Renewable virtues

Of the many BBM “myths” critics are bent on busting, credit for the windmills of Bangui is always among the top of the list. The iconic row of energy turbines along the stretch of Ilocos Norte’s Bangui Bay has long been senator Ferdinand Marcos Jr.’s signature visual. In all his national campaigns (except the first senatorial bid in 1995), this symbol of innovation and sustainability has figured prominently to project the man as the embodiment of the very same virtues.

His putative participation in the establishment of Southeast Asia’s first commercial windfarm is derided just as the authenticity of his academic credentials is savaged. But there is no doubting that BBM has seized the green narrative. From when he entered the Senate in 2010, his vice presidential run of 2016 and now this 2022 presidential campaign, the push for clean and renewable energy has been a core Marcos advocacy.

The passage of the Renewable Energy (RE) Law in 2008 was meant to be an on-ramp to more opportunities. Yet, it achieved the opposite effect. From a share of 34 percent in the power generation mix, RE share has declined to today’s mere 21 percent. However, Ilocos Norte has prospered in this area. Marcos country has attained renown as the renewable energy capital of the country. Wind, hydropower and solar energy plants dot the province’s landscape.

The proposed National Renewable Energy Program (NREP) 2020-2040 will set a target of 35 percent share by 2030, spiking up to 50 percent by 2040. Just this week, President Rodrigo Roa Duterte signed EO 164 to include nuclear power in the generation mix, ensuring that the incoming president (he/she) will inherit a policy environment conducive to a revival of the program. Whether or not nuclear energy qualifies under the rubric of renewable is subject to debate. But it is undisputedly a clean energy source as there are no problematic greenhouse emissions.

The long game. When the government declared its moratorium on new coal fired plants in 2020, it was a big step forward in our clean energy transition plans. Our country’s commitment to the Paris Agreement, as formalized in our Nationally Determined Contributions submitted to the UN last April, calls for a 75 percent reduction in greenhouse gas emissions by 2030. More importantly, the transition to renewables will reduce our dependence on oil imports. The government has just announced a P3.00/liter price hike next week. The surge in oil prices and its deleterious effects on the economy, driven by the Russia-Ukraine conflict, further underscores this importance.

The major candidates are all on record in favor of the slash/suspension on fuel taxes but our finance department officials are advising to tread carefully. The DOF has estimated losses north of P130 billion plus the adverse effects on recovery efforts should we pursue this. But with reality staring us in the face, the specter of having to call emergency special sessions for this purpose is not out of the question.

Critical minerals, challenges. The global clean energy transition presents new challenges to governments. Up until the early 2000s, the energy sector did not figure as much in the demand for minerals. As countries race towards clean energy, the demand for critical minerals has significantly increased. Per the May 2021 report of the International Energy Agency, solar plants, wind farms and electric vehicles (EV) require more minerals to build than fossil-fuel based projects. Lithium, nickel, cobalt, manganese and graphite build EVs and batteries. Wind turbines rely on rare earth elements for the magnets that propel them. Copper is a foundation ingredient for electricity-related technologies.

Ukraine is one of the world’s top sources of these minerals – lithium and manganese, in particular. With the availability of world minerals supply compromised, we cannot escape a reassessment of the mining sector in our own development plans. Already, the national government has affirmed its reorientation on the mining front, with the recent DENR lifting of the nationwide ban on open-pit mining for copper, gold, silver and complex ores.

Autonomy or audacity? Given the renewed focus on critical minerals, the impending South Cotabato amendment of their landmark open pit mining ban takes on added significance. Long before the national government became serious about the implementation of the Mining Act, South Cotabato enacted their provincial Environment Code of 2010. Here was the provision that disallowed open pit mining in the province, anchored on concerns for health, safety and protection of their water supply and biodiversity.

We recall that then secretary of justice Leila de Lima famously (notoriously?) issued a DOJ opinion supporting the outrageous plan of the DILG to file administrative cases against South Cotabato local officials for prohibiting what the Mining Act does not otherwise forbid. According to de Lima: “LGUs cannot arbitrarily hide under the cloak of ‘local autonomy’ or ‘presumption of validity of ordinance’ to circumvent the law.”

Today, 12 years after, the prohibition has not been overturned. In fact, the Regional Trial Court in Koronadal, South Cotabato has upheld its validity based on the statutory police power to provide for the general welfare of their constituents.

Highest stakes. But even the Court’s imprimatur will not render the policy impregnable if policymakers have a change of heart. Acrimonious public hearings have been completed on the proposal to lift the ban and allow the return of “responsible” mining. The Tampakan mine involved is referred to as Asia’s largest untapped, undeveloped copper and gold minefield. Even for domestic purposes, the private sector will need copper for more transmission lines to connect new RE plants to the grid.

The Sanggunian Panlalawigan decides. One way or the other, the issue ends up before the higher courts. South Cotabato is only one LGU but their action may be the trigger for other LGUs in a nightmare (for mining advocates) domino effect. For the other LGUs hosting mining concessions, the obstacles have been cleared for the stand they must make. Which side of history will they choose?