformance during COVID has put a real spotlight on the benefits of working and living down under, so the combination of more available seats and a greater desire from Australians to come home has really fueled the trend,” said Mr. Fayyad. 

‘A BIT OF HUSTLE’
The return of the expatriates counters a long-established trend of Australian finance professionals moving offshore, partly to gain experience and partly to escape Australia’s relatively high personal income tax rates. 

Local banking executives said increased onshore deals activity means banks are able to offer fatter paychecks for returnees used to New York and London salaries. 

Jarden Australia head of investment banking Aidan Allen said the “brain gain” had helped the emerging bank build its team to almost 100 since its launch a year ago. 

“A lot of our talent has come from offshore, people wanting to return home has been a massive opportunity for us,” Mr. Allen said. “We think it’s a point of difference, it’s given us the opportunity to have a more diverse and experienced bench.” 

Rival Barrenjoey launched in September with 50 staff and now has about 220 people, a spokeswoman said. 

The influx of the expatriates should also be a warning for incumbents, BofA’s Mr. Fayyad said: “Bankers that have been here for some time need to acknowledge there is a new crop of talent who have a bit of hustle, a spring in their step, who want to make their mark.” — Scott Murdoch/Reuters 

G7 urged to donate ‘emergency’ supplies to vaccine-sharing scheme

HAKAN NURAL/UNSPLASH
HAKAN NURAL/UNSPLASH

GENEVA — The head of UNICEF on Monday asked G7 countries to donate supplies to the COVAX vaccine-sharing scheme as an emergency measure to address a severe shortfall caused by disruption to Indian vaccine exports. 

India has curbed exports of the AstraZeneca vaccine made by its Serum Institute, which had been pledged to COVAX, to be used by the country as it battles a massive second wave of infections. 

United Nations agency UNICEF, which is in charge of supplying coronavirus vaccines through COVAX, estimates the supply shortfall at 140 million doses by the end of May and about 190 million by the end of June. 

“Sharing immediately available excess doses is a minimum, essential and emergency stop-gap measure, and it is needed right now,” said UNICEF Executive Director Henrietta Fore, adding that this could help to prevent vulnerable countries from becoming the next global hotspot. 

As G7 leaders prepare to meet in Britain next month, the head of the World Health Organization last week denounced the “moral catastrophe” of vaccine inequity, urging wealthy countries to donate doses rather than use them for children who are less vulnerable to severe disease. 

Citing new research from scientific information and analytics company Airfinity, UNICEF’s Ms. Fore said that G7 countries could donate about 153 million doses if they shared only 20% of their available supply over June, July and August. 

This could be done while still meeting commitments to vaccinate their own populations, she said without providing further detail. 

COVAX, run jointly by the WHO and the GAVI vaccine alliance, relies heavily on the AstraZeneca shot, which accounts for the bulk of the vaccines earmarked for early rollout as it seeks to provide 2 billion doses this year. 

UNICEF said that other manufacturing limitations outside India had also slowed supply of COVAX doses but those delays are expected to be resolved by the end of June. — Emma Farge/Reuters

Long working hours are a killer, WHO study shows

PIXABAY

GENEVA — Working long hours is killing hundreds of thousands of people a year in a worsening trend that may accelerate further due to the coronavirus disease 2019 (COVID-19) pandemic, the World Health Organization said on Monday. 

In the first global study of the loss of life associated with longer working hours, the paper in the journal Environment International showed that 745,000 people died from stroke and heart disease associated with long working hours in 2016. 

That was an increase of nearly 30% from 2000. 

“Working 55 hours or more per week is a serious health hazard,” said Maria Neira, director of the WHO’s Department of Environment, Climate Change and Health. 

“What we want to do with this information is promote more action, more protection of workers,” she said. 

The joint study, produced by the WHO and the International Labour Organization, showed that most victims (72%) were men and were middle-aged or older. Often, the deaths occurred much later in life, sometimes decades later, than the shifts worked. 

It also showed that people living in Southeast Asia and the Western Pacific region — a WHO-defined region which includes China, Japan and Australia — were the most affected. 

Overall, the study — drawing on data from 194 countries — said that working 55 hours or more a week is associated with a 35% higher risk of stroke and a 17% higher risk of dying from ischemic heart disease compared with a 35–40 hour working week. 

The study covered the period 2000-2016, and so did not include the COVID-19 pandemic, but WHO officials said the surge in remote working and the global economic slowdown resulting from the coronavirus emergency may have increased the risks. 

“The pandemic is accelerating developments that could feed the trend towards increased working time,” the WHO said, estimating that at least 9% of people work long hours. 

