1、PartnersRenewable Energy to Responsible Energy:A Call to ActionRenewable energy to responsible energy:A call to actionForewordAbbreviationsAbout the Responsible Energy InitiativeAbout the ReportSECTION 1|The energy transition in the PhilippinesThe energy transition in the PhilippinesThe current poli
2、cy landscapeFinancing the energy transitionin the PhilippinesAn evolving RE market in the PhilippinesScaling RE in an ecologically safe and socially just waySECTION 2|Shaping an ecologically safe and socially just renewable energy system in the Philippines:Impacts and governanceKey ecological and so
3、cial risks across mainstream RE technologies Current governance landscape for ecological and social impacts relating to RE production and deploymentCorporate governance mechanisms for addressing ecological and social impacts in the RE sectorCivic governance of the RE sector SECTION 3|Overview of the
4、 key ecological and social impacts of RE technologies produced and deployed in the PhilippinesThe Finititude,Fragility and Fairness FrameworkSolarFloating solarOnshore windOffshore windEnergy storage systemsSmall and mini hydroSECTION 4|A way forward towardsan ecologically safe and socially just RE
5、sectorA way forward towards an ecologically safe and socially just RE sectorNext stepsAcknowledgementsAbout the partners.3.4.5.7.8.21.42.70.74.75Renewable energy to responsible energy:A call to action|2Current climate scenarios strongly indicate that we are at increasing risk of crossing the 1.5C th
6、reshold on planetary warming by 2030,1 which will cause a significant rise in climate-related disasters.The Philippinesalready one of the countries in the world that is highly vulnerable to climate-induced disastersis taking decisive steps to counter this reality by setting targets to accelerate the
7、 shift towards an energy system where renewable energy is a major part of the mix.The benefits of renewable energy are well recognized:the sector plays a vital role in mitigating carbon dioxide emissions,enhancing energy security,expanding energy access,creating jobs and livelihoods,and reducing pol
8、lution stemming from electricity generation.Nevertheless,as the sector continues to scale rapidly,there is a need for it to uphold the highest standards of social and environmental responsibility throughout its value chain.The Responsible Energy Initiative Philippines:Case for Action report provides
9、 a situational analysis of where there are risks of adverse ecological and social impacts in utility-scale renewable energy value chains,how such risks are currently being managed,and where there is potential for renewable energy system actors to take collaborative action to create the requisite nor
10、ms for responsible practices.We invite you to participate in the Responsible Energy Initiative Philippines and play an important part in ensuring a just transition towards a responsible renewable energy system:one that is ecologically safe,socially just and resilient to serve future generations to c
11、ome.Angelo Kairos T.dela CruzExecutive Director Institute for Climate and Sustainable CitiesForewordErika GeronimoExecutive Director Oxfam PilipinasMaris CardenasExecutive Director Center for Empowerment,iNnovation and Training on Renewable Energy(CentRE)Phil BloomerExecutive Director Business&Human
12、 Rights Resource CentreMarie SchroeterResident RepresentativeFriedrich-Ebert-Stiftung PhilippinesSumi DhanarajanManaging DirectorForum for the FutureRenewable energy to responsible energy:A call to action|3ADB:Asian Development BankCADT:Certificate of Ancestral Domain TitlesCARP:Comprehensive Agrari
13、an Reform Program CREZ:Competitive Renewable Energy ZonesDENR:Department of Environment and Natural Resources DOE:Department of EnergyECC:Environmental Compliance Certificates EIA:Environmental Impact AssessmentERC:Energy Regulatory Commission ESG:Environmental,Social and GovernanceESIA:Environmenta
14、l and Social Impact AssessmentETC:Energy Transition CouncilsETM:Energy Transition MechanismsEVOSS:Energy Virtual One Stop Shop FPIC:Free,Prior and Informed ConsentGEAP:Green Energy Auction Program GEOP:Green Energy Option Program GHG:Greenhouse Gas EmissionsGW:GigawattIFC:International Finance Corpo
15、rationIPRA:Indigenous Peoples Rights Act IUCN:International Union for Conservation of Nature KWh:Kilowatt hour LGU:Local Government UnitMDB:Multilateral,bilateral and development financing MW:MegawattMWh:Megawatt hourNREB:National Renewable Energy BoardNREP:National Renewable Energy ProgramOHS:Occup
16、ational Health and SafetyPHP:Philippine PesoRE:Renewable EnergyREC:Renewable Energy CertificateREMB:Renewable Energy Management Bureau RETF:Renewable Energy Trust Fund RSP:Renewable Portfolio Standards SEC:Securities and Exchange Commission SHP:Small Hydro PowerSIA:Social Impact AssessmentAbbreviati
17、onsRenewable energy to responsible energy:A call to action|4The Responsible Energy Initiative Philippines(REI PH)is a multi-year program committed to advancing a just and regenerative adoption of renewable energy in the Philippines.It strives to unlock the full potential of the energy transition in
18、the nation to create a truly ecologically and socially responsible energy system for the betterment of both humanity and the planet.Achieving this outcome requires RE actors to recognize and act on the environmental and social risks in the production and deployment of utility-scale RE.In 2023,the In
19、stitute for Climate and Sustainable Cities,Oxfam Pilipinas,Friedrich-Ebert-Stiftung Philippines,Forum for the Future,the Center for Empowerment,Innovation and Training on Renewable Energy(CentRE)and the Business&Human Rights Resource Centre joined hands as Consortium Partners to launch REI PH.The ch
20、oice to initiate REI in the Philippines as the second country program following the launch in India in 2021 recognized the clear potential the country offered to shapeand role modelwhat an ecologically safe and socially just energy transition can look like.The nation is sending strong policy signals
21、 of an accelerated transition trajectoryits Paris Agreement commitments of a 75%reduction in greenhouse gas(GHG)emissions against a projected business-as-usual pathway by 2030 and its aim to peak emissions within the same timeline,2 as well as its recent pledge at COP28 to triple the worlds renewabl
22、e energy capacity and double energy efficiency3 speaks to this.Its RE market is maturing and is likely to be confronting ecological and social imperatives as production and deployment scales.These factors,together with the deep ground-up expertise and commitment of civil society to just energy trans
23、ition principles,provide the foundations for REI to contribute optimally to achieving impact within the Philippines,and to building an understanding of what actions are needed to shape the clean energy transitions in other Southeast Asian countries.About the Responsible Energy InitiativeRenewable en
24、ergy to responsible energy:A call to action|5REI PH serves as a collaborative platform,uniting industry,finance,civil society and policymakers in the Philippines renewable energy system to collectively shape a responsible future energy system.Its program of activities is designed to support particip
25、ants in innovating and adopting business models,financing frameworks and value chain relationships that create the conditions to achieve this goal.Employing a range of systems design and futures-thinking frameworks,participants engage in a unique systems thinking,futures-led inquiry process that bui
26、lds their capacity to:Understand and identify where and how to intervene in order to achieve an ecologically safe and socially just energy transition;Design a future-fit and resilient renewable energy system through long-term thinking and anticipatory governance approaches;Frame a shared vision and
27、set of responsible renewable energy principles that inspire and motivate other actors to adopt and implement;and Prototype interventions that have the potential to systemically translate the principles into action.A responsible renewable energy system Supports life,meets the needs of everyone in soc
28、iety to thrive,creates value fairly and operates in harmony with nature and within planetary boundaries.Enables the capacity of social and environmental systems to adapt to and address future ecological and social disruptors.Addresses the rootcauses of todays biggestchallengesthe climate emergency,n
29、ature in crisis and mounting inequalityby reconfiguring the energy system towards restoring and replenishing ecosystems while promoting dignity,fulfilment and equity for everyone.Renewable energy to responsible energy:A call to action|6This report aims to provide a broad understanding of the ecologi
30、cal and social impacts being generated byand anticipated through the future growth ofutility-scale RE in the Philippines,sharing insights into how they are currently being governed,managed and mitigated by public and private sector actors within the RE system.It presents a case for action to RE deve
31、lopers,investors,financiers,procurers,policy-makers and civil society to collaboratively set a new direction for creating a fast and fair energy transition in the Philippines.It intends to set the foundation for a deeper collective inquiry into the systemic barriers and opportunities for unlocking t
32、he RE sectors full and unique potential to bring about change.This reports insights are the result of a literature review,semi-structured interviews with stakeholders from the industry,the financial sector,civil society and government,and on-site visits.It has also benefited from an expert panels re
33、view.The technologies we focus onThere is a specific focus on utility-scale RE technologies,given their prevalence in the Philippines energy landscape and recognizing that ecological and social impacts emanating from the production and deployment of energy by these means will require management at s
34、cale.In particular,this report looks at:Established technologiesrapidly expanding and being mainstreamed with an established ecosystem(onshore wind,large-scale ground-mounted solar PV,and mini and micro hydro);Technologies that are established elsewhere globally,but only developing and likely to sca
35、le significantly in the next 5-10 years in the Philippines(offshore wind);New technologiespossible future sources or carriers that are still at the conceptual and trial stages(floating solar PV);and Storage technologiesrequired to address the intermittency of some RE(Battery Energy Storage Systems).
