The Philippine Economic Zone Authority (PEZA) is expanding the coverage of a program which is jointly commissioned with European Chamber of Commerce of the Philippines (ECCP). This program intends to enhance energy efficiency of the firms located in the PEZA economic zones. Having started in 2012, this program is known to have reduced 20-30% of energy costs of the firms in the economic zones.

 

This time, the PEZA plans to include IT business outsourcing firms in the coverage of the program in addition to manufacturing firms it has already covered. This initiative by the Philippines government comes at a right timing given the country's fast growing energy costs in both industrial and household fronts. Energy saving and efficiency are critical not only for sustainable economic growth of the country but also for the protection of fast deteriorating environmental degradation. Greenhouse gas emissions and water pollutions could be slowed down to a large extent by reducing and rationalizing energy consumptions.

 

The plan's approach is expected to address causes and ensuing problems associated with energy inefficiency by starting from energy audit of the firms operating in the economic zones. Accurate diagnosis of the current status should be the starting point to devise appropriate ways and methodologies to solve the energy inefficiency problems revealed. Given the rapidly growing energy consumption and intensity of the IT businesses, inclusion of these firms of the coverage program is also justified.

 

Historical performance of the program by reducing energy consumption of the firms by 20-30% is remarkable. However, the challenge ahead is how further the envelope could be pushed as many of the firms might have already exhausted available tools and production methods for energy efficiency. In this regard, expansion of the program coverage would not only ensure gross outcome of the program but also sustain the momentum of the initiative. Finally, in order to enhance the efficacy of the program, PEZA may consider introducing proper incentive systems, financial and/or non-financial, which could contribute to mobilizing firms' voluntary participation in and support to the program.