The UK and the Philippines have launched the Philippines Country Fund under the UK Partnering for Accelerated Climate Transitions (UK PACT) programme in Manila, aimed at boosting the clean energy transition.
The initiative prioritises offshore wind, marine planning, and wider renewable energy access.
UK PACT is a capacity-building initiative funded and overseen by the UK government’s Foreign, Commonwealth and Development Office and Department for Energy Security and Net Zero, via the UK's International Climate Finance commitment.
The initiative is intended to assist partner nations in advancing their low-carbon transitions by providing targeted technical assistance.
For its initial year, the Country Fund has designated the energy sector as a primary focus area.
This is in line with the Philippines’ goal of decreasing and avoiding greenhouse gas emissions by 75% by 2030, as well as the country's Energy Plan 2023-2050 targets.
These targets include achieving a 35% renewable energy share in the power generation mix by 2030, 50% by 2040, and a majority share by 2050.
Currently, the fund is focusing on four main interventions.
Firstly, it is updating the offshore wind pricing model to improve the green energy auction system of the Philippines, as well as assessing offshore wind infrastructure and developer readiness.
The programme also includes introducing marine spatial planning for offshore wind to enhance multisectoral planning frameworks for sustainable development in this area.
Additionally, it involves the development of an electric power system cost simulation tool for data-driven and cost-effective energy planning.
The fund is also working on accelerating microgrid deployment in underserved areas, with the goal of expanding energy access and supporting inclusive economic growth.
At the launch event, UK Philippines ambassador Sarah Hulton OBE said: “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.”
Officials from the Philippines' Energy Regulatory Commission, Department of Energy, Department for Environment and Natural Resources, and other agencies expressed support for the initiative, highlighting its potential to drive significant changes in the country’s energy sector.
In July, Reuters reported that the UK government announced an 11% increase in the guaranteed price for offshore wind projects in 2025’s renewable energy auction.
