Philippine business group backs lifting coal moratorium amid Middle East tensions

The Philippine Chamber of Commerce and Industry (PCCI) is urging the government to lift its coal moratorium as rising geopolitical tensions in the Middle East heighten concerns over power supply security and electricity costs.

The call comes as the Department of Energy (DOE) reviews its energy policy framework to ensure grid stability while balancing long-term decarbonisation goals.

 “Our economy cannot run on uncertainty. While the transition to renewable energy remains a long-term goal, the immediate priority must be ensuring stable and affordable power supply,” PCCI president Ferdinand Ferrer said in a statement on Friday, as quoted by Philstar.com.

The Philippines imposed a moratorium on new coal-fired power plants in 2020 to curb reliance on fossil fuels. The policy, however, does not apply to existing plants or projects already in the pipeline.

Energy Secretary Sharon Garin said the government is considering lifting the ban, citing persistently high global fuel prices that could drive up domestic electricity tariffs.

 “In times of crisis, coal remains one of the most cost-competitive options for power generation,” Garin said, adding that the DOE is reviewing policy options and remains open to new coal developments.

PCCI welcomed the potential policy shift, particularly if future projects adopt high-efficiency, low-emission (HELE) technologies to balance energy security with environmental commitments.

Read also : Philippines seeks steady Indonesian coal supply amid energy price risks

 “Energy security is national security. Policies must remain flexible to respond to current realities,” Ferrer said.

The business group highlighted coal’s role in ensuring baseload reliability, cost competitiveness and resilience against geopolitical disruptions—factors seen as critical for industrial growth and investment.

Coal-fired power plants continue to provide stable baseload generation, operating continuously to support grid reliability—an issue that remains central across Southeast Asia, including Indonesia.

PCCI energy director David Chua said the debate should not be framed as coal versus renewables, but rather as ensuring a balanced energy mix.

 “This is about keeping the lights on, maintaining industrial competitiveness and protecting consumers from rising costs,” he said.

The Philippines currently has one of the highest electricity tariffs in Southeast Asia, with coal accounting for more than 60% of its power mix, based on DOE data.

However, the potential return to coal has drawn criticism. Zero Carbon Analytics warned that increased coal reliance could expose countries to price volatility, weaken long-term energy security and undermine climate targets.

The group said renewed coal demand could drive price increases and reintroduce the same supply risks that energy transition policies were designed to mitigate.

Editing by Reiner Simanjuntak