UK and Philippines collaborate on climate fund to accelerate shift to renewable energy

The United Kingdom and the Philippines have inaugurated the Philippines Country Fund under the UK Partnering for Accelerated Climate Transitions (UK PACT) programme in Manila, aiming to fast-track the countrys transition to clean energy. This partnership emphasizes offshore wind, marine spatial planning, and broader access to renewable energy sources.

UK PACT is a capacity-building initiative financed and managed by the UK government through the Foreign, Commonwealth and Development Office and the Department for Energy Security and Net Zero, forming part of the UK's International Climate Finance commitment. The programme is designed to support partner nations in advancing low-carbon energy pathways via targeted technical assistance.

In its first year, the Country Fund is concentrating on the energy sector, aligning with the Philippines ambition to cut or avoid 75% of greenhouse gas emissions by 2030 and achieve the objectives outlined in the country's Energy Plan 2023-2050. The targets include a 35% share of renewable energy in the power mix by 2030, 50% by 2040, and a majority share by 2050.

The fund is implementing four key initiatives. First, it is revising the offshore wind pricing model to enhance the nations green energy auction system, while evaluating offshore wind infrastructure and developer readiness. Additionally, the programme promotes marine spatial planning for offshore wind to strengthen multisectoral frameworks for sustainable development.

Another focus is the creation of an electric power system cost simulation tool to enable data-driven and cost-efficient energy planning. The fund is also accelerating microgrid deployment in underserved regions to expand energy access and support inclusive economic growth.

At the launch event, UK Ambassador to the Philippines Sarah Hulton OBE remarked that a diversified, renewables-driven power sector not only reduces emissions but also presents opportunities to lower costs, improve resilience, and create new sustainable industries and employment.

Philippine officials from the Energy Regulatory Commission, Department of Energy, Department of Environment and Natural Resources, and other agencies voiced strong support, highlighting the funds potential to transform the countrys energy landscape.

Author: Maya Henderson