PH is number two in renewable energy investment ranking
The Philippines has emerged as the second most attractive developing economy for renewable energy investment, according to the 2024 Climatescope report released by BloombergNEF (BNEF).
The annual report assesses clean energy progress and market attractiveness across 110 developing countries, which collectively account for nearly two-thirds of global clean energy output and 82 percent of the world’s population.
The Philippines’ latest ranking marks a notable improvement from fourth place in 2023, driven by a power score of 2.65—well above the Asia-Pacific regional average of 1.94.
Government response and policy impact
In a statement on Monday, the Department of Energy (DOE) highlighted the significance of this milestone. “The improvement in ranking reflects the growing confidence of the global community in our country’s commitment to clean energy transition and sustainable growth,” the DOE said.
The department attributed this progress to the country’s comprehensive renewable energy policies, including auctions, net metering schemes, tax incentives, and its ambitious target of 35% renewable energy in the power mix by 2030.
“As the only emerging market in the Asia-Pacific region with all these mechanisms in place, we are paving the way for a more sustainable energy future, not only for our nation but as a model for the region,” it said.
The DOE also stressed the need to accelerate renewable energy development further, especially by attracting foreign investment.
“Significantly, while most of the renewable energy investment is domestic, we look forward to realizing the potential of increased foreign participation through recent reforms that allow 100 percent foreign equity in renewable energy projects,” it said.
For its part, the Department of Trade and Industry (DTI) also celebrated the country’s rise in the rankings.
“This recognition demonstrates the effectiveness of our efforts to establish a solid foundation for renewable energy development, which boosts our country’s growing reputation as a prime destination for renewable energy investments,” DTI Secretary Cristina A. Roque said in a statement earlier this week.
“Under President Marcos Jr.’s ‘Bagong Pilipinas’ agenda, we have been able to position the Philippines among the emerging markets through progressive policy reforms and strategic incentives. Indeed, these initiatives attract local and foreign investments and create a conducive environment for the growth and expansion of the renewable energy sector,” she added.
Next steps: Expanding investment and capacity
The government continues to enhance the investment environment through policy reforms such as the recently signed Republic Act No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act. This legislation strengthens tax incentives to boost global competitiveness and encourage investment.
The Board of Investments (BOI), an attached agency of the DTI, has played a key role by approving P1.58 trillion in investment pledges as of November 2024, with P1.35 trillion allocated to the renewable energy sector.
Notably, the BOI granted green-lane access to Buhawind Energy Philippines, a joint venture between PetroGreen Energy Corp. and Denmark’s Copenhagen Energy. The company’s three offshore wind power projects, with a combined target capacity of 4,000 gigawatts, represent an investment of P694 billion and are expected to create over 50,000 jobs.
“The Philippines is open for business and committed to supporting investors in the renewable energy sector. We are confident that the country will continue to attract significant investments and emerge as a leader in renewable energy in the region,” Secretary Roque said.
“These achievements reflect the collaborative efforts of the government, private sector, and our international partners in driving sustainable economic growth and ensuring a cleaner energy future for the Philippines,” she added. Veronica Uy
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