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Despite President Donald Trump’s recent executive order (EO) to withdraw the United States (US) from the Paris Agreement, energy stakeholders in the Philippines believe his current policies will have minimal impact on renewable energy (RE) growth in Asia.
During the Renewable Energy Forum 2025 on Wednesday, April 2, a panel discussion, moderated by Manila Bulletin’s seasoned energy journalist Myrna Velasco, elaborated on the effects of Trump’s decision to withdraw from the Paris Agreement, a global treaty aimed at addressing climate change by setting a cap on global warming.
To recall, in January 2025, Trump withdrew the US from the landmark Paris climate agreement as a pledge to his “Drill, baby, drill” initiative, which pushes for more oil and gas reserves and production.
Department of Energy (DOE) Undersecretary Rowena Guevara saw an upside to the Philippines’ situation, stating that, “I look at this as an opportunity for the [Asian] region to flourish in RE. We have partnerships among us, and we have leaders like China, Japan, [South] Korea, and India that are already leading the renewable energy market.”
“While all of these things are happening on the other side of the world, good things continue to happen in our little part of the country,” she added.
Maria Theresa Capellan, founder and chairperson of Philippine Solar and Storage Energy Alliance (PSSEA), mentioned that there hasn’t been any significant slowdown in terms of solar integration.
According to Capellan, global solar installation has reached one terawatt (TW), with forecasts of another one TW to be added within the next five years.
“I believe that such a momentum is not going to be affected because if you look at the numbers and dissect it, a big portion of the TW [solar capacity] is coming from China, in Southeast [Asia], and in Asia [in general].”
“I also believe that none of the Asian participants in this global effort to transition to net zero has indicated a slowdown in their manufacturing in this part of the world.”
Capellan added that as the US pulls out of the global renewable movement, the core values of the Paris Agreement remain the same.
“The commitment of the core that constitute the Paris Agreement will remain, [and] the manufacturing will remain,” she said.
Citicore Renewable Energy Corp. (CREC) President and Chief Executive Officer Oliver Tan also explained that even before Trump’s return to the White House, the majority of RE investments were coming in from Asia.
“[The US’ investments in energy transition] have been flattish even before President Trump’s second return. It’s primarily led by China.”
ACEN Corp. President Eric Francia added that, despite this, clean energy has gotten more traction as years go by.
“It is inevitable that we need to add energy sources [due to] the rising demand under the economic growth and the growth of [the] boom of artificial intelligence (AI) data centers,” he told the panel.
Francia cited that while the Philippines may not see a direct impact from Trump’s decision to withdraw from the global climate initiative, he mentioned that this could potentially lead to higher interest rates, making capital more expensive.
“The interest rates [being elevated are] affecting 90 percent of our capital expenditures (capex)… It more than offsets the low solar prices, so don’t expect a very low [price].”
He also mentioned the “Drill, baby, drill” program could have an impact on the long-term supply-demand imbalance, adding that, “There is risk of stranded assets if you overbuild gas resources.”
Despite this, Francia believed there are still opportunities, such as more efficient renewable technologies and battery storage, that help green energy become more competitive in the market.
Levanta Renewables founder Sudhir Nunes mentioned that by the time Trump was re-elected into US presidency, Vietnam revised its power development plan, which states a higher target for its wind and solar energy integration.
“Vietnam introduced a revision of their power development plan where they significantly increased their targets [for] wind and solar in recognition of economics, costs, and energy security. They’re not convinced that whatever short-term reduction they may see, gas prices will be sustainable in the future.”
DOE chief Lotilla calls on private sector players
While the US is believed to be backing off from the global green energy push, Energy Secretary Raphael P.M. Lotilla urged private sector players in the Philippines to continue to bring more renewables into the country.
“The private sector needs to step up too. One thing often mentioned—maybe not publicly, but privately—is the lack of transmission facilities. The private sector needs to take responsibility for the transmission system to connect power plants to the market,” he said during his opening remarks at the Renewable Energy Forum 2025.
“The National Grid Corporation of the Philippines (NGCP) has a transmission development plan, which we’ll review carefully before approving it. We’ve seen too many delays on important projects. We need to address these challenges further.”
For Lotilla, energy players who wish to invest in the Philippines must make use of the opportunities in the industry, stating that many of them are off the grid.
“[Off-grid areas] include islands like Palawan, Mindoro, Masbate, Burias, and those in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) such as Sulu, Basilan, and Tawi-Tawi. The government is committed to facilitating this by reducing investment risks, thereby creating more attractive opportunities for the private sector.”