36、About the ReportRenewable energy to responsible energy:A call to action|7SECTION 1The energy transitionin the PhilippinesScaling renewable energy(RE)is critical to achieving a rapid decarbonization of the energy production system.RE also has the potential to dramatically expand access to affordable,
37、clean energy,reduce air pollution,create jobs and build future resilience.For these reasons,UN Secretary-General Antnio Guterres refers to the RE transformation as having the potential to be“the peace project of the 21st century.”4 As the RE sector expands however,we are learning to give acute atten
38、tion to managing the environmental and social impacts generated throughout the sectors value chain.Key challenges include the livelihood threats to marginalized communities,escalating volume of hard-to-manage waste from decommissioned solar panels and wind turbines,a shortage of transparency and acc
39、ountability in the wider supply chain,and growing concerns about land availability and its impact on biodiversity.A heightened focus on environmental and social impact within the industry is pivotal for advancing renewables.Failure to do so risks RE deployment slowing down,jeopardizing our shared cl
40、imate ambitions and our collective response to a warming planet.As utility-scale RE begins to scale in the Philippines,there is a clear case for action to proactively integrate policies,practices,norms,and behaviors that enable the RE system to anticipate and respond responsibly to its ecological an
41、d social impacts.History provides numerous instances where unchecked growth has led to extractive and exclusionary practices in various sectors.The RE sector can learn from these and act in ways that ensure the energy transition unlocks its full potential,leveraging this opportunity to drive sustain
42、able economic development,and transform the energy system towards one that is regenerative,inclusive,ecologically safe and socially just.Renewable energy to responsible energy:A call to action|9Over the last 15 years,the Philippines has made steady efforts to increase the uptake of RE.At the heart o
43、f this momentum is the nations vulnerabilities to the climate crises.5 Multiple hydrometeorological hazards facing the Philippines such as extreme rainfall,storm surges,floods,drought and extreme heat are projected to intensify under business-as-usual climate scenarios.6 These impacts already contri
44、bute to annual losses in gross domestic product(GDP),with projections from the World Bank estimating that the economic damage of climate change to the Philippines could reach up to 7.6%of its GDP by 2030,and 13.6%by 2040 due to climate change risks.7 Recognizing these risks,the Philippines has commi
45、tted to a 75%reduction in GHG emissions against a projected business-as-usual pathway by 2030,as well as its aim to peak emissions within the same timeline.8 At the recent COP28,the Philippines signed the Global Renewables and Energy Efficiency Pledge to triple the worlds RE capacity and double ener
46、gy efficiency.9 It is against this policy backdrop that the Philippines has,over the last 15 years,focused on building a RE system by introducing tax incentives and feed-in tariffs of development and use,and stimulating investments via various instruments.10 Alongside the climate agenda,these key fa
47、ctors are driving the energy transition in the PhilippinesCurrent dependence on fossil fuelsThe current reliance on fossil fuels is a major contributor to the Philippines GHG emissions,with more than half of GHG emissions coming from the energy sector.11 Within the Philippines,coal-based generation
48、dominates the power mix,contributing over 50%of generation(See Figure 1).While its share is expected to decline to 24%by 2040,gas is currently projected to play an increasing role as a transition fuel and contribute 26%of the power mix.More than half of the countrys power generation is,however,based
49、 on imported fuels.12 As a net importer of energy,there is comparatively more impetus for the Philippines to sunset fossil fuels than its neighboring countries that are producers and net exporters of carbon-intensive energy sources.The imperative for the Philippines to accelerate the transition to R
50、E became especially apparent over the course of the COVID-19 pandemic and the Russia-Ukraine war.Both events highlighted the value of RE as an indigenous resource that is less susceptible to logistical disruptions.The Philippines emphasis on RE is thus significantly driven by its desire to enhance e
51、nergy securityparticularly given the rising cost of oil.13The energy transition in the PhilippinesRenewable energy to responsible energy:A call to action|10Source:Ember Electricity Data ExplorerWindSolarBioenergyOther renewablesHydroNuclearOther fossilGasCoalPhilippines electricity generation by sou
52、rce(TWh)Tackling energy affordabilityHouseholds in the Philippines pay among the highest rate per kilowatt-hour(KWh)in the ASEAN region.15 A weakening peso continues to worsen the situation,with power rates reaching as high as PHP 21 per KWh(USD 0.4)for consumers,many of them poor households in rura
53、l provinces.16 Given the global decline in costs associated with the deployment and integration of solar and wind power,it is anticipated that a cleaner energy future will be more cost-effective.A study by the Institute for Energy Economics and Financial Analysis(IEEFA)has shown that greater adoptio
54、n of RE sources in the Philippines could translate to a 30%discount in electricity prices.17 FIGURE 12000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 1251007550250Renewable energy to responsible energy:A call to action|11Future proofing the energy mixIn its concerted effort to boost energ
55、y security while reducing its dependence on fossil fuels,the Philippines proposed its National Renewable Energy Program(NREP)for years 2020 to 2040.The NREP has set a target to increase the share of renewables from approximately 23%at present to 35%of the power mix by 2030 and 50%by 2040.Its ambitio
56、us project development pipeline,which foresees a 15-fold boost in combined solar and wind power by 2030,places the Philippines in pole position to potentially leapfrog Vietnam as the main RE producer in Southeast Asia(see Figure 3).18 Hydro is also expected to contribute a fair share to the power mi
57、x,while geothermal is expected to see little new capacity addition due to high exploration costs and other risks.Beyond this,the Philippines has indicated interest to explore the potential of ocean and tidal stream energy and examine the viability of hydrogen,but is at an extremely early stage of te
58、chnical studies.19Peak Demand Existing Capacity Committed CapacityNew BiomassNew natural gasNew SolarNew WindNew GeothermalNew HydroCumulative New RE20210 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 MW2025Peak Demand Existing Capacity Committed CapacityNew BiomassNew natur
59、al gasNew SolarNew WindNew GeothermalNew HydroCumulative New RE20252030Peak Demand Existing Capacity Committed CapacityNew BiomassNew natural gasNew SolarNew WindNew GeothermalNew HydroCumulative New RE2030Peak Demand Existing Capacity Committed CapacityNew BiomassNew natural gasNew SolarNew WindNew
60、 GeothermalNew HydroCumulative New RE20350100,00090,00080,00070,00060,00050,00040,00030,00020,00010,000110,0002040Peak Demand Existing Capacity Committed CapacityNew BiomassNew natural gasNew SolarNew WindNew GeothermalNew HydroCumulative New RE2040Existing capacityCommitted capacityNew biomassNew n
61、atural gasNew solarNew windNew geothermalNew hydroCumulative REPeak demandRE Outlook,2021-2040Source:Asia Clean Energy ForumFIGURE 2Renewable energy to responsible energy:A call to action|1220302028202620242022202020182016201420122010080006000400020002010 2012 2014 2016 2018 2020 2022 2024 2026 2028
62、 203020004000600080000MW203020282026202420222020201820162014201220100500040003000200010002010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030200030004000500001000MWRenewable Energy PipelinesThe Philippines has the largest renewable energy development pipeline in Southeast Asia.The country plans to
63、 add 17,809 MW of solar and 7,847 MW of wind power by 2030.Planned solar capacity additions in Southeast AsiaPlanned wind capacity additions in Southeast AsiaTotal solar and wind capacityby 2030(in MW)Source:Global Energy MonitorPhilippinesVietnamIndonesiaLaosMalaysiaCambodiaThailandSingaporeMyanmar
64、020,00010,000500025,00015,000IndonesiaLaosMalaysiaThailandSingaporeMyanmarCambodiaVietnamPhilippines0500010000150002000025000FIGURE 3Renewable energy to responsible energy:A call to action|13The NREP defines the renewable transition pathways,identifying policies and programs required to build the RE
65、 market,the necessary enabling regulatory environment and strategies to support access to energy and livelihoods in the transition and outlines specific programs in offshore wind,waste-to-energy,expanded rooftop solar and geothermal generation,as well as plans to develop new renewable technologies i
66、n hydrogen and ocean and tidal stream energy.20 To support the achievement of these targets,a range of policies and incentives have been introduced to enable RE sector growth.As early as 2008,the Philippine government introduced the Renewable Energy Act(RA 9513),which is considered to be the first c
67、omprehensive legislation on RE in Southeast Asia.21 The Act was introduced to promote the development,utilization and commercialization of RE resources,including but not limited to biomass,solar,wind,hydro,geothermal and ocean energy resources.22 A number of institutions support policy-making and im
68、plementation on the energy transition.The DOE is the primary government agency responsible for formulating and implementing policies,plans,programs,and regulations relating to energy resources,including RE.It receives support The current policy landscapefrom a range of other institutions including t
69、he Renewable Energy Management Bureau(REMB),which manages the countrys RE program and the National Renewable Energy Board(NREB),which provides advice on policies and programs,as well as coordinates with other government agencies and stakeholders to promote the development of RE in the country.The En
70、ergy Regulatory Commission(ERC)regulates and supervises the power industrys activities,including the generation and distribution sectors.The ERC is responsible for ensuring that all players in the industry comply with the relevant regulations and standards,and it approves rates and charges for elect
71、ricity.As part of its mandate to manage and conserve the countrys natural resources,the Department of Environment and Natural Resources(DENR)is responsible for issuing Environmental Compliance Certificates(ECC),which are required prior to any development on project sites.Provincial and municipal gov
72、ernments may set additional regulations and policies for developing RE projects within their jurisdictions,such as zoning regulations for RE facilities,environmental standards for RE projects,and incentives for RE investments.These need to be compliant with national laws and regulations and the nati
73、onal government has the ultimate authority to approve or disapprove RE projects.Parliamentary oversight comes through the House of Representatives and Senate Committees on Energy,both of whom have jurisdiction over matters directly and principally relating to the exploration,development,utilization,
74、or conservation of energy resources and entities involved in energy or power generation,transmission,distribution,and supply.A variety of policy instruments and bodies have also been introduced to create the infrastructure for market actors to enter the RE market in the Philippines.These are summari
75、zed in Table 1.Renewable energy to responsible energy:A call to action|14CREZ have been identified to facilitate proactive transmission planning by identifying areas with the most economically viable RE resources.Competitive Renewable Energy Zones(CREZ)ETC have been established in specific cities th
76、at work to identify opportunities for RE projects,engage with stakeholders,and develop policies to support the transition to clean energy.Energy Transition Councils(ETC)EVOSS platform additionally facilitates the submission,processing,monitoring,and approval of energy project permits.Currently,most
77、DOE permits and endorsements for RE projects are lodged in the EVOSS,while the National Electrification Administration(NEA),National Power Corporation(NPC),and TRANSCO have also included some of their processes in the EVOSS.A web-based Energy Virtual One Stop Shop(EVOSS)GEAP is a government-led mech
78、anism that aims to promote the development of RE projects in the Philippines by encouraging private sector participation through a competitive bidding process.It plays an important role in promoting the development of the RE sector in the Philippines by providing a market-based mechanism for project
