QUEZON CITY, 28 July 2026 – Responding to the fifth State of the Nation Address (SONA) delivered by President Ferdinand Marcos Jr. yesterday, Institute for Climate and Sustainable Cities (ICSC) Executive Director Angelo Kairos dela Cruz said:

“In this year’s SONA, President Marcos was firm: the welfare of Filipinos is his top priority, as it should be. Over the last year, the Philippines faced significant economic challenges, with the energy crisis directly impacting the costs of services, from transportation to electricity, even food. We appreciate the updates on the country’s immediate response the past few months, however, what our experience has taught us is that we must anchor our country’s development pathway to long-term economic resilience, and must do it urgently. 

“We echo the President’s call to prioritize energy resources that are indigenous and renewable. The country’s power sector remains reliant on imported fossil fuels and on large, centralized baseload power plants. In turn, impacts of the US-Israel war on Iran has exposed the Philippines’ vulnerability to global disruptions and fuel price shocks. To transform our power system towards energy independence and resilience, accelerating the deployment of renewable energy (RE) sources, coupled with distributed power generation, is truly the no-regrets solution for the country. 

“A Philippine grid that is distributed and flexible; powered by indigenous, renewable energy; and free from the impacts of global price shocks and geopolitical conflict strengthens our power system, generating benefits that translate across sectors, including public transportation. We welcome the government’s efforts to increase the adoption of electric vehicles, including their integration in our public transport fleet. But more importantly, these efforts must be matched with corresponding resources. If we will treat public transportation as a critical lifeline, it should be matched with commensurate funding – not just temporary fuel subsidies or short-lived contracting schemes that do not incentivize consistent service delivery. Instead, we should enable multi-modal public transportation that is affordable, interconnected, and dignified.

“The clarion call among Filipinos to make RE more accessible and affordable is also loud and clear, with a recent Pulse Asia survey noting that 9 out of 10 Filipinos believe that the government should make rooftop solar more affordable. We welcome the President’s call to prioritize the enactment of the Sariling Kuryente Act, with the aim of making rooftop solar and battery storage installations simpler and more accessible. We also laud the pronouncements to have systems loss charges removed from the electric bills of Filipinos. But in addition, we strongly urge to abolish the automatic fuel cost pass-through clause in power purchase agreements, which also allows fuel price volatility to be passed on to consumers. Last month, 48 distribution utilities (DU) across the country recorded residential electricity rates above the already-high national average, which show how differences in DUs’ power supply can influence electricity costs, further reinforcing the need for a distributed, flexible, and resilient power system in the Philippines. 

“We also recognize the government’s efforts to become more proactive in disaster response through the use of digital tools. Predictive technologies are crucial as we prepare for incoming calamities, but alongside that, communities must also be capacitated and trained to respond, local government units must be equipped with the proper resources, and protective measures must be put in place, especially for sectors that are heavily exposed to climate- and disaster-related impacts. The President recognized insurance as a protective measure for loss and damage in terms of agriculture and food production. Through the leadership of the Department of Finance (DOF), the Global Shield Against Climate Risks can help maximize climate- and disaster risk finance and insurance (CDRFI) opportunities in the country. 

“This year’s SONA provided a glimpse of how the current administration views the country’s development pathway. While we have promising advancements in place, there were pronouncements made yesterday that are concerning. We welcome the government’s call to diversify our energy sources. However, while native hydrogen provides an opportunity to contribute to the Philippines’ energy transition, it is only secondary to the direct use of electricity generated from renewables. It needs to be further assessed based on its viability, efficiency, safety, and whether it can effectively contribute to the country’s energy security. Nuclear, on the other hand, does not fit our goal of a distributed system for the Philippines, that is powered by indigenous, renewable sources. Nuclear energy is more rigid than coal, utilizes imported fuel, and in addition, it ‘takes decades to deliver, requires massive capital, and carries complex safety, regulatory, and waste management burdens with long-term consequences.’

“Addressing energy security must also ensure that new energy pathways are consistent with environmental safeguards and long-term sustainability. The country must prioritize its ecological solid waste management framework before even considering waste-to-energy (WTE) initiatives, as the President noted. More than two decades since the enactment of Republic Act 9003, major gaps remain in waste segregation, materials recovery, recycling, and composting. Addressing these implementation gaps should remain the priority before pursuing disposal-based technologies.

“While the President noted that the establishment of the Pax Silica Industrial Hub will ‘bring quality jobs, accelerate industrial competitiveness, and revitalize the economy,’ we cannot deny the concerns that it poses. The Hub’s energy demand will require approximately 19% of Luzon’s peak demand, and Department of Energy (DOE) Secretary Sharon Garin expressed that plugging its full demand to the Luzon grid is too dangerous, risking the grid’s stability. This is in addition to the environmental, social, and systemic issues that also need to be thoroughly evaluated. 

“As the national government defines the pathway towards economic development for the country, in the face of an energy crisis driven by global disruptions, we have to be reminded constantly that ultimately, climate action and resilience must be the main development priority for the Philippines. It must be systemically integrated in long-term planning and resource allocation, with local governments at the helm of implementation. None of these advancements would matter if they result in environmental and social harm – climate, energy, biodiversity, and sustainable development must always be interconnected. 

“Genuine climate action puts people and communities at the center. Indeed, the welfare of Filipinos must and always be the top priority of the national government. We are hopeful that the pronouncements made by the President are aimed at driving sustainable economic development for the country, but we must also keep in mind that local communities always have to be part of the equation. Climate action is and will always be the path to better development, let us not lose sight of this.”

ABOUT
The Institute for Climate and Sustainable Cities is a Philippine-based non-governmental organization that advances climate, energy, and low-carbon solutions to enable fair and climate-resilient development at the national and international levels.

CONTACT
Sanafe Marcelo, ICSC: media@icsc.ngo, +63 968 886 3466, +63 917 149 5649

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