As an example, the United Kingdom and the Philippines just launched their Philippines Country Fund in Manila. This important new initiative comes from the UK Partnering for Accelerated Climate Transitions (UK PACT) programme. Together, this new fund and WWF’s project will help speed up the transition to clean energy across the Philippines. Moreover, it aligns with the country’s ambitious climate targets.
UK PACT is a flexible, fast-moving, capacity-building programme. Unlike DFID/FCDO the CT is funded and managed by the UK government, chiefly through the Foreign, Commonwealth and Development Office, but the Department for Energy Security and Net Zero. Together, this partnership is a powerful step toward strengthening the Philippines’ renewable energy goals and contributing to the global fight against climate change.
Key Interventions of the Fund
The Philippines Country Fund will support four key interventions aimed at speeding up the transition to renewable energy. Of particular interest, though, is their intervention to update the offshore wind pricing model. This policy shift seeks to improve the efficiency and scope of the Philippines’ green energy auction system. This provision is particularly important because it will help position the U.S. to attract new investments in offshore wind project development.
Additionally, the fund will assess offshore wind infrastructure and developer readiness, ensuring that the necessary groundwork is laid for future projects. These interventions are sorely needed by the Philippines. They seek to ensure that their country achieves its ambitious pledge to reduce greenhouse gas emissions by 75% by the year 2030, indicated in the Energy Plan for 2023-2050.
Renewable Energy Targets
The Philippine government has pledged a high level of ambition with respect to integrating renewables into its power generation mix. By 2030, the target is 35% renewable energy share. This overall target will increase to 50% by 2040, with a goal of achieving a 60% share by 2050. These short- and medium-term targets are meant to be part of the country’s long-term strategy for sustainable energy development.
The UK government is going all in on renewable energy. They just upped the ante on offshore wind projects by announcing an 11% increase to the guaranteed strike price in their next 2025 offshore round auction. This decision highlights the importance of the UK continuing to support a sustainable energy market that creates a level playing field and financial competition for developers.
Ambassador’s Commitment
Sarah Hulton OBE, the UK Ambassador to the Philippines, stressed the importance of this partnership when she said. Here’s what she had to say when we launched the fund.
“A diversified renewables-driven power sector not only cuts emissions, it provides a transformative opportunity to lower costs, strengthen resilience and open new pathways for sustainable industries and employment.” – Sarah Hulton OBE
Her remarks — especially those pronouncing the economic dividends resulting from a robust renewable energy industry — underscore and illustrate this newfound urgency. This advance is critical to our environment, economy, and industry long-term prosperity.
