As the world celebrated Earth Day on April 22, conversations around climate change took center stage—especially in countries like the Philippines, where the effects are becoming increasingly severe. From record-breaking typhoons to blistering heat waves, it’s clear that climate change is no longer a distant threat but a present-day crisis.
A significant contributor to this crisis? Fossil fuels. And Philippine businesses are both victims and contributors.
The fossil fuel dilemma
The Philippines currently generates approximately 78% of its electricity from fossil fuels, primarily coal and natural gas. These sources, while long relied upon for energy stability, are some of the largest emitters of greenhouse gases (GHGs)—the primary culprits behind global warming.
This dependency not only accelerates environmental degradation but also exposes businesses to energy price volatility, unpredictable supply chains, and mounting public and regulatory pressure to decarbonize.
The consequences are already hitting close to home. In 2024 alone, the country endured an unprecedented typhoon season, with six storms battering the archipelago in under a month. Super Typhoon Pepito displaced over 200,000 Filipinos, highlighting the growing risk to infrastructure, logistics, and operations—especially for companies in agriculture, manufacturing, and retail.
Business implications of a warming climate
Climate change is not only an environmental issue; it’s an economic one. The National Economic and Development Authority (NEDA) estimates that climate-related disasters cost the Philippine economy billions of pesos annually, disrupting industries, damaging assets, and inflating insurance premiums.
For companies, the threats are multifaceted:
- Operational Disruptions: Power outages, flooded facilities, and supply chain breakdowns.
- Rising Costs: Increased energy prices and higher cooling expenses during extreme heat.
- Regulatory Risks: Stricter emissions policies, carbon taxes, and ESG mandates from investors and regulators.
- Brand and Reputation: Consumer preference is rapidly shifting toward eco-conscious brands. Those that lag behind may lose customer trust.
The case for cleaner alternatives
Facing these escalating challenges, the shift toward cleaner energy is not just advisable—it’s imperative.
Enter nuclear power, a controversial yet potentially transformative solution. Leading the advocacy for nuclear energy in the Philippines is Alpas Pinas, a non-profit organization pushing for clean, affordable, and reliable energy alternatives.
According to Rep. Mark O. Cojuangco of Pangasinan’s 2nd District, “A typical nuclear power plant produces nearly zero greenhouse gases, making it one of the cleanest energy sources available.” This makes it an appealing option for companies under increasing pressure to reduce their carbon footprint.
Gayle Certeza, lead convenor of Alpas Pinas, emphasized not just the environmental benefits but also the economic ones: “Nuclear energy is less costly. Lower energy prices mean reduced operating expenses for businesses and lower electric bills for households—freeing up resources for other essential needs.”
Dr. Caloy Arcilla of the Philippine Nuclear Research Institute underscored the urgency: “We believe that we should start moving away from fossil fuels for our country’s energy needs sooner rather than later, considering the many detrimental side effects their emissions pose to the environment.”
A call to action for Philippine companies
The road to climate resilience starts with acknowledging the risks and embracing long-term solutions. Philippine companies can:
- Invest in cleaner technologies and energy sources
- Audit and reduce their carbon emissions
- Support public-private partnerships for renewable and nuclear development
- Educate stakeholders about the benefits of energy transition
Companies that act now not only future-proof their operations but also contribute to a more sustainable Philippines. The urgency is clear—and the opportunity for leadership is wide open.
As the climate clock ticks louder each year, the message is simple: the time for transition is not tomorrow—it’s today.
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