MANILA: The Department of Energy (DOE) has underscored the vital role of a whole-of-government approach in the country’s goal for energy transition.
The DOE has lauded recent policies of the Bangko Sentral ng Pilipinas (BSP) and the Board of Investments (BOI) that will promote clean and sustainable energy projects among private institutions.
In a statement Wednesday, DOE Secretary Raphael Lotilla welcomed the Central Bank’s move to expand financing for green projects, which include transition financing for decarbonization.
This, as the BSP raised the single borrower’s limit (SBL) for green loans by 15 percent and the gradual reduction of applicable reserve requirement for green bonds from 3 percent to zero over two years.
‘These would entail big investments where private sector funds, including equity investments, green bonds or loans would be needed. We are therefore pleased with this development noting that clean energy investments over the next decade will be carried out by the private developers,’ Lot
illa said.
According to BSP, renewable energy, energy efficiency and green building projects are among the top five green projects supported by the universal and commercial banks in the country.
Likewise, Lotilla also lauded the new policy of the BOI by giving more incentives to registered projects that will build their renewable energy (RE) facilities to supply their power requirement.
BOI’s Memorandum Circular 2023-006 provides income tax holiday and duty exemption on the importation of capital equipment, raw materials, spare parts or accessories.
‘This would certainly aid energy efficient projects which will ultimately redound to the benefit of consumers. The tax incentives will result in increased economic activity and the potential to generate more jobs,’ the DOE chief added.
Lotilla said these recent policies by the BSP and BOI show that the government works harmoniously to move forward the country’s energy transition program.
‘They complement the strategies implemented by the Department of Energy
to accelerate the Philippine Energy Transition Program pursuant to the instructions of President Ferdinand R. Marcos Jr.,’ he said.
The government targets RE share in the energy mix to reach 35 percent by 2030 and to 50 percent by 2040.
Source: Philippines News Agency