National and Global Energy Governance: Issues, Linkages and Challenges in the Philippines

DOIhttp://doi.org/10.1111/j.1758-5899.2011.00134.x
Published date01 September 2011
AuthorAntonio G. M. La Viña,Naderev Saño,Joanne C. Dulce
Date01 September 2011
National and Global Energy
Governance: Issues, Linkages and
Challenges in the Philippines
Antonio G. M. La Viña,
Joanne C. Dulce and
Naderev Saño
Ateneo School of Government
Abstract
This study examines the state of energy governance in the Philippines and assesses how domestic energy policies
have shaped or been shaped by global energy institutions and issues. It analyzes the most pressing issues hounding
the country’s energy sector, paying particular attention to the role of global and regional energy prices, the inf‌luence
of bilateral and multilateral f‌inancial institutions, the impact of private sector investments, and climate change
imperatives. Given the country’s lack of energy resources needed to fuel major economies today, the Philippines is
unavoidably inf‌luenced by and participates actively in the dramatic and dynamic shifts in energy happening across
the globe. Yet its greatest challenge is to secure its local energy needs amid an insecure and unpredictable global
energy future and to balance this with equally important domestic concerns such as affordability of energy prices and
environmental sustainability. For the Philippines, the priority is to build modern, competent, credible and accountable
energy institutions that implement transparent and participatory governance processes in making energy decisions.
Global energy governance and trends are important drivers that inf‌luence this critical institution-building and
modernizing process.
Policy Implications
The Philippines needs to build capacity to understand global energy trends, including energy prices, better. The
Philippine government should strengthen its relationship with the International Energy Agency, the International
Renewable Energy Agency and similar global and regional energy institutions that can help address this capacity
need.
The Philippines should prioritize an energy security approach anchored on regional cooperation. This includes work-
ing for a fair resolution of the longstanding maritime boundary dispute with China which would allow for joint utili-
zation of the substantial oil and gas resources in the contested Spratly Islands.
Climate change needs to be mainstreamed in energy policies and resource plans in the context of an integrated
adaptation-mitigation approach to energy where the Philippines secures new sources of energy while at the same
time reducing its contribution to global greenhouse gas emissions. The United Nations Framework Convention on
Climate Change provides for opportunities to implement such an approach.
Related to climate change, the emergence of international carbon markets opens up opportunities for local renew-
able energy players to participate in such markets. But the government must be able to rationalize policies on subsi-
dies and f‌iscal incentives to overcome the conf‌lict of shifting the burden of revenue generation to taxpayers as
happened in the power sector.
Energy eff‌iciency and conservation programs need to be enhanced to encourage wider participation and, more
importantly, compliance. The assistance of international energy agencies and bilateral and multilateral partners is
critical to scale up these programs.
To achieve energy security and meet climate change and other environmental objectives, reforming energy institu-
tions and energy governance processes is critical. The Philippines should continue to engage bilateral and multilat-
eral institutions that promote such governance reforms like USAID, the World Bank and the Asian Development
Bank, while retaining its independence in making reform decisions consistent with its interest.
Global Policy Volume 2 . Special Issue . September 2011
ª2011 London School of Economics and Political Science and John Wiley & Sons Ltd. Global Policy (2011) 2:SI doi: 10.1111/j.1758-5899.2011.00134.x
Research Article
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