With a little help from our friends

Two recent briefings I attended last week and this week give me hope that despite our current energy problem brought about by the Middle East war started by the United States and Israel, our country will move quickly and finally transition to more sustainable and renewable  energy sources that rely on our abundant solar and wind power resources,  hopefully ending our overdependence on imported crude oil from the Middle East and on the environmentally destructive use of coal to power our industries.

Our energy transition, which just three months ago seemed like a very relaxed and not urgent goal, has unexpectedly been fired up following the disastrous US-Iran war that remains unresolved.

The Middle East conflict has ignited a global push to achieve environmental, social and governance (ESG) goals and transition more quickly to sustainable and renewable sources of energy and lessen reliance on Middle East crude oil resources that can easily hold the world hostage whenever a regional conflict ignites in that part of the world.

Last week, during a briefing for journalists, Japan’s MUFG Philippines reiterated its continued commitment to help finance our government’s move to achieve  its 2030 ESG goals.

MUFG Philippines, in the past three years, has extended a significant amount of sustainability-linked financing and credit facilities to top Filipino corporations. In 2022, its first client was the Ayala group’s ACEN Corp., for which it arranged an A$140 million green term loan facility to finance renewable energy assets and projects of the Filipino company in Australia.

In 2023, MUFG Philippines again assisted two other Ayala projects — ACEN Renewables Int’l in securing a $100-million green term loan facility which supports Ayala’s long-term sustainability and net zero ambitions and Ayala Corp.’s P5-billion sustainability-linked credit facilities.

This year, MUFG Philippines facilitated the San Miguel Global Power and SN Aboitiz Power Magat Sustainable Trade Asset Finance Transaction. Similarly, the Japanese-led bank also arranged a P273.5 billion financing for Prime Infrastructure’s Pumped Storage Hydropower project.

According to Colin Chen, managing director and head of sustainable finance department of MUFG’s Asian investment banking division, “When we first started, there was a lot of room setting, because that’s when people started being subconscious of what was required. And what we’ve discovered is that sustainability is, I wouldn’t say nebulous, but there are many facets to it... there needed to be guidelines put into place, frameworks and most of our engagement in those days were with the regulators because they set the guidelines. And for something like sustainability, guidelines are important... so, the first few ones were along those lines. Over time, that’s changed, and this year, also, maybe from last year, the concentration has been more in terms of two things — one is transition, and one is energy security.”

MUFG’s reiteration of its continued support dovetails with the Asian Development Bank or ADB’s  four-day Asia Clean Energy Forum 2026 being held in its headquarters in Mandaluyong this week. The ACEF coincides with the celebration of  the  bank’s 60th anniversary while addressing the most pressing challenges in clean energy transition. The event signifies a crucial milestone in the ADB’s energy engagement in Asia and the Pacific. The forum reflects ADB’s updated Energy Policy in 2025 and responds to the region’s growing demand for clean energy solutions that are secure, resilient and inclusive.

The forum takes  place against a backdrop of economic uncertainty in Asia and the Pacific, with regional growth projected to slow to four percent this year following the unexpected conflict between the US and Iran that has led to a global energy shock. A prolonged energy crunch is affecting more than 400 million people, while rising geopolitical and trade tensions add further pressure on economies across the region.

In his opening address of the forum yesterday, ADB president Masato Kanda warned that the  Asia and the Pacific region is facing one of its most serious energy challenges in decades and, thus, “Countries must work together to build a cleaner, more secure power system that can move electricity across borders.”

He said, “We have been painfully reminded in recent weeks that, when it comes to energy security, no country can go it alone. We must build a power system that connects our economies, strengthens our resilience and delivers energy across the region. Delay will mean higher prices, weaker growth and lost opportunities for millions of people.”

According to the ADB, across Asia and the Pacific, more than 350 million people have limited access to energy while over 53 million have no access at all. The conflict in the Middle East has exposed significant energy vulnerability in many countries. This comes as energy demand in the region is projected to almost double by 2030 on the back of continuing economic growth, rapid urbanization and surging demand from power-intensive artificial intelligence data centers.

ADB is working to address this challenge with the Pan-Asia Power Grid Initiative (PAGI). The initiative will connect national and regional power systems so energy can flow across borders, shifting away from small-scale, country-to-country projects toward a coordinated and regional power trade.

By 2035, PAGI will mobilize $50 billion, with ADB providing half. The initiative is expected to connect 22,000 circuit-kilometers of transmission lines, integrate 20 gigawatts of renewable energy into a regional system, slash power sector emissions by 15 percent and help create 840,000 jobs.

ADB has been working for more than 40 years to increase access to electricity in Asia and the Pacific. Energy plays a critical role in reducing poverty and driving economic growth. ADB’s work in the region improves energy access for the poorest people, promotes clean energy, fosters cooperation to meet energy demand and helps improve energy policies. In 2025, ADB mobilized about $3.4 billion for energy projects and investments in Asia and Pacific.