Net Zero Pathways for the Philippines: Balancing Sustainability, Energy Security, and Economic Growth

The Philippines’ transition toward net zero will require more than ambitious climate targets. Industry leaders say it will depend on how effectively the country balances sustainability, energy security, infrastructure readiness, and economic growth — particularly as geopolitical tensions and volatile fuel prices continue to pressure global energy markets.

This was the key message during the panel discussion, “Net Zero Pathways for the Philippines: Challenges, Trade-offs, and Opportunities,” held on Wednesday, May 20, during Day 2 of Solar & Storage Live Philippines 2026 at the SMX Convention Center. Executives from the energy, retail, and logistics sectors outlined the realities of decarbonization in a developing economy.

Moderated by energy economist Cristina Alfonso, the panel featured Manuel L. Onrejas Jr., CEO for Logistics of FAST Logistics Group; Mercy Grace Dionisio, AVP for Sustainability of SM Investments Corporation; and Gian Karla Canales Gutierrez, Head of Industry Research & Advocacy of First Gen Corporation.

While the panel explored challenges across industries, one recurring theme emerged: the transition to Net Zero is a business and operational imperative.

FAST Logistics Group: Leading the Way in Green Logistics and Sustainable Supply Chain

Among the strongest commitments highlighted during the panel discussion came from FAST, which is pursuing one of the Philippine logistics sector’s most ambitious renewable energy and electrification initiatives.

Manny revealed that FAST plans to solarize its roof space across its nationwide warehouse network while integrating battery storage systems and EV charging infrastructure into its operations. 

The long-term goal is to create a closed-loop electrification ecosystem where solar-powered warehouses support facilities, EV chargers, and fully electric trucks operating within the FAST network.

“Our vision is to build a more resilient off-grid closed-loop electrification ecosystem where solar panels across our warehouses nationwide power our facilities, EV chargers, and fully electric trucks,” Manny said. “This allows us to become more energy-efficient, more sustainable, and more cost-effective as the logistics provider of choice of the leading brands in the Philippines.”

FAST’s renewable energy roadmap forms part of its commitment to achieve Net Zero by 2050, making it the first end-to-end logistics provider in the Philippines to publicly commit to the target. The leading logistics provider also publicly shared its ESG strategy anchored on four priorities, namely, promoting customer welfare and satisfaction, creating a safe and empowered workplace, transitioning to a low-carbon economy, and ensuring strong government and risk management.

He said the initiative is designed not only to reduce FAST’s carbon emissions but also to improve long-term operational resilience amid rising electricity costs, fuel volatility, and increasing sustainability expectations from multinational customers and global supply chains.

Renewable Energy and EV Investments Power FAST’s Green Transition

As an industry leader in Philippine logistics, FAST has already begun implementing renewable energy and electrification projects across key facilities.

At FAST ColdChain Hub Cavite, 1,900 solar panels were installed across more than 5,000 square meters of roof space. In 2025, it generated over 565,000 kilowatt-hours of solar energy, avoided approximately 386 metric tons of CO₂ emissions, and delivered significant cost savings.

Meanwhile, FAST Laguna Hub in Cabuyao has 864 solar panels powering 100% of the distribution center’s energy requirements, as well as solar-powered EV chargers that support the company’s fully electric trucks. 

FAST also deployed EV trucks to serve the transport requirements of some of its customers. Between 2024 and 2025, FAST’s EV operations avoided nearly 244 metric tons of CO₂ emissions compared to equivalent diesel-powered operations.

During the panel discussion, Manny emphasized that the company is also scaling additional sustainability initiatives across its network, including:

• LED lighting upgrades
• Storage battery systems
• Rooftop solar expansion
• EV-ready logistics facilities

“Sustainability is embedded in FAST’s business strategy,” Manny said. “Investing in renewable energy, electric vehicles, and more resilient logistics infrastructure is essential to building a stronger, future-ready supply chain that supports our customers’ own sustainability commitments.”

The Philippines’ Energy Transition Must Balance Security, Affordability, and Sustainability

The panel discussion took place amid heightened concerns over global energy supply disruptions linked to geopolitical tensions in the Middle East, including the ongoing Iran conflict.

For First Gen’s Gian Karla, recent global developments reinforce the importance of reducing the Philippines’ dependence on imported fossil fuels and accelerating investment in indigenous renewable energy sources.

She pointed to geothermal energy as a critical baseload renewable source during periods of energy market volatility and noted that the Philippines could have accelerated renewable energy adoption earlier instead of remaining heavily reliant on imported coal and fossil fuels.