WHO staff, including its chief Tedros Adhanom Ghebreyesus, say they have been working long hours during the pandemic and Neira said the U.N. agency would seek to improve its policy in light of the study. 

Capping hours would be beneficial for employers since that has been shown to increase worker productivity, WHO technical officer Frank Pega said. 

“It’s really a smart choice not to increase long working hours in an economic crisis.” — Emma Farge/Reuters 

Israel launches dozens of strikes as Gaza fighting enters second week

REUTERS/MOHAMMED SALEM

GAZA/JERUSALEM — Israel launched dozens of air strikes in Gaza and the Hamas militant group kept up its rocket attacks on Israeli cities in fighting that spilled into a second week on Monday. 

International calls mounted for a ceasefire, but there was no sign of any imminent end to the most serious hostilities between Israel and Gaza’s ruling Hamas Islamists in years. 

Roads, security buildings, militants’ training camps, and houses were bombed in Israeli attacks that seemed to be focused on Gaza City, witnesses said. The sound of explosions echoed in many parts of the Palestinian enclave overnight. 

The Israeli military said fighter jets struck “terror targets,” after rocket barrages from Gaza were fired at the Israeli cities of Beersheba and Ashkelon just after midnight. 

There were no immediate reports of casualties on either side of the border. 

World concern had already deepened after an Israeli air strike in Gaza that destroyed several homes on Sunday and which Palestinian health officials said killed 42 people, including 10 children, and persistent rocket attacks on Israeli towns. 

Injecting more urgency into Washington’s calls for calm, US Secretary of State Antony Blinken wrote on Twitter: “All parties need to deescalate tensions — the violence must end immediately,” after he spoke with Egypt’s foreign minister about ongoing violence in Israel, Gaza and the occupied West Bank. 

At a meeting on Sunday of the UN Security Council, the United States said it has made clear to Israel, the Palestinians and others that it is ready to offer support “should the parties seek a ceasefire.” 

Prime Minister Benjamin Netanyahu said Israel’s campaign in Gaza was continuing at “full force,” and that deterrence had to be achieved to prevent future conflict with Hamas, which rules Gaza. 

“We are acting now, for as long as necessary, to restore calm and quiet to you, Israel’s citizens. It will take time,” Mr. Netanyahu said in a televised address after his security Cabinet met on Sunday. 

The Gaza Health Ministry put the death toll in the densely populated enclave of 2 million Palestinians at 197, including 58 children and 34 women. Ten people have been killed in Israel, including two children, Israeli authorities say. 

Hamas began its rocket assault last Monday after weeks of tensions over a court case to evict several Palestinian families in East Jerusalem, and in retaliation for Israeli police clashes with Palestinians near the city’s Al-Aqsa Mosque, Islam’s third holiest site, during the Muslim holy month of Ramadan. 

SUSTAINED CALM 

US President Joseph R. Biden, Jr., said his administration is working with all parties towards achieving a sustained calm. 

“We also believe Palestinians and Israelis equally deserve to live in safety and security and enjoy equal measure of freedom, prosperity and democracy,” he said in a pretaped video aired at an event marking the Muslim Eid holiday on Sunday. 

In New York, UN Secretary-General Antonio Guterres told the Security Council that hostilities in Israel and Gaza were “utterly appalling” and called for an immediate end to fighting. 

He said the United Nations was “actively engaging all sides toward an immediate ceasefire” and urged them “to allow mediation efforts to intensify and succeed.” UN envoys have helped to mediate past truces between Israel and Hamas. 

Washington, a strong ally of Israel, has been isolated at the United Nations over its objection to a public statement by the Security Council on the violence because it worries it could harm behind-the-scenes diplomacy. 

Jordan’s King Abdullah said his kingdom was involved in intensive diplomacy to halt what he characterised as an Israeli military escalation. The monarch, whose ruling family has custodianship of Muslim and Christian sites in Jerusalem, did not elaborate. Israel and Jordan made peace in 1994. 

The Israeli military said that Hamas, an Islamist group regarded by Israel, the United States and the European Union as a terrorist movement, and other armed factions have fired more than 2,800 rockets from Gaza over the past week. 

That is more than half the number fired during 51 days in a 2014 war between Hamas and Israel, the military said, and more intensive even than Hezbollah’s bombardment from Lebanon during the 2006 war between Israel and the Iran-backed Shi’ite group. 

Many of the rockets have been intercepted by an Israeli anti-missile system, while some have fallen short of the border. 

Hamas said its latest attacks were in retaliation for Israel’s “ongoing aggression against civilians,” including the air strike in Gaza City on Sunday that destroyed a number of homes. 