79、 financing and incentivizing the adoption of sustainable practices throughout the life cycle of the project.The Green Energy Auction Program(GEAP)GEOP is a voluntary program under the Renewable Energy Act of 2008 that aims to increase demand for RE.It allows electricity consumers with an average pea
80、k demand of 100kW for the past 12 months to source directly from RE power suppliers.Suppliers are also required to offer a green energy option to customers,with incentives for those that offer a higher percentage of RE.The Green Energy Option Program(GEOP)The“green lanes initiative accelerates appro
81、val of licenses and permits for strategic investments.This includes mining for transition minerals,as well as clean energy projects.This initiative is expected to help the country seize USD 64 billion in investment leads from Singapore,Indonesia,the United States,Japan,China,Thailand and Europe.As o
82、f November 2023,11 RE projects have been approved under this initiative.Green lanes initiativeThe RETF,established as part of the RE Act of 2008,supports research,development,demonstration,and promotion of the widespread and productive use of RE for power.The fund is sustained by various sources inc
83、luding emission fees,contributions from government institutions,percentages,proceeds from penalties imposed under the RE Law,and is overseen by a committee chaired by a DOE undersecretary.Renewable Energy Trust Fund(RETF)RPS mandate electricity suppliers to source a specific percentage of their elec
84、tricity from renewable sources.Initially set at 1%of net electricity sales,it has been raised to 2.52%from 2023 onwards.The aspirational RPS target is 35%by 2030.A Renewable Energy Market has also been established where Renewable Energy Certificates(RECs)can be traded,to help mandated electricity su
85、ppliers achieve their RPS requirements.Renewable Portfolio Standards(RPS)Table 1.Regulatory instruments and bodies that support renewable energy advancement in the PhilippinesRenewable energy to responsible energy:A call to action|15As the structures are being put in place to enable accelerated grow
86、th of the RE market,there is a need to ensure that environmental and social impact imperatives are paid attention to.For instance,the issuance of Executive Order 18 in February 2023,Constituting Green Lanes for Strategic Investmentsdesigned to speed up the process of approving licenses and permits f
87、or strategic investments in clean energy and other sectorshas raised concerns that fast-tracking may hinder the ability for communities to highlight environmental or social risks.23 An approach that balances fairness,accessibility,and resilience along with the need for swift renewables expansion ens
88、ures that the energy transition not only progresses swiftly,but also fosters an equitable landscape for all stakeholders involved.Financing the energy transition in the PhilippinesThe Philippines,like most Southeast Asian countries,currently faces a significant infrastructure financing gap that need
89、s to be closed if the region is to simultaneously ensure its own sustainable economic expansion and a much-needed deep transformation of its energy systems.The current national fiscal budget deficit at 21.2%in the first half of 202324 and the countrys outstanding debt rose to PHP 13.2 trillion(USD 2
90、37 billion)as of June 202225 will impact the countrys ability to adequately invest in its energy transition.Notwithstanding these limitations,the International Renewable Energy Agency(IRENA)observes that the Philippines has been taking positive steps in using public finance to promote the use of RE,
91、encourage energy efficiency and mitigate climate change.In 2023,the central bank,BSP,proposed a new set of incentives as part of its 11-point Sustainable Central Banking(SCB)strategy,which seeks to scale up sustainable financeincluding transition activities to decarbonizationthrough integration of s
92、ustainability principles throughout the central banks key operations.26 This development is important since government and central bank backing of sustainability assets,through direct investment,policy,or regulatory incentives will help increase penetration of sustainability assets across the invest
93、ment landscape,thus providing alternative instruments with which investors can diversify their portfolios.The government has also formed public-private partnerships to finance green infrastructure through mechanisms such as the Clean Energy Finance Investment Mobilization Program,together with the u
94、se of instruments such as green debt,equity,and credit enhancement mechanisms(e.g.credit guarantees).27 This can help increase investor appetite by removing regulatory barriers,providing risk mitigation and incentives,to unlock the immense potential of private financing.Innovations such as the Energ
95、y Transition Mechanisms(ETM)leverage the power of blended finance to accelerate much needed retirement or repurpose of coal-fired power plants in the transition to a greener economy.28 The power of such mechanisms lies in their scalability and replicability.Renewable energy to responsible energy:A c
96、all to action|16As it currently stands,multilateral,bilateral and development financing(MDB)is the main source of financial intermediation and credit in the RE sector in the Philippines,providing the much-needed capital where it is unavailable locally,as well as signalling the viability and creditwo
97、rthiness of RE projects to attract private investment into the sector.The Asian Development Bank(ADB)has made over USD 31 billion in cumulative commitments to the country as of 2022,of which USD 3.7 billion has been directed to the energy sector in project and technical assistance(12%of total).29Fur
98、ther,programs such as the UNs Framework Convention on Climate Change Sustainable Energy Finance(SEF),implemented by the IFC in the Philippines,30 are designed to increase private sector investment in sustainable energy projects including energy efficiency and RE projects.31 Two of the largest univer
99、sal banks in the PhilippinesBDO Unibank and BPIhave leveraged the SEF program.By the end of the SEF II program that ran from 20092015,193 project loans were financed,with disbursement of USD 880 million,USD 3.02 billion of finance facilitated and 446 projects in the pipeline with 3.83 million megawa
100、tt hours(MWh)of energy produced through RE projects.In addition to MDB support,public financing in developing nations such as the Philippines has come through various multilateral and bilateral agreements including from China,its largest trade partner.32Private sector financing is essential in closi
101、ng this gap,given the public sectors constraints in relation to available funding as well as in effective and efficient capital allocation.As the Philippines financial system is primarily bank-based rather than capital-market based,debt rather than equity financing is likely to play a bigger role fo
102、r the time being.33 With the current administration signaling the energy transition as a policy priority,there has been an observable lift in loans for RE project.34 For example,LANDBANK recently greenlit a PHP 20 billion(USD 360 million)loan to ACEN to partially finance the firms general corporate
103、requirements and investments in RE projects.35 Earlier in 2023,ACEN also secured a PHP 5 billion(USD 121 million)loan from Metrobank to expand its RE projects.There has also been increasing commercial bank participation in the bond market,with the Bank of Philippines Islands issuing three green bond
104、s since 2018,with continued support from IFCs Sustainable Energy Finance(SEF)program.As of August 2020,over USD 2.5 billion worth of green bonds had been issued,with most of the proceeds allocated to RE.36Renewable energy to responsible energy:A call to action|17A major challenge standing in the way
105、 of increasing private funding support for RE development is the financial sectors reluctance to invest,due to perceptions of the RE sector being high-risk with low returns because of the unpredictability of the project pipeline(given requirements on regulatory approval and the heterogeneous nature
106、of the sector);the relative newness of technologies and challenges in accurately valuing projects;and the reliance on foreign contractors for knowledge transfer of RE development,which then increases costs.However,investors are now starting to enter the RE market in the Philippines.37 In BloombergNE
107、Fs 2023 annual assessment of individual markets progress in the energy transition,the Philippines came in fourth among the ten most attractive development economies for clean energy investment.The assessment cited how the market has run two RE auctions,has a supportive environment in place,and inclu
108、des an ambitious offshore wind roadmap,as factors in its placement.38 Spurred on by the change towards 100%foreign ownership,foreign direct investment(FDI)will also play a significant role in driving growth.The Board of Investments(BOI)has already approved a record amount of investment from foreign
109、sources in the first five months of 2023,with PHP 532 billion(USD 9.6 billion)in investment pledges approvedmore than double that of 2022.39 Nine Chinese energy companies,including state-owned China Energy Group and wind turbine manufacturer Mingyang Wind Power,are set to move into the Philippines w
110、ith a total investment pledge of USD 13.7 billion.40 Danish firm Copenhagen Infrastructure Partners(CIP)is investing USD 5 billion to develop three offshore wind energy projects in the Philippines with a potential capacity of 2,000 MW.41 Other financial instruments that are bringing greater liquidit
111、y and access to capital for the RE sector include Citicores Energy Real Estate Investment Trust(C-REIT),42 which allows retail investors,with traditionally lower risk appetites,to access and invest in the RE sector.FIGURE 4Renewable energy to responsible energy:A call to action|18Government of the P
112、hilippinesUSD 1 billionFund the Philippines climate mitigation programs in support of the clean energy transition of developing countries under the Paris AgreementBDO Unibank,Inc.(BDO)USD 150 millionFund sustainable energy projects(i.e.biomass,mini hydro,and wind energy projects)Bank of the Philippi
113、ne Islands(BPI)USD 413 million fundFund RE projectsSource:Ember Electricity Data Explorer,ember-climate.orgRevenues raised by the Philippines from select green bondsAn evolving RE market in the PhilippinesSeveral notable drivers and barriers are shaping the trajectory of the RE market in the Philipp
114、ines.The maturity of the RE market in the Philippines relative to other ASEAN marketscoupled with recent government initiatives to incentivize utility-scale solar and wind projectshas contributed to a favorable environment for market formation and stabilization,particularly for these technologies.Wh
115、ile traditional fossil fuel companies(such as AboitizPower and Shell),as well as mining companies(such as Nickel Asia Corp.and Atok-Big Wedge)are building RE portfolios,the emergence of publicly listed pure-play RE developers in the Philippines is becoming an important driver of growth in the sector
116、.Most notably,Solar Philippines founded in 2013 has grown to be one of Philippines largest solar power companies.It aims to develop 10 gigawatts(GW)of solar by 2025.43 Other companies such as CleanTech Global Renewables,Alternergy,Citicore Power are also developing pure RE offerings in solar,onshore
117、 and offshore wind,and run-of-river hydro.According to IEEFA,one factor driving growth is investor willingness to place a higher value on RE pure plays rather than on traditional utilities in the Philippines based on the tremendous growth firms such as Solar Philippines and ACEN Corporation have sho
118、wn in the past five years in comparison to firms with that still have non-renewables in their portfolio.44 There are however continuing barriers to the acceleration of utility-scale RE in the Philippines.Developers continue to cite the protracted permitting processes as a hurdle.Additionally,unattra
119、ctive tariffs are also seen as a challenge.At the latest GEAP(See Table 1)in July 2023,more than 8,000 MW of renewable energy went unsubscribed.45 Recognizing this challenge,policy-makers are considering revising and reevaluating tariff structures to be more reflective of the market conditions and t
120、he long-term benefits of RE.What remains crucial however is that safeguarding processes be respected and upheld alongside greater efficiency.46 Corporate procurement of RE is a growing trend in the Philippines.Several companies with local operations in the Philippines are members of RE100 and REPH10
