The SGV Knowledge Institute, together with the SGV Sustainability team, recently hosted a forum on the opportunities and challenges of “Building a Sustainable Future through Just Energy Transition” held at the Makati Shangri-La.
The event delved into critical aspects of Just Energy Transition (JET) such as policy frameworks, technological advancements, and community engagement strategies. Key topics included Sustainable Energy Solutions and Green Financing.
In her opening remarks, SGV & Co. Country Managing Partner Rossana A. Fajardo underscored the urgency of addressing climate change through equitable and inclusive energy solutions and the importance of navigating the complexities of JET.
“The challenges posed by climate change and environmental degradation are more pressing than ever. Our planet is facing unprecedented threats and the urgency for action has never been clearer. However, as we strive for a sustainable future, it is essential that we do so with a commitment to justice and equity. The transition to sustainable energy sources must not only be effective but also inclusive, ensuring that no one is left behind in this critical journey,” Fajardo stated.
The event featured Department of Energy (DOE) Undersecretary Felix William Fuentebella as the keynote speaker, and SGV Sustainability Principal Bonar A. Laureto who gave the forum introduction. Notable speakers and panelists included key players in the energy, regulatory and climate finance sectors including Meralco PowerGen Corporation (MGen) President and CEO Emmanuel V. Rubio, Mober Technology Pte., Inc. CEO and Founder Dennis O. Ng, ACEN Corporation President and CEO John Eric T. Francia, International Finance Corporation (IFC) Country Manager for the Philippines Amena Arif, and ADB (Asian Development Bank) Senior Energy Specialist Ayato Kurokawa.
In his speech, Fuentebella emphasized the need to go beyond economic metrics and consider looking into human rights, reliability and resilience, and clear and climate-centered actions. He discussed DOE’s ARC (Access and Affordability, Reliability and Resiliency, Clean Energy and Sustainability) indicators as a framework for guiding the country’s energy transition.
“The ARC results matrix is more than just a dashboard—it must be a compass that points us forward, together—toward a just, inclusive, and sustainable energy future,” the DoE Undersecretary remarked.
The Philippines is actively pursuing a Just Energy Transition towards cleaner energy sources with initiatives that include promoting renewable energy, supporting early retirement of coal plants, and ensuring a fair transition for affected workers and communities.
JET is considered crucial, especially in the Philippines, as it emphasizes the need for an equitable shift towards sustainable energy systems which addresses the social, economic, and environmental impacts of transitioning from fossil fuels to renewable energy sources. JET seeks to ensure that all communities, especially the marginalized ones, will benefit from social equity and inclusion as well as job creation and economic growth so that a sustainable and just future is created for all stakeholders.
Both MGen and ACEN presented their current efforts on renewable energy at the forum.
“At MGen, we believe that energy decisions cannot happen overnight. It must be managed carefully to balance sustainability with the country’s growing demand for power. Our approach follows a clear sequence. Through MGen Thermal, we will secure today’s supply with dependable baseload, making sure our economy and communities have reliable power every day that’s also affordable,” Rubio, MGen President and CEO, stated.
During the event, ACEN shared its initiative with The Rockefeller Foundation and the Monetary Authority of Singapore (MAS) to develop and implement a mechanism for the early retirement of coal plants.
“We did sign a cooperation agreement with MAS and Rockefeller to do the world’s first transition credits pilot project which really entails the accelerated retirement of the coal plant. The transition will require to keep the lenders and investors whole. We need to pay for that. We need to ensure that no one gets left behind so the community workers must be taken care of and so forth. We’re going to repurpose and decommission the power plant properly and then we need to replace it with clean energy—which is essentially reliable, dispatchable (similar to MGen’s TerraSolar project—although half the size) and then this will be partially funded by the carbon credits,” Francia, ACEN Corp. President and CEO, said.
The forum also served as a platform to discuss green financing for climate investments. ADB Senior Energy Specialist Kurokawa confirmed the positive reception about the transition to clean energy.
“Many clients and countries, even the private sector companies that we are speaking with, do want to transition. But they cannot for various reasons, and we need to show the coal plant owners, the country, the national government, the benefits and the support tools that are available. One of the key barriers or obstacles that we come up with, and I think this is not rocket science, is that energy security and affordability is paramount in any country, including the Philippines,” Kurokawa began.
“Given the growing demand for power, it’s very challenging to actively retire coal right now. Those are some of the realities that we are facing, but we do continue to address these and we are actually in discussion with the plant owners in terms of coal retirement. I will conclude that the ETM (Energy Transition Mechanism) is basically a blended finance facility that will support and incentivize the [coal] retirement and expand renewable energy,” he added.
The event also marked the launch of the SGV Sustainability Center of Excellence.
“This initiative is designed to serve as a vital resource for collaboration, innovation, and knowledge sharing. It will bring together thought leaders, practitioners, and advocates to drive meaningful change and foster sustainable practices across various sectors. We believe that this center will play a crucial role in empowering individuals and organizations to contribute to a more sustainable future,” Fajardo explained.
The SGV Knowledge Institute serves as a hub for intellectual exchange and advancement, leveraging SGV’s collective thought leadership and the deep experience of its multidisciplinary professionals. By fostering continuous learning, knowledge-sharing, and innovation, SGV aims to empower businesses to navigate the challenges and opportunities presented in today’s business landscape. The SGV Sustainability team is led by SGV Sustainability leader Benjamin N. Villacorte with support from SGV Sustainability Partner Glenda Anisco-Niño, who hosted the event, and SGV Sustainability Partner Katrina F. Francisco, who led the panel discussion on Green Financing.