=== pep-2023-2050-vol3-section-e1-page-056.pdf === V. Power Sector Assets and Liabilities Management Corporation The Power Sector Assets and Liabilities Management Corporation (PSALM) was created with the primary mandate of privatizing the NPC's generation and TransCo's transmission assets, managing and liquidating all assumed financial obligations, and administering the collection of Universal Charges (UC). As of June 2023, PSALM successfully privatized 82.0 percent of its owned generating plants, independent power producer contracts, and decommissioned plants. In terms of liability and financial management, it reduced its financial obligations by PhP40.6 billion, marking an 11.0 percent reduction from the PhP355.9 billion recorded in June 2022. PSALM also collected PhP33.7 billion in privatization proceeds from winning bidders and remitted PhP2.6 billion to the National Treasury as cash dividends. PSALM anticipates its most significant revenue collection through the successful auction of the Casecnan Hydroelectric Power Plant (CHEPP) in May 2023, totaling USD 526 million with the financial closing targeted by December 2023. Under UC administration, a total of PhP21.3 billion in funds was collected and disbursed to UC beneficiaries. Plans and Programs In the short- to medium-term, PSALM's key priorities involve divesting the NPC's remaining power assets, such as the Caliraya-Botocan-Kalayaan (CBK) hydropower facility, the Mindanao Coal, and the Mount Apo geothermal facilities. To optimize the electricity generation capacity of the Agus hydro facilities, significant effort is underway to successfully bid-out and implement the rehabilitation of the Agus-Pulangi Hydropower Complex via concession. Several real estate assets, including properties in Bagac, Sucat, and Baguio, are set to be offered for sale. Plans include the disposal of non-Independent Power Producer Administrator (IPPA) areas in San Manuel and San Nicolas, Pangasinan, which are viewed as potential sites for RE projects. The Diliman property is also earmarked for redevelopment through a joint venture agreement, with the aim of transforming it into a mixed-use commercial estate featuring energy-efficient buildings. As part of its ongoing activities, PSALM is committed to regularly apprising NEA of the status of ECs’ obligations and continuously collecting proceeds from asset privatization, Universal Charge-Stranded Debt (UC-SD), plant revenues, and the 'Murang Kuryente Act' (MKA) allocation. Further, PSALM is actively involved in securing funding for and monitoring the operation of its owned power plants. In terms of organizational setup, PSALM will prepare a restructuring plan for the extension of its corporate life, which is set to expire in June 2026. E. FORGING STRATEGIC ALLIANCES WITH THE INTERNATIONAL COMMUNITY The state of international affairs can affect the global energy landscape — from the world’s ongoing recovery brought by the pandemic, the armed conflicts and geopolitical unrest, the economic power shift brought by trade liberalization to the unceasing movement to address the climate crisis — calls for a more secure, resilient, climate-centered, and sustainable energy regime for the country. Advancing strategic alliances with the international community is crucial in responding and adapting to the everevolving global energy landscape. Continuous collaboration with the development partners (DPs) and international organizations (IOs) has led to the realization of a number of technical and financial assistance on energy projects in the Philippines, aligned and grounded on the country’s energy policies and measures. 49 Philippine Energy Plan === pep-2023-2050-vol3-section-e1-page-057.pdf === Moving forward, establishing partnerships and pursuing collaborative initiatives with the international and regional community will be fundamental in fostering the Philippines’ national interests, as well as mitigating the negative external factors affecting the local energy industry. Various fora have also been established from these partnerships for intergovernmental cooperation, and political and socio-cultural integration. The Philippines will likewise pursue cooperation efforts, including through sharing of best practices and technical insights in high-level assemblies and conferences, and implementing joint undertakings contained in the different work plans and programs. In addition, the country enforces domestic policies to help address emerging cross-sectoral challenges that is common across countries. With this backdrop, the DOE will continue to leverage the country’s national interests in the international fora under the principle of mutual benefit. Establishing Energy Diplomacy in Response to the Global and International Energy Trends The Philippines will maximize these engagements by promoting investment opportunities and establishing agreements based on the country’s core energy diplomacy. A. Priority Areas for the Philippine Energy Sector: Core Energy Diplomacy The foremost intention of