· 5 min read
Two months before UNFCCC COP30, representatives from the Philippines’ private sector convened in the second annual Net Zero Conference. It provided the ideal platform for business leaders to reflect on the progress and challenges along the road of decarbonization.
With more than 50% of the nation’s greenhouse gas (GHG) emissions from the private sector, their role in climate change mitigation is critical for attaining economic development. This does not just pertain to actual pollution reductions, but also providing finance and added capacities to unlock more collaborations and initiatives across different sectors.
What emerged from this conference is a theme that seems obvious yet remains more overlooked in reality: achieving net-zero is only possible through “strength in numbers.”
Chicken or egg?
When identifying how to further enable climate solutions, there has always been a contentious “chicken-or-egg” question – should the government act first? Or should the private sector initiate?
This was evident throughout the conference, as government and business representatives invited the other to initiate actions to further accelerate decarbonization in the Philippines.
Recently-appointed Sec. Raphael Lotilla of the Department of Environment and Natural Resources (DENR), who came from the Department of Energy (DOE) invited businesses to “act even more boldly as a catalyst for credible decarbonization, integrity in carbon markets, and collective resilience-building”.
His successor in DOE, Sec. Sharon Garin, sees no need for a net zero pledge for the Philippines. Instead, she said that in the highly-privatized Philippine power sector, it is businesses that would drive the attainment of climate and energy targets.
Noting that “there is so much appetite” for potential investments in renewable energy (RE), Garin highlighted entry points for greater private sector involvement in government-led energy programs. She cited the country’s five Green Energy Auctions as an enabler of achieving the current target of 50% RE share in the national energy mix by 2040.
During one of the breakout sessions, Alexander Ablaza, President of the Philippine Energy Efficiency Alliance highlighted that energy efficiency (EE) is not being given as much attention from Garin’s statements. He highlighted that despite a 40% potential share of EE in a net-zero pathway, initiatives to move private capital towards relevant initiatives have been “sluggish”, compared to RE.
This contrast points to the importance of having a coherent policy framework spanning energy, climate, and finance. While progress has been made in RE to enable decarbonization, there remain policy gaps that prevent the country from tapping into the potential of other solutions, including on EE.
Addressing the mismatch between existing priorities and preferences of incoming private capital is needed for the Philippines to achieve energy security and affordability, while being aligned with national policies and commitments under international frameworks.
Simple innovations
In acknowledgment of this problem, the Net Zero Conference featured as part of its program a session on business partnership matching. This is one of the strategies employed to maximize the interactions between participating entities, in aid of empowering more actors in the private sector.
It can be said that so-called simple innovations have been a trademark of the conference’s lead organizer Net Zero Carbon Alliance (NZCA), the Philippines’ pioneer private sector-led initiative aiming for net zero.
Since its inception four years ago, it has been laying down the foundation for what will be a long-term commitment in both words and actions – from an online portal for its now-41 members to monitor their progress in reducing emissions to capacity-building sessions in addressing different challenges in the complex road to net zero.
Another addition to this year’s conference is the use of the “fishbowl” approach for the breakout sessions. A signature of event co-organizer Southeast Asia Corporate Decarbonization Exchange, it is an interactive, participant-driven discussion format that aims to highlight concrete, practical actions over abstract pledges.
This format is pivotal to enabling more participation, especially for those still hesitant to start the path to carbon neutrality. During one of the breakout sessions, it was highlighted that factors such as more technical terms, complex strategies, and digital platforms have made the goal of net zero seem too costly and unreachable for small and medium enterprises and even some bigger businesses.
Yet it all goes back to the concept of “strength in numbers”. This is not necessarily reflected in what the statistics indicate; after all, it would be difficult for a country whose government still refuses to have a net-zero target to make significant progress on what is ultimately a long-term goal in only a few years’ time.
What it means is that collaborations and partnerships are more important now than ever. Through this lens, the existence of initiatives like this conference can be seen as simple innovations themselves in a country like the Philippines. These matter in sending a message to other businesses and the government that perhaps the country is more ready to genuinely start its road to decarbonization than as perceived.
In a country that is enduring climate extremes more frequently than before, reeling from recent revelations of corruption in its flood control projects, and updating many of its climate policies on the road to COP30, transparency and accountability have never been more obviously important.
The significance of environmental and social safeguards, neither of which was highlighted by the attending department heads during their statements, must not be forgotten, either.
It is with this context that the 2025 Net Zero Conference took place: a reminder that “business-as-usual” has no place on the road to decarbonization, even if some in the government still seem to be.
As stated by Philippine lawmaker Jose Manuel Alba during the opening plenary, “the cost of delay is greater than the cost of action”.
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