The Israeli military said civilian casualties were unintentional and that its jets attacked a tunnel system used by militants, which collapsed, bringing the homes down. Hamas called it “pre-meditated killing.” 

On US network CBS’ Face the Nation program, Mr. Netanyahu defended another Israeli air strike a day earlier that destroyed a 12-storey building where the Associated Press and the Al Jazeera TV network had offices. 

He said the structure also housed the militant group’s intelligence office and was thus a legitimate target. He said Israel had passed information about the building to US authorities. A US intelligence official did not respond to a request for comment. 

Israel had given advance warning to occupants to leave. The Associated Press has condemned the strike and called on Israel to present evidence that Hamas was in the building. 

Mr. Biden’s envoy, Hady Amr, arrived in Israel on Friday for talks, and an official with first-hand knowledge of his meetings said on Sunday that he reiterated “full US support” for Israel’s right to defend itself. 

Mr. Amr also made clear that Washington understood that “this is clearly not something that can be wrapped up in 24 hours,” said the official, who asked not to be identified. 

The envoy also addressed the White House’s Eid event from Jerusalem, saying his mission was to “ease tensions and end the crisis as soon as possible” because “far, far, far too many Palestinians and Israelis, including children, have died.” — Nidal al-Mughrabi and Jeffrey Heller/Reuters 

Sun Life remains no. 1 in life insurance sector

Benedict Sison, Sun Life Philippines CEO & Country Head

Sun Life of Canada (Philippines), Inc., (Sun Life) retains the number one spot as the country’s premier life insurance company in the Philippines.

According to the latest report from the Insurance Commission (IC), Sun Life posted a premium income of PhP39.27 Billion, outperforming its closest contender by a record PhP8 Billion in total premiums.

This is the 10th straight year that Sun Life has maintained its leadership in the industry.
“We dedicate this milestone to our clients whose trust and support motivate us to keep excelling and innovating,” Sun Life of Canada (Philippines), Inc. President Alex Narciso said. “We also share this with our advisors and employees who remained faithful to our mission despite all the challenges we faced last year.”

Sun Life’s success in 2020 was made possible by the company’s quick adaption to the new
environment, where it launched various digital innovations so it may continuously serve its clients.

“Today, our commitment remains as strong as ever. We are here to be the Filipinos’ partner for life as they strive to achieve lifetime financial security and live healthier lives in this new landscape,” Sun Life Philippines CEO & Country Head Benedict Sison said. “We will never tire of discovering the best solutions and services that will enable them to secure their future.”

Apart from retaining the number one spot in the insurance business, Sun Life was also voted last year as the Filipino people’s most trusted insurance brand in Campaign Asia’s “Top 100 Brands in the Philippines” survey. Sun Life was the only insurance company to land on the list among other brands in various categories.

[B-SIDE Podcast] Pharma, agri, and defense: investing in the Philippines 

Follow us on Spotify BusinessWorld B-Side

Investment pledges approved by the Philippine Economic Zone Authority (PEZA) dropped by nearly a fifth last year after lockdown restrictions dented investor confidence.  

In this episode of B-Side, PEZA Director General Charito B. Plaza tells BusinessWorld reporter Jenina P. Ibañez how the investment promotion agency is planning a comeback over the next few years. 

TAKEAWAYS 

Idle land should be converted into ecozones. 

Ms. Plaza said the country should accelerate rural progress by creating economic zones in the countryside. The agency partnered with the Union of Local Authorities of the Philippines to identify areas they could convert into ecozones. 

“We based it on the land potential and the resources of the plan. We don’t have to destroy land — if it’s an agricultural land, we call it agro-industrial economic zone. If it’s a fishing ground, we have the aquamarine economic zone,” she said. 

Countries are using ecozones to compete for investors. 

The passage of the Corporate Recovery and Tax Incentives for Enterprises (CERATE) Act that cuts corporate income tax and rationalizes tax incentives clarifies available incentives for interested investors, she said. But she also hopes that the FIRB (Fiscal Incentives Regulatory Board) will not create more red tape.  

The law expanded FIRB’s oversight power granting tax incentives to government-owned and -controlled corporations and projects approved by investment promotion agencies. The agencies grant tax incentives for projects with capital of less that P1 billion, but the FIRB committee can raise the minimum capital threshold. 

“Red tape will slow down the processing of investment application because it will defeat the purposes of PEZA as a one stop shop,” Ms. Plaza said. 

Manufacturers are interested in PEZA’s defense economic zones. 

PEZA has identified seven or eight military reservation areas to convert into defense industrial complexes for the manufacturing of military equipment. 