the Department of Energy (DOE) in the regional and international arena transcends across boundaries, which is anchored on the following strategic goals and focused targets: • Achieve greater energy security, reliability, energy access, and affordability through the implementation of various mechanisms including the effective implementation of energy efficiency and conservation (EEC) measures; • Mobilize climate transition financing not only for pilot projects but also for private initiatives; • Access to technology and capacity, as well as encourage and allow third-party access to improve the transmission and distribution lines to enhance the resilience of energy systems and infrastructures; • Achieve renewable energy (RE) targets by identifying and prioritizing projects that need investments and enabling such projects to be connected to the grid; • Encourage rationalization of government policies on mining and processing of the critical minerals needed for low-carbon energy technologies such as solar panels, batteries, and wind turbines to achieve the energy transition together with the other National Government Agencies; and, • Pursue research and development (R&D), and pilot projects involving emerging energy technologies, such as the use of energy storage systems, hydrogen and ammonia, carbon capture utilization storage (CCUS), and utilization of information and communication technology (ICT) for small to large scale energy systems. B. Current Global and Regional Energy Trends Proactive efforts to transition to cleaner sources of energy are occurring on a global scale. Governments are crafting policies, plans, and programs, mobilizing finance and investments, and strengthening partnerships geared towards spurring economic growth while addressing the worsening climate crisis including through transitioning to low-carbon sources and technologies. Vo l u m e 3 50 === pep-2023-2050-vol3-section-e1-page-058.pdf === In 2023, global electricity demand growth is set to accelerate at a 5.2 percent annual growth rate from 2023-2025, more than 70.0 percent of which will come from the combined requirements of China, India, and Southeast Asia. The share of renewables in the global electricity demand is likewise forecasted to increase higher than all other sources combined with an annual growth rate of over 9.0 percent. In terms of power generation-related emissions, a decline in global electricity generation is projected due to lower gas and oil-fired generation that is expected to plateau in 2025. This will lead to a decrease in global greenhouse gas (GHG) emissions.33 Elevating the Philippine Energy Sector in the International Arena As part of continuously pursuing stronger international relations and partnership strategies to gain support from regional and international energy cooperation framework, the DOE proactively participates in the following engagements: A. Regional and Multilateral Engagements 1. Association of Southeast Asian Nations (ASEAN) The ASEAN Energy Cooperation (AEC) is a collaboration among the member states of the Association of Southeast Asian Nations (ASEAN) to promote regional energy security, sustainability, and integration. The key objectives of the AEC include enhancing energy efficiency, promoting RE development, ensuring energy access for all, and fostering cross-border energy trade and connectivity within the region. The AEC has established various initiatives and mechanisms to facilitate cooperation in the energy sector, such as the ASEAN Plan of Action for Energy Cooperation (APAEC), the ASEAN Petroleum Security Agreement (APSA), ASEAN Power Grid (APG) and Trans-ASEAN Gas Pipeline (TAGP). These, among other initiatives, aim to strengthen energy cooperation, address common energy challenges, and promote a more sustainable and resilient energy future for the ASEAN region. APAEC Phase II: 2021-2025. APAEC is a comprehensive framework that guides ASEAN's energy cooperation. It covers seven (7) Program Areas: APG, TAGP, Coal and Clean Coal Technology, Energy Efficiency and Conservation, Renewable Energy, Regional Energy Policy and Planning (REPP), and Civilian Nuclear Energy (CNE). Likewise, it sets strategic goals and targets on increasing the share of RE, energy intensity reduction, and greater energy access, among others. With the APAEC Phase II sub-theme of “Accelerating Energy Transition and Strengthening Energy Resilience through Greater Innovation and Cooperation,” the DOE emphasizes activities identified on pandemic recovery efforts, crosscutting issues such as climate change and decarbonization, energy transition, energy investment and financing, new and emerging energy technologies, and digitalization of the energy sector. ASEAN Power Grid. The proposal to connect the power grids of the ASEAN Member States (AMS) was first established at the 2nd ASEAN Informal Summit held in Kuala Lumpur, Malaysia in December 1997. The APG was one of the key components of the ASEAN Vision 2020, with the goal of promoting more efficient, economical, and