Government officials, legislators, and business leaders underscored the urgency of stronger climate policies and financing mechanisms to support the Philippines’ energy transition during a panel discussion at the Net Zero Carbon Alliance (NZCA) Conference 2025.

DENR Secretary Raphael “Popo” Lotilla said the Philippines must demonstrate credible science-based climate actions, warning that unchecked climate change could significantly reduce economic output. He cited data that disasters displaced 43 million Filipinos between 2014 and 2023, with typhoon-related losses cutting 1.2% of GDP annually. By 2040, climate impacts could shave off 13.6% of GDP. 

“The Philippines cannot afford to wait as climate impacts, especially in our country, will not wait,” Lotilla said.

Rep. Jose Ma. Clemente “Joey” Alba, author of the proposed Low-Carbon Economy Investment Bill, stressed that climate damages could reach as high as 11% of GDP by 2100 if left unchecked. He added that mitigation costs, estimated at 2.5–3.5% of GDP, would be far outweighed by avoided losses. “The benefits will be five to eleven times greater than the costs,” Alba said, urging the swift passage of measures that will provide investors with a clear decarbonization framework.

DOE Secretary Sharon Garin echoed the challenge of financing the transition, noting that early coal retirement and renewable energy ramp-up would require significant resources. She said the DOE is banking on carbon credits, bilateral deals with Singapore and Japan, and smart grid investments to fund the shift. At the same time, she acknowledged permitting bottlenecks that can take up to five years and pointed to the need for reforms.

The private sector also stressed its role in bridging the gap. Francis Giles Puno, Vice-Chairman and CEO of Energy Development Corporation, confirmed that First Gen is investing PHP3 billion in new geothermal projects in Mindanao while recently completing 80 megawatts of geothermal capacity and preparing to open a new binary facility in Leyte. He added that the Lopez Group’s sale of a 60% stake in its gas business to the Razon Group will allow capital to be redirected to renewables, reaffirming its commitment to eliminate fossil fuels from its portfolio by 2040.

Rondell Torres, Sustainability Lead for Unilever Philippines and Greater Asia, said the company has partnered with First Gen to source geothermal energy and is actively pulling suppliers into renewable energy use. “Corporations are moving ahead, but we need government policy to keep up so that investments can scale,” Torres said.

The discussion also touched on the Philippines’ offshore wind potential of 176 gigawatts, nearly 100 contracts already awarded, and new policies being prepared for waste-to-energy and data center integration, but panelists agreed that clear legislation and financing mechanisms remain the foundation for the country’s decarbonization pathway.

Do you think stronger climate legislation will be enough to bridge the financing gap for the Philippines’ energy transition?

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