With some manufacturers already showing interest, the agency is aiming for amendments on military reservation proclamations from the Office of the President before the end of the Duterte administration in mid-2022. 

Follow us on Spotify BusinessWorld B-Side

Outdoor building solutions for your commercial and residential space

In creating your home’s or business’s exterior, there are a lot of factors to consider aside from the aesthetics. The outdoor space is more exposed to different elements and weather conditions—so it is important to take note of the durability, usage, functionality, and of course, the style it provides to the overall look of your space. Here are some outdoor products from P.tech that are surely beneficial for any commercial or residential space:

Roofing

In upgrading the overall look of your exterior, roof tiles are a top-notch choice. These types of roofing are designed to provide energy efficiency, longevity, and easy maintenance. These are lighter than other roofs as it is made from high-quality steel with a sanded finish for added style and safety while installing.

To prevent leaks from occurring, it is also essential to install some roof valleys to save you unnecessary damage in the future. It will create runoff pathways to direct water flow from the roof planes into a valley trough. These roof valleys are made from top-grade quality materials ensuring long-lasting protection for your roof.

Flooring

For long-lasting flooring, it is a must to choose something that can withstand extreme weather elements as well as a high volume of foot traffic in busy areas of your home and business space. One of the most highly recommended options is the cement tiles. It is made with high-grade materials that are 100% waterproof and are highly durable, This type of flooring is also designed with a matte surface to ensure non-slip advantages while perfectly mimicking real wood or stone for a more natural feel.

Another safe and excellent addition to the floor is rubber tiles. These are designed to prevent breaking your floors due to heavy impacts. It comes with top-notch features including water, compression, and impact resistance, anti-skid, shock absorption, and large friction. This type of tile is very easy to install since it requires no glue or adhesive—just like laying out a puzzle mat. 

Aside from rubber tiles, another type of flooring is the interlocking drainage rubber mat. It is made to provide a safer and easier solution to spaces that are normally wet and slippery. The holes in the rubber mat allow water to be filtered while keeping the surface dry and safe for small children and the elderly. Installing is also hassle-free since you only need to interlock the sides to create a wide rubber matted surface.

Landscape

If you’re aiming for a cleaner and safer option to install in your outdoor space, opt for some high-quality eco grass. One of the best qualities of faux grass is it never withers. Maintaining is also effortless since lawn mowing and watering are not essential to keep it in good shape. You can ensure a green, vibrant, and aesthetically pleasing outdoor space for years.

Walls

An outdoor wall panel is an excellent way to give any outdoor structure or building an attractive finish. It offers the quality, feel, and characteristics of wood, but is more robust and eco-friendly. It is very simple and convenient to install due to its profile with a standard size

Another exemplary addition to your outdoor space is the wall cladding. It is made with long-lasting strength, resistance to water, moisture, and decay. It is also very easy to maintain, cost-effective, and provides an extra layer of insulation. The overall appearance of your outdoor space is largely determined by the exterior wall cladding, it can turn your walls into an exquisite and modern structure. 

Doors

Apart from its sophisticated look, a steel door is also one of the most durable kinds of door materials making it safer and more secure. It can withstand strong weather conditions and is highly resistant to warping and distortion. To add protection to your steel doors, consider installing a door canopy. It is made to prevent heavy rains, strong winds, as well as scorching heat from the sun from causing extensive damage to your doors and windows. It will also prevent other elements in your outdoor space from degrading quickly saving you more repairs in the future.

Start your building or renovating projects and get all your needed materials from P.tech, exclusively available at Wilcon Depot. Visit any of their 65 stores nationwide and explore the limitless product selections that Wilcon offers ranging from Tiles, Sanitarywares, Plumbing, Furniture, Home Interior, Building Materials, Hardware, Electrical, Appliances, and other DIY items.

Adhering to health and safety protocols to fight against COVID-19, Wilcon continuously implements necessary precautionary measures inside all of its stores to ensure their employees and valued customers’ safety, health, and well-being a priority.

You can also browse their Digital Catalogue and shop conveniently while at home through your personal shopper with the Browse, Call, and Collect/Deliver service. BROWSE the items you want to purchase at shop.wilcon.com.ph and www.wilcon.com.ph, CALL/Viber/text the Wilcon branch of your choice, and schedule a COLLECT/DELIVER. For the list of participating stores with their pick-up and delivery contact details, click this link: www.wilcon.com.ph/content/328-bcc-branches.

Another shopping alternative is the Wilcon Virtual Tour. An online shopping option wherein customers can contact the nearest Wilcon store via Facebook Messenger App. Customers can contact the nearest stores, and the Wilcon team will take you on a virtual tour where you can explore the available products inside their physical stores.