secure operation of power systems through the harmonious development of national electricity networks in ASEAN through region-wide interconnections. The APG Memorandum of Understanding (MOU), which was signed in 2007 and ratified in 2009, has a validity period of 15 years, or until 19 March 2024. During the ASEAN Special Senior Officials Meeting on Energy (SOME) held in January 2023, the AMS agreed to extend the validity of the current APG MOU for two (2) years as an interim measure to prepare for amendments of the said MOU or formulate a new one. The AMS, in coordination with the ASEAN Secretariat, the ASEAN Centre for Energy (ACE), and the Heads of ASEAN Power Utilities Authorities (HAPUA) are now undertaking the necessary processes to renew the APG MOU through Instruments of Extension (IOE) for signature of designated authorities of AMS. The DOE already secured the Signing Authority from the Office of the President (OP) on 22 August 2023 and subsequently signed the IOE. 33 51 https://iea.blob.core.windows.net/assets/255e9cba-da84-4681-8c1f-458ca1a3d9ca/ElectricityMarketReport2023.pdf Philippine Energy Plan === pep-2023-2050-vol3-section-e1-page-059.pdf === Relatedly, the Philippines manifested support to the power integration projects (PIPs) in the ASEAN region under the APG, including the implementation of the Lao PDR-Thailand-Malaysia-Singapore (LTMS)-PIP and the proposed subregional Brunei Darussalam-Indonesia-Malaysia-Philippines (BIMP)- PIP. • Trans-ASEAN Gas Pipeline. The TAGP is among the important infrastructure projects under the APAEC framework focusing on gas pipelines and liquefied natural gas (LNG), which aims to establish interconnection projects to ensure greater gas supply security and sustainability while connecting existing and planned pipelines and regasification terminals with the view of minimizing the environmental impact. First signed in 2002, the TAGP MOU was aimed at providing a broad framework for ASEAN on TAGP projects supporting the initiatives on greater regional energy security. In 2013, the MOU was extended until 20 May 2024. The strategic direction was also reassessed to include LNG as an option for gas supply, and LNG supplied to regional regasification terminals (RGTs) as virtual pipelines. With the impending expiration of the MOU, the AMS are also expected to undertake the necessary processes together with the ASEAN Secretariat, ACE, and ASEAN Council for Petroleum (ASCOPE) to extend the MOU for another 10 years, or until 20 May 2034. The Instrument of Extension for the TAGP MOU is also targeted to be signed by AMS before end of this year. • ASEAN Petroleum Security Agreement (APSA). To further strengthen multilateral and bilateral cooperation on energy security, the Philippines together with the other AMS continues to pursue initiatives (short- to long-term measures) to enhance partnerships within the region through various cooperation, such as the APSA which was formulated way back in 1986. Specifically, the APSA aims to enhance petroleum security, either individually or collectively, and minimize exposure to an emergency situation, through the implementation of short-, medium-, and long-term measures provided in this agreement. The APSA was extended and remained in force for 10 years (22 March 2013 to 22 March 2023). During the SOME Meeting in January 2023, the AMS agreed on a commitment to have APSA renewed/extended before its expiration. With this, the AMS undertook the necessary domestic processes to submit their respective IOE for the extension of the APSA until 22 March 2025. The DOE signed the IOE on 20 March 2023 through the Signing Authority issued by OP. • Renewable Energy and Energy Efficiency and Conservation. Under the APAEC, ASEAN sets aspirational targets on RE and EEC as follows: o Increase RE share to 23.0 percent in the ASEAN energy mix, including its share in installed power capacity to 35% by 2025; and, o Reduce energy intensity by 32.0 percent in 2025 based on 2005 levels and encourage further EEC efforts, especially in transport and industry sectors. As reported in the 22nd ASEAN Regional Energy Policy and Planning Sub-Sector Network (REPP-SSN) held on 29 May 2023 in Singapore, the ASEAN’s RE share in the total primary energy supply (TPES) stood at 14.4 percent, and RE share in Installed Capacity reached 32.8 percent, while the reduction in energy intensity in the TPES and Total Final Energy Consumption (TFEC) stood at 24.5 percent and 30.0 percent in 2021, respectively, compared to 2005 levels. It can be noted that the Philippines is leading among the AMS in terms of RE share in the TPES at 22.8 percent in 2021. While this may be the case, the Philippines is one with the AMS in encouraging the promotion of new RE projects to increase the share of RE in the power sector. Promotion of RE in the end-use sector, including Vo l u m e 3 52 === pep-2023-2050-vol3-section-e1-page-060.pdf === biofuels in transport, and acceleration of support infrastructures such as storage, grid and interconnection, are