121、0,committing to become 100%renewable.Furthermore,the Green Energy Option Program(GEOP)facilitates voluntary participation of industries with an average peak demand of at least 100kW in directly sourcing RE from licensed providers(See Table 1).The Clean Energy Demand Initiative(CEDI)also has the pote
122、ntial to unlock more than USD 2 billion in private sector investment in power infrastructure in the Philippines by leveraging corporate clean energy commitments from a range of multinationals.47 Additional momentum is expected with the formation of the Asia Clean Energy Coalition(ACEC),a body establ
123、ished in 2022 to convene Renewable energy to responsible energy:A call to action|19Scaling RE in an ecologically safe and socially just wayworld-leading RE buyers in Asiain collaboration with sellers and financiersto strategically shift policy in key Asian national and regional markets.48 The Net Ze
124、ro Carbon Alliance,a consortium of Philippine enterprises,also seeks to engage the private sector in the Philippines to achieve net zero by 2050.49 RE manufacturing is still nascent in the Philippines,with only a handful of companies currently operating in the country.Solar Philippines officially op
125、ened the countrys first PV module plant in 2017,with the aim of exporting to the US and European markets in cooperation with several undisclosed Chinese companies.50 SunPower,in turn,manufactures cells and has operated in the Philippines since 2004.51 While the dependence on imports creates supply c
126、hain challenges,the ADB has noted more generally that solar panel PV demand in the Philippines is mainly hindered by its grid infrastructure.52 Similarly,while there is currently no domestic wind manufacturing in the Philippines,initiatives have been put into place by the Philippine Council for Indu
127、stry,Energy and Emerging Technology Research and Development to provide local support for training,resource assessment,repair,maintenance,design and fabrication of small-scale wind turbine prototypes.53 There is a compelling case to support a fast transition away from fossil fuel use in the Philippi
128、nes towards renewables,and action is clearly being taken to achieve this.As production and deployment of utility-scale RE scales in the Philippines,risks of ecological and social impacts are likely to amplify.The need to pay attention to this phenomenon is important but to date,the well-recognized p
129、ositive impacts of RE deployment in relation to decarbonization has meant that RE is usually seen as“ESG-friendly”and not requiring further scrutiny.Yet,in many ways,the RE sectors value chain shares the same range of environmental and social risks as other infrastructure sectors.54 From the mining
130、of critical minerals,to decommissioning,a range of complex ecological and social impacts resulting or relating to land use changes,production and manufacturing,equitable access to energy and waste are showing up across the world.With this context in mind,the next section provides insights into the e
131、cological and social impacts associated with the production and deployment of utility-scale RE in the Philippines,and the current governance mechanisms at play to anticipate and respond to such risks.Renewable energy to responsible energy:A call to action|20SECTION 2Shaping an ecologically safe and
132、socially just renewable energy system in the Philippines Impacts and governanceRenewable energy to responsible energy:A call to action|22At current levels of RE penetration into the Philippines energy market,we are only beginning to observe the material ecological and social impacts in relation to u
133、tility-scale production and deployment.There is a growing recognition of the risks and the need to take responsible steps to manage prospective risks,or else risk slowing down the transition if the social license to operate at both project and sector level comes under threat.There is however another
134、 way to look at it:the RE sector is uniquely poised to pioneer the shift to just and regenerative business models,supported by an enabling governance framework.To achieve this potential,the RE sector will need to couple the production of RE with environmentally safe and socially just practices throu
135、ghout the value chain and life-cycle of the technologies.This section provides a summary overview of key ecological and social impacts that are alreadyor anticipated to beassociated with utility-scale RE production and deployment in the Philippines,as well as what is currently in place to govern,man
136、age and mitigate these impacts.More detailed insights on these impacts that are specific to each of the technologies can be found in Section 3.Key ecological and social risks across mainstream RE technologies Transition minerals extractionRenewable energy to responsible energy:A call to action|23The
137、 RE sector heavily relies on a variety of mineral resources for energy production,distribution,and storage.According to World Bank projections,an increase in demand of over 3 billion tonnes of metals and minerals is expected by 2050.55 As the worlds fifth most mineral-rich country with substantial n
138、ickel and copper deposits,the Philippines plays a significant role in supplying these minerals to meet the growing demand across the world.56 The environmental and social risks associated with the mining of minerals include heavy metal pollution,health risks,threats to life,and forced displacement.B
139、iodiversity loss is a critical risk since mines are often located in areas rich in flora and fauna.Concerns have also surfaced about the nickel industrys reliance on labor hire companies where there are risks of workers being employed without contracts,delayed payment of wages and the absence of com
140、pulsory employee benefits(including social security and health insurance).In mining areas,the company town syndrome can mean that mining activities do not contribute to alleviating poverty for local communities when skilled workers are brought in from other localities.58 The safety of human rights d
141、efenders advocating against mining-related impacts continues to raise concerns.59 Indigenous peoples as well as agricultural communities are often affected most by displacement resulting from the siting of mining projects See Boxes B to D.As the country explores the potential of deep-sea mineral exp
142、loration for cobalt,manganese,copper,nickel and other rare minerals across the South China Sea and beyond,there are clear risks of widespread ecological impacts to be considered.As an archipelagic nation with a heavy dependence upon fisheries,there will also be implications for both livelihoods and
143、food security.60 Mines deliver essential metals for the energy transition to arrest climate change,yet they impact the resilience of both ecosystems and stakeholder communities.The rehabilitation of legacy mines can also prove challenging given the difficulties in returning them to safe and stable c
144、onditions and ensuring that the mined-out areas become productive to support the economic activity of the host community.Efforts commonly focus on purely technical and environmental aspects,leading to resistance from the local community due to their exclusion from the rehabilitation process.In the c
145、ase of the Sto.Nio copper mine(Philippines),Bio+Mine has sought to dramatically shift this approach by supporting the local community to play a central role in addressing legacy issues.With the local community,Bio+Mine is co-devising a site-specific program of intervention that mitigates the problem
146、s,recovers valuable metals for renewables,while neutralizing problematic components.The communitys in-depth involvement is a significant step forward in increasing the prospect of mutually-beneficial outcomes.To this end,this site-specific system underpinned by the local communitys knowledge and pra
147、ctices is set to become a model for wider implementation to other legacy and active mines worldwide.61 Box A:Bio+Mine ProjectA case study in participatory decision-makingLand use changesRenewable energy to responsible energy:A call to action|24Key ecological and social risks across mainstream RE tec
148、hnologiesAs RE scales in the Philippines,competition for land will intensify.In a country where only 16%of its total land surface is deemed arable,62 the clean energy transition will impact agricultural land use,access to water,as well as indirect land use change emissions in instances where agricul
149、ture moves to land with high carbon stocks.This is particularly so as increasingly large land banks are being acquired for the purpose of RE.63 Conscious of these risks,a recent study commissioned by the DOE signalled the need for new policy responses to address food security implications associated
150、 with the growing number of solar and wind farms competing for agricultural land.64Related concerns over the reclassification of land in the Philippines have been attributed to mechanisms and conditions of land acquisitionpurchase or lease,formal or informaloften existing in an uneasy balance betwee
151、n customary forms of land titles and post-colonial efforts to formalize land tenure and regulate land uses.65 Against this backdrop,land acquisition processes have been associated with land-based conflicts,as well as the further marginalization of rural land users.Since conversion of agricultural la
152、nd can be easier than obtaining the Free Prior and Informed Consent(FPIC)required for use of ancestral domains,developers may opt to buy and rezone agricultural land for RE projects.Since conversion of agricultural land can be easier than obtaining the Free Prior and Informed Consent(FPIC)required f
153、or use of ancestral domains,developers may opt to buy and rezone agricultural land for RE projects.That said,while processes such as Free,Prior and Informed Consent(FPIC)are available to attend to the impacts on indigenous communities,there is a possible blind spot in relation to farming communities
154、 who are not covered by FPIC.The Tampakan mining project in Mindanao is set to be the largest copper-gold mining project in Southeast Asia.According to the International Union for Conservation of Nature(IUCN),it is anticipated to impact about 40,000 hectares of prime agricultural land,affecting arou
155、nd 20,000 farming households and displacing over 1,000 indigenous families.Located in a critical watershed area,once operational,it could pose serious risks to water provisioning and agriculture in Central-South Mindanao.66Box B:Copper-gold mining project impacts 40,000 hectares of prime agricultura
156、l landThe development of New Clark Citythe Philippines first smart and green metropolishighlights key vulnerabilities of indigenous communities.While authorities provided assurances that no ancestral domain would be impacted,local communities claim that this obscures the root of their struggle,which
157、 has been the difficulty in securing certificates of ancestral domain titles(CADT)to prove their ownership of the land;a struggle that began in 1999.The Aeta people displaced as a result of this development now face food insecurity.67Box C:New Clark City highlights key vulnerabilities of indigenous
158、communities Preserving cultural heritage and livelihoods of indigenous communitiesRenewable energy to responsible energy:A call to action|25Key ecological and social risks across mainstream RE technologiesAccording to the Legal Rights and Natural Resources Center,as much as 60%of mineral deposits in
159、 the Philippines are found in ancestral domainsareas where the rights of indigenous peoples communities are protected by law.68 While the constitution and other provisions such as the Indigenous Peoples Rights Act of 1997(IPRA-see table 2)69 protect the rights of indigenous communities to their ance
160、stral lands to ensure their economic,social and cultural well-being,this protection is subject to national development priorities.The need for enhanced due diligence is further accentuated by the fact that protected areas and Indigenous Community Conservation Areas(ICCAs)overlap significantly with w
161、here resource extraction also occurs.In this connection,mining and other extractive industries account for 51%of all documented Environmental Critical In Brookes Point in Palawan,nickel mining,led by Ipilan Nickel Corporation(INC),has triggered robust opposition and protests from indigenous Palawans
162、,local residents and the local government.The conflict centers around the mines location within Mt.Mantalingahan,a protected area considered sacred by the Palawan community.In response to concerns about irreparable environmental damage,the Supreme Court issued a writ of kalikasan against several ent
163、ities involved in the mining operations,highlighting the potential peril faced by Brookes Point residents.Local residents and the government have linked deeper,muddier floods affecting homes and livelihoods to the mining activities and deforestation caused by the firms actions.Reports of irregularit
