IN a recent commentary for the Asian Development Bank (ADB), senior energy specialist Rafayil Abbasov called on Pacific nations to harmonize energy regulation to support development and expand energy investment, particularly in green energy, in their respective countries. Abbasov had the small Pacific Island nations in mind with his recommendations, but many of the characteristics that make energy regulation and development difficult for them, such as noncontiguous territory and heavy reliance on energy imports, are shared by the Philippines. We are, after all, also a Pacific island nation, just a larger one. Thus, the idea of coordinating energy policy and regulation with our neighbors is well worth considering.
As ADB’s energy expert explains, “The Pacific region faces a complex interplay of geographical, economic, technical and social challenges that make effective energy regulation difficult.” These include the countries being archipelagos, being particularly susceptible to climate change impacts such as sea-level rise and extreme weather events, high supply chain costs and reliance on imports, being widely separated from neighboring countries, economic disparities within the countries, and a shortage of manpower and resources to effectively implement and oversee energy policy.
Abbasov also emphasizes that these countries are also underrepresented in global energy discussions, “limiting their influence in shaping international energy policies and securing the necessary support for their unique needs.” Besides resulting in global energy-related initiatives that may not be feasible or suitable for Pacific countries — examples might be renewable energy targets, certain emissions-reduction targets, or mandates to adopt sustainable fuels — this marginalization is an obstacle to attracting more investment, encouraging innovation and developing competitive energy markets.
The ADB commentary presents four main areas where cooperation among countries in the region could help boost energy policy implementation and regulation. There are some areas where the Philippines could take the lead in helping its neighbors and others where cooperation could improve some of the country’s shortcomings.
First, there is a need for capacity-building, which means improving the expertise of the Energy Department and regulatory personnel and improving processes to make policy implementation and regulatory actions faster, more efficient, and more consistent. This is one area where the Philippines could both contribute and benefit from sharing with other countries. We have a good energy policymaking and regulatory framework, but it does suffer from a backlog of work and could improve in that respect.
Second, and closely related to capacity-building, the importance of information sharing is emphasized strongly. As ADB’s Abbasov explains, “Energy regulators need to exchange information and practical experiences, including sharing the latest changes in the regulation legislation, tariffs, country studies and recommendations, and valuable practices related to private sector participation in renewable energy generation.” For example, the Philippines’ aspirations for renewable energy development and nuclear energy development are very similar to those of neighboring Indonesia. Neither country is an expert in those things, so both could expand their expertise and hasten their respective developments by working together.
Third, there is a need for policy harmonization across the region. Obviously, differing circumstances in different countries mean that not all can do things exactly the same way, but there are many areas where common guidelines and standards can be developed. This can help to promote regional integration, investment, and trade and reduce needless competition between countries.
Finally, there is a great need to strengthen the Pacific region’s advocacy and representation on a global scale, particularly when it comes to critical initiatives such as the ongoing work to develop a global plastics treaty, updating emissions-reduction mandates, guidelines for climate loss and damage compensation, and funding for energy transition and climate mitigation and adaptation efforts. The small Pacific nations have already banded together in a group called the Office of Pacific Energy Regulators Alliance (Opera), but they would be greatly helped by the cooperation of countries with bigger resources, such as the Philippines, Indonesia and Vietnam, who face similar threats from climate change and have similar needs in building energy security and sustainability.