AS the world grapples with the urgent realities of the climate crisis, energy efficiency has become a crucial strategy for reducing greenhouse gas emissions (GHG), promoting sustainable development and ensuring energy security. In 2019, the Philippines took a significant step by passing Republic Act 11285, or the Energy Efficiency and Conservation Act, aiming to institutionalize energy efficiency measures across various sectors. This law supports the Intergovernmental Panel on Climate Change's Sixth Assessment Report, which clearly states that governments worldwide must take decisive action on energy efficiency to address the climate crisis.
The push for energy efficiency has its roots in the 1970s oil crisis, which prompted industrialized nations to reconsider their energy consumption patterns and explore alternatives to fossil fuels. While many countries implemented energy efficiency measures, the Philippines faced unique challenges due to its geographical makeup and socioeconomic conditions.
In the 1980s, the energy crisis became evident in the Philippines, characterized by insufficient electricity supply, frequent power outages and heavy reliance on imported fossil fuels. The government recognized the need for a comprehensive energy policy that increased supply and prioritized efficient energy use. However, limited resources and a lack of governmental coordination hindered progress.
In response to the energy crisis and rising energy costs, various initiatives were launched in the 1990s and 2000s, including the establishment of the Department of Energy, as well as campaigns promoting energy conservation in households and industries. However, significant legislative action did not occur until the passing of the Energy Efficiency and Conservation Act in 2019. This act aimed to create a framework for improving energy efficiency across the country's different sectors.
The Energy Efficiency and Conservation Act is a landmark legislation designed to promote energy efficiency and conservation practices throughout the Philippines. It includes key provisions such as the establishment of energy efficiency programs, mandatory energy audits, energy labeling, public awareness campaigns and incentives for compliance. These provisions reflect a comprehensive approach to enhancing energy efficiency, empowering stakeholders at all levels and fostering a culture of conservation among citizens and businesses.
During the Energy Smart Forum 2024 organized by the European Chamber of Commerce in the Philippines in August 2024, Alexander Ablaza, president of the Philippine Energy Efficiency Alliance Inc., underscored the importance of driving energy efficiency in ensuring energy security.
Ablaza emphasized reducing peak periods as one way. He explained that by improving cooling efficiency, the midday peak can be reduced. In addition to upgrading non-cooling systems, efficiency improvements are also necessary for cooling systems, outdoor lighting, household appliances and other residential loads during the early evening peak.
Mitigating climate change
Energy efficiency, considered the first fuel in the clean energy transition, plays a crucial role in mitigating climate change. By reducing energy consumption and lowering GHG, it is considered one of the most cost-effective strategies for achieving climate goals. It is inextricably linked to all the UN Sustainable Development Goals. It will contribute to attaining the country's Nationally Determined Contribution to the Paris Agreement, which is set at a 75-percent reduction in GHG emissions by 2030 relative to the 2010 business-as-usual scenario.
The International Energy Agency and the International Renewable Energy Agency forecasted that to limit warming to 1.5 degrees Celsius, the world must double the global average annual rate of energy efficiency improvements from around 2 percent to over 4 percent annually until 2030. Focusing on energy efficiency can reduce reliance on imported fossil fuels, enhance energy security and promote economic growth while addressing climate-related challenges.
One successful Philippine initiative involves the government retrofitting public buildings to improve energy efficiency. LED lighting systems and enhanced air-conditioning systems have led to significant energy savings.
The business process outsourcing sector, a major contributor to the Philippine economy, has also implemented energy efficiency measures. Optimizing data center cooling systems and using energy-efficient lighting reduce operating costs and align with the sector's sustainability goals, attracting eco-conscious clients and investors.
Energy efficiency offers several benefits: reduced energy consumption and costs, lowered carbon emissions, economic growth, job creation and increased resilience to climate impacts. However, barriers to energy efficiency remain, like initial investment costs, lack of consumer awareness, bureaucratic delays, changes in government priorities, and the availability and affordability of energy-efficient technologies.
Making energy efficiency a core element of the Philippines' energy policy achieves multiple benefits: reducing GHG emissions, ensuring energy security, promoting economic growth and fostering social equity. As the world continues to face climate change's worsening effects, energy efficiency emerges as a crucial tool for securing a sustainable and resilient future for future generations. By giving priority to energy efficiency, the Philippines has the chance to lead in climate action and prove that economic advancement and environmental responsibility can coexist harmoniously.
The author is the founder and chief strategic advisor of the Young Environmental Forum and a director of Climate Tracker Asia Inc. He completed a climate change and development course at the University of East Anglia (UK) and an executive program on sustainability leadership at Yale University (USA). Email him at ludwig.federigan@gmail.com.