164、ies in the FPIC process have also surfaced,particularly regarding the construction of a pier that has disrupted local fishing and lobster harvesting practices.In August 2022,the National Commission on Indigenous Peoples(NCIP)responded by issuing a cease-and-desist order(CDO)against INC,citing the co
165、mpanys failure to obtain the required FPIC.However,INC has continued its mining operations,defying the standing cease-and-desist order(CDO)issued against them.71 Box D:Indigenous resistance and conflict over nickel mining in Brookes Point,Palawan Projects within areas registered under Certificate of
166、 Ancestral Domain Titles(CADTs),the formal tenurial instrument for ancestral lands under the Indigenous Peoples Rights Act.70 While not all of these involve companies involved in the extraction of transition minerals,an ecologically safe and just energy transition depends on ensuring that the sharp
167、rise in demand for these resources upholds principles of FPIC.It further requires that women within indigenous communities be afforded the right to equal participation in FPIC and other related processes.Gender-related impactsRenewable energy to responsible energy:A call to action|26Key ecological a
168、nd social risks across mainstream RE technologiesIn many rural contexts,women are responsible for growing food for their family and income.Consequently,land grabswhether for RE or transition mineral extractionrisk endangering womens livelihoods and food security.72 Worldwide,estimates also indicate
169、that men outnumber women in RE-related jobs,especially in technical,managerial and policy-making positions,and are often paid more for the same type of work.73 The just energy transition is a critical opportunity for overcoming gendered power structures.As the energy transition accelerates in the Ph
170、ilippines,it will be important for all actors involved to increase efforts to gather gender-disaggregated data that will identify where gender-related impacts are turning up within RE value chains and where there are risks of inequities.74 A starting point is recognizing that energy services have ge
171、ndered patterns of use,which are linked to the gendered division of labor and roles in society,leading to different requirements on energy supply and appliances.75 This further highlights the imperative to address gender-related energy barriers and differences in opportunity to act upon the provisio
172、n of supply.76 Such assessments must look into the different types of energy use made by women within the informal sector,which may hamper their agency or the capacity to take action in securing access to energy services.77 As for gender-related risks in the production of RE,it has been noted that i
173、n siting decisions,women may not be adequately consulted,or compensation may be solely allocated to heads of families due to gender-blind policies.78 Some developers,such as the EDC,have already been taking important steps in collecting disaggregated data,with one particular example relating to gend
174、er ratios for community engagement in monitoring compliance requirements of tree-cutting permits.79 Deliberate steps have also been taken to select women as heads of livelihood associations across RE projects.80 In an effort to further support such leadership,the Fair Finance Association will be lau
175、nching a feminist development framework for the Just Energy Transition in February 2024.The imperative to integrate womens perspectives into energy decision-making arises from the need for equitable sharing of benefits and risks in the energy transition.Currently,the majority of decisions in the ene
176、rgy sector,spanning production,deployment,and electricity use,are predominantly made by men.Bridging this gender gap calls for the creation of inclusive spaces that represent womens interests in energy,while also acknowledging their dual role as primary caretakers.Implementing accountability systems
177、,including gender audits,is crucial in both public and private processes.Notably,the Philippines Department of Energy is the frontrunner among ASEAN nations,having introduced a gender toolkit and Gender and Development Focal Point System in 2019,in collaboration with the Philippine Commission on Wom
178、en.81 It aims to prioritize gender equality and womens empowerment within energy policies and programs,and is responsible for setting up systems for collecting and processing sex-disaggregated data.82 Despite strides towards gender mainstreaming in RE policies,stakeholders have reported that related
179、 activities often lack adequate and sustained budget support.83 Womens underrepresentation in decision-making and problem-solving processes persists,and RE policies have been described as being primarily business-oriented,with limited scope for gender and social inclusion.84 Box E:Bridging the gende
180、r gap in the RE value chainThe just energy transition is a critical opportunity for overcoming gendered power structures.ASIA FEMINIST COALITIONLabor rightsCumulative impacts on biodiversity and wildlifeRenewable energy to responsible energy:A call to action|27Key ecological and social risks across
181、mainstream RE technologiesWhile WalkFree assessed the Philippines to have the second strongest response to modern slavery in the Asia Pacific,it also noted that it was among the most vulnerable countries to modern slavery,with risks largely driven by conflictand climate-related displacement,inequali
182、ty and discrimination.85 This provides the context for noting that the complexity and opacity of the renewables supply chain leaves the sector open to risks of modern slavery-especially in relation to the extraction of raw minerals and the manufacture of various key components.86 In mining,there is
183、evidence that indicates risks of workers in the Philippines being hired without contracts and irregularities with wage payments in ways that breach labor laws.87 With regards to manufacturing of RE components for utility-scale production,given its limited scope in the Philippines at present,most of
184、the risks are transboundary across the supply-chain.For example,40-45%of the worlds solar-grade polysilicona key component in 95%of solar modulesare sourced from the Xinjiang Uyghur Autonomous Region of China,where instances of forced labor have been widely reported.88 Meanwhile,growing demand for b
185、alsa wood used in wind turbines has been associated with exploitation of workers in the balsa industry in Ecuador,as well as forced labor linked to increased illegal logging across the Amazon rainforest.89It remains unclear to what extent the Green Jobs Act of 2016 has been effective in curbing reli
186、ance on labor hire agencies at the construction,operations and maintenance stages.Beyond favoring casual contracts,such agencies are often associated with the use of unqualified workers,as well as little training or apprenticeships.90 The precarity of employment is also likely to discourage workers
187、from voicing safety concerns.The RE sectors potential threats to biodiversity and wildlife are multi-faceted,both in terms of direct and indirect impacts.The impacts of mining transition minerals have been documented see Box F.In relation to production,one of the better-known examples related to wil
188、dlife is fauna collision with wind turbines.The likelihood of this depends on factors like bird species,season,time of day,noise,and even wind speed or temperature.91 Habitat fragmentationassociated with the conversion of vast tracts of land for the installation of solar and wind powerhas also affec
189、ted the migration patterns of local birds in the Philippines and wider Southeast Asia.92 Similarly,in other RE technologies such as small hydro,impacts of individual small reservoirs and weirs will usually be limited,yet may have substantial impacts on river ecosystems when considered collectively.9
190、3Related changes in ecosystem functions and biodiversity loss also occurs when deforestation during project siting displaces local wildlife.94 Studies suggest that,while there is an understanding that biodiversity underpins ecosystem functions and services,many stakeholders may not appreciate the En
191、d-of-life disposalRenewable energy to responsible energy:A call to action|28Key ecological and social risks across mainstream RE technologiesdifficulties of restoring biodiversity akin to reference ecosystems.95 Unless biodiversity goals are explicit,levels of restoration risk being inadequate to su
192、pport the level of functional ecosystems and desired ecosystem services upon which traditional livelihoods depend.While reforestation does not automatically mitigate the ripple effect of biodiversity loss,plantings do have the potential to provide conservation co-benefits when diverse mixtures of na
193、tive species are selected.To achieve the desired outcomes,however,biodiversity objectives must be integrated into reforestation projects and specific restoration goals with transparent reporting outcomes must be set.96 These objectives should also be informed by robust stakeholder engagement mechani
194、sms,with particular emphasis on creating the conditions for marginalized communities to participate equitably.As the expansion of RE projects continues,cumulative impacts are at risk of contributing to the passing of critical ecosystem thresholdswhich in many instances may not be immediately obvious
195、 due to system lags.While best practice indicates that solar PV can not only co-exist with agriculture,but also enhance biodiversity,ensuring that such practices become mainstream will be essential to safeguarding the natural world as the energy transition accelerates.In the province of Palawan,home
196、 to 105 threatened species of flora and fauna,Mt.Bulanjao was previously designated by the authorities as“areas of maximum protection”to protect species that were endemic to the province,and extraction of metals was not allowed.The Rio Tuba Mining Corporation,however,has recently announced the expan
197、sion of its operations into these areas.97Box F:Threatened species of flora and fauna at Mt.Bulanjao,PalawanIn the Philippines,end-of-life disposal processes for the RE sector are currently overlooked,with a lack of policy frameworks to govern waste management and disposal of RE components.Failing t
198、o address risks associated with the end-of-life stage of RE technologies can result in significant vulnerabilities such as ecological harm,health hazards,and inefficient resource utilization.For instance,the presence of hazardous materials in solar panels like cadmium and lead can contaminate ecosys
199、tems and endanger the health of those involved in disassembly or disposal.100 Furthermore,the lack of reusability or recycling designs for RE will lead to large volumes of waste reaching the disposal stage in the near future,compounding the challenge.This risks especially being so if rapid improveme
200、nts in generation efficiency result in significant volumes of modules being replaced before the end of their lifespan.Managing these end-of-life disposal risks and exploring circular economy innovations are essential to reduce dependence on finite resources and ensure an ecologically safe and social
201、ly just transition to RE in the Philippines.Measures to reduce energy demand and improve energy efficiency are equally important in this regard.Current governance landscape for ecological andsocial impacts relating to RE production and deploymentThis section provides a situational analysis of the go
202、vernance structures in place in the Philippines to anticipate and manage existing and emerging ecological and social risks associated with RE production and deployment.The multidimensional and intersectional nature of these impacts requires a matrix of public,corporate and civil society governance m
203、echanisms that work in complement to create the conditions for safeguards and accountability in the RE system.This matrix is still evolving however and there is an opportunity to design it systemically to support a just transition.Public governance mechanisms for addressing ecological and social imp
204、acts in the RE sectorThe Renewable Energy Act,which anchors the clean energy transition in the Philippines,requires RE projects to comply with environmental and social standards set by relevant government agencies.It also provides for civil liability for environmental damage caused by RE projects.Pr
205、oject developers are required to provide financial assurance in case of environmental damage,and they may be held liable for any damages that occur.The Act is complemented by a range of other legislative and regulatory measures that together provide the regulatory framework for attending to environm
206、ental and social impacts of RE production and deployment.A high-level summary of these is articulated in Table 2.The DOE and the Environmental Management Bureau(EMB)are required to conduct regular monitoring and inspections to ensure compliance with these environmental and social standards.These ins
