Philippines REC Market Assessment and Opportunities for Regional Integration

Highlights

• The Philippines’ REC market is at a crossroads. While the compliance market (PREM) is established, the voluntary market is nascent and faces challenges like limited supply and international recognition.
• Ambitious renewable energy targets. The Philippines aims for a 35% renewable energy share by 2030 and 50% by 2040, necessitating a thriving REC market to accelerate this transition.
• Key challenges to overcome. These include dual market structure integration, price caps, lack of international recognition, regulatory uncertainty, supply-demand imbalances, and ensuring market liquidity and transparency.
• Learning from international best practices. The Philippines can adapt successful models from the EU and US, like the Renewable Energy Directive and HEPIS, to strengthen its regulatory framework and incentivise renewable energy investments.
• Regional collaboration opportunities. The Philippines can benefit from collaborating with ASEAN countries, harmonising standards, developing cross-border trading mechanisms, and promoting joint renewable energy projects.