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DOE to seek US 'transition financing' for energy projects

Published May 2, 2023 06:01 am
The Philippine government, through the Department of Energy (DOE), will be seeking "transition financing” from the United States that could be funneled into improving climate resiliency as well as in greening the energy infrastructure of the country. According to Energy Secretary Raphael P.M. Lotilla, “the core of our energy diplomacy has always been for access to transition financing for technology because precisely, we don’t want to impose the burden of energy transition to our people who are already overburdened and yet have not contributed to the creation of the problem.” He explained that the country’s bid for access into transition financing will be brought into the discussion during his scheduled meeting with American Energy Secretary Jennifer Granholm, as part of the five-day official visit of President Ferdinand Marcos Jr. to the US. Transition financing refers to financial support that developed countries, like the United States, could extend to their peer-developing countries, so they can transform their energy infrastructure network into a more resilient, decarbonized system. Global transition to a low carbon economy has been institutionalized through the Paris Agreement to reduce global greenhouse gas emissions; and that entails significant investments that must be injected into renewable energy, clean transportation system like electric vehicles; energy efficiency as well as other clean and green innovative technologies. The energy chief noted that the propounded transition financing availment “will continue to be the core of our conversation – how we can mobilize international support for the energy transition of the Philippines, including climate adaptation, protecting our most vulnerable communities from the impacts of climate change and for enhancing the energy resiliency of our infrastructure.” On the climate change-induced vulnerability on energy facilities, Lotilla said the international funding to be secured can be partly spent on “improving our transmission lines,” as he cited that “in the last super typhoon in Luzon, all the 69kV (kilovolt) lines were down for how many weeks,” hence, triggering unwanted power outages in several provinces, including Nueva Ecija, Aurora and Quezon. Essentially, transition financing can be provided by array of financial institutions such as banks, development financial institutions; multilateral lenders; as well as other investors. One of the well-entrenched transition financing platform is the Green Climate Fund, which was established under the precept of the United Nations Framework Convention on Climate Change (UNFCCC), and it is primarily aligned to help developing countries in their efforts to mitigate and adapt to climate change impacts. The Philippines had already cast its energy transition pathway that will be leaning mainly on massive scale renewable energy installations, but part of the challenges to hurdle, will be strengthening and building up the country’s power transmission network.



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Raphael Lotilla Department of Energy (DOE) green funding decarbonization Climate change
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