also being looked at within the region. In the area of EEC program, ASEAN achieved an energy intensity reduction of 21.0 percent in 2018, based on TPES, surpassing its aspirational target of 20.0 percent in 2020 (over 2005 levels). In 2021, intensity reduction in TPES was recorded at 24.5 percent, while 30.0 percent intensity reduction in Total Final Energy Consumption (TFEC) was likewise realized. On 16-17 February 2023, the Philippines hosted the 4th Government-Private Forum on Cleaner Energy Future Initiative for ASEAN (CEFIA) back-to-back with the 17th ASEAN+3 (China, Japan, Korea) New and Renewable Energy (NRE) and Energy Efficiency and Conservation Forum held in Mandaue City, Cebu. The 17th NRE and EEC Forum served as a platform for continuous information sharing on new initiatives, policy updates, and best practices for promoting RE and EEC, as well as pursue capacity building activities that will lead to increasing the share of RE and enhancing EEC programs to achieve the goals of sustainable development. On the other hand, the CEFIA Forum is a venue to facilitate collaboration between public and private sectors for the development of cleaner energy and decarbonization technology and acceleration of energy transition in the ASEAN+3 region. • Civilian Nuclear Energy. Under this program, ASEAN aims to build human resource capabilities in nuclear science and technology for power generation. The CNE program has made progress in increasing the capacities of AMS in policy, technology, and regulatory aspects of nuclear energy. The DOE hosted the 13th ASEAN Nuclear Energy Cooperation Sub-Sector Network (NEC-SSN) Meeting held on 11-13 April 2023 in Clark, Pampanga. The Meeting discussed updates on the implementation of the work program and activities of the CNE Program area under the APAEC. The NEC-SSN aims to build ASEAN-wide cooperation on the use of nuclear energy for power generation purposes. The Philippines continues to be the country coordinator/chairperson for the said SSN. Senior Officials Meeting on Energy (SOME). The DOE regularly participates in SOME to manifest our unwavering commitment to advancing regional cooperation. During the 41st SOME held in Jakarta, Indonesia on 19-23 June 2023, the progress of the APAEC Phase II implementation including the plans to renew the APG and TAGP MOUs, as well as the APSA were discussed among other important areas. ASEAN Ministers on Energy Meeting (AMEM). In 2023, Indonesia took over the ASEAN Chairmanship after a successful run by Cambodia in 2022. Under the theme “Epicentrum of Growth,” Indonesia led ASEAN in accomplishing the key priorities in alignment with core spirit of ASEAN: One Vision, One Identity and One Community. According to the ASEAN Desk, the Philippines may be scheduled to assume the ASEAN Chairmanship in 2026. The DOE, headed by the Energy Secretary, participated in the 41st AMEM and Associated Meetings held in Bali, Indonesia on 22-26 August 2023. Timor-Leste’s Accession to ASEAN. In the ASEAN Leaders’ Statement issued on 11 November 2022, the AMS agreed in principle to admit Timor-Leste to be the 11th member of the ASEAN and has been granted observer status and allowed participation in all ASEAN Meetings including at the Summit plenaries. In fact, Timor-Leste’s Prime Minister was able to participate in the 42nd ASEAN Summit held on 10-11 May 2023 in Indonesia, wherein the Roadmap for Timor-Leste’s Full Membership was adopted. 53 Philippine Energy Plan === pep-2023-2050-vol3-section-e1-page-061.pdf === 2. Asia Pacific Economic Cooperation (APEC) APEC is a forum that promotes economic cooperation and trade among its member economies in the Asia-Pacific region. It was established in 1989 and consists of 21 member economies, including Australia, Canada, China, Japan, South Korea, New Zealand, the United States (U.S.), and seven ASEAN economies (excluding Cambodia, Lao PDR and Myanmar). The goals of APEC are to facilitate economic growth, promote free trade, and enhance regional integration and connectivity. APEC holds annual meetings and engages in various initiatives and dialogues to achieve its objectives. New energy-related goals are initially being discussed under the APEC Energy Working Group (EWG). The Philippines shall constantly participate in the deliberations, monitor the developments, and safeguard its implication to the Philippine Energy Plan (PEP). The Philippines sees merit in the importance of collaboration and being part of the region’s energy goals. It is important for APEC to keep pace with the changes over time to ensure energy security, accessibility, affordability, resiliency, and sustainability within the region. The Philippine participation in APEC under Energy Cooperation includes the EWG and Energy Ministers Meeting (EMM). Energy Working Group (EWG). Energy is a specific focus area within the Asia-Pacific Economic Cooperation (APEC) forum. It aims to promote collaboration and cooperation among APEC member economies in the energy sector. The APEC EWG leads the efforts in