207、pections can lead to fines or penalties for non-compliance.101 However,limited resources are said to impede monitoring and enforcement capacity.While policy direction is set at the national level,local governments have discretion on RE development in their jurisdictions.For instance,while national g
208、overnment agencies set and steer RE interests,local government units can exercise spatial jurisdiction over the RE project sites in their locality,such as through the issuance of permits and construction endorsements.The devolution of such key functions to Local Government Units(LGUs),which have mor
209、e limited capacity to implement permitting and monitoring,could affect the extent to which LGUs are able to adequately assess social and environmental impacts of RE developments.As the energy transition accelerates in the Philippines,it is becoming increasingly evident that further regulatory measur
210、es will be needed to manage impacts.This could include legislation to address some current gaps.For example,under consideration is a House Bill for a National Land Use Act aimed at creating a comprehensive land use system and physical planning mechanism that integrates all mandates and policies on t
211、he use and protection of lands to ensure a“just,holistic and ethical planning consistent with the principle of sustainable development.”102 Once signed,a National Land Use Commission will be established to oversee integration activities from national to local government unit level.The hope is that t
212、his new integrated approach will course-correct a previously fragmented system where various land laws were sector-specific,resulting in conflicts on land.103 It will also constitute a vital safeguard against strengthening climate change impacts and disasters that disrupt peoples lives and economic
213、activities.Apart from new legislation,there may also be a need to undertake a systemic assessment of how the various laws and regulations work in complement rather than in conflict with each other,so as to avoid scenarios where the intended outcomes of protecting against ecological and social impact
214、 are not achieved because of disconnectedness.Renewable energy to responsible energy:A call to action|29As part of the suite of public governance mechanisms,the judiciary has played an important role in providing legal remedy to civilians where environmental or human rights have been breached.It has
215、 often referred to Article II of the Philippine Constitution of 1987,106 which enshrines the right of the people to a balanced and healthful ecology along with the States duty to protect it for this purpose.One example is the writ of kalikasan,which allows individuals or groups to seek remedy when t
216、he environmental damage is of such magnitude that it prejudices the life,health,or property of inhabitants in two or more cities or provinces.107 The mining sector has been hardest hit by the writ,as evidenced by a 2016 High Court issuance of a writ against five mining companies.Large-scale hydroele
217、ctric dams have also been the focus of others.109 Across other technologies,in 2015 the Court of Appeals ordered the suspension of the operations of a wind farm in the province of Ilocos Norte on the basis that the wind farm had caused significant environmental damage and health risks to communities
218、.More recently,in 2019,it ordered the DENR to revoke the ECC of a 60 MW solar power plant in the province of Cebu,ruling in favor of local residents and environmental groups who alleged that the power plant had caused significant environmental damage,posing risks to nearby communities.Together,these
219、 examples point to the judiciary playing an active role in upholding environmental protections.However,a fast and fair transition is dependent on the root causes of these cases being addressed from the outset.To that end,the REI PH Call to Action seeks to collaborate with actors across the value cha
220、in.Renewable energy to responsible energy:A call to action|30Administrative Code of 1987This code provides the guidelines for public consultation with concerned sectors prior to the implementation of any project.Additional guidelines for public consultations also feature in the Local Government Code
221、 of 1991.Clean Water Act RA 9725This law promotes the protection of different water resources from pollutants brought by industries,commercial establishments and agriculture.The sectoral focus of this policy is industry,manufacturing,public and agriculture.Comprehensive Agrarian Reform Program(CARP)
222、RA 6657CARP affords ownership rights to landless farmers on government acquired lands.With Department of Agrarian Reform approval,CARP allows agricultural land to be converted to other uses,particularly if agriculture is not deemed the most economically beneficial land use.While CARP affords farmers
223、 a range of protections,these are limited by a 1993 Supreme Court ruling which authorizes the Philippine government to override CARP through eminent domain for projects in the public interest,including energy infrastructure.104 Ecological Solid Waste Management Act RA 9003This Act provides for the p
224、roper management and disposal of solid waste,including hazardous waste generated by the RE sector.Philippine Environmental Impact Statement System Law(PEISS)PD 1586 The existing policy framework on environmental protection and natural resource management is institutionalized through the Philippine E
225、nvironmental Impact Statement System(PEISS).The Environmental Impact Assessment(EIA)is a planning and management tool designed to help government,decision-makers,developers and affected communities decide whether the benefits of the project will outweigh potential environmental risks.A key purpose i
226、s to provide democratic input into the decision-making process.105 Indigenous Peoples Rights Act(IPRA)RA 8371 This law recognizes and promotes the rights of indigenous cultural communities and indigenous peoples in the Philippines.It protects their rights to their ancestral domains to ensure their e
227、conomic,social and cultural well-being.It also recognizes the applicability of customary laws governing property rights or relations in determining the ownership and extent of ancestral domains.The IPRA additionally upholds the right to free,prior and informed consent(FPIC).National Integrated Prote
228、cted Areas System(NIPAS)Act RA 7586The NIPAS Act establishes and manages protected areas in the Philippines,which may impact the location and design of RE projects.In addition,the Forest Management Bureau(FMB)policies and guidelines aim to promote sustainable forest management practices,including th
229、e protection of biodiversity and carbon sequestration,which are relevant to RE projects that involve land use changes.Renewable Energy Safety,Health,and Environment Rules and Regulations(RESHERR)DC 2012-11-0009The RESHERR,issued by DOE in November 2012,mandates safety and protection against hazards
230、to health,life,and property and addresses environmental concerns such as air,land and water pollution during the operation of RE facilities.In June 2021,the DOE took additional steps to issue RESHERR related specifications for each RE technology,including geothermal,hydropower,solar,wind and biomass
231、.These require RE companies to designate an eligible safety officer and be subject to random safety inspections by the DOE and the Renewable Energy Management Bureau(REMB).Renewable energy to responsible energy:A call to action|31TABLE 2Legislative and regulatory mechanisms complementing the Renewab
232、le Energy ActAccording to the Philippine Environment Impact Statement System(PEISS),prior to any development activities on a project site,the RE developer must secure an Environmental Compliance Certificate from the DENR-EMB,where the RE project is for 100 MW or more.110 Undertaking an Environmental
233、 Impact Assessment(EIA)is required and this process includes the formulation and development of corresponding measures designed to mitigate identified adverse effects,as well as plans and mechanisms for performance monitoring and environmental management,including proposed compliance with other envi
234、ronmental policies.The assessment investigation usually looks into the following impacts for the duration of the life-cycle of a project:ecological vulnerabilities resulting from land use changes,direct and indirect impacts on the local and regional biodiversity during site development,construction,
235、and operation of the project;competition and conflicts arising from the use of water resources and water quality;meteorology and climatology,climate change projections,GHG mitigation potential,noise,and air quality;intrusion into protected and environmentally critical areas;potential generation of c
236、hemical wastes,solid-waste(including equipment end-of-life stage disposal);and potential effects on the heritage and cultural resources,socio-economic well-being,or public health conditions within the local and regional population.The table shows the documentary requirements for RE projects dependin
237、g on their scope and coverage in line with PEISS.111Despite strong disclosure features underpinning the PEISS,concerns arise regarding the implementing agencies resources and capacity to review EIAs,as well as to implement,enforce,and monitor measures that are set out in the approved assessments.112
238、 Ambiguities in the procedural guidelines could be compounding these challenges,though there are positive signals of these being addressed.A case in point includes the governments issuance of temporary freeze orders vis-vis floating solar and offshore wind in May 2023,until relevant permitting proce
239、sses are aligned across relevant agencies.A particular focus included alignment on the breadth and scope of marine special planning requirements.113 Box G:Environmental Impact Assessments for RE development COVERED(Required to secure ECC)NOT COVERED(May secure CNC)Projects/DescriptionCategory A:ECPC
240、ategory B:Non-ECPCategory DProject Size Parameters and RemarksECCEISlEE ChecklistPO(Part I only)Hydropower Facilities 50 MW 10 MW but 1 MW but 5 MW but 100 MW 5 MWTotal power generating capacityRenewable energy to responsible energy:A call to action|32TABLE 3Documentary requirements for RE projects
241、depending on their scope and coverageCorporate governance mechanisms for addressing ecological and social impacts in the RE sectorCorporate governance mechanisms provide a necessary complement to public governance ones to prevent,manage and mitigate environmental and social impacts emanating from bu
242、siness operations along the value chain.These can take various forms from disclosure and reporting requirements mandated by company law and stock exchange filings,to investor ESF disclosure requirements,as well as internal corporate ESG policies.Industry associations can also wield considerable infl
243、uence by establishing industry principles and leveraging their advocacy efforts to shape the norms of the operating environment.Finance Sector ESG Policies and Implementation:The Philippines launched its Sustainable Finance Roadmap and Guiding Principles in 2021 to align public and private investmen
244、t in green projects,address policy gaps in promoting sustainable finance,and facilitate investment in public infrastructure to catalyze sustainable financing in the Philippines.114 Sustainable finance has been defined as incorporating“climate,green and social finance while also adding wider consider
245、ations concerning the longer-term economic sustainability of the organizations that are being funded,as well as the role and stability of the overall financial system in which they operate.”115 The Philippines finance industry has,however,yet to fully incorporate ESG and sustainability consideration
246、s into its businesses.Interviews with various RE market actors indicated a limited awareness of the full environmental and social risks associated with development of the RE industry,or the need to consider them.As RE projects are considered high risk and heterogeneous infrastructure projects requir
247、ing large amounts of funding over long periods of time,considerations of long-tail risks associated with RE are less of a priority.Multilateral Development Bank safeguards:Through DFIs,sustainability frameworks such as the ADBs Safeguard Policies,World Bank Group Environmental,Health and Safety Guid
248、elines(EHS Guidelines),and IFCs Environmental and Social Performance Standards have been imported into the Philippines investment landscape,proving an effective complement to evolving national standards and regulations in relation to RE environmental and social impacts.These guidelines and standards
