Clean Energy Finance and Investment (CEFI) Roadmap / CEFIM Programme
An OECD-led initiative that produced a Philippines-specific clean energy finance action plan to mobilize domestic and foreign capital for the country’s clean energy transition. The CEFIM Programme is the energy arm of the OECD’s Sustainable Infrastructure Programme in Asia (SIPA). Its Philippines output — the CEFI Roadmap — focuses on two thematic areas: offshore wind (OSW) power and EEC in the public building sector [PEP 2023-2050 Vol. I, p.34, 2023; PEP 2023-2050 Vol. II, pp.117–124, 2023].
Background: OECD SIPA
The Sustainable Infrastructure Programme in Asia (SIPA) supports selected Central and Southeast Asian countries in channeling investment into infrastructure aligned with climate goals, international standards, and SDGs. The CEFIM Programme is SIPA’s clean energy output, centered on sustainable finance for renewables and energy efficiency in emerging economies [PEP 2023-2050 Vol. II, p.116, 2023].
Philippine Institutional Structure
DOE Formalization: Two instruments issued 21 February 2022 created the Philippine governance structure:
- DO 2022-02-0003 — Creating the CEFIM Philippine Steering Committee (PSC)
- SO 2022-02-0005 — Creating the Technical Working Groups (TWGs) for RE and EEC
CEFIM Philippine Steering Committee (PSC):
- Chair: DOE Undersecretary for Planning
- Vice-Chair: National Economic and Development Authority (NEDA)
- Members: Bangko Sentral ng Pilipinas (BSP) , Department of Finance (DOF), Department of Environment and Natural Resources (DENR) , Board of Investments (BOI), Development Bank of the Philippines (DBP), Philippine Economic Zone Authority (PEZA), Securities and Exchange Commission (SEC)
Technical Working Groups (TWGs):
- RE TWG — led by Director of DOE’s Renewable Energy Management Bureau (REMB)
- EEC TWG — led by Director of DOE’s Energy Utilization Management Bureau (EUMB)
[PEP 2023-2050 Vol. II, p.117, 2023]
Consultation Workshops
Two CEFI consultation workshops were jointly organized by DOE and OECD:
| Workshop | Date | Location | Focus |
|---|---|---|---|
| 1st CEFI Workshop | 31 May 2022 | Makati Diamond Hotel, Makati City | Identified and discussed key barriers to scaling up clean energy finance and investment in the Philippines |
| 2nd CEFI Workshop | 24 November 2022 | Panglao, Bohol | Identified potential policy and financial solutions; actions to unlock finance and investment in OSW and EEC in public buildings |
[PEP 2023-2050 Vol. II, p.118, 2023]
CEFI Roadmap Overview
The CEFI Roadmap outlines critical actions to unlock finance and investment for the two thematic areas. It is built on the Clean Energy Finance Framework’s four cornerstones (see Clean Energy Finance Framework ) and is designed to attract international capital into domestic clean energy to meet the country’s NDC targets [PEP 2023-2050 Vol. II, p.120, 2023].
Thematic Area 1: Enabling Finance and Investment in Offshore Wind
The Philippines’ extensive coastlines and favorable wind conditions make OSW a frontrunner for clean, reliable, abundant energy. The OSW Roadmap (Figure 32) covers nine action areas across short-term and medium-term horizons [PEP 2023-2050 Vol. II, pp.120–122, 2023]:
1. Long-Term Vision and Common Guiding Principles
Creation of an all-inclusive OSW strategy: local supply chain infrastructure development, cost reduction plans, and improved incentives for private initiatives. Specific, time-bound targets for fixed-bottom and floating OSW technologies — reflecting different stages of maturity, cost structures, and revenue potential [PEP 2023-2050 Vol. II, p.120, 2023].
2. Enhanced Cross-Government Collaboration
Strengthen coordination between agencies and between central and local government to convert OSW potential into bankable projects. Coherent plans across Maritime Spatial Planning, Power Development Plan, Transmission Development Plan, and NREP; supply chain planning integrated early into key industrial trade policies [PEP 2023-2050 Vol. II, p.120, 2023].
3. Data Collection and Resource Assessment
In collaboration with the National Mapping and Resource Information Authority (NAMRIA): locate, consolidate, and publish bathymetric and geological data from previous offshore oil and gas field projects. Supplement with topographical data (earthquake/typhoon risks), shipping routes, military zones, and areas already under contract. Medium-term: unify under a digital data room hosted by DOE and offered as a service to potential investors [PEP 2023-2050 Vol. II, p.121, 2023].
4. Offshore Wind Permitting and EVOSS Integration
Integrate OSW into the Energy Virtual One-Stop Shop (EVOSS) and create a unified permitting process to simplify early project development, avoid permit duplication, and reduce administrative barriers. Clear configuration of roles and responsibilities for all agencies; invest in digital tools and human resources for the OSW one-stop shop [PEP 2023-2050 Vol. II, p.121, 2023].
