Marry Rose Maniebo-Vegas, Senior Investments Specialist and BOI's Sectoral Champion for the Cold Chain Industry presenting at a CCI-Hub event.
Marry Rose Maniebo-Vegas, Sr. Investments Specialist and BOI's Sectoral Champion for the Cold Chain Industry giving a policy presentation. Photo credit: CCI-Hub.

Philippine Government Seeks to Boost Investments for Energy Efficient, Clean Cooling Tech Via Incentives, ‘Green Lanes’

Guest author Mae Valdez details how the Philippines is promoting clean cooling technology through public policy.

This is a guest post by Mae Valdez, National Policy and Regulations Coordinator at the Global Partnership for Food Cold Chain in the Philippines. ATMOsphere, publisher of NaturalRefrigerants.com, is one of the project partners.

Cold chains play a crucial role in attaining food security in the Philippines. With a growing population and economy, cold chain development has been prioritized in national development and sectoral plans, including a Food Logistics Agenda and the National Cold Chain Industry Roadmap.

However, high electricity costs deter investments in the industry. To address this, the government has passed the Energy Efficiency and Conservation Law to increase energy savings, especially for energy-intensive industries such as the cold chain. The law provides for fiscal incentives for simple and complex energy efficiency projects through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and the Strategic Investment Priority Plan (SIPP), which may be applied for through the Board of Investments (BOI).

The Global Partnership for Improving the Food Cold Chain in the Philippines project facilitated a partnership between the Department of Energy’s Energy Utilization Management Bureau (EUMB), which is leading the implementation of the Energy Efficiency and Conservation Law, and the Board of Investments. The government institutions will determine the average energy consumption of the cold chain industry, which will be the basis for the annual savings target and the implementation of energy-efficiency projects. 

Energy-efficiency measures adopted by cold chain enterprises will be eligible for incentives that will need to be endorsed by the EUMB to the BOI.

Case studies have shown that cold chain installations with high energy efficiency can be achieved using natural refrigerants. Cold chain investments may also make use of Green Lanes, which expedite regulatory compliance procedures for priority investments.

Related reading: First Transcritical CO2 Cold Storage Facility Opens in the Philippines

“Cold storage warehouses have a growth forecast of 35% in 2020,” said EUMB Director Patrick Aquino. “There are projected to be 500 facilities by 2025. This massive industry has a direct projected emission of 11.13 million metric tons of CO2 by 2030, with a significant effect on the country’s GDP and energy intensity. The implementation of energy efficient, innovative projects is required for the development and security of one of the most important industries in the country.”

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