“The lesson is that we need to reduce dependence on imported fuel and maximize our indigenous renewable energy resources,” Gian Karla said.

SM Investment’s Mercy Grace added that the country’s energy transition must remain balanced and inclusive.

“As the economy develops, energy demand naturally increases,” she said. “The challenge is balancing energy security, affordability, accessibility, and sustainability all at the same time.”

Both thought leaders emphasized the need for stronger policy support, streamlined permitting processes, and clearer incentives to encourage broader renewable energy investments.

Gian Karla also highlighted the Green Energy Option Program (GEOP), which allows businesses to directly source renewable energy from suppliers. New aggregation mechanisms now enable smaller users to combine energy demand and collectively enter renewable energy contracts.

“There needs to be broader awareness and stronger support systems so more businesses can participate in the renewable energy transition,” she said.

Infrastructure Remains a Major Challenge for EV Adoption

Despite growing momentum around fleet electrification, panelists acknowledged that infrastructure gaps remain one of the biggest barriers to accelerating the transition.

For FAST, logistics electrification presents operational challenges that differ significantly from passenger EV adoption. Commercial fleets require larger charging systems, faster turnaround times, and more reliable infrastructure capable of supporting continuous transport operations.

“We need chargers not just for cars, but also for trucks,” Manny explained. “Truck charging infrastructure is entirely different from passenger vehicle charging systems.”

FAST also identified several operational challenges slowing industry-wide electrification:

• Limited commercial-grade EV charging hubs for trucks
• Heavy traffic and long dwell times affect EV utilization efficiency
• Low warehouse utilization rates limit solar generation savings
• The complexity of integrating charging systems into large-scale logistics operations

Manny noted that decarbonizing logistics requires transforming the broader logistics ecosystem — not simply replacing diesel vehicles with electric ones.

“The entire logistics ecosystem has to evolve,” he said. “Infrastructure, energy systems, fleet operations, warehouse design, and asset utilization all need to work together.”

Mercy Grace similarly emphasized that EV adoption cannot scale without broader infrastructure support. She noted that SM has expanded EV charging stations across its nationwide mall network, but stressed that malls alone will not be enough.

“We cannot move ahead if the infrastructure is not ready,” she said. “EV charging also needs to be integrated into transport corridors and gas station networks.”

FAST’s sustainability efforts have already earned industry recognition. The company bagged the Sustainability and Green Logistics Award at the 2024 SCMAP Supply Chain Philippines Excellence Awards and Runner-Up award for the Improver Category of CVC Sustainability Awards.

Building the Workforce for the Green Economy

Beyond infrastructure and energy systems, panelists said the Net Zero transition is also reshaping workforce requirements across industries.

Mercy Grace highlighted the growing demand for sustainability professionals, renewable energy engineers, ESG practitioners, and climate experts. Through initiatives such as the SM Sustainability School, the company is helping equip future professionals with sustainability-focused skills.

Gian Karla also pointed to emerging opportunities in renewable energy certificate markets, carbon credits, and energy management systems.

For FAST, the workforce transition is becoming increasingly technical as fleet electrification progresses.

“As we move toward EV adoption, we also need technicians trained specifically for EV systems, not just traditional internal combustion engine vehicles,” Manny said.

The panel agreed that upskilling and workforce development will be critical to ensuring a just and economically viable transition toward Net Zero.

Policy Clarity and Private Sector Leadership

While panelists acknowledged that government policy will play a major role in accelerating the country’s Net Zero transition, many agreed that private sector leadership is already driving meaningful progress.

SM Investments called for a more integrated national energy plan supported by stronger execution across government agencies. First Gen emphasized the importance of stable regulation and long-term policy consistency to encourage sustained investment.

For FAST, policy support could also include green financing mechanisms that accelerate renewable energy and fleet electrification investments.

“Green loans and incentives can help accelerate the transition,” Manny noted.

As the Philippines moves toward a lower-carbon economy, the panelists underscored that achieving Net Zero will require coordinated action across government, business, infrastructure, and energy systems — but companies that move early may also be best positioned to build more resilient and future-ready operations.

With over 50 years of industry leadership, FAST Logistics Group is the leading end-to-end logistics and supply chain solutions provider in the Philippines. It provides a comprehensive suite of solutions covering transportation, warehousing, cross-docking, and value-added solutions — supported by a robust and extensive network across the Philippines. Jumpstart your sustainability journey with a free consultation from our Solutions Experts