249、 incorporate appropriate due diligence,review,and supervision processes to ensure clients/borrowers comply with requirements.The ADB has had a Safeguard Policy Statement(SPS)issued since 2009,which builds on three previous safeguard policies addressing the environment,involuntary resettlement,and in
250、digenous peoples,bringing them into a consolidated framework that applies to all ADB loan-supported projects.The IFC also provides its own Sustainability Framework which outlines its commitment and approach to sustainable development and comprises the organizations Sustainability Policy,its Performa
251、nce Standards,and its Access to Information Policy.The IFC Environmental and Social Performance Standards116 are significant as their eight standards-which establish IFC clients requirements to identify,assess and manage environmental and social risks-serve as the basis for the Equator Principles(di
252、scussed in the next section).Some local developers have explicitly aligned themselves with the IFC performance standards in their environmental and social policy statements.117 However,beyond projects directly financed by DFIs,the application of the IFC performance standards by financial intermediar
253、ies such as banks lacks a standardized approach.Nonetheless,there are ongoing amendments to the IFC performance frameworks,aiming for increased uniformity in applying standards across financial intermediaries.Explicit agreements to commit to the IFC standards are being incorporated into loan agreeme
254、nts for high-risk projects,reinforcing the adherence to these standards.Renewable energy to responsible energy:A call to action|33Philippines-based banks and ESG:Local banks can play a key ESG monitoring role,with bank lending having the required flexibility to disburse funds gradually over the life
255、span of a project;and when there are unforeseen events,banks can quickly restructure debt to meet additional capital needs of projects.118 These advantages are also opportunities for banks to the steward behavior of borrowers throughout the banking relationship including making the disbursement of f
256、unds conditional on disclosure and risk assessments of specific social and environmental impacts.None of the domestic banks are currently signatories of the Equator Principles(EP),an environmental and social risk management framework adopted by financial institutions that has been derived from IFC s
257、tandards.119 However,the application of ESG conditionalities upon RE projects by Philippines-based banks is beginning to take root slowly and with the notable increase in large loans to the sector,there is an opportunity to support this trajectory.120 Furthermore,there is potential for international
258、 banks to introduce other global standards,setting new benchmarks for Environmental,Social,and Governance(ESG)practices.For instance,HSBC has established policies in this regard,including a forestry,mining and metals,and heritage site policy;however,its current influence in this specific domain with
259、in the RE financing market in the Philippines remains relatively limited.121 ESG reporting and corporate responsibility regulation:ESG reporting can play a vital role in stakeholder governance of environmental and social impacts in the RE sector by promoting transparency,accountability,informed deci
260、sion-making,and the continuous improvement of industry standards.It empowers stakeholders to engage with companies,influence their practices,and encourage responsible management of environmental and social concerns,ultimately contributing to a responsible energy transition.The development of ESG rep
261、orting in the Philippines is a new practice,only recently catalyzed by the issuance of the Securities and Exchange Commission(SEC)Memorandum Circular No.19,“Code of Corporate Governance for Publicly-Listed Companies”in 2016,and reinforced in 2019 with SEC Memorandum Circular No.4,“Sustainability Rep
262、orting Guidelines for Publicly-Listed Companies”.The guidelines have an expansive view of corporate purpose,reinforced the relevance of stakeholder governance,and introduced sustainability reporting in the governance framework of publicly-listed companies.122 Notably,the SEC has made sustainability
263、reporting mandatory for publicly-listed companies as of 2023.To date,there have been some challenges with the guidelines:for example,the ability to apply a variety of reporting frameworks has led to fragmentation in how publicly-listed companies submit their disclosures and the lack of independent a
264、ssurance.They are currently being updated with the aim of elevating the quality of sustainability reporting and expanding its coverage to non-listed corporations as well.123 Global developments in sustainability regulations also the impact environmental and social governance structures of companies
265、in the Philippines,and RE actors will need to take note of this.For instance,the Renewable energy to responsible energy:A call to action|34Corporate governance mechanisms Corporate governance mechanisms European Unions Corporate Sustainability Reporting Directive(EU CSRD)has implications for Philipp
266、ine companies looking to export to European markets.The Philippines has also expressed its intent to adopt the International Sustainability Standards Board inaugural standards to be launched in 2024.While there has been an upward trend in the adoption of sustainability disclosures by publicly listed
267、 companies in the Philippines,124 most large local energy incumbents diversifying their portfolios through RE subsidiaries currently do not highlight any RE-specific environmental or social impacts in their publicly available reports.125,126 Encouragingly,interviews surfaced that while reporting req
268、uirements do not extend to non-listed companies or projects,certain listed companies did ensure that their subsidiaries followed suit.For instance,the EDC is not publicly listed and has no compliance requirements from the SEC,but as units of First Philippine Holdings,it regards reporting on ESG as a
269、n intrinsic part of the purpose and mission of the EDC.Corporate policies and internal sustainability governance:RE developers in the Philippines exhibit a diverse range of strategies and approaches in addressing their environmental and social impacts.For some in the sector,running an RE business in
270、 itself ticks the ESG box by supporting the transition towards clean energy,boosting energy security and contributing towards sustainable,economic growth,thus warranting a lesser degree of scrutiny in terms of value chain impacts.A significant number of RE developers operating in the Philippines man
271、age their Corporate Social Responsibility(CSR)initiatives through separate foundations or entities that operate independently from their core business operations,which focus on philanthropic and community engagement efforts that are separate from core business operations.Some go further in managing
272、environmental and social impacts arising from their business practices and have stronger sustainability governance structures in place.Impacts are managed through robust environmental and social management systems,with ISO14001:2015 certified environmental management systems being most commonly used
273、.127 There are policies around human rights,indigenous peoples and a dedicated sustainability committee at the board level.For these firms,their CSR efforts are aimed at creating positive social impact directly in the communities where the developers operate,through social investments in building in
274、frastructure for host communities in RE project sites(e.g.building access roads,bridges,power transmission lines,solar street lights)and supporting livelihoods opportunities(partnering with local tourism,farmers etc.to create jobs and provide materials/capital).A thirdand much smaller setof RE devel
275、opers in the Philippines are driven by forward-looking views towards ESG,with integrated governance systems equipped to allow for real-time monitoring and feedback from external stakeholders.These developers demonstrate their commitment to not merely meeting regulatory requirements,but to setting in
276、dustry benchmarks for responsible environmental and social governance in the RE sector,with many framing their sustainability strategies in line with ecologically safe and socially just outcomes.This could also include unlisted or smaller companies that are not currently obligated to disclose their
277、ESG performance.Notably,these firms tend to prioritize employment opportunities for local residents and indigenous peoples throughout the project life-cycle.Some actively support the formation and accreditation of Indigenous Peoples Organizations(IPOs)within their host communities128 and adopt polic
278、ies to explicitly respect land rights within their own operations.They look beyond their immediate value chains to consider trade-offs,e.g.addressing food security concerns due to loss of agricultural land through co-siting solar panels.129Across the spectrum of approaches,one area requiring further
279、 attention is the creation of robust grievance mechanisms that are consistent with the UN Guiding Principles on Business and Human Rights and that are designed to enable trust for rights-holders,as well as providing adequate assistance for those who may face particular barriers to access.Such grieva
280、nce mechanisms should be based on engagement and dialogue and constitute a source of continuous learning,with a view to preventing future grievances and harms.130 Renewable energy to responsible energy:A call to action|35Risk mitigation mindset:RE is perceived as inherently clean and the focus of ri
281、sk mitigation is on more“traditionally unsustainable”parts of the business and on increasing RE investments.Examples of practices include Corporate Social Responsibility being separate from RE operations and focused on unrelated environmental and social impacts.Do no harm mindset:Recognizes the envi
282、ronmental and social impacts arising from RE operations and takes steps to minimize them.Examples of practices include creating company-wide policies around human rights;complying with voluntary standards;establishing high-impact and targeted CSR programs.Do good mindset:Actively creating positive i
283、mpact by taking action to repair and replenish communities and ecosystems and embedding sustainability into core operations.Examples of practices include creating opportunities to strengthen the participation of historically disadvantaged groups;launching initiatives to manage trade-offs associated
284、with RE land use.Just and regenerative mindset:Beyond traditional ESG frameworks,it recognizes the interconnectedness of all natural systems,as well as the interdependence of planetary health with human health and well-being.It is underpinned by principles of intergenerational justice and distributi
285、onal justice,it ensures that the clean energy system remains resilient for future generations.It transcends the mere inclusion of women and marginalized groups towards the restructuring of energy systems to prioritize social equity,environmental integrity,and adopts economic justice.Examples of prac
286、tices include actively building capacity to ensure that ecological and human systems are able to adapt,evolve and thrive in the context of social and ecological disruption.FIGURE 5Just and regenerative mindsetDo good mindsetZero harmmindsetRiskmitigationmindsetBe lessharmfulDo no harmRepair and repl
287、enishBuild capacityfor justice and regenerationGUIDING STARSJustice and RegenerationSource:Forum for the FutureRenewable energy to responsible energy:A call to action|36Underlying mindsets arising in different ESG governance approachesACEN has over 600 MW of solar and wind capacity operational in th
288、e Philippines,and has the largest international portfolio among listed Philippine energy companies.The company targets 100%RE in its portfolio by 2025.At present,it is 98%RE and 2%diesel.Under the Energy Transition Mechanism by ADB,ACEN has already divested its final diesel plant.It has set targets
289、for a fivefold increase to 20 GW of attributable renewables capacity by 2030.In March 2020,ACEN adopted an Environmental and Social policy aligned with the UN Framework Convention on Climate Change and focused on creating value for the communities it serves.134 In November 2021,ACEN established a bo
290、ard-level Sustainability Committee and an executive-level ESG Committee to regularly review its sustainability strategy,culture and values,while maintaining oversight of performance.135In 2023,it adopted a Human Rights Policy Statement that emphasizes the importance of due diligence to identify,prev
291、ent,mitigate and account for adverse impacts.136 ACEN seeks to“meet the needs of the present without compromising the ability of future generations to meet their own needs.”137“ACEN affirms its commitment to protect biodiversity,forest areas,endangered and migratory species,water sources and aquatic
