EU Delegation and Italian Chamber invite PE2 for briefing on EE&C Act

  • PE2 president Alexander Ablaza speaks during an Economic Counsellors Meeting convened by the EU Delegation on 27 June 2019. (Photo: PE2)
    PE2 president Alexander Ablaza speaks during an Economic Counsellors Meeting convened by the EU Delegation on 27 June 2019. (Photo: PE2)

MAKATI CITY, 27 June 2019 – Philippine Energy Efficiency Alliance (PE2) president Alexander Ablaza delivered a special briefing on the recently enacted Republic Act No. 11285, otherwise known as the Energy Efficiency and Conservation (EE&C) Act during a meeting of economic and trade promotion officers convened earlier today by the Delegation of the European Union to the Philippines (EU Delegation) and upon the invitation of PE2 associate member, the Italian Chamber of Commerce in the Philippines Inc (ICCPI). Ablaza said that the Italian Chamber has been so driven in the area of energy efficiency, especially since the 2018 World Bank report on Regulatory Indicators for Sustainable Energy (RISE) ranked Italy as the first in 133 surveyed countries in a comparative listing according to their energy efficiency policy scorecard.

Ablaza stressed that after more than a decade of mobilizing private capital toward renewable energy projects with the aid of its own predecessor law in 2008, the passage of the EE&C Act opened a new era of scaling up efforts toward an accelerated deployment of energy efficiency technologies, solutions, services and capital to bridge a huge P 12 trillion investment gap in the local economy through 2040. “Across the globe, over half of human interventions toward the sub-2-degree C rise will be related to energy efficiency, which collectively would be so much larger in equivalent generating and GHG abatement capacities than those of renewables,” he added.

While the Philippines was once ahead in Southeast Asia with the early passage of an energy conservation law in 1980, such a 5-year policy measure was seen as a stop-gap remedy to a temporary energy supply deficit, and not as a strategy tool to reduce energy and carbon intensity of the economy through the long term. The pioneer law, albeit extended by a bonus 5 years in 1985, also did not catalyze nor de-risk off-balance sheet capital flows to energy efficiency as a new economic activity. “While the motivations to reduce energy consumption were entirely different almost four decades ago, these all gradually changed through the 29-year period of refiling the EE&C bill through a reverted voluntary policy regime,” Ablaza said.

Ablaza quickly explained the features of the new EE&C law, which include the roles of Government, certification of EE&C individual experts and energy service companies (ESCOs), energy performance requirements, obligations of medium- and large-sized energy consumers, fiscal and non-fiscal incentives, and other miscellaneous provisions. He told the participants that the law effectively removes foreign ownership restrictions in the eligibility for fiscal incentives to be administered by the Board of Investments.

The PE2 head emphasized that the DOE will need to consult market stakeholders in crafting and finalizing the Implementing Rules and Regulations (IRR) and that the intent to mobilize off-balance sheet investments through a suitable package of fiscal incentives should be preserved through the Government’s comprehensive tax reform program and through the first 10-15 years of the EE&C Act effectivity.

Ablaza concluded, “Government, civil society and the business sectors will need to step up collaborations to sustain the EE market reforms. The EE&C Act is just the initial step.”

The briefly was well received by the multinational participants representing the various trade and economic attaches and local chambers of commerce of the various EU member economies. The EU Delegation thanked PE2 for this briefing on the EE&C Act.

About PE2

Philippine Energy Efficiency Alliance Inc. (PE2), is a non-stock, non-profit organization of energy efficiency market stakeholders.

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Republic Act 11285

R.A. 11285 - An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, and Granting Incentives to Energy Efficiency and Conservation Projects

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