MANILA, Philippines - A group of companies based in the United Kingdom has expressed readiness to develop long-term partnerships with Filipino firms to invest in renewable energy and other carbon market-related businesses.
British Ambassador Peter Beckingham said these firms, which he declined to identify, brought up the possibility of investing in the Philippine renewable energy sector during a carbon market forum conducted recently by the UK Trade and Investment office.
“There are already a number of companies in the Philippines involved in climate change and alternative energy,” Beckingham said in a press statement.
Global Green Power is setting up several plants converting biomass into electricity. Bronzoak has set up an operation in San Carlos to convert biomass to ethanol.
He said one company is interested in Ilocos Norte for wind power sites and estimates investments in the Philippines could reach over $100 million in the next few years.
The UK has proposed $100 billion in assistance to developing countries to address climate change. This would help pay for developing countries’ plans to reduce emissions using greener technology, to avoid deforestation and adapt to global warming.
British experts have urged Filipino companies to invest in green projects that can earn carbon credits, as prices for these are likely to rise with the possibility of a US entry into the global carbon trading market.
The Philippines is perceived as a non-risky host, making it an appealing source of carbon market emissions (CERs), as there is relatively more local credit to finance Clean Development Mechanism (CDM) projects.
CDM projects are carbon credit schemes carried out in developing countries such as the Philippines to usher them into carbon financing with the benefit of safety nets. It involves the transfer of emissions reductions from the host country to the investor country in the form of certified emissions reductions (CERs).
Meanwhile, UK Climate Change Projects Office head Tom Bouwens pointed out that Britain wants to take the lead on climate finance.
“We’re faced with a very serious problem, and it is against this background that the UK is pushing its investment and its encouragement into the carbon market,” he added.
Britain has taken advantage of the demand for green projects, which opened major opportunities for British businesses to create jobs in the new low carbon economy.