Is Low Carbon Economy Our Future?

Forum hosted by the Office of Senator Loren Legarda

and the Senate Economic Planning Office

Merwin Salazar Executive Director

Senate of the Philippines 18 February 2015

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Policy Framework

Climate Change Act of 2009 (R.A. 9729) Declares as state policy the systematic integration of climate change in various phases of policy formulation, development plans, poverty reduction strategies, and other development tools and techniques by all agencies and instrumentalities of the government.

People’s Survival Fund Act (R.A. 10174) Aimed at establishing a People's Survival Fund to provide long-term finance streams to enable the government to effectively address the problem of Climate Change.

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Policy Framework

Philippine Disaster Risk Reduction and Management Act (R.A. 10121) Provides for the development of policies and plans and the implementation of actions and measures pertaining to all aspects of disaster risk reduction and management, including good governance, risk assessment and early warning, knowledge building and awareness raising, reducing underlying risk factors, and preparedness for effective response and early recovery

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Policy Framework

Renewable Energy Act of 2008 (R.A. 9513) Accelerate the development of the country’s renewable energy resources by providing fiscal and non-fiscal incentives to private sector investors and equipment manufacturers/fabricators/suppliers

Biofuels Act of 2006 (R.A. 9367) Directs the use of biofuels and reduces dependence on imported fuels with due regard to the protection of public health, the environment, and the natural ecosystems consistent with the country's sustainable economic growth.

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Policy Framework

The Philippine Clean Air Act of 1999 (R.A. 8749) Focuses on pollution prevention rather than on control by encouraging cooperation and self-regulation among citizens and industries. It enforces a system of accountability for adverse environmental impacts to heighten compliance to government environmental regulations.

Solid Waste Management Act of 2000 (R.A. 9003) Reinforces the country's drive towards a healthier environment by providing a comprehensive solution to the country's solid waste problem

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Some indicators before and after the passage of the aforementioned laws

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P Before & After passage of the Biofuels Act of 2006 (RA 9367)

Annual average growth rate (Philippines) Before RA 9367: 7.53% After RA 9367: 1.96% 38,258 39,028 40,234

47,269 48,748 49,329 50,101

96.13

125.28 139.53 145.55 152.84 153.88 158.56

0

100

200

300

1990 1995 2000 2005 2008 2009 2010

-

10,000

20,000

30,000

40,000

50,000

60,000

Global and Philippines' GHG Emmissions, MtCO2

Global Philippines Source of basic data: European Commission, Joint Research Centre (JRC)/PBL Netherlands Environmental Assessment Agency. EDGAR

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Before & After passage of the Renewable Energy Act of 2008 (RA 9513) & Biofuels Act of 2006 (RA 9367)

Annual growth rate (Philippines) Before RA 9513: 6.43% After implementation of RA 9513 & RA9367: 1.38%

38,258 39,028 40,234

47,269 48,748 49,329 50,101

96.13

125.28 139.53 145.55 152.84 153.88 158.56

0

100

200

300

1990 1995 2000 2005 2008 2009 2010

-

10,000

20,000

30,000

40,000

50,000

60,000

Global and Philippines' GHG Emmissions, MtCO2

Global Philippines Source of basic data: European Commission, Joint Research Centre (JRC)/PBL Netherlands Environmental Assessment Agency. EDGAR

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Before & After passage of the Climate Change Act of 2009 (RA No. 9729), Renewable Energy Act of 2008 (RA 9513) & Biofuels Act of 2006

(RA 9367)

Annual growth rate (Philippines) Before RA 9729: 5.38% After implementation of RA 9729, RA 9513 &RA9367: 1.56%

38,258 39,028 40,234

47,269 48,748 49,329 50,101

96.13

125.28 139.53 145.55 152.84 153.88 158.56

0

100

200

300

1990 1995 2000 2005 2008 2009 2010

-

10,000

20,000

30,000

40,000

50,000

60,000

Global and Philippines' GHG Emmissions, MtCO2

Global Philippines Source: European Commission, Joint Research Centre (JRC)/PBL Netherlands Environmental Assessment Agency. EDGAR

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P GHG Emissions of the World, ASEAN Countries and the

Philippines, MtCO2, 1990-2010

Country 1990 1995 2000 2005 2008 2009 2010 Average

Average

Global

Shares (%)

