Climate change stands as one of the defining challenges of our time, with global temperatures rising and extreme weather events intensifying. The urgent question for governments, businesses and communities is not whether to act, but how fast and how effectively. In this global transition, the role of renewable energy has emerged as central to climate change mitigation.
As a renewable energy company in the Philippines and across the Asia Pacific, ACEN has positioned itself at the forefront of this transformation, exemplifying how innovation, scale and purpose can converge to address one of humanity’s greatest threats. 1
The challenges of climate change mitigation
Transitioning to a sustainable future requires confronting interconnected global challenges:
- Rising greenhouse gas emissions (GHG): Fossil fuels remain the dominant energy source globally, driving CO₂ emissions that accelerate global warming.
- Dependence on finite resources: Coal, oil and gas reserves are depleting, yet demand continues to grow in developing economies.
- Vulnerability to extreme weather: From typhoons in Southeast Asia to wildfires in Australia, climate impacts are already disrupting energy systems, agriculture, and infrastructure.
- Energy access and equity: Nearly 700 million people worldwide still lack reliable electricity, highlighting the dual challenge of expanding access while decarbonizing supply.
- Investor and policy pressure: ESG-driven capital flows, regulatory shifts and carbon pricing schemes are reshaping energy investment priorities.
These challenges demand bold solutions. Recognizing the role of renewable energy as the cornerstone of an effective, scalable and equitable climate response is essential for global progress.
How does renewable energy help the environment?
When it comes to protecting our environment, the role of renewable energy is transformative. Here are some of the ways it leads the change:
Decarbonizing the power sector
The most direct answer to how renewable energy mitigates climate change lies in its ability to replace carbon-intensive power generation. Solar, wind, hydro and geothermal energy produce little to no greenhouse gas emissions during operation.
A single megawatt-hour of solar electricity avoids roughly one metric ton of CO₂ emissions compared to coal-based generation. For nations like the Philippines, where coal still supplies more than half of electricity, accelerating the deployment of renewable energy sources in the Philippines is vital to meeting national climate targets.
Reducing air pollution and protecting public health
Beyond carbon, fossil fuels emit sulfur dioxide, nitrogen oxides and particulates that harm human health. Renewable energy, by contrast, offers clean alternatives that improve air quality. The role of renewable energy extends beyond emissions reduction to provide immediate public health benefits, including a reduction in respiratory and cardiovascular diseases associated with fossil fuel combustion.
Enhancing energy security and resilience
Renewables strengthen energy systems against climate shocks. Decentralized solar and wind farms, paired with storage, provide reliable power even when centralized grids are vulnerable to typhoons, floods or heatwaves.
For island nations and archipelagos like the Philippines and Indonesia, localized renewable generation reduces dependence on imported fossil fuels, enhancing resilience in both economic and environmental terms.
Driving innovation and green investment
The role of renewable energy in climate change mitigation also lies in its ability to mobilize capital and innovation. Globally, clean energy investment reached a record USD 1.8 trillion in 2023 2, outpacing fossil fuels.
Investors increasingly align with firms demonstrating ESG leadership, such as ACEN, whose sustainability initiatives build credibility with regulators, financiers and communities alike. This flow of capital accelerates research in storage, digital grids and hydrogen, advancing a virtuous cycle of innovation.
Empowering communities and creating sustainable growth
Renewable projects generate jobs, skills and long-term development opportunities in local communities. In the Philippines, solar and wind farms support not only cleaner energy but also inclusive growth through infrastructure development and livelihood programs. This embodies how renewable energy contributes to mitigating climate change by ensuring that strategies are socially equitable, building trust between corporations and host communities.
ACEN’s commitment to climate leadership
ACEN large-scale renewable portfolio underscores the company’s leadership in Southeast Asia’s clean energy transition. More importantly, ACEN’s vision extends beyond capacity expansion.
In November 2022, ACEN completed the full divestment of its South Luzon Thermal Energy Corporation (SLTEC) coal plant using the world’s first market-based Energy Transition Mechanism (ETM). The transaction entailed the coal plant’s early retirement and transition to a clean technology by 2040, cutting the coal plant’s potential 50-year operating life by half.
However, ACEN recognizes the position of International Energy Agency (IEA), that is, if we are to attain the 1.5 degrees limit, the world would need to reduce coal emissions by 55 percent between 2022 and 2030.
In 2023, ACEN, together with The Rockefeller Foundation and Monetary Authority of Singapore (MAS), partnered to explore the use of Transition Credits, a first-of-its-kind solution to further accelerate the transition of SLTEC coal plant to clean technology as early as 2030, ten years earlier than what is already an aggressive retirement schedule. The initiative aligns with the Paris Agreement, leveraging climate finance to catalyze the shift from coal to clean energy.
ACEN’s renewables expansion and pioneering initiatives in early coal retirement are part of its broader Net Zero roadmap that includes near-term emission reduction targets aligned with the GHG Protocol and the latest climate-science and long-term targets that are consistent with the deep decarbonization of the power sector.
References:
- BloombergNEF. (2024, January 25). Global clean energy investment jumps 17%, hits $1.8 trillion in 2023, according to BloombergNEF report. BloombergNEF. https://about.bnef.com/insights/clean-energy/global-clean-energy-investment-jumps-17-hits-1-8-trillion-in-2023-according-to-bloombergnef-report/
- Tribune. (2025, June 25). ACEN strengthens global clean energy footprint. Daily Tribune. https://tribune.net.ph/2025/06/25/acen-strengthens-global-clean-energy-footprint
