The UK and the Philippines have joined forces to launch the Philippines Country Fund under the UK Partnering for Accelerated Climate Transitions (UK PACT) programme, marking a significant step in the Southeast Asian nation’s clean energy transition. This initiative, focused on offshore wind, marine planning, and broader renewable energy access, signals a strategic shift in the Philippines’ energy landscape.
UK PACT, funded by the UK government’s Foreign, Commonwealth and Development Office and Department for Energy Security and Net Zero, aims to bolster partner nations’ low-carbon transitions through targeted technical assistance. The Philippines Country Fund, prioritising the energy sector in its inaugural year, aligns with the country’s ambitious climate goals. These include reducing greenhouse gas emissions by 75% by 2030 and achieving a renewable energy share of 35% in the power generation mix by 2030, rising to 50% by 2040 and a majority share by 2050.
The fund’s initial interventions are multifaceted. It is updating the offshore wind pricing model to enhance the Philippines’ green energy auction system and assessing offshore wind infrastructure and developer readiness. Marine spatial planning is introduced to foster sustainable development, while an electric power system cost simulation tool is being developed for data-driven energy planning. Additionally, the fund is accelerating microgrid deployment in underserved areas to expand energy access and support inclusive economic growth.
UK Ambassador to the Philippines Sarah Hulton OBE emphasised the transformative potential of a diversified renewables-driven power sector, highlighting opportunities to lower costs, strengthen resilience, and open new pathways for sustainable industries and employment. Officials from the Philippines’ Energy Regulatory Commission, Department of Energy, and other agencies expressed support, underscoring the initiative’s potential to drive significant changes in the country’s energy sector.
This collaboration comes as the UK government announced an 11% increase in the guaranteed price for offshore wind projects in 2025’s renewable energy auction, reflecting a broader trend of international cooperation and investment in clean energy technologies.
The Philippines Country Fund could catalyse a more dynamic and inclusive energy sector in the Philippines. By focusing on offshore wind and microgrid deployment, the initiative may accelerate the adoption of renewable energy, reduce reliance on fossil fuels, and enhance energy access in underserved communities. Moreover, the introduction of marine spatial planning and advanced energy planning tools could foster a more sustainable and resilient energy infrastructure, positioning the Philippines as a leader in Southeast Asia’s clean energy transition.
However, the success of this initiative will depend on effective implementation, stakeholder engagement, and policy support. It remains to be seen how the Philippines will navigate potential challenges, such as regulatory hurdles, financing constraints, and social acceptance of new energy technologies. Nonetheless, the Philippines Country Fund represents a promising step towards a more sustainable and inclusive energy future for the Philippines and the region.