Wilcon also provides contactless payment options to its customers like bank transfers, GCash, PayMaya, InstaPay, PesoNet, WeChat, and Alipay for customers’ convenience.

For more information about Wilcon, you can log on to www.wilcon.com.ph or follow their social media accounts on Facebook and Instagram, and subscribe and connect with them on Viber Community, LinkedIn, and YouTube

Philippines’ further shift to clean energy

By Adrian Paul B. Conoza, Special Features Writer

The country’s energy grid continues to shift away from traditional sources and further to renewable ones. This was highly noticed in the past months as concerns on individual health and environmental welfare heightened amid the coronavirus disease 2019 (COVID-19) pandemic.

Hearing the louder call to harness cleaner sources of energy, both public and private sectors have strengthened their commitments to energize the country through renewables.

On the government’s part, the Department of Energy (DoE), through Secretary Alfonso G. Cusi, reaffirmed its commitment last year to develop the country’s renewable resources in fulfillment of the Renewable Energy Act of 2008.

In line with this commitment, a very notable move made by the DoE in 2020 was its moratorium on endorsements for greenfield coal power plants. Declared by Secretary Cusi last October, the moratorium is driven by the need for the country “to shift to a more flexible power supply mix.”

“This would help build a more sustainable power system that will be resilient in the face of structural changes in demand and will be flexible enough to accommodate the entry of new, cleaner, and indigenous technological innovations,” Mr. Cusi said in a statement.

Clean energy’s share
According to the DoE, renewable energy (RE) accounted for 33% of the country’s Total Primary Energy Supply in 2019. In terms of the country’s power capacity mix, meanwhile, Mr. Cusi shared in a virtual Energy Investment Forum last December that renewable energy’s share as of 2020 stands at 29.2%, with hydro contributing the most at 14.6% and followed by geothermal 7.5%, solar at 4%, wind at 1.7%, and biomass at 1.4%.

Contributing to this share are leading energy players which have taken the initiative to harness the country’s renewable resources. One of these players is Aboitiz Power Corp. which is regarded as a pioneer in renewables when it started its renewable portfolio with hydropower as early as the 1970s. As it expanded to other resources within the category, AboitizPower, together with its partners, is the Philippines’ largest owner and operator of renewable energy to date, with a total installed capacity of more than 1,500 megawatts (MW) to date.

“Our renewables portfolio, called Cleanergy, has a mix of RE technologies such as geothermal, hydro, and solar to address varying energy demands,” AboitizPower further explained. “This allows us to be more flexible and responsive to our customers’ requirements,” it added.

First Gen Corp., meanwhile, has an RE portfolio that has a large share of geothermal energy and is coupled with hydro, wind, and solar. Its latest annual report shows that geothermal takes 34% of First Gen’s installed capacity by source, while hydro, wind, and solar combined takes 8%.

On the other hand, MERALCO PowerGen Corp. (MGen) — through its RE unit MGen Renewable Energy, Inc. (MGreen) — has a portfolio led by solar, with its 50-MW solar plant in San Miguel, Bulacan, whose operations have just started this month.

Bigger targets
Alongside a stronger commitment to renewables, new targets have been set to further ensure the goal is attained. Earlier in February, the DoE renewed its RE targets in its latest National Renewable Energy Program (NREP). From a 54% target by 2040, announced last December, the updated NREP proposed a target of 55.8% by 2040 and 37.3% by 2030. The current NREP, spanning from 2011 to 2030, targets to bring the share of RE to 35% by the end of that period.

Along with this, the Philippines revised its target to reduce greenhouse gases (GHG) by 75% between 2020 and 2030. Among other gases, GHG covers carbon dioxide and methane, which have been observe to come from using traditional energy sources.

The country’s Nationally Determined Contribution to the UN Framework Convention on Climate Change, submitted earlier in April, states that under its 75% target, 2.71% is unconditional, or will be undertaken by the government through domestic resources.

The remaining 72.29%, meanwhile, is conditional on the support of climate finance, technologies and capacity development provided by developed countries, as prescribed by the Paris Agreement. Moreover, this portion represents the country’s ambition for GHG mitigation for several sectors, including energy.

AboitizPower expressed its support for the government in meeting these targets that aim to significantly reduce the country’s carbon footprint. “With decades of extensive experience and proven track record in RE, AboitizPower is well-positioned to actively participate in the government’s RE programs and significantly contribute to the country’s RE targets,” the firm added.

AboitizPower is also constantly innovating and adapting to new RE technologies to ensure that the current and future RE needs of the country will be served, the firm continued.

