New Energy: Philippines has gaps in funding and support for clean energy projects

New Energy Nexus (NEX), an international non-profit organization working in the clean energy space, reports that the Philippines faces significant financial and infrastructure gaps in supporting clean energy and climate startups.

In a report by the Philippine Star, NEX said that while the number of climate-focused businesses increased from 15 in 2020 to 91 in 2024, many local startups still face difficulties in obtaining government support and resources, mainly due to limited knowledge and bureaucratic hurdles.

NEX Country Director Brenda Valerio added that while the country’s clean energy innovation ecosystem has seen significant growth, it now risks stagnating without access to networks, financing, testing facilities and skills development.

The report highlighted that only seven research laboratories and nine universities in the country are equipped to offer test facilities and run energy-related programmes.

NEX also identified 29 training institutions that can provide support to clean energy startups, in addition to 127 projects already underway.

Nearly half of the Philippines’ clean energy and climate startups focus on renewable energy generation, while others focus on areas such as sustainable cooling, transportation, waste management and the circular economy.

The report also noted that provincial entrepreneurs are starting to make their presence felt in the market, with 14.5% of clean energy startups based in Northern Mindanao, 16.5% in CALABARZON, and more than a third in Metro Manila.

According to NEX, awareness of the availability of government funds is not the only problem, as private sector involvement remains low.

Of the US$1.3 million (PHP72.47 million) raised by 18 green businesses, only 13% came from private sector investment, with most of the funds coming from grants and competitions.

The nonprofit further highlighted that some startups lack the necessary infrastructure, experience or systems to properly manage large allocations of funding that could sustain their businesses.

To accelerate the implementation of clean energy innovations in the country, Valerio called for cooperation between government agencies, think tanks, non-governmental organizations and the private sector.