Fuel insecurity most cited as PHL economy’s top vulnerability

DEPENDENCE on imported fuel was the most-cited weakness of the Philippine economy, according to an international survey of business executives commissioned by E3G, We Mean Business Coalition, and the Global Renewables Alliance.

According to the survey, 92% of respondents from the Philippines cited the country’s reliance on fossil fuel imports.

The survey took in the views of nearly 2,000 respondents from 18 countries in late April, during the closure of the Strait of Hormuz by Iran and a counter-blockade by the US Navy.

According to the survey findings, businesses and households are bearing the consequences of imported fossil fuel dependence through higher costs.

“Prompted by the volatility in energy prices caused by the recent rise in geopolitical uncertainty, business leaders would welcome a quicker switch to domestically sourced renewables-based electricity,” the survey found.

“The support of Philippine companies for clean electrification is informed by the economic advantages it is widely perceived to offer,” according to the report accompanying the survey.

The respondents agreed that clean energy will make their companies more competitive and drive business growth.

The Philippines is seeking to move away from fossil fuels by targeting a 35% share of renewable energy in the power mix by 2030, rising to 50% by 2040.

Around 89% of survey respondents said the government is moving too slowly to support the degree of electrification that businesses need.

Nearly half of the respondents cited public grants and subsidies as among the most effective measures for speeding up electrification.

Although Philippine businesses see new growth opportunities in low-carbon manufacturing, around 78% of respondents would consider relocating overseas should government support for electrification prove insufficient.

“Business executives across 18 countries overwhelmingly support a rapid transition to electrified economies run predominantly on renewables-based electricity,” the survey found. — Sheldeen Joy Talavera