Some mining companies in the country are now being evaluated over the type of energy they use in their operations, an industry official said.
In a report by Business World, Offshore Mining Chamber of the Philippines, Inc. chairman Michael Raymond Aragon said that a new ethic in doing business, particularly in the mining industry, is now emerging worldwide.
Aragon said that mining companies are now being required to disclose the type of energy they use to their buyers, adding that if the energy source used in mining activities is not renewable energy, buyers will refuse the miner’s business.
He said that the move is a developing norm in the mining industry, and companies must take their part in fighting a “global climate emergency that threatens humanity with species extinction if not abated soon.”
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said that demand for clean energy in the supply chain is driven by companies who are being rated on their performance on the environmental, social, and governance (ESG) criteria.
Ricafort said that ESG pushes companies to reduce, and even eliminate carbon footprints in the coming years, encouraging the shift toward renewable and sustainable energy and other business practices following the decrease in the cost of RE power in recent years.
However, some mining companies don’t have access to renewable energy sources.
Ricafort said there is a need to roll out more RE capacities in the country to help reduce dependence on conventional power sources.
Data from the Department of Energy (DOE) said that renewable energy capacity jumped around four percent to 8,255 megawatts (MW) in 2022.
Renewables currently account for 29% of the energy mix. The government looks to increase the share in the mix to 35% by 2030, and 50% by 2040.
