UK Urges PH to Shift to Renewables Amid Global Risks

The United Kingdom is urging the Philippines to accelerate its transition to renewable energy to safeguard its economy from global supply shocks and rising fuel costs, particularly amid escalating geopolitical tensions in the Middle East and Europe.

George Freeman, UK trade envoy for the Philippines, said during a briefing in Manila that reliance on oil and coal leaves the country vulnerable to international crises, including the war in Ukraine and the conflict between Israel and Iran.

“The Middle East crisis, as it has always done, puts pressure on oil prices, it’s inflationary, and it drives costs up for business around the world,” Freeman told reporters. “If the Philippines has more renewables, it’s much more independent and more secure as its supply is more secure.”

The Philippines currently depends heavily on imported fossil fuels for energy, making it susceptible to global price volatility and economic disruption.

Freeman stressed that renewable energy sources such as solar, wind, geothermal, and tidal power offer long-term stability, climate benefits, and domestic employment.

“Renewable transition is key for economic security and prosperity,” he said. “If the Philippines generated more of its own electricity… it’s much more secure and much less exposed to price volatility internationally.”

Freeman pointed to surging energy prices caused by Russia’s invasion of Ukraine and the ongoing Middle East unrest as urgent reasons for diversification.

By investing in clean energy technologies, he added, the Philippines can build resilience and open up “wonderful opportunities” for its workforce.

“You create new jobs and clean jobs,” Freeman said. “Renewables create opportunities for Filipinos not to work in coal mines and not to work in dangerous old industries, but to work in clean new industries.”

The UK is reportedly preparing for more “heavy” investments in the Philippine energy sector and aims to share its technical expertise to support a secure, sustainable transition.

Freeman also reaffirmed the UK’s commitment to maintaining 99% tariff-free access for Philippine goods, calling the country a “close, important ally.”

On broader bilateral ties, he highlighted a recently approved £5-billion (about PHP 372 billion) facility from UK Export Finance to support infrastructure and defense initiatives in the Philippines.

“We know how important that is. They’re real commitments, and they’re working today,” Freeman said.