In the next 10 years, AboitizPower is further growing its Cleanergy portfolio as it heavily invests in renewable energy, especially wind, hydro, and solar, as well as other technologies such as battery. “This is in support of the government’s efforts to build the country’s RE market and also our contribution to the global RE targets,” the firm explained.

Also, MGen’s parent firm Meralco, through Chairman Manuel V. Pangilian, said in a BusinessWorld report that the company looks forward “to many more investments in renewables, particularly solar, as we attempt to achieve that balance in fuel sourcing, which will ultimately be biased towards renewables”.

AboitizPower also notes certain programs already set in place to build and grow the country’s RE market. These are the Renewable Portfolio Standards, which require power distributors to source a certain portion of their electricity requirements from eligible RE sources; and the Green Energy Option Program (GEOP), which provides end-users with the option to choose RE sources.

“We are optimistic that these programs will encourage more consumers to switch to RE; and as a pioneer and leader in the RE space, we are ready to serve the growing RE demand,” the firm pointed out.

First Gen Vice-President for Power Marketing, Trading and Economics Carlos Lorenzo L. Vega announced early in March that it will make around 690 MW of geothermal power available for the GEOP.

Adapting through innovation

By Bjorn Biel M. Beltran, Special Features Writer

The impact of the coronavirus disease 2019 (COVID-19) pandemic can be felt in all aspects of the business community, even as the rollout of vaccines begins in earnest. Though the end to the crisis may be in sight, it is certain that many of the changes that have happened over the past year will leave a lasting legacy for years to come.

In the insurance industry, where there is a heavy emphasis on the client-seller relationship, the challenge of maintaining such relationships over the government-imposed community quarantine is considerable.

“Traditionally, selling insurance relies heavily on the relationship between a seller and a customer. Sticking to the old way of insurance selling during this time may disrupt the customer journey at some point, especially since lockdowns pose a challenge to face-to-face meetings,” Surendra Menon, chief executive officer of BPI-Philam Life Assurance Corp., said in an e-mail.

Sun Life of Canada (Philippines), Inc. Chief Executive Officer and Country Head Benedict C. Sison further noted that severe mobility restrictions made it difficult to reach the insuring public, hampered the licensing and recruitment of advisors, and interrupted their client servicing.

“Lockdowns also redefined the definition of the office, forcing insurers to pivot their operating models. Market volatility kept clients on the sidelines and cut down investment earnings,” he said.

Yet, one way that the industry has adapted to these challenges, Mr. Menon pointed out, is through digitalization.

“BPI-Philam began embracing digital transformation before the pandemic even began, so shifting to online selling was not really a huge concern. However, we recognized deep into the lockdown that there was still work to be done and so we focused our time and resources in empowering our digital capabilities,” he said. “Through digital selling, insurance becomes more accessible to customers and allows more Filipinos to stay protected from the unexpected.”

Innovation has become a major theme throughout the business world during the COVID-19 crisis, and it is none more evident in the insurance industry. Mr. Sison said that the challenges imposed by the pandemic have led to opportunities in creating new innovative solutions and digital initiatives aimed at serving their clients.

All the while, regulators such as the Insurance Commission welcomed the digitalization of the industry, even going as far as introducing temporary licensing to advisors.

“For us at Sun Life, it was also a chance to try a new model for our workforce. While we already had a work-from-home program in place, we were able to test our limits as the entire organization went into telecommuting mode during the first few weeks of the lockdown,” he said.

On the customer side, the uncertainty brought about by the pandemic has increased the public’s consciousness about health and security, leading to an increase in the appreciation for insurance products.

“When lockdowns began in March 2020, most local insurance companies’ sales declined. This was expected since cash flow became an issue in the short term. However, because of the uncertainty surrounding COVID-19, more customers were made more aware of the benefits of insurance, which boosted consumer curiosity for protection products,” Mr. Menon said.

“There was a sharp increase in curiosity for health and protection solutions, which we experienced when we launched MedLife Protect Plus, our investment-linked life and health insurance product that gives considerable protection and better access to medical care with minimal out-of-pocket expenses. When our Bancassurance Sales Executives (BSEs) touched base with our clients, the feedback they got was that protection products were becoming more relevant in their lives due to the risks brought about by the pandemic,” he added.

This shift in public consciousness was evident all over the industry.

“We experienced a shift in preference to more health and traditional products. Likewise, we saw more participation from our younger client base. For Sun Life, market volatility also translated to a negative impact on the value of assets under management and unmet investment earnings plans. We have been providing clients information to reduce the paralysis in making financial decisions by raising their awareness of other options,” Mr. Sison pointed out.

