1.7 Reduction of Carbon Dioxide Emissions (CO2)

1. EXECUTIVE SUMMARY (Volume 1: National Energy Plan)

1.7 Reduction of Carbon Dioxide Emissions (CO2)

With the implementation of the various sectoral plans and programs in the 2005 Plan Update, CO2 emission levels will increase at a lower average annual growth rate of 5.7 percent, from 77.1 MMMT in 2005 to 99 MMMT in 2010, and finally reaching 124.2 MMMT in 2014. The CBRED project commits to a 29.6 MMMT reduction within the planning period.

1.8 Clean Development Mechanism (CDM) Initiatives

A continuing inventory of energy projects with CDM potential, as well as the development of a CDM Promotional Kit and other IEC materials will be undertaken by the DOE to serve as tools to encourage foreign and domestic investments on CDM.

1.9 Oil Spill Prevention, Control and Response Training

The DOE will continue to take the lead in Oil Spill Prevention, Control and Response Training which is done annually to review oil spill prevention measures as well as ensure the preparedness of energy industry players in dealing with oil spill incidents.

1.10 Caring for the Society and the Environment

The NPC and TransCo are both guided by the Corporate Social Responsibility and Environmental Stewardship Program policy on environmental management which subscribes to the precepts of sustainable development and consistent with Section 5: Environmental Protection clause of the EPIRA.

The NPC implements a power project cycle-based environmental management policy that is compliant to existing regulations such as the CAA, Solid Waste Management Act of 2000 and the recently passed Philippine Clean Water Act of 2004. Its activities include environmental impact assessments, monitoring/inspection and auditing. TransCo’s corporate environmental policy, on the other hand, is embodied in its commitment “to a cleaner operation to prevent pollution, comply with relevant environmental laws, regulations and standards, and continuously review and improve the environmental performance of its activities. As such, TransCo ensures the environmental compliance of its projects from the pre-construction stage, construction proper, operation, up to the decommissioning of a facility.

Meanwhile, through its re-launched Corporate Social Responsibility Program, the PNOC-EDC commits to be a catalyst for environmental and socio-economic prosperity for its host communities. The company aims to deliver holistic, equitable and meaningful benefits to its host communities through public participation and the principle of management accountability to its stakeholders.

1.11 Benefits to Host Communities

Hosting energy-generating facilities and/or entities engaged in the development of energy resources has corresponding benefits to the barangay, city or municipality, province or region. The provision of benefits, either financial and/or non-monetary is anchored on the following laws: Republic Act 7160 otherwise known as the Local Government Code of 1991; R.A. 7638 or the Department of Energy Act of 1992; and, R.A.9136 or the EPIRA.

The DOE will ensure the compliance of the power-generating companies and/or energy developers in providing financial benefits to the host communities.

1.12 Consumer Welfare and Protection

For the planning period, the Consumer Welfare and Promotion Office is committed to its long-term goal of empowering energy consumers. It will also be on the frontline in the development and implementation of various education and advocacy programs for better consumer understanding on the issues and concerns of the energy industry.

1.13 Investment Requirements

The implementation of national energy projects for the next ten years will require huge investments, to wit: Energy resource development projects alone will require a capital investment of Php1.1 trillion. The power and transmission development projects intended for the main grid will require a capital outlay of Php 554 billion while those for the small-island grids will require Php 18.4 billion.

For the downstream oil and natural gas sector, around Php 184.5 billion will be required to put in place expansion programs in the downstream oil sector, as well as for the successful operation of the natural gas industry.

On the other hand, financing for the remaining unenergized barangays under the Expanded Rural Electrification Program will total Php 6.9 billion. Finally, a successful energy efficiency and conservation program calls for an investment of Php 145.1 billion.

1.14 Legislative Agenda

The energy sector will push for the passage of several legislative measures, to wit: TransCo Franchise Bill, Renewable Energy Bill, Natural Gas Bill, Ethanol Bill, Alternative Fuels Bill and Liquefied Petroleum Bill