PCCI backs lifting of coal ban amid Mideast conflict

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April 25, 2026 | 12:00am

MANILA, Philippines — The country’s largest business group is pushing to lift the existing coal ban as the government weighs the move amid rising power supply concerns driven by Middle East tensions.

The Philippine Chamber of Commerce and Industry (PCCI) said the policy reversal is crucial as the country refines its energy security and sustainability strategy to address the ongoing crisis.

“Our economy cannot run on uncertainty. While the transition to renewable energy remains our long-term goal, our immediate priority must be the stability and affordability of our power grid,” PCCI president Ferdinand Ferrer said in a statement yesterday.

To reduce the country’s reliance on fossil fuels, the Department of Energy (DOE) imposed a coal moratorium in 2020, banning the development of new coal-fired power plants. The ban does not cover existing and operational coal plants or those that are already committed.

Energy Secretary Sharon Garin said the DOE is “considering” the possible lifting of the moratorium, pointing to persistently high fuel prices that threaten to push up electricity prices.

“In times of crisis, coal remains one of the cheapest options we have for power generation,” Garin said in a press briefing on Monday.

“Our teams are already studying this, and we are open as far as coal is concerned.”

Ferrer welcomed Garin’s openness to new coal projects, as long as they “utilize modern, high-efficiency technologies that balance our power needs with our environmental commitments.”

“Energy security is national security,” he added. “We must be flexible enough to adapt our policies to the realities of 2026.”

The PCCI cited baseload reliability, cost competitiveness and geopolitical resilience as key reasons for the policy shift, highlighting the need for steady and affordable electricity to support industries.

Coal plants are widely considered reliable sources of baseload power due to their capacity to operate continuously and provide an uninterrupted supply of electricity.

“This is not about choosing between coal and renewables; it is about ensuring the lights stay on, businesses remain competitive and households are protected from rising costs,” PCCI energy director David Chua said.

The Philippines is among the Southeast Asian countries with the highest electricity rates. It also has one of the region’s most coal-dependent power grids.

Currently, coal accounts for more than 60 percent of the country’s power mix, according to DOE data.

Earlier, global research group Zero Carbon Analytics warned that renewed reliance on coal could drive up power costs, weaken energy security and undermine climate goals of the Philippines and the rest of Southeast Asia.

“This shift is already pushing up coal prices, exposing ASEAN countries to the same volatility they sought to avoid,” the group said in its latest report.

Based on Newcastle coal futures, coal prices reached as high as $146.25 per metric ton on March 30.