“The heightened appreciation for health also allowed the company to launch a number of health solutions, further enabling us to achieve a healthier balance between traditional and VUL (Variable Unit Linked) products in a primarily VUL market,” he added.

The economic impact of the global crisis is likely to be felt for years to come. Until an economic recovery can be achieved swiftly and millions of affected Filipinos can recover their livelihoods, the uncertainty over the future will linger.

Mr. Sison said that while this lasts, health will remain a top priority among Filipino families as many Filipinos realize that nothing is more important than their and their loved ones’ life and health.

“With the economic impact of this crisis, many Filipinos realized their financial vulnerability and this has made them more appreciative of the security that our financial solutions can offer, particularly those that provide some savings or investment component, as well as health. In a survey we conducted with our clients, one thing they said they would really like to have more of is financial advice,” he said.

“This is most relevant to our industry as protection of life and health is what insurance is fundamentally all about,” he added.

The dilemma of untangling carbon emissions from economic growth

For more than a century now, the idea of economic growth has been inextricably linked with the use of fossil fuels, and therefore the emission of greenhouse gases. The industrial revolution was built on the use of coal in steam engines, and likewise the use of oil and natural gas have accelerated the growth of the modern world. Fossil fuels, in a way, have become synonymous with economic prosperity.

Yet in a time when climate change is starting to dominate popular conversation, and renewable energy sources like solar and wind power are becoming ever more affordable, this notion is being put into question. It is becoming increasingly easier to imagine a world of economic prosperity without endangering the environment.

The question is: How can the world of today transition into that world of tomorrow?

According to the International Energy Agency (IEA), the intergovernmental organization established under the Organization for Economic Co-operation and Development (OECD), CO2 emissions will increase by almost 5% this year to 33 billion tons, based on the latest national data from around the world as well as real-time analysis of economic growth trends and new energy projects that are set to come online.

This reverses much of the decline in emissions in 2020 due to the COVID-19 pandemic and the ensuing government lockdowns it caused all over the world. Coal demand is set to rebound by 4.5%, surpassing its 2019 level and approaching its all-time peak from 2014, with the electricity sector accounting for three-quarters of this increase.

Emerging markets and developing economies are the key drivers of this demand. Global energy demand, the organization said, is set to increase by 4.6% in 2021, pushing it above its 2019 level. Moreover, demand for all fossil fuels is on course to grow significantly in 2021, with both coal and gas set to rise above their 2019 levels. Oil is also rebounding strongly but is expected to stay below its 2019 peak, as the aviation sector remains under pressure.

“The expected rise in coal use dwarfs that of renewables by almost 60%, despite accelerating demand for renewables. More than 80% of the projected growth in coal demand in 2021 is set to come from Asia, led by China. Coal use in the United States and the European Union is also on course to increase but will remain well below pre-crisis levels,” the IEA said in a statement.

In contrast, electricity generation from renewables is set to leap by over 8% in 2021, accounting for more than half of the increase in overall electricity supply worldwide. Solar and wind power account for most of that rise, both of which are on track for their largest annual rise in history.

According to data, electricity generation from wind is projected to grow by 275 terawatt-hours, or around 17%, from last year. Electricity generation from solar PV is expected to increase by 145 terawatt-hours, up almost 18% from last year. Their combined output is on track to reach more than 2 800 terawatt-hours in 2021.

“This is a dire warning that the economic recovery from the Covid crisis is currently anything but sustainable for our climate,” said Fatih Birol, IEA executive director. “Unless governments around the world move rapidly to start cutting emissions, we are likely to face an even worse situation in 2022.”

The energy sector is a key contributor to climate change, accounting for more than two-thirds of global greenhouse gas emissions. The consensus among climate experts is that the world must reduce its greenhouse gas emissions to a net zero by 2050 or sooner, or otherwise prepare for severe, if not outright catastrophic, social, economic, and environmental damage.

Many countries, including the Philippines, have already embraced that goal. But as Ken Gillingham from the International Monetary Fund’s Finance and Development, puts it, “it will require a vast transformation of the energy sources used to power the global economy, and it would mean going far beyond business-as-usual technological progress”.

“Is it possible to decarbonize deeply enough to come within striking distance of net-zero greenhouse gas emissions by 2050? Yes, it is feasible even today — the technologies exist. Yet such a vast transformation of the energy system will be costly and challenging if attempted all at once, especially considering the large short-term costs of the transition for fossil-fuel-reliant developing nations,” Mr. Gillingham said.

