Philippine executives sound alarm on fossil fuel dependence, urge faster energy shift
Nine in 10 Filipino business executives warn the Philippines is dangerously over-reliant on imported fossil fuels at 78% of total energy supply, calling for faster clean electrification as 89% say government policies lag behind despite renewable targets of 35% by 2030 and 50% by 2040.
NEWS
6/16/20262 min read
Nine in 10 Filipino business executives believe the Philippines is dangerously over-reliant on imported fossil fuels, and most say government policy is not moving fast enough to address it, according to a new international survey on corporate attitudes toward electrification.
The findings, drawn from a poll of senior executives across 18 countries, place the Philippines at the top of global rankings for fossil fuel concern — with 92% of local respondents agreeing that the country's dependence on energy imports poses a serious problem, the highest proportion recorded among all nations surveyed.
Energy security at the forefront
The alarm is rooted in hard economic reality. Fossil fuel imports account for roughly 78% of the country's total energy supply, leaving businesses acutely exposed to price swings driven by global geopolitical instability. That vulnerability has pushed energy security to the top of the corporate agenda, with executives citing "reducing reliance on fossil fuel imports" as the single most appealing benefit of electrification — chosen by 36% of respondents.
The concern is near-universal when framed in operational terms: 100% of executives surveyed said that electrifying their operations would improve their energy security.
Business case for electrification is strong — but policy lags behind
Corporate appetite for clean electrification runs high. Nearly all executives — 99% — said electrifying their operations would make their companies more competitive and drive business growth. A similarly strong majority, 92%, agreed that businesses should actively prioritize electrification over fossil-fuel equipment over the coming decade, again the highest figure among all 18 countries polled.
Yet optimism is tempered by frustration. Despite the Philippine government's stated ambitions — including targets for renewables to comprise 35% of the power generation mix by 2030 and 50% by 2040, up from 22.2% currently — most business leaders say implementation is falling short. Some 89% said government policies are moving too slowly to support the pace of electrification that businesses require, and 80% believe the country is already falling behind in the global race to decarbonize.
To close the gap, 47% of executives identified expanded public grants and subsidies as among the most effective tools available to accelerate the transition.
Climate risk compounds the urgency
For many executives, the push toward renewables is also inseparable from the Philippines' acute exposure to climate-related disasters. The country regularly faces typhoons, flooding and other extreme weather events that have generated nearly $400 billion in estimated damages between 2015 and 2024, according to data from the Philippine Statistics Authority.
That record has registered with the private sector: 35% of executives cited tackling climate change as one of the primary benefits of clean electrification, reflecting a business community that sees the energy transition as both an economic and a survival imperative.
The government, for its part, has framed the buildout of distributed renewables, microgrids and resilient energy infrastructure as essential not only for decarbonization but also for extending electricity access to remote and disaster-prone communities — a key milestone in its pursuit of 100% household electrification.
Stakes: relocation on the table
The consequences of inaction could extend beyond slower climate progress. A substantial share of executives — 78% — said they would consider relocating their operations overseas if the government fails to deliver sufficient support for electrification. While Philippine companies see new growth opportunities in areas such as low-carbon manufacturing, that potential remains contingent on an enabling policy environment.
Senior business leaders say that financial support mechanisms and broader market incentives are the most direct levers available to government for accelerating both company-level and economy-wide electrification.
Data cited in this article is drawn from "Powering Up: Business Perspectives on Electrification," a multinational survey of senior executives across 18 countries.