Waste Power Generation and Emissions Trading by Manila Companies--Conflicts and Hopes Caught in the City's Crossfire: Challenges from the Philippines (circa 2008)

Waste Power Generation and Emissions Trading by Manila Companies--Conflicts and Hopes Caught in the City's Crossfire: Challenges from the Philippines (circa 2008)
In the late 2000s, the Philippines faced the dual challenge of a serious waste problem and energy shortage. Rapid urbanization generated enormous amounts of waste every day from the Manila metropolitan area, and disposal sites were strained. In addition, domestic electricity production was highly dependent on fossil fuels, and the cost of electricity was rising due to soaring oil prices. In response to this situation, Waste-to-Energy (WTE) power generation, which uses municipal waste as fuel, is attracting attention. Some companies, especially in Manila, moved to build a new profit model, using incinerators to generate electricity and at the same time selling emission credits for the reduction of greenhouse gas emissions.
The background at that time was the Kyoto Protocol and the expansion of the Clean Development Mechanism (CDM), which were advanced mainly in Japan and Europe. Developed countries were obligated to reduce their emissions, while developing countries could obtain emission credits through reduction projects, which were then traded on the international market. In the Philippines, there has been a growing trend to credit CO2 reductions from waste power generation, and companies in Manila have also been applying for CDM.
The introduction of these technologies had both environmental and economic benefits. First, waste disposal was converted to power generation, reducing the burden on urban infrastructure. At the same time, it has helped stabilize the region's electricity supply as a highly renewable alternative to fossil fuel power generation. In addition, the entry into the international emission rights market brought an influx of foreign capital and technology, which helped to strengthen the Philippines' domestic environmental business base.
However, challenges remain. Incineration power generation faced a number of challenges, including monitoring environmental risks such as dioxin emissions, public understanding, facility maintenance costs, and government regulations. The unstable price of emission credits and the increasingly rigorous CDM screening process also placed a burden on operations. Nevertheless, at the time, the CDM was an epoch-making model that solved both waste and energy problems faced by cities, and it is highly significant as a leading example of a recycling-oriented society policy that would later spread to the Southeast Asian region.
In the 2020s and beyond, the Philippines will see new expansion of landfill gas utilization and solar power generation in addition to waste-to-energy generation. While the international emissions credit system is undergoing transformation, the efforts of the time continue to serve as a turning point for environmental energy policies in Asia.