5. Auction Design and Regulatory Framework
Use the Green Energy Auction Program (GEAP) as competitive procurement for OSW; consider creating a separate GEAP band for OSW. Frontload auction schedules to provide medium-term investor visibility. Consider open-door policy alongside auctions for developer-driven market. Allow projects to sell part of output via corporate Power Purchase Agreements (CPPAs) alongside policy support. Establish a transparent costing methodology for OSW prior to setting GEAR ceiling prices; maintain inflation-indexed tariff to mitigate macroeconomic risks [PEP 2023-2050 Vol. II, pp.121–122, 2023].
6. Transmission Planning
Expedite grid expansion and optimization for OSW integration — mitigates congestion, reduces curtailed power. Dependent on the centralized national grid project interconnecting three main grids. Proactive grid planning by DOE + TransCo + NGCP for OSW capacity; simplify process for project inclusion in the Transmission Development Plan. Include OSW in the Competitive Renewable Energy Zones (CREZ) framework [PEP 2023-2050 Vol. II, p.122, 2023].
7. Onshore Support Facilities and Port Upgrades
Invest in efficient transportation systems, well-equipped port terminals, storage and assembly facilities for wind components, training areas, and operation and maintenance facilities. Assess port readiness in collaboration with the Department of Transportation (DOTr); include results in future offshore-related infrastructure policy [PEP 2023-2050 Vol. II, p.122, 2023].
8. Financial Considerations
Bring diverse financiers with different risk profiles at different project development stages to enable capital recycling. Multilateral Development Banks (MDBs) bridge investment gap in enabling infrastructure; International Financial Institutions (IFIs) establish first-loss guarantee instruments to stimulate private investment; Export Credit Agencies (ECAs) enhance risk absorption at the transaction level. Provide timely concessional finance in early projects to crowd in commercial finance [PEP 2023-2050 Vol. II, p.122, 2023].
9. Capacity Building
Train Filipino workforce for OSW supply chain careers (advisers, technicians, financiers, government agencies, support staff). Incentivize transfer of skills from oil and gas sector. Attract overseas Filipino professionals with international OSW experience [PEP 2023-2050 Vol. II, p.122, 2023].
Thematic Area 2: Innovative Funding for EEC in Public Buildings
Government programs and EEC advocacy in the building sector aim to expedite financial support and investments (Figure 33). Six action areas across short-term and medium-term horizons [PEP 2023-2050 Vol. II, pp.123–124, 2023]:
1. Enhanced Cross-Government Collaboration and Integrated Planning
Clear targets, goals, and stakeholder strategy; creation of a working group focused on EEC in public buildings to strengthen EEC plans, expand performance standards, foster innovation, and unlock new opportunities and networks [PEP 2023-2050 Vol. II, p.123, 2023].
2. Regulatory Reforms
Revise public procurement and accounting rules to accommodate Energy Performance Contracts (EPCs) — mixed contracts that allow service providers to fund initial outlays without mobilization payments. Broader EEC regulatory assessment to evaluate sub-sector coverage and standards compatibility with the Philippines’ climate ambition. Medium-term: build ESCO regulatory environment and establish a project pipeline aggregator entity [PEP 2023-2050 Vol. II, pp.123–124, 2023].
3. Access to Finance
Increase LGU budget for EEC projects. Address LGU awareness of available commercial credit facilities through campaigns, informative sessions, and training. Collaboration with international development partners and private sector to design EEC strategies, enhance commercial funding awareness, and facilitate open dialogues between lenders and EEC promoters [PEP 2023-2050 Vol. II, p.124, 2023].
4. Data Collection and Transparency
Effective, focused data collection to enhance the security and efficiency of the EEC business model. Data feeds into the Building Energy Efficiency Index (BEEI), which measures a building’s energy performance. Medium-term: improve trust in the business model through data sharing on efficiency potential, performance, payback time, and other parameters [PEP 2023-2050 Vol. II, p.124, 2023].
5. Capacity Building
Sustained capacity-building and awareness-raising programs for LGUs to identify and capitalize on EEC opportunities. Cover the full EEC project supply chain: policy, project origination, implementation, financing, incentives, and performance analytics. Targets policymakers, LGUs, technology providers, industry professionals, financial institutions, commercial end-users, and civil society [PEP 2023-2050 Vol. II, p.124, 2023].
6. Energy Savings Insurance (ESI)
A mechanism ensuring revenue from energy savings via an insurance policy. Permit multilateral banks to employ ESI in collaboration with LGUs to enhance investor confidence and improve access to low-cost EEC financing. Medium-term: allow authorized financial services industry to trial ESI for Philippine LGUs [PEP 2023-2050 Vol. II, p.125, 2023].