World Total 38,258 39,028 40,234 47,269 48,748 49,329 50,101 44,710 100.00

China 3,870 5,013 5,073 7,853 10,060 10,608 11,182 7,666 17.15

USA 6,115 6,342 6,983 7,082 6,923 6,515 6,715 6,668 14.91

Russia 3,582 2,637 2,647 2,585 2,605 2,481 2,510 2,721 6.09

India 1,376 1,637 1,873 2,128 2,434 2,584 2,692 2,103 4.70

Indonesia 1,161 1,312 1,445 2,884 2,015 2,620 1,946 1,912 4.28

Myanmar 875 943 562 511 340 344 362 562 1.26

Thailand 208 282 283 349 360 362 413 322 0.72

Malaysia 198 252 254 336 334 356 330 294 0.66

Viet Nam 99 121 156 225 258 283 306 207 0.46

Philippines 96 125 140 146 153 154 159 139 0.31

Cambodia 20 21 22 61 172 138 192 89 0.20

Singapore 33 45 48 48 50 47 50 46 0.10

Brunei 18 21 17 23 19 20 20 20 0.04

Top Country Emitters

Southeast Asian Countries

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Year

Renewable Energy Fossil Fuel Total Energy

Supply

(MTOE) MTOE

% share of RE

to Total

MTOE (Local

and

Imported)

% share of

Fossil Fuel

Total

2000 18.32 47.63 20.15 52.37 38.47

2001 16.94 45.85 20.01 54.15 36.95

2002 16.56 44.82 20.39 55.18 36.95

2003 16.22 43.64 20.95 56.36 37.17

2004 16.61 44.39 20.80 55.61 37.41

2005 16.02 42.84 21.38 57.16 37.40

2006 16.77 47.46 18.56 52.54 35.33

2007 16.10 42.92 21.42 57.08 37.52

2008 16.76 42.73 22.46 57.27 39.22

2009 16.30 42.61 21.95 57.39 38.25

2010 15.41 39.23 23.88 60.77 39.29

2011 15.86 39.85 23.94 60.15 39.80

2012 16.22 37.81 26.68 62.19 42.90

Average 16.47 43.21 21.74 56.89 38.20

Source of basic data: DOE

Passage of RA 9513

After passage of the Renewable Energy Act of 2008 (RA 9513)

Share of RE to Total Energy Supply before RA 9513: Declining at 1.29% Share of RE to Total Energy Supply after RA 9513: Declining at 2.88%

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40.3 33.6

5.6 2.8 19

28.4

8.1 16.6

37.5 24.1

26.0 12.3

30.7 34.7 36.4 73.1 39.6

33.7

20.9 15.1 20.5 15.4 25.6

0 10 20 30 40 50 60 70 80 90

100

Philippines Indonesia Malaysia Singapore Thailand Vietnam

Renewable Energy Natural Gas Oil Coal

Source: IEA, 2010

Percentage Distribution of Energy Supply in the ASEAN-6 in 2011 (%)

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Renewable

Energy

Resource

Installed

Capacity

(MW as

of 2010)

Target Capacity Addition Total Capacity

Addition

2011-2030

(MW)

Total Installed

Capacity

by 2030 (MW) 2015 2020 2025 2030

Hydro 3,400.0 341.3 3,161.0 1,891.8 - 5,394.1 8,724.1

Geothermal 1,966.0 220.0 1,100.0 95.0 80.0 1,495.0 3,461.0

Biomass 39.0 276.7 - - - 276.7 315.7

Wind 33.0 1,048.0 855.0 442.0 - 2,345.0 2,378.0

Solar 1.0 269.0 5.0 5.0 5.0 284.0 285.0

Ocean - - 35.5 35.0 - 70.5 70.5

TOTAL 5,439.0 2,155.0 5,156.5 2,468.8 85.0 9,865.3 15,234.3

Source:DOE

National Renewable Energy Program (Installation Targets)

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Challenges

On Climate Change & Disaster Risk POLICY

Lack of synergy & consistency between/across national sector (e.g. PDP and KRAs) and local sector policies;

Lack of national land use policy that supports climate

change adaptation and mitigation.

