The Makati Business Club (MBC) warned that persistent challenges related to costs, regulations and supply are undermining the feasibility of waste-to-energy (WTE) projects in the Philippines, despite increasing interest in the sector.
A recent roundtable convened by the MBC brought together government agencies, private sector participants and development partners to discuss critical issues that could impede the progress of WTE initiatives.
Discussions at the meeting revealed that cost remains the primary obstacle. According to an MBC policy note, WTE is considerably more expensive than landfill disposal, which remains the preferred waste management solution for local government units (LGUs) due to its lower initial outlay.
Regulatory clarity was also highlighted as a significant concern. The MBC’s policy note stressed the need for clearly-defined regulations and improved coordination between national agencies and LGUs.
“A system-wide view of procurement, infrastructure and governance can help reduce risks and improve project outcomes,” it said.
Another key challenge for WTE projects is the consistent supply of waste, or feedstock. Most LGUs do not generate sufficient waste independently to sustain a WTE facility. The MBC said enhanced regional cooperation, such as clustering LGUs to pool waste, would be crucial for supporting larger-scale WTE projects.
The MBC’s policy note was released ahead of the Department of Energy’s (DOE) plan to include WTE and biomass in its upcoming renewable energy auction, scheduled for the fourth quarter of 2025.
The roundtable discussions explored how policy, planning and investment could be better aligned to facilitate viable WTE projects in the Philippines.
The session followed insights from a closed-door dialogue with private sector stakeholders held in May, which involved a frank and forward-looking exchange where participants acknowledged key challenges while also identifying opportunities for coordination and reform to enable scalable, policy-aligned projects.