292、 habitats.”138 ACEN pioneered a circular initiative to upcycle plastic waste collected from solar panel packaging materials into eco-bricks.These eco-bricks are subsequently utilized in the construction of new solar plants,effectively closing the loop.ACEN launched“Solar Gulayan”,an agrivoltaics-bas
293、ed program,at five of its solar farms across the country and has already harvested more than 1,700 kilos of crops.ACEN created a conservation estate in Ilocos Norte inside a wind farm through analogue forestry to mitigate impacts on biodiversity.ACENwindsolarCiticore Renewable Energy Corporation(CRE
294、C)About the companyESG policies and narrativesESG initiativessolarCREC,a leading pure-play RE developer,currently operates a total of ten solar power plants across the country.CREC has a 5 GW project pipeline in the next five years.“Through ESG,the company is not only a leader in harnessing renewabl
295、e energy,but a responsible steward of growth and development towards a green future.”“Citicore recognizes the need to provide sustainable sources of energy while upholding the essential balance of our ecosystems.”They explicitly recognize the need to ensure responsible practices in renewable energy
296、generation.“It is the Companys practice for the new projects to undergo screening for potential harmful impacts by incorporating its environmental management programs with quality management and occupational health and safety standards.”CREC is the first AgroSolar-Social RE generating company in the
297、 Philippines pioneering agrivoltaic technology,with a view to boosting both food security and local livelihoods as it generates solar energy.CREC runs initiatives to enhance the employability of host communities by offering training in electrical installation and maintenance.CREC hosts the Pailaw pr
298、oject to provide night-time solar powered light units for host communities.ESG responses of the top five solar and onshore wind RE developers in the Philippines(by cumulative installed capacity as of November 2023)133TABLE 4Renewable energy to responsible energy:A call to action|37EDC,a leading geot
299、hermal developer,is also the owner and operator of the 150 MW Burgos Wind Project in Burgos,Ilocos Norte,which is the countrys only combined wind and solar farm.Six other wind power projects of the EDC have been given clearance by the DOE to conduct a system impact study(SIS),the largest of which is
300、 the 996 MW Iloilo-Guimaras offshore wind project.EDC explicitly acknowledges that“pursuing sustainability that seeks only to do less harm is no longer good enough and has adopted the following mission to forge collaborative pathways for a decarbonized and regenerative future.”“We are mindful that w
301、e exist within highly diverse and nested systems and must all play unique,reciprocal,and synchronized roles in a world that needs healing.”“EDCs human rights policy affirms the companys commitment to recognize,respect,and safeguard the human rights of all individuals working for the organization.It
302、promptly monitors human rights situations in project areas,and minimizes response time to address potential human rights breaches.”EDCS CSR policy states that“EDC is committed to promoting social prosperity and environmental stewardship through the implementation of a comprehensive,responsive,and su
303、stained program on social responsibility,in partnership with its stakeholders and in keeping with its energy objectives.”EDC runs the BINHI program,which is the largest private sector led reforestation initiative.Initiatives to regreen,rescue and propagate endangered local tree species are situated
304、primarily in areas around the companys geothermal operations.Energy Development Corporation(EDC)SolarPhilippinesAbout the companyESG policies and narrativesESG initiativessolarFounded in 2013,Solar Philippines is one of the earliest solar developers in the country.Solar Philippines has secured 10,00
305、0 hectares of land for conversion into solar energy zones,which will be opened to partners and third party locators who want to build solar farms“Creating opportunities and empowering communities with solar energy.”139“The Corporation shall be socially responsible with respect to its dealings and tr
306、ansactions with the community where it operates.It shall ensure that its operations comply with environmental laws,rules,and regulations.The Corporation shall promote a mutually beneficial relationship with stakeholders.This relationship shall foster the growth of the Corporation while it contribute
307、s to the advancement of the community and protection of the environment where it operates.”140 No publicly available sustainability report.141 ESG responses of the top five solar and onshore wind RE developers in the Philippines(by cumulative installed capacity as of November 2023)133onshorewindoffs
308、hore&onshorewindsolarrun-of-river hydroAlternergyAlternergy is a small pure-play renewables developer that has listed its shares on the stock market recently,raising a total of PHP 1.61 billion(USD 29 million).It is aiming to develop 1,370 MW of RE projects including wind,offshore wind,solar and run
309、-of-river hydro projects in the next five years.Alternergy a“quadruple bottom line philosophy of financial profitability,climate change mitigation,host community benefits and employee satisfaction”and views its“impact on the next generation as the ultimate measure of our success.”Alternergys 54 MW P
310、ililla Wind Farm received the IFC Sustainable Finance award for being the first non-recourse wind project financing by an entirely local bank syndicate,and the countrys first non-recourse wind financing for a Feed-in-Tariff project.Alternergy set up a visitor info center in partnership with WWF at t
311、he Pililla wind farm,where visitors and the local community learn about the benefits of clean energy.TABLE 5Renewable energy to responsible energy:A call to action|38Industry associations:Industry associations can play a substantive role proactively identifying current and future challenges for thei
312、r parts of the sector and establishing task forces to shape a response.In the US for instance,associations are paying attention to social issues in the value chain.For example,the Solar Energy Industry Association(SEIA)has pledged to eliminate forced labor in solar value chains,amassing signatures f
313、rom over 340 companies,including some of the largest manufacturers in the world.142 In Europe,the Solar Stewardship Initiative,supported by over 60 solar companies,has introduced a comprehensive supply chain assurance scheme to ensure credible data transparency and bolstering ESG standards across th
314、e solar supply chain.143 In the Philippines,key industry associations include the Confederation of Solar Developers of the Philippines(CDSP),the Philhydro Association Inc.,the Philippine Solar and Storage Energy Alliance(PSSEA),the Renewable Energy Association of the Philippines(REAP)and the Wind En
315、ergy Developers Association of the Philippines(WEDAP).Developers of Renewable Energy for AdvanceMent,Inc.(DREAM)is the national organization that unifies RE industry associations to advocate for RE policies and promote knowledge sharing.Currently,most associations focus on policy advocacy,consultati
316、ons,awareness and capacity building activities to attract investments into and create a conducive policy environment for the RE sector.Renewable energy to responsible energy:A call to action|39Corporate governance mechanisms Civic governance of the RE sector Alongside public governance and corporate
317、 governance mechanisms,civic governance mechanisms have an important place in ensuring the accountability of the RE sector in the Philippines for its ecological and social impacts.Long active in advocating for the clean energy transitionfor example,the moratorium on coal-fired power plants was a dir
318、ect outcome of civil society advocacycivil society is now emphasizing the need for the transition to be safe and just for the planet and its people to thrive.The risks of ecological and social impacts associated with the RE sector are being brought to light in the Philippines is a result of civil so
319、ciety working with affected communities to identify areas of concern,raise awareness with both state and private sector actors and advocate for mechanisms to prevent and remedy adverse impacts.As an example,knowing that the energy transition will catalyze a considerable increase in demand for transi
320、tion minerals,civil society organizations are calling for the adoption of the Alternative Minerals Management Bill(AMMB).144 The Bill proposes a transformation of the present minerals regime by balancing the need for minerals with environmental,social,and economic considerations.It features an exhau
321、stive list of“no-go”mining zones and recommends a framework that gives agency to affected communities and local government units to approve projects that are sited in their localities.145 Civic governance in relation to RE development has also come in the form of civil society groups supporting affe
322、cting workers and communities to access remedial avenues,ensuring accountability within the system,and contributing to norm-setting.The Alternative Law Groups,a coalition of over 20 legal-empowerment organizations in the Philippines,has been active in this respect.In pursuing an approach called“deve
323、lopmental law”,coalition members seek to empower poor and marginalized populations,while supporting efforts to bring about systemic justice reforms.146 Participatory forms of decision-makingespecially in relation to land use changesare a critical means of building a responsive and resilient RE syste
324、m.To this end,civil society has played a key role in foregrounding this as a core component of siting decisions,ensuring that FPIC procedures are abided bywhere the development plans affect occupancy,control and utilization of ancestral domainsand communities are able to effectively engage in the pr
325、ocess.Indigenous communities have nonetheless raised concerns over this ability being undermined by the time limitations outlined in the Revised FPIC Guidelines(NCIP Administrative Order No.3 Series of 2012),which allow communities a maximum of only 60 days for their deliberations.147 Renewable ener
326、gy to responsible energy:A call to action|40Where civic governance plays a further important role as RE scales is in upholding principles of distributional justice,by ensuring a fair distribution of the responsibilities,costs and benefits of the energy transition are shared equitably across differen
327、t economic and social groups.As the RE system evolves in the Philippines,creating the conditions for benefits-sharing will be foundational to the health and resilience of the energy transition.Over the years,prototype models have been tested in the Philippines,especially in distributed,community-bas
328、ed RE,yielding principles on how RE development can be facilitated by community-enhancing processes.For example,SIBAT(Sibol Ng Agham Teknolohiya)and a coalition of similar village development organizations have test-bedded decentralized energy supply systems established and maintained through multi
329、stakeholder processes.These systems benefit from governance structures that ensure ownership of local organizations and pay specific attention to different modes of gendered ownership.As utility-scale RE enters the energy system,there is an opportunity to embed indigenous ownership,community-owned o
330、r co-owned models,drawing on such examples.148 Whether the transition realizes its full potential in delivering an ecologically safe and socially just energy system depends on all actors across the system recognizing the systemic nature of the challenges at hand,and thus the importance of collaborat
331、ing across silos.It is in bringing together stakeholders who do not traditionally sit at the same table that we increase the prospect of unlocking that potential and accelerating the RE sectors ability to drive a transition that is fast,fair and just.Renewable energy to responsible energy:A call to
332、action|41Civic governance of the RE sectorIndigenous and rural communities,enlightened companies and investors,and public-spirited governments are already demonstrating that it is not only possible but advantageous to build renewable energy projects that deliver shared prosperity and recognise Indig
333、enous leadership.Joan Carling,Executive Director,Indigenous Peoples Rights International;and Phil Bloomer,Executive Director,Business&Human Rights Resource CentreSECTION 3Overview of the key ecological and social impacts of RE technologies produced and deployed in the PhilippinesThis section shares insights into the current and anticipated ecological and social impacts associated with utility-scal
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