A deepening shortage of skilled labor is emerging as the critical bottleneck for the Philippines’ clean energy ambitions, potentially stalling the nation's aggressive shift toward a more sustainable power generation mix.

The International Monetary Fund (IMF) warned in a recent report that the deficit in technical expertise, both in the public and private sectors, is the biggest hurdle to deploying renewable energy projects.

Citing data from the Department of Labor and Employment (DOLE), the IMF noted that major firms are struggling to fill essential roles in the construction, development, and planning of green infrastructure.

The scarcity of talent extends beyond technical proficiency to include a lack of necessary soft skills required to manage complex energy transitions, the IMF added.

According to the IMF, the labor gap is currently affecting roughly 75 percent of renewable energy companies, which report difficulty recruiting candidates for technical and associate professional positions.

IMF explained that the talent drought is exacerbated by lack of formal apprenticeships in the sector, leaving many entry-level workers without the foundational knowledge required for large-scale developments.

“To meet the growing demand, the government is intensifying its national efforts to upskill and reskill the workforce, addressing gaps in sectors such as RE,” the IMF stated.

The IMF then highlighted the government’s participation in the United Nations Framework Convention on Climate Change Just Transition Work Program, which focuses on job creation through targeted training and social dialogue.

Domestically, the Department of Energy (DOE) has also forged a partnership with the International Labor Organization to establish a framework for green jobs, while the Department of Labor and Employment has launched the Right-Skilling the Philippine Workforce Initiative. These programs aim to leverage state universities and colleges to host affiliated renewable energy centers, broadening the career pipeline for Filipino workers.

Beyond the human capital crisis, the IMF identified high capital costs and restrictive financing mechanisms as persistent barriers to tapping indigenous resources.

Developing renewable energy requires extensive exploration and site-specific assessments that carry significant upfront costs and long investment horizons. Without addressing these financial frictions, the IMF cautioned that investor confidence could erode, leading to underutilization of capital markets and overreliance on debt.

The stakes for the labor and capital markets are substantial, as IMF noted that the total investments required for the sector are projected to range from ₱7.39 trillion to ₱10.67 trillion, driven by the rollout of offshore wind, solar, and hydropower technologies.

Achieving these targets, IMF said will require synchronized effort between the public and private sectors to ensure the workforce and the financial architecture can support such a massive capital outlay.