The Department of Environment and Natural Resources (DENR) is set for a leadership change, with the chief of the Department of Energy (DOE) tapped to head the agency.

Former Energy Secretary Raphael P.M. Lotilla will now bring his sustainability focus to the DENR, following the announcement by Executive Secretary Lucas Bersamin on Friday, May 23, that Lotilla will succeed former DENR Secretary Maria Antonia Yulo-Loyzaga.

Consequently, Energy Undersecretary Sharon S. Garin, who has been vocal about the country’s nuclear energy initiatives and offshore wind developments, among others, will serve as the DOE’s officer-in-charge (OIC).

This development follows President Ferdinand Marcos' request for courtesy resignations from all cabinet secretaries as part of the administration’s efforts to recalibrate its leadership and governance approach.

Lotilla, who has served as Secretary of the energy sector under President Marcos since July 2022, previously held the same position during the administration of President Gloria Macapagal Arroyo from 2005 to 2007.

The DOE has yet to issue a statement regarding this cabinet reshuffle; however, some analysts anticipate significant impacts from Lotilla’s move to the environmental sector.

While shifting an energy leader to environment might seem unconventional, Juan Paolo Colet, managing director of Chinabank Capital Corp., suggests these appointments could be advantageous.

“[Lotilla’s] move to the DENR has the potential to be beneficial to the energy sector because of the department's role in granting certain important permits for energy projects,” he told Manila Bulletin.

“Secretary Lotilla has been instrumental in driving the government's renewable energy agenda, so we hope that his replacement can sustain that momentum while introducing fresh initiatives to boost energy security and electricity affordability,” he said.

Michael Ricafort, chief economist of the Rizal Commercial Banking Corp., also commented that despite Lotilla’s departure from the DOE, the cabinet recalibration would “partly [to] help expedite environmental permits for new or more energy projects, especially renewable energy [RE].”

President Marcos has yet to appoint a new Energy Secretary, but Ricafort believes an integrated approach is needed to attract new investments into the country.