this area, addressing key energy challenges and opportunities in the region. • EWG Updates. The 65th Meeting of the APEC EWG (EWG65) was hosted by the United States last May 2023 in Detroit, Michigan. This was the first in-person meeting of the working group since October 2019, which was held in Chile (EWG58). The EWG65 discussed updates on energy security initiatives (ESI) and the Working Group’s current and future initiatives, including the drafting session/negotiation for the proposed ministerial joint statement for the 13th Meeting of the APEC Energy Ministers Meeting (EMM13), which was held in August 2023 in Seattle, Washington. The EWG is considering a new aspirational collective target for the power sector, which is about 60.0 to 70.0 percent of electricity generated using carbon-free and carbon-neutral sources for the APEC region by 2035. It may be recalled that in 2007, the APEC Leaders agreed to a regional aspirational goal of reducing energy intensity by at least 25.0 percent by 2030 (based on 2005 levels). Such target has been increased to 45.0 percent by 2035 as agreed by the APEC Leaders in 2011. Moreover, the APEC Leaders during their meeting in 2014 endorsed a new aspirational goal to double the share of RE in APEC’s overall energy mix by 2030 (from 2010 levels) and increase cooperation to achieve it. The revised ESI provides a framework for the EWG to undertake activities that support the energy security goals of the APEC member economies to provide access to affordable, reliable, resilient, modern, and sustainable energy. The APEC member economies can use the framework as they pursue respective energy security pathways based on resource endowment and development stages and in line with the implementation of the Paris Agreement. Recognizing the APEC’s fundamental principles of cooperation, voluntary participation, and mutual respect, as well as the widely differing circumstances among economies, the ESI framework will provide a range of options from which economies can choose to focus their cooperative efforts. Vo l u m e 3 54 === pep-2023-2050-vol3-section-e1-page-062.pdf === A comprehensive approach to energy security must consider the following: o o o o Development of the widest variety of energy sources and technologies to support energy access to enhance energy security and promote sound and sustainable socio-economic development across the region, consistent w ith global climate objectives and with each economy’s environmental, geopolitical, economic, and social circumstances; Development of open, competitive, and transparent energy markets and effective energy governance; Supply security of conventional energy resources, and advanced and emerging energy technologies and their essential inputs, such as critical minerals and materials, semiconductors, and related technologies; and Security, reliability, sustainability, accessibility, resilience, and connectivity of energy infrastructure. The ESI activities could include workshops, training, seminars, studies, best practice guides and manuals, demonstrations, peer reviews, research, data collection and analysis, and dissemination of information. Activities will utilize the resources and expertise of the EWG Expert Groups, Task Forces, and Centers and will be managed by the EWG members. Key elements of this initiative should be to highlight and strengthen the linkages of work that the EWG is already undertaking and to strengthen dialogues and cooperation with related APEC sub-fora, as well as other international organizations and institutions such as the G20, the Clean Energy Ministerial (CEM), and the IEA, as appropriate. Members will seek greater involvement from the finance andbusiness community in support of the overall ESI. • EWG 2023 Work Plan. The EWG Work Plan 2023 takes off from the APEC Putrajaya Vision 2040 (PV 2040) where APEC Leaders committed to building “an open, dynamic, resilient and peaceful Asia-Pacific community by 2040” by pursuing a “strong, balanced, secure, sustainable andinclusive growth.” Of particular relevance to EWG is to “promote economic policies, cooperation, and growth, which will support global efforts to comprehensively address all environmental challenges, covering climate change, extreme weather, and natural disasters, for a sustainable planet.” In line with the PV 2040 and the Aotearoa Plan of Action (APA), the EWG’s work for 2023 supported the Economic and Technical Cooperation (ECOTECH) Medium-Term Priorities (APA ECOTECH-related Collective Actions), such as: o o o Promoting sustainable growth across sectors and the development of cost-effective low and zeroemissions technologies, sustainable finance, and, if appropriate, carbon pricing mechanisms; Ensuring energy security, access, reliability, and resilience through energy transition; and Seeking to deliver existing Leaders’ commitments on energy issues, particularly to accelerate progress towards the 2030 target of doubling the RE share in the APEC energy mix, including in power generation, from 2010 