UK and Philippines launch new climate fund to accelerate clean energy transition, focusing on offshore wind, marine planning, and expanding renewable access.
Manila, Philippines - The UK and the Philippines marked a key milestone in their climate partnership with the official launch of a new Philippines Country Fund by the UK Partnering for Accelerated Climate Transitions (UK PACT) programme, in Manila. The programme aims to support partner countries in accelerating their low-carbon transitions through targeted technical assistance and capacity-building.
In its first year of implementation, the Philippines-UK PACT Country Fund has identified the energy sector as a key priority area, aligning with the Philippines' commitment to reduce and avoid greenhouse gas emissions by 75% by 2030, and the Philippine Energy Plan 2023-2050 renewable energy (RE) target of having 35% share in the power generation mix by 2030, 50% by 2040 and RE dominating the power generation mix by 2050. The Fund is currently delivering four strategic interventions that directly support this ambition:
Offshore wind pricing model update to enhance the Philippines' green energy auction system through improved pricing mechanisms, and offshore wind infrastructure and developer readiness assessment to strengthen planning, sequencing and evaluation of offshore wind auctions;
Marine spatial planning for offshore wind to strengthen multisector planning frameworks for sustainable offshore wind development;
Developing an electric power system cost simulation tool, to guide and enable cost-effective, data-driven energy planning;
Micro-grid deployment acceleration in unserved and underserved areas helping expand energy access drive inclusive economic growth for communities.
The launch event and implementation workshop convened multiple stakeholders from government agencies, development partners, academia, civil society, and the private sector. Participants exchanged insights to align on programme objectives, share technical expertise, and explore opportunities for collaboration in advancing the Philippines' clean energy transition.
During the launch, British Ambassador to the Philippines Sarah Hulton OBE highlighted how the UK's enduring commitment to climate action and clean energy translates into tangible benefits for Filipinos:
A diversified renewables-driven power sector not only cuts emissions, it provides a transformative opportunity to lower costs, strengthen resilience and open new pathways for sustainable industries and employment.
Representatives from the Department of Energy (DOE), Energy Regulatory Commission (ERC), and Department for Environment and Natural Resources (DENR), alongside other key agencies, welcomed the initiative, noting its potential to catalyse transformative change in the country's energy landscape. Reflecting this sentiment, DENR Secretary Raphael Perpetuo Lotilla shared:
Climate-informed marine spatial planning becomes even more important. This is why our partnership with the UK under UK PACT is so valuable. The programme will help validate our MSP tools, strengthen integration of biodiversity and social considerations and support the mitigation framework that links environmental sensitivity to clear decisions. Our partnership shows that we do not need to choose between energy security and environmental protection. We can and must achieve both.
Building on this, ERC Chairperson Francis Saturnino C. Juan highlighted the value of the UK's deep technical experience:
We are not just partnering with a funder; we are partnering with the global pioneer of offshore wind… You have the scars, you have the lessons, and you have the success stories. Through the UK PACT programme, you are transferring that deep institutional knowledge directly to our young Filipino engineers. You are helping us bridge the gap between our youthful ambition and the hard-won wisdom of a mature market.
Highlighting the strategic value of this partnership, Paolo G Fondevilla, Director of IT and Management Services at DOE, on behalf of Secretary Sharon Garin, said:
It is encouraging to see that our two countries jointly commit to forging national energy security while sourcing the same from clean and sustainable energy sources.
As the UK and the Philippines deepen their collaboration through the Philippines-UK PACT Country Fund, the programme is set to drive meaningful progress where it matters most: in strengthening institutions, accelerating renewable energy deployment, and building the technical foundations for a just, reliable and future-ready energy system. By uniting government leadership and UK expertise, this partnership aims to convert shared ambition into lasting impact, supporting a cleaner, more resilient and inclusive energy future for the Philippines.
Notes:
UK PACT (Partnering for Accelerated Climate Transitions) is a capacity-building programme, jointly governed and funded by the UK Government's Foreign, Commonwealth and Development Office (FCDO) and the Department for Energy Security and Net Zero (DESNZ), through the UK's International Climate Finance. It works in partnership with countries with potential to reduce high emissions, to support them in implementing and advancing their ambitions of tackling climate change.
