“The technical working group shall ensure a fair and inclusive energy transition by minimizing its negative impacts on communities that are reliant on fossil-based system of production and utilization.”
A MOVE to free the country from dependence on fossil-based systems and shifting to renewable sources of energy to reduce greenhouse (GHG) emissions is being pushed at the Senate.
The Energy Transition Act (Senate Bill No. 157) proposes the establishment of a framework for introducing and institutionalizing fundamental policies on energy transition, including the promotion of clean energy sources, decreasing use of fossil-based sources of energy, and delineation of responsibilities among various government agencies in the transport and power sectors.
Citing data from energy think tank Ember, bill author filed by Sen. Sherwin Gatchalian said a measure for transitioning to renewable energy sources is needed so that the country can come up with an energy transition plan that would push it closer to its green energy goals.
He said the Ember data showed that the Philippines has surpassed Indonesia and China in terms of dependence on coal-fired power as the country’s share of local electricity generation rose for the 15th straight year in 2023 despite the target of cutting dependence on the fuel to less than half of total power output by the year 2030.
He said the proposed measure provides for the creation of an energy transition plan to achieve the phaseout of fossil fuel plants and net zero emissions in the year 2050.
“The Philippine Energy Plan (2020-2040) fails to provide a clear energy transition framework given the country’s NDC (nationally determined contributions) and the aforementioned policies laid out in RA 7638 (The Department of Energy Act of 1992), RA 9136 (Electric Power Industry Reform Act of 2001), and RA 9513 (Renewable Energy Act of 2008).
In April 2021, the Philippines communicated its updated NDC to the United Nations Framework Convention on Climate Change. It commits to a projected GHG emission reduction and avoidance of 75 percent, of which 2.71 percent is unconditional and 72.29 percent is conditional, representing the country’s ambition for GHG mitigation for the period 2020 to 2030 for the sectors of agriculture, wastes, industry, transport and energy,” Gatchalian said in the bill’s explanatory note.
He said the Climate Change Commission will be tapped to lead the implementation of the measure through the creation and implementation of an Energy Transition Plan with the assistance of government agencies such as the Department of Energy, Department of Transportation, Department of Environment and Natural Resources, Department of Finance, Department of Trade and Industry, Department of Agriculture, Department of Labor and Employment, Securities and Exchange Commission, and Energy Regulatory Commission.
Gatchalian said the transition plan will be the basis for a comprehensive framework in the exploration, development, utilization, and distribution of energy sources, and resilience and upgrading of energy infrastructures in support of the country’s shift from fossil-based systems of energy production and consumption to clean energy sources.
NATIONAL TARGETS
Under the proposed act, Gatchalian said, the agencies will implement a moratorium on the establishment of new fossil fuel power plants, and sale of new internal combustion engine vehicles within the timeframe to be determined by the Energy Transition Plan.
Phaseout of fossil fuel power plants and internal combustion engine vehicles as determined by the Energy Transition Plan will also be in effect.
Gatchalian said the national government agencies will also increase the share of clean energy sources in the energy mix of the country while taking into account the moratorium on new fossil fuel power plants and phaseout of existing ones in the end in view of reducing GHG emissions.
“Under the principle of just transition, the TWG (technical working group), in approving the ETP (Energy Transition Plan) and its implementation, shall ensure a fair and inclusive energy transition by minimizing its negative impacts on communities that are reliant on fossil-based system of production and utilization. This shall include labor programs which include conduct of trainings for employees that are under the fossil-based system of production and utilization industries prior the implementation of this Act to ensure their continuous employment, if practicable, and to protect their rights and benefits in accordance with the existing labor laws and rules and regulations,” Gatchalian said in the bill.
“Through this bill, it is hoped that the country will be able to comply with its commitments under the Paris Agreement while ensuring that the transition shall be fair and inclusive,” he added.