levels by 2030; and to deliver a plan to reduce aggregate energy intensity by 45.0 percent, from 2005 levels, by 2035. • Expected Outcomes. In 2023, the EWG seeks to advance the overarching objectives laid out in the PV2040, APA, and Bangkok Goals and follow the Leaders’ guidance to continue to work together to support energy resilience, access, and security in the region, while acknowledging the importance of stable energy markets and supporting clean energy transition. The EWG also continues to encourage members to seek alignment with the La Serena Roadmap for Women and Inclusive Growth Implementation Plan to enhance women’s participation in the energy field. The EWG’s 2023 priorities are consistent with and guided by the annual APEC priorities agreed by Senior Officials. In 2023, under the overarching theme of “Interconnected. Innovative. Inclusive,” the EWG is guided by the priority of “Creating a Resilient and Sustainable Future for All.” In the first half of 2023, the EWG held a policy workshop on Just Transition, the priority issue proposed by the U.S. as the 2023 APEC host economy. The EWG’s 2023 work plan also supported the ESI 2022, which promotes collaboration on energy sources and technologies; energy markets and governance; security of supply chains; and infrastructure security, reliability, access, and resilience. Energy Ministers Meeting (EMM). The APEC EMM is a high-level gathering of energy ministers from the APEC member economies. It takes place biennially to discuss and address energy-related issues and promote cooperation in the energy sector. 55 Philippine Energy Plan === pep-2023-2050-vol3-section-e1-page-063.pdf === The Philippines hosted the 12th EMM in Cebu in October 2015. During the EMM12, the Ministers issued the Cebu Declaration and Instructions, which emphasized the importance of energy resiliency in the face of the effects of man-made and natural disasters and established a new EWG Task Force to take this work forward. The Ministers also welcomed the new APEC Initiative for Enhancing the Quality of Electric Power Infrastructure, taking various factors into consideration, including resilience to disasters, lifecycle costs, and environmental impacts, and instructed officials to implement an APEC Green Energy Finance Initiative in support of the financial sustainability of RE and energy efficiency development in the region. The 13th EMM hosted by the U.S. in August 2023 adopted a theme, “Creating a Resilient and Sustainable Future for All.” 3. Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) The BIMP-EAGA was established in March 1994, in Davao City, Philippines. It was initiated as a cooperative effort by four (4) nations (Brunei Darussalam, Indonesia, Malaysia, and the Philippines) to expedite the socio-economic progress of underdeveloped, marginalized, and geographically distant regions within their respective countries. The overall objective of this initiative is to reduce the disparities in development across the member nations. The BIMP-EAGA covers the entire sultanate of Brunei Darussalam; provinces in Kalimantan, Sulawesi, the island chains of Maluku and Papua in Indonesia; states of Sabah and Sarawak and the federal territory of Labuan in Malaysia; and the entire island of Mindanao and the province of Palawan in the Philippines. Since its inception, the cooperation program has adopted a public-private approach to development, with the private sector driving growth and the public sector playing a supporting role. The Philippines’ active participation in BIMP-EAGA meetings, particularly in energy matters, is crucial for promoting energy security, sustainable development, and economic growth within the sub-region. By exchanging/sharing expertise, resources, and experiences, the Philippines can help formulate effective strategies, policies, and projects that address common energy challenges, fostering a resilient and integrated energy sector and benefiting the people in the region: BIMP-EAGA Power and Energy Infrastructure Cluster (PEIC). The BIMP-EAGA PEIC has developed a comprehensive nine-year roadmap (2017-2025) to guide its efforts in power and energy infrastructure development. The PEIC aims to facilitate cooperation among member countries in power and energy infrastructure development. It serves as a platform for sharing knowledge, experiences, and best practices in areas such as energy efficiency and conservation, RE, and power interconnection. The PEIC promotes collaboration, project planning, and policy formulation to enhance energy security, sustainable development, and economic growth within the BIMP-EAGA sub-region. The Philippines hosted the 10th BIMP-EAGA PEIC Meeting and Energy Conserving Design (ECODE) Workshop for Buildings held on 25-28 September 2023 in Puerto Princesa, Palawan. BIMP-EAGA Ministerial Meeting. During the 25th BIMP-EAGA Ministerial Meeting in November 2022 in West Kalimantan, Indonesia, the member countries acknowledged the study on the potential areas for Renewable Energy Certificates (RECPA) within the BIMP region, which was funded through the cooperation with South Korea. The Meeting, likewise, commended the completion of major enclave interconnections, specifically the Tanjung Redeb-Tanjung Selor interconnection in Indonesia and the Mindanao-Visayas Interconnection Project (MVIP) in the Philippines. These projects address the increasing energy demand and provide sustainable and reliable energy access to communities. 