Department of Trade and Industry (DTI) Secretary Alfredo Pascual led the exchange of ideas at the Philippine Business Forum on Green Energy and Digital Technologies on June 27, 2023 in Brussels, Belgium.
The forum, organized by the Philippine Trade and Investment Center (PTIC) in Brussels, provided an avenue to foster a meaningful dialogue between key stakeholders in the Philippines, Belgium, and wider Europe.
In cooperation with the European Union-ASEAN Business Council (EU-ABC) and the European Chamber of Commerce in the Philippines (ECCP), the DTI-Board of Investments (BOI) discussed the country’s enabling investment climate, emerging market trends, and its commitment to energy transition and digital transformation.
Addressing the urgent matter of transitioning to clean, green energy in the Philippines, Secretary Pascual said, “The shift to green energy presents not only an environmental imperative but also a remarkable economic opportunity. We recognize the EU’s successful implementation of renewable energy policies, which will be instructive in accelerating our own energy transition in the Philippines.”
During the forum, the Philippine business communities, who were at the forefront of innovation in the green and digital technology sectors, shared their success stories, solutions, and growth plans. These included the Philippine Department of Energy, Semiconductors Industries of the Philippines, Inc. (SEIPI) and IT and Business Process Association of the Philippines (IBPAP).
Secretary Pascual stressed the abundant renewable resources present in the country like solar, wind, hydro, and geothermal power that remain untapped. He cited the Philippines currently has (1) the world’s third-largest geothermal capacity, (2) an estimated average solar radiation of around 165 watts per square meter, and (3) tidal energy with a potential of up to 170 GW of capacity.
He also cited the country’s initiative in introducing the National Renewable Energy Program (NREP) 2020-2040. He noted, “By aligning our standards with European requirements, we can improve access to Philippine green energy products, services, and the global clean energy value chains.”
For her part, Assistant Secretary Mylene Capongcol discussed the efforts of the Department of Energy, “We have market development policies in place, both mandatory and voluntary policies, for on-grid and off-grid areas.” Relatedly, SEIPI President Danilo Lachica stressed, the Philippines needs renewable energy resources, specifically energy supply storage, given the large power consumption of Filipinos.
Secretary Pascual also emphasized the huge opportunities present in the country for sustainable manufacturing, services, and connectivity given the abundant critical mineral reserves present.
He underscored that key industries such as electric vehicles (EV), battery manufacturing, mineral processing, electronics, and semiconductors can utilize these resources coupled with reforms and amendments in existing laws for foreign investments, which includes the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, the Executive Order on Green Lane Investments and 100% foreign ownership in renewable energy (RE) projects.
Alongside this, the Philippine delegation also discussed the significance of strengthening the digital industries, particularly the IT-BPM sector. They cited the pivotal role of this sector in the Philippine economy as they provide global markets with vertical-focused solutions.
IBPAP President and CEO Jack Madrid expressed optimism that in the next five years, their industry roadmap projects up to 40% of the workforce will be outside Metro Manila. He also noted IBPAP’s commitment to adding around one million more jobs outside the country’s capital in an effort to decongest the metro and provide further opportunities for those in the provinces.
Further, the DTI Secretary also encouraged strengthening research and innovation which are central to the Philippines’ commitment to sustainable growth and development. He highlighted foreign investors can avail the of low-cost manufacturing in the country and the young and dynamic workforce which can assist them in setting up their R&D centers.
The Electric Vehicle Industry Development Act (EVIDA Law) which aims to position the country as a regional manufacturing hub for EVs and EV parts, was also mentioned during the Secretary’s presentation.
As he closed his speech, Secretary Pascual encouraged the audience to partner with the country, “With the Philippines partnering with the EU, we can expedite renewable energy growth, enhance energy security, and contribute to global climate change mitigation.”