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Challenges

On Climate Change & Disaster Risk PLANS/MONITORING

Absence of an integrated approach to climate change adaptation (CCA) and disaster risk reduction and management (DRRM);

Partial alignment of the national, departmental, and local development plans and policies with the National Climate Change Action Plan (NCCAP)

Regular inventory of greenhouse gases (GHG)

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Challenges

On Climate Change & Disaster Risk INSTITUTIONS

Absence of department-like entity that spearheads the response to climate change and disaster risk;

Overlaps in management roles between oversight agencies and coordination synergies between departments;

Disparities in LGUs fiscal and management capacity to deal with CC aspects

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Challenges

On Climate Change & Disaster Risk

FINANCING - Differences in the classification of climate PAPs hinders climate

budget planning & prioritization - Overall climate appropriations is low compared to international

standards - No formal accounting of climate finance adaptation and mitigation - Difficulty in identifying and tracking CC related expenditures in the

national budget or special accounts/funds and options to introduce a coding system for CC expenditures

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Challenges

On Renewable Energy High cost of renewable energy development due

to limited number of local manufacturers, fabricators and suppliers of renewable energy equipment and components which are mainly imported

Limited options to optimize the development of resources because of a lack of an up-to-date database on renewable energy resources

Limited infrastructure support (i.e., transmission lines and submarine cables);

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Challenges

On Renewable Energy

Lack of capacity-building and training opportunities to enhance technical capabilities of stakeholders and potential developers

Need for stronger research and development (R&D) on renewable energy

Limited information and education campaign activities on renewable energy that includes advocacy on its benefits (PDP 2011-2016).

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Continuing efforts towards achieving low carbon are manifested in the proposed bills that are pending in the

Senate (with latest status)

• Energy Efficiency and Conservation bills: • SBN 167 (Energy Efficiency and Conservation Act of 2013) by Sen. Osmeña • SBN 1085 (Energy Efficiency and Conservation Act of 2013) by Sen. Guingona • SBN 1492 (Energy-Efficient Lighting Products Act of 2013) by Sen. Ejercito • Status of the bills: • Pending in the Committee on Energy (No Public Hearing conducted yet as of date) • • Other pertinent energy bills: • SBN 164 (Electric, Hybrid and Other Alternative Fuel Vehicles Incentives Act of 2013) by Sen. Trillanes • SBN 232 (Petroleum Exploration and Development Act of 2013) by Sen. Binay • SBN 255 (Electric, Hybrid and Other Clean Energy Vehicles Incentives Act of 2013) by Sen. Recto • SBN 408 (Hydrogen Research, Promotion and Development Act) by Sen. Marcos • SBN 410 (Philippine Green Building Act) by Sen. Marcos • SBN 566 (Philippine Solar Initiative Commission Act) by Sen. Santiago • SBN 580 (Bataan Nuclear Power Plant Operability Act) by Sen. Santiago • SBN 645 (Ocean Energy Development Authority) by Sen. Trillanes • SBN 646 (Wind Energy Development Authority) by Sen. Trillanes • SBN 647 (Solar Energy Development Authority) by Sen. Trillanes • SBN 792 (Waste-to-Energy Technology) by Sen. Trillanes • SBN 806 (Government Buildings Energy Cost Reduction Act of 2013) by Sen. Trillanes • SBN 977 (Bicol Power Act of 2013) by Sen. Estrada • Status of the bills: • Pending in the Committee on Energy (No Public Hearing conducted yet as of date)

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Pending bills in the Senate & their status

• Biofuels bill:

• SBN 2622 (Amending the Biofuels Act of 2006) by Sen. Osmeña, introducing a single line amendment to the Biofuels Act which would put this into effect. The Committee believes that although this would result in a net addition of only 80 MW to the Luzon capacity, it would still be helpful given the tightness of supply in the grid.

• Status of the bill:

• Pending in the Committee on Energy with one public hearing conducted last February 9, 2015

• Electricity rate reduction bills:

• SBN 52 (Reduction of Electricity Rates Through the Utilization of the Government Share in the Discovery, Exploration, Development and/or Production of Indigenous Sources of Energy for the Purpose of Lowering the Cost of Electricity) by Sen. Enrile

• SBN 222 (Electricity Rate Reduction Act of 2013) by Sen. Ejercito

• SBN 465 (Reducing Electricity Rates by Allocating the Net National Government Share from Malampaya Natural Gas Project for the Payment of the Stranded Contract Costs and Stranded Debts of the National Power Corporation) by Sen. Recto

• Status of the bills:

• Pending in the Committee on Energy (No Public Hearing conducted yet as of date)

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What’s next?

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• Encourage greater investment in infrastructure particularly in transportation and energy systems particularly on renewable sources to eventually lower the transition cost to a low carbon economy & secure jobs for people in less developed regions in the country & achieve a sustained economic growth;

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• Pass laws that will allow better management of the country’s natural resources especially on land efficiencies;

• Be more pro-active in pushing for reforms that will significantly contribute to reducing GHG emissions in the country even if it is still considered a net emitter of GHG as present;

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