4. United Nations Framework Convention on Climate Change (UNFCCC) Outcomes of 27th Session of the Conference of Parties (COP27). The COP is the Convention's highest decisionmaking body. All States that are Parties to the Convention are represented at the COP in which decisions are made necessary to promote the effective implementation of the Convention, including institutional and administrative arrangements. Vo l u m e 3 56 === pep-2023-2050-vol3-section-e1-page-064.pdf === The Philippines, as a Party to the Convention, regularly participates in the COP as this is the biggest platform for nations and stakeholders to negotiate and address climate change and its adverse impacts. The country will continue to assert and safeguard the Philippines' interest in climate change negotiation, ensuring that we receive the appropriate support and assistance as a country vulnerable to climate change. The COP27 was held on 06-18 November 2022 in Sharm El-Sheikh, Egypt. The Philippine delegation to COP27 was headed by the Department of Environment and Natural Resources (DENR) Secretary34. The outcomes of the said Meeting are discussed in detail under the Environment Chapter of this plan. B. New and Other International Energy-Related Undertakings 1. Asia Zero Emission Community (AZEC) On 3-4 March 2023, the DOE delegation headed by the Energy Secretary attended the AZEC Ministerial Meeting and Associated Meetings, as well as the Investment Forum in Tokyo Japan together with the Ministers and government officials from Australia, Brunei Darussalam, Cambodia, Indonesia, Japan, Malaysia, Thailand, Singapore, and Viet Nam. The events under the AZEC initiative provided opportunities for discussion on key matters crucial to the realization of AZEC’s goals, while balancing decarbonization efforts, energy security, and economic growth with due consideration to the unique capabilities and circumstances of each country. In addition, the Ministers/Heads of Delegations welcomed the initiatives of Japan to mobilize its financing, technology know-how, and expertise and encouraged stronger engagement with the private sector and other international partners to create and accelerate concrete cooperation to support the move of participating countries for energy transition and carbon neutrality. 2. Indo-Pacific Economic Framework (IPEF) for Enhancing Prosperity This framework is intended to advance resilience, sustainability, inclusiveness, economic growth, fairness, and competitiveness for our economies through four Pillars, specifically: (1) Trade, (2) Supply Chains, (3) Clean Economy, and (4) Fair Economy. The IPEF is composed of 14 countries as Parties/Partners to this Agreement, namely: Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, United States, and Viet Nam. Through this initiative, the Parties aim to contribute to cooperation, stability, prosperity, development, and peace within the region. Under Pillar I and Pillar II, where the DOE is also a member agency of the Philippine delegation, the IPEF Partners will work towards trade facilitation, as well as diversification of the supply chain in the region, which may help significantly in attaining energy security, resiliency, and sustainability. Under Pillar 3, the DOE is the Philippines co-lead together with the Department of Finance (DOF). This Pillar aims to accelerate efforts in collectively addressing the energy and infrastructure needs of the IPEF region, including through initiatives that support GHG emissions mitigation, enhanced energy security, and climate resilience and adaptation, while building on shared objectives geared towards strengthening cooperation, identifying innovative approaches to mobilize finance, improve competitiveness, and promote quality partnerships, platforms, and sustainable projects. Further, under Pillar III, the Philippines has circulated and presented a non-paper that provides a nonexhaustive list of the tangible benefits the country seeks in this cooperation. These include the following: • Creating a clean economy investment forum or platform; • Establishing an integrated clean energy supply chain; • Mainstreaming Innovative Financing Instruments unique to IPEF, including mobilizing Sustainable Finance and exploring transition finance; • Exploring a center of excellence for research and development in the clean economy; and • Mainstreaming Green Jobs for a Just Energy Transition and Decent Work 34 57 The United Arab Emirates (UAE) hosted COP28 in Dubai from 30 November to 12 December 2023. The DENR headed the Philippine Delegation to COP28. Philippine Energy Plan