The Center for Energy, Ecology, and Development (CEED) said transitioning to renewable energy
comes as an opportune time as economies worldwide, including the Philippines fear an impending global economic recession due to the tariff policies enacted by United States President Donald Trump.
Earlier this year, President Trump established broad tariff measures that triggered a global trade war due to retaliatory tariffs imposed by affected countries. CEED said that while President Trump’s tariffs mostly left oil and gas untouched, rising demand, higher costs for key materials like steel and aluminum, and economic uncertainty are expected to drive up fossil fuel prices.
According to CEED Executive Director Gerry Arances, these developments show a critical weakness in the country’s economy, particularly our over reliance on imported fuels. “The US tariff policies have shown that the Philippines, with its import-dependent economy and lack of manufacturing base, is very vulnerable to tariff and embargoes from other countries. It only makes sense that we begin to secure our economic independence and begin this with the liberation from dependence on fossil fuels,” said Arances.
Arances further warned that this uncertainty in the global economy threatens more than just large industries, but also affects ordinary consumers such as small businesses. “No one likes unnecessary risks, and that includes businessmen. But the uncertainty will also impact ordinary consumers, who would provide the economic activity needed for the country to protect its growth. Without a stable and secure supply of energy, our entire economy is now a question mark,” he said.
To address these vulnerabilities, CEED advocates for a stronger commitment to renewable energies, stressing the fact that the Philippines has an abundance of renewable energy sources that would be immune to international market disruptions.
“The Philippines boasts of abundant sources of renewable energy. Renewables have the advantages of being practically unlimited, cheaper than fossil fuels, and far less destructive to the environment. It solves the energy trilemma, but our policymakers have been resistant to it for some reason. With the Trump tariffs, any economic argument against renewable energy and the shift away from fossil fuels now become even more incomprehensible,” he said.
Arances acknowledges that renewable energy alone won’t solve all of the country’s economic problems, but it can help cushion the impact of market volatilities on Filipino businesses and consumers.
What do you think will be the long lasting effects of Trump’s tariffs? Can the Philippines, realistically, overcome its reliance on imported energy?
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