Philippines eyes green future for steel sector

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The Board of Investments (BOI), in collaboration with the International Finance Corporation (IFC), a member of the World Bank Group, recently hosted a forum highlighting decarbonization opportunities in the Philippine steel sector.

The event brought together government and industry stakeholders to explore strategies for reducing greenhouse gas emissions and advancing sustainability in one of the country’s key industries.

“Going green makes sense. The timing is right but the window is tight. We have to see a strong preference for green products,” said Trade Undersecretary and BOI Managing Head Ceferino Rodolfo.

He emphasized that the shift towards decarbonization aligns with the Philippines’ broader sustainability goals and requires public-private collaboration.

Rodolfo noted that the BOI’s Green Lane initiative, which supports renewable energy (RE) projects, has played a pivotal role in driving sustainability.

The RE sector is expected to lead a record investment boom in 2024, addressing challenges such as power supply constraints, and presenting significant opportunities in emerging fields like electric vehicles (EVs), green metals, and high-tech agriculture.

At the forum, Jean-Marc Arbogast, IFC Country Manager for the Philippines, highlighted the importance of decarbonizing the steel industry, which is both a critical component of the economy and a major source of greenhouse gas emissions.

“Opportunities lie in strategic partnerships and investments in new technology,” Arbogast said, emphasizing that the sector will expand in the coming years due to increasing demand from urbanization and infrastructure development.

The forum also featured a panel of industry experts who discussed the need for a holistic approach to decarbonization.

BOI Executive Director for Industry Development Services, Ma. Corazon Halili-Dichosa, stressed the importance of engaging with local steel producers to understand the ecosystem that will drive decarbonization.

“Aside from incentives, we need to know the policies and other measures that would encourage companies to decarbonize their processes while their operations remain competitive and viable,” she said.

Experts agreed that transitioning to low-carbon steel production opens up new business opportunities, both locally and internationally.

The discussions also underscored the role of government regulations, green procurement policies, and carbon markets in accelerating decarbonization.

Sagar Siva Shankar, IFC Operations Officer, reiterated the organization’s commitment to working with the Philippine government and private sector on sustainability efforts.

“This is just the first of many engagements that IFC will have with the private sector and government to advance decarbonization in the Philippines,” he said.