Nordic Chamber of Commerce Paper Version Feb 22

Sustainable Transportation
Nordic Chamber of Commerce of the Philippines, Inc.
Rommel C. Gavieta Arch., MA (URP), MSc (Eng) PA (MI)

Former Undersecretary Planning Department of Transportation
External Research Associate York Centre for Asian Research
February 2023
GLOBAL ECONOMIC INDICATORS
RELEVANT TO SOUTH EAST ASIAN REGION
Global Flashpoint Risk: Economic Center of Gravity Shift
South China Sea ASEAN-6

Stakeholders’s GDP Make-up
Philippines: Agriculture, Industry

Services (BPO & Trading)
Malaysia: Agriculture, Industry

(Export) and Services (Tourism &
Trading)
Thailand Agriculture, Industry and

Services (Tourism)
Shifting Global Economic Poles

www.businessinsider.com/evidence-of-economic-shift-to-the-east-2013-3
Philippines Economy Resilient Despite Global Headwinds (S&P Global)
• By 2033 the Philippines is set to join the ranks of a small

group of countries in the Asia-Pacific region that have a GDP
exceeding one trillion dollars.
• This will result in a significant transformation of the
structure of the Philippines economy, with substantial
expansion in the size of the domestic consumer market.
• This will help to drive foreign direct investment inflows into
the Philippines, as multinationals build up their local
presence in a wide range of manufacturing and service
sector industries.
• Philippines is facing external headwinds from rising world
inflation, notably from higher world oil prices, as well as
moderating global economic growth
• Philippines is facing internal headwinds from geteriorating
current account deficit and rising inflation pressure
https://www.spglobal.com/marketintelligence/en/mi/research-analysis/philippines-economy-resilient-
despite-global-headwinds-jun22.html
GLOBAL ECONOMIC INDICATORS
RELEVANT TO SOUTH EAST ASIAN REGION
Which ASEAN Countries Will Be The Front-runners To Decarbonize
Their Power Sectors S&P Global
• The Philippines is the only ASEAN country that has not

committed to a net zero target.
• It is well positioned for more renewable development in

terms of policies, procurement, and economics. However,
the only domestic gas source (Malampaya) is depleting, and
the introduction of LNG has been slow.
• It appears difficult for the country to completely phase out

coal soon.
• Therefore, the Philippines's emissions will likely grow

following the coal-fired generation growth through 2028. It
remains to be seen if the newly elected President Ferdinand
Marcos Jr would commit to favor renewables and roll out
decarbonization measures.
https://www.spglobal.com/commodityinsights/en/ci/research-analysis/which-asean-countries-will-be-
the-frontrunners-to-decarbonize.html
Stakeholders in Public Transportation in Metro Mmanila
• Average household income is PhP25K a month
• Household expenditure for transportation ranges from 4.3% to

6.6%
• 70% of the commuters uses public transportation.
• Poverty Threshold in the Philippines is PhP2.4k a month
Public transport is a key economic driver that can improve the

livability of cities across Asia and the Pacific. But it is a major cause of
congestion and pollution. ADB works with its member countries to
develop transport systems that are sustainable, reduce energy
consumption, and meet the region’s growing
needs: http://ow.ly/sQ9u50MRs0o
The Philippine economy must be revamped to take on an economic

model based on sustainable consumption, the National Economic and
Development Authority (NEDA) Socioeconomic Planning Secretary
Arsenio Balisacan said changes in the country’s production and
consumption process are needed to sustain growth that would not be
at the expense of the environment.
Metro Manila Region and Mega Manila Area
• Metro Manila provides 40% of national

GDP with a population of 11million or ≈
10% of national population
• Metro Manila is composed of 15 cities

and 1 municipality
• Mega-Manila provides 55% of national

GDP with a population of 41m or ≈ 37%
of national population
• Mega Manila is composed of Metro

Manila and provinces of Bulacan, Rizal,
Laguna & Cavite
Economic Cost Due
to Traffic Congestion
• Manila ranked high in the traffic index that measured

traffic congestion in 389 cities in 56 countries.
• On average, it took 27 minutes for Filipinos to travel ten
kilometers in Metro Manila, based on the 2022 findings
of the TomTom Traffic Index
• Given this travel time, Manila ranked 2nd with the worst
traffic congestion, based on the metro area category.
• JICA study showed that economic loss due to traffic

congestion in Metro Manila is PhP3.5b a day (2018) or in
Mega Manila is ≈PhP11billion a day
• Metro manila accounted for 34% of energy-related

GHG emissions where transport is noted as the
largest source of air pollution in the Philippines
• Absence of Big Data to Rationalize Public Utility

