Norway is open to expanding trade and investment ties with the Philippines particularly in the areas of aquaculture and retail industries while also continuing to develop its partnerships in the renewable energy (RE) and maritime sectors.
Norwegian Ambassador to the Philippines Christian Halaas Lyster told Manila Bulletin that Norway is open to exploring possible contributions to the Philippines’ aquaculture industry since seafood is one of Norway’s main exports, particularly salmon, cod, and mackerel fished from their country’s cold and fresh waters.
Lyster recognized the Philippine aquaculture sector, but said it is still small and may not have the capacity yet of producing enough supplies for export, given local demand. However, he said he has been contacted by many Filipinos within the aquaculture industry.
“They are looking towards Norway when it comes to technology within fish farming. So maybe in the future, there could be a potential for closer collaboration when it comes to aquaculture and fish farming,” he said.
“And also making it possible for some of the fish farmers here in the Philippines to increase production, because I think some of the challenges now is that fish farms here are quite small. Then again, we will need equipment, etc. That might be an area that could be interesting to explore further,” he added.
There are 540 aquaculture farms registered in the Bureau of Fisheries and Aquatic Resources (BFAR) as of July 2023. Majority of these operate in Regions I (Ilocos Region), III (Central Luzon), VI (Western Visayas), and X (Northern Mindanao).
BFAR’s Fisheries Situation Report for January to December 2022 stated that the fisheries sector produced 4.3 million metric tons of fish and fishery products. Out of 20 major species, seaweed, skipjack, yellowfin tuna, squid, and bigeye scad were the five with recorded increases in production.
Norway’s aquaculture focuses on using sustainable off-shore and closed-system fish farming technologies, driven by research and development (R&D) projects in the industry. Off-shore farming is done usually in fjords or along the coastline, complete with advanced vessels or fish pens that are able to withstand strong currents, protect fish from interbreeding, and prevent pollution at the low coastal areas. Closed systems include submerged or closed facilities to hold fish and allow proper waste collection.
According to the United Nations Food and Agriculture Organization (UN FAO), “the global supply of Atlantic salmon reached around 2,863,700 tonnes during 2022, with the main producer, Norway, accounting for 1,511,100 tonnes.”
“Norway has exported 1, 255, 851 tonnes of salmon worth NOK 105.8 billion in 2022, the best-ever export year for salmon as NOK 100 billion was exceeded for the first time,” added the UN FAO.
In terms of trade, Lyster said they are trying to make Norwegian seafood more readily available in the Philippines. He has also observed an increase in the import of fresh seafood aside from frozen products to the country.
Nordic retail
Aside from seafood, Norway has also been known for its Nordic architectural style and design, which is now popular among a portion of Filipinos.
Asked if there may be possible ventures in the retail sector, Lyster said “in the future, it might be something that could create potential.”
“To be honest, [the interest in] Norwegian design, furniture it's very small in the PH. It's very difficult to get it. I know there's one importer [and] they're doing flock chairs/office chairs. There's a very small market,” he said.
However, the ambassador remarked that “more and more homes in the Philippines look towards Nordic inspiration.”
Lyster noted Norwegian company Jotun has been involved in the architecture and design sector of the Philippine market.
As the “world’s number one marine paint company,” Jotun focuses on the decorative section of its operations. According to Rohan Shetty, general manager of Jotun, the market in the country for premium paints has evolved positively, observing a “huge trend in that segment.”
Jotun established their first Philippine store in Cebu, and will inaugurate two stores in the National Capital Region (NCR); one in Ortigas, Pasig starting next week, and another in Makati in December.
“I hope in the future we can showcase more [of that]. It's all about simplicity, sustainability, and I think these are things that more and more Filipinos are starting to appreciate. Even though it's far away, it's possible to do more,” Lyster added.
Developing renewable energy, maritime sectors
While engagements with the aforementioned industries are interesting to explore, Lyster said Norway’s primary focus in the Philippines remains to be within the RE and maritime sectors.
Lyster reiterated that the Norwegian embassy and firms have been working closely with the Philippine government in strengthening all its collaborations that link and intertwine the maritime and energy sectors.
Norwegian companies have been investing in the Philippines’s hydropower, offshore wind, and solar projects. The most prominent of these has been Norwegian RE giant Scatec’s joint venture with Aboitiz Power since 2005, which has become the largest hydropower company in the Philippines.
Notably, Norwegian firm BW Group Ltd also partnered with First Gen Corporation through a charter party contract for a floating storage regasification unit (FSRU) of its offshore liquefied natural gas (LNG) terminal project.
“[We are] working with the government to create the best environment for the green transition because it will happen in the Philippines. Question is basically when. Good thing is the political push from the administration now is very strong. As long as the push is strong, we really want to commit to renewable energy,” said Lyster.
As of mid-2023, around 77 service contracts “with a potential capacity of 60 gigawatts’ have been awarded by the Department of Energy (DoE) to local and international offshore wind developers.
Lyster emphasized that in connection to RE, Norway has also been trying to engage in the Philippine circular economy, pertaining to sharing waste management practices and policies, and preventing plastics and other non-biodegradable waste from entering the country’s oceans.
“We are really trying to work with the Philippines to do something with this challenge. It’s good that the Philippines has the Extended Producer Responsibility (EPR) law in place, it's just all about implementation,” he said.
The EPR Law, a supplementary law to the existing Republic Act (RA) No. 9003, or the “Ecological Solid Waste Management Act of 2000,” sets out guidelines for large businesses or producers to reduce its use of plastics in packaging, and mandates proper recovery, treatment, recycling, and disposal processes for their products.
Lyster highlighted the introduction of a Deposit-Return System (DRS) for waste products that he believes would help address the problem of production waste. Through the DRS, consumers are incentivized to return emptied beverage bottles or other plastic packages in exchange for a refund of their deposit.
“We need robust systems. From our side, we are sharing everything we know. When talking about RE,the circular economy, we can share our knowledge but it has to be implemented in a way that works here in the Philippines. It’s different in Norway, but the principles will work here,” Lyster said.
In terms of maritime operations, the ambassador said there is a strong link between Norway and the Philippines in the sector, particularly in employing and training seafarers, and cooperating with local colleges for the program.
“On our fleet, at any given time, we have 25,000 Filipinos. And I think what sets us out, especially the program we have with the Norwegian Training Center (NTC), where they started off in 1990 and now I think almost 6,000 cadets have gone through the program. These are people who aren't just working on the ship but they become officers, captains, chief engineers, and they also get well-paid jobs on shore in the shipping industry,” he said.
Norway is the fifth largest fleet in the world, and a major player in the shipping industry. More than 50 companies with Norwegian-maritime interests have also been established in the country.
“Linked to this you have shipping companies that decide to have some of their back office functions here in the Philippines. On the maritime side, everything we do there is trying to create a very good bond with the Philippines,” he said.
In their 75th year of bilateral cooperation, Lyster remarked that it is Norway and the Philippines’ cooperation overtime that builds strong ties, saying “that long term commitment is something that makes it very special.”