The Philippines will not lift its coal moratorium, opting to review pre‑moratorium projects and consider retiring aging plants while pushing toward renewable targets despite pressure over energy security.
The government reaffirmed Monday that the coal moratorium stays in place, despite industry calls to lift it amid heightened energy‑security concerns.
Energy Secretary Sharon Garin told reporters that no new coal plants will be built under the current ban. She added that the Energy Department is reviewing projects filed before the moratorium’s 2020 rollout, urging developers to move quickly if they still wish to proceed.
Analysts note the war in the Middle East has exposed vulnerabilities in global fuel supplies, prompting some nations to reconsider their energy mixes.. In the Philippines, however, officials argue that a short‑term pause on new coal capacity does not necessarily jeopardize grid stability, especially as they assess older, less reliable coal units for retirement.
The coal moratorium, introduced in December 2020, was a key pillar of the country’s pledge to shift toward cleaner power.. It allowed only projects approved before 2019 to continue, aiming to curb emissions while avoiding immediate shortages.. This policy aligns with the Philippines’ ambition to raise renewable energy’s share to 35 % by 2030 and 50 % by 2050.
For households and small businesses, the debate has very real consequences. Power bills have risen in recent months, and the Philippine Chamber of Commerce and Industry warns that without affordable electricity, manufacturers could lose competitiveness on the global stage.
Economists point out that delaying the renewable transition could lock the economy into higher‑cost, carbon‑intensive fuel for years.. While coal still fuels roughly 60 % of the nation’s electricity, maintaining the moratorium may force utilities to invest in expensive backup solutions, raising long‑term costs for consumers.
Regionally, countries such as Vietnam and Indonesia are also grappling with coal’s role in their energy portfolios. Unlike the Philippines, they have opened pathways for new coal projects to meet short‑term demand, a move that critics say could hinder climate goals.
Reviewing Existing Projects
Looking Ahead: Retirement and Renewables
In short, the Philippines chooses to keep its coal moratorium intact, balancing immediate energy costs with a longer‑term vision for a greener grid.