Franchise Framework
Energy Policy and Transportation Sustainability
Gasoline, LNG and Electricity is most expensive in the

Philippines
• Filipino consumers, service sector and industrial

sector pays the real cost of petroleum, LNG and
electricity
• Indonesians, Malaysian and Thais consumers,

service sector and industrial sector are shielded from
from the real cost
There is a real need to move towards low heat and

shallow geothermal energy for base load and battery
storage for peak load and for the projected
development od data centres in the Philippines
Active and Planned Programs by the DOTr
Greening and Rationalization of Public Transportation in Use of Sustainable Materials in the Development
Metro Manila Transportation Systems
• Large Data in Monitoring Commuter Movement and • Use of Composite Bamboo as a structural element and
Traffic Choke Points Using Mobile Phone to Rationalize architectural material for Tacloban Airport and
PUB routes Dumaguete Airport
• Use only double deck buses in primary routes • Use of Composite Bamboo as railroad sleepers (ties)
for proposed at-grade freight line from Tutuban (South
• Guarantee procurement of replacement of Jeeps for Harbor) to Calamba (Laguna)
secondary routes
•
• Intensify Tree Planting (Deciduous and Fruit Trees)
along Primary Roads and Mabuhay Roads
• Promote Digital Payments Covering the Class C and D

Market
SUSTAINABLE POWER SOURCE
FOR METRO MANILA
Low Heat Geothermal Resource in Mt
Natib, Bataan and Tagaytay Caldera
• Climoeon (Netherlands) uses Organic Rankine

Cycle that exploits the temperature difference
between hot water (70 ͦ at 35lps to 120 ͦ at
70lps) and cold water to generate clean
electricity between 1MW to 10MW.
• Toshiba (Japan) uses super turbine technology

and operates at 120 ͦ for container size
geothermal power plants
•
• This would change the energy mix of Mega
Manila towards green city and sustainable
tranportation
DIGITAL CONNECTIVITY
Digital Connectivity
https://www.csis.org/analysis/securing- https://blogs.worldbank.org/opendata/improvi
asias-subsea-network-us-interests-and- ng-data-infrastructure-helps-ensure-equitable-
strategic-options access-poor-people-poor-countries
Digital Connectivity
• With these new routes emerging, Indonesia, the

Philippines, and Guam are among the countries
and territories most likely to increase their
centrality in transpacific networks.
• The Philippines is also poised to rise as a data

hub. Several upcoming cables include landing
points in the Philippines, including Apricot, and
the transpacific systems Bifrost, PLCN, and CAP-
1. These landing points can increase route
diversity while lowering latency on traffic
between Southeast Asia, North Asia, and the
https://www.csis.org/analysis/securing-asias- United States.
subsea-network-us-interests-and-strategic-options
• Like Indonesia, however, strict government
regulations in the Philippines can complicate
the cable approval and repair process.
THANK YOU

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Sustainable Transportation

Nordic Chamber of Commerce of the Philippines, Inc.

Rommel C. Gavieta Arch., MA (URP), MSc (Eng) PA (MI)

South China Sea ASEAN-6

Philippines: Agriculture, Industry

Malaysia: Agriculture, Industry

Thailand Agriculture, Industry and

Shifting Global Economic Poles

• By 2033 the Philippines is set to join the ranks of a small

• The Philippines is the only ASEAN country that has not

• It is well positioned for more renewable development in

• It appears difficult for the country to completely phase out

• Therefore, the Philippines's emissions will likely grow

• Average household income is PhP25K a month

• Household expenditure for transportation ranges from 4.3% to

• 70% of the commuters uses public transportation.

• Poverty Threshold in the Philippines is PhP2.4k a month

Public transport is a key economic driver that can improve the

The Philippine economy must be revamped to take on an economic

• Metro Manila provides 40% of national

• Metro Manila is composed of 15 cities

• Mega-Manila provides 55% of national

• Mega Manila is composed of Metro

• Manila ranked high in the traffic index that measured

• JICA study showed that economic loss due to traffic

• Metro manila accounted for 34% of energy-related

• Absence of Big Data to Rationalize Public Utility

Gasoline, LNG and Electricity is most expensive in the

• Filipino consumers, service sector and industrial

• Indonesians, Malaysian and Thais consumers,

There is a real need to move towards low heat and

• Promote Digital Payments Covering the Class C and D

• Climoeon (Netherlands) uses Organic Rankine

• Toshiba (Japan) uses super turbine technology

• With these new routes emerging, Indonesia, the

• The Philippines is also poised to rise as a data

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