By Angelica Y. Yang, Reporter
THE PHILIPPINES has the potential to lead in sustainability efforts across Southeast Asia, management consulting firm Bain & Co. said in a recent report, citing opportunities for renewables investments and the rise of green businesses.
“With its renewables industry and natural capital attracting international attention, the Philippines has the potential to develop directly into a green economy. There is also opportunity to better manage its waste sector and electrify its transport sector,” Bain & Co. said in its Philippines report “Perspectives on the Green Economy.”
The consulting firm noted that the Philippines was moving towards reducing emissions by phasing out coal and attracting green financing schemes.
Bain & Co. noted the presence of opportunities in solar and wind power investments in the Philippines.
“There is opportunity for investors to build out accompanying (solar) infrastructure, such as an electric grid to cope with fluctuating production and photovoltaic (PV) recycling plants for end-of-life PV waste management to smoothen the transition,” it said.
The Philippines has 160 GW (gigawatt) of wind energy potential, and that it can accommodate “globally-proven” wind technologies without any limitations of technology transfers, it added.
The firm noted that the country has scaled up green investments across all asset categories, as transport remains an “attractive sector.”
“Private equity/venture capital activity and corporate investments have grown, although overall infrastructural spending has slowed in 2020, potentially due to pandemic,” it said.
However, Bain & Co. projected that the country’s unconditional absolute annual emissions between 2018 to 2030 will increase to more than Southeast Asia’s overall level without sufficient international support. However, conditional emissions are expected to be more than halved in a decade, it added.
Earlier this year, the Philippines submitted its first nationally determined contribution to the United Nations Framework Convention on Climate Change. The five-page document seeks to lessen greenhouse gas emissions by 75% by 2030.
Of the target, some 72.29 % will be conditional or dependent on support from developing countries. The rest or the so-called unconditional target will be addressed using domestic resources.