“There are certainly inexpensive measures that can be implemented today, including energy conservation, efficiency nudges, and the replacement of retiring fossil-fuel powered electricity generation with renewables. The costs of these measures are already lower than the damage from climate change they would avert, based on estimates of carbon’s social cost. But many other approaches are quite costly in the short term, especially efforts to promote new low-carbon technologies. However, when the policies have strong potential to spur innovation, they may lead to much lower total costs over the longer term,” he added.

Yet, as made clear by the recent IEA data, many developing countries continue to drive the use of fossil fuels, which in turn accelerates the rate of climate change. Unless the notion of economic growth is decoupled from the use of fossil fuels, or policymakers worldwide make a united effort to implement sweeping changes to the global energy industry, the world is heading towards a future that is far from prosperous. — Bjorn Biel M. Beltran

The value of insurance during a crisis

When the coronavirus disease 2019 (COVID-19) global health crisis gravely hit the economy and stirred future uncertainties, many have become more conscious about their financial security.

During the first six months of the pandemic, the share of retail consumers who ranked financial security as one of their top three concerns grew from 36% to 50%, according to a 2020 research report by professional services firm Accenture on how the pandemic changed the behavior of consumers towards insurance.

The research also revealed that the value for money rose among consumers in 2020, climbing to the top priority from its fourth place in 2018. It reported that money becomes the most important factor when consumers deal with banks and insurers.

“Health, safety, and financial security are more important than ever to consumers during the COVID-19 era,” Accenture observed. “While consumer reactions vary, preventing and recovering from losses through insurance has become essential to consumers’ well-being.”

As the attention over personal and family health and the fears for finances are escalating, the research stated that insurers could therefore broaden and deepen their relationships with their consumers by providing protection to their finances during this uncertain time.

Having insurance mainly functions to avert and recover from financial loses. Insurance can also support people, including their loved ones, not just in financial aspects.

Currently, as everyone struggles due to the public health crisis, “getting health insurance in the Philippines can be one of the smartest decisions you can make,” wrote BPI-Philam Life Assurance Corp. on its website.

The insurance company warned that hospitalization costs could put a significant damage on one’s savings. And as the risk of COVID-19 still persists, bills could also continue to increase.

“Getting a comprehensive health insurance plan means you can be prepared for most of the hospital expenses you may incur because of the illness,” BPI-Philam said.

There are health insurance plans that do not just cover COVID-19 costs, but other illnesses as well. Hence, it is important to look for a plan that can help and protect oneself and the family even after the pandemic ceased.

Additionally, BPI-Philam believes that “investing in your health can also help you grow your wealth if you choose an insurance plan with investment options tied to it.”

It perceived that this kind of set-up could make two winning results such as decrease in medical bills and increase in long-term savings funds.

“With your apprehension for medical expenses out of the way, you can go ahead and continue planning for your family’s future,” BPI-Philam said.

Moreover, keeping health savings in place could likely aid one’s health too by getting rid of issues that cause worries. “Without that added stress and pressure weighing down on your shoulders, you will indeed have a more positive disposition and feel safer no matter the situation,” the insurance company added.

While health insurance is apparently useful amid this crisis and other medical issues, another category known as life insurance can provide financial security for various matters. It is also a kind of insurance that supports during and beyond the holder’s lifetime.

According to another story from BPI-Philam’s website, life insurance is like a “fool-proof protection” for a person and his/her loved ones upon the occurrence of most threatening situations.

“By getting insured, you have the ability to prepare for anything that may happen in the future — be it illness, hospitalization, retirement, or even death,” it said.

This insurance drives a person to save and therefore enables him/her to curb the tendency of spending more. Afterwards, it will protect one’s income when unexpected expenses happen.

Furthermore, life insurance can be reliable when the holder begins to fulfill his/her significant plans. “With money set aside and safely put away in life insurance, you can be confident that when you decide to bring your future plans to fruition, the funds will be there and ready for your use,” BPI-Philam said.

And when the chosen type of life insurance has a built-in cash value, which is invested in stocks, bonds, and mutual funds, it can also allow the person to earn higher returns and eventually attain his/her financial goals in a shorter period of time.

Yet, most importantly, life insurance maintains to support a holder’s dependents in financial terms even if he/she is not around anymore.

“[It] secures your family’s future and frees them from financial worries. It takes care of expenses like mortgage or a college education, which you would no longer be able to support,” the insurance company explained.

Since life insurance can guarantee assistance for potential finances, it can thus deal with one’s concerns over the lives of his or her loved ones and if there are sudden events that would involve large expenses. This protection can let the holder experience a peace of mind in spite of the constant uncertainties at present and in the future. — Chelsey Keith P. Ignacio

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