PH risesnearly 30 spots in WEF energy transition report

The Philippines significantly improved its standing in the World Economic Forum’s (WEF) 2025 Energy Transition Index (ETI), climbing to 76th place out of 118 countries, driven by policy reforms and increased focus on renewable energy development.

This marked a sharp recovery from its 2024 ranking of 105th and an earlier position of 94th in 2023, reflecting renewed momentum in the country’s clean energy agenda.

The ETI is a global benchmark that assesses countries’ readiness and performance in transitioning to sustainable energy systems. In this year’s report, the Philippines scored 53.0, placing ninth within the "emerging Asia" group, slightly below the regional average of 53.2.

Among Southeast Asian peers, the Philippines trailed countries like Malaysia (47th), Vietnam (49th), Thailand (51st), Singapore (52nd), and Indonesia (58th), but ranked ahead of Laos and Brunei Darussalam. China topped the emerging Asia group at 12th overall.

The Philippine government remains committed to increasing the share of renewable energy in the national power mix—targeting 35 percent by 2030 and 50 percent by 2040. However, challenges persist, particularly in grid capacity and infrastructure, which have raised concerns among international investors.

“A recurring concern that appears to be holding back the full potential of our energy sector is grid capacity,” said Chinabank Capital Corp. managing director Juan Paolo Colet. “We need to accelerate the expansion and modernization of the grid as part of a national strategy of ensuring sustainable energy security.”

Despite infrastructure bottlenecks, Colet remains optimistic. “There is strong investment interest in RE development, and domestic banks are ready to provide the necessary financing for bankable projects,” he added.

Globally, the ETI noted modest progress, with Sweden, Finland, Denmark, Norway, and Switzerland leading the rankings due to their robust energy policies, infrastructure, and diversification. However, overall energy security stalled, as global emissions hit a record 37.8 billion tons in 2024 amid rising energy demand and AI-driven power consumption.

WEF called for more adaptive and cooperative energy policies, improved infrastructure, and increased capital flow to developing economies to sustain progress.

The Philippines’ improved ranking reflects early results of its policy direction and ambition to scale up renewable energy, although sustained effort will be needed to close the gap with regional peers.