The Philippines Green Initiatives

Bio-Blended Fuels Promoted in the Phillipines
Date of Legislation: January, 2007

In January, President Gloria Macapagal Arroyo signed legislation that will begin to have its effect on drivers in the Philippines on May 6th, when bio-diesel will first be replacing pure diesel at the pump. At the outset, 1% of petroleum-derived diesel fuel will be replaced by bio-fuel, a percentage that will rise to 2% within two years. As a result of the legislation, gasoline will also be blended in the near future, beginning with a 5% ethanol blend but rising to 10% by 2009. The renewable and cleaner burning fuels should provide an increased share of environmental, political, and economic freedom to the country.

Whereas corn has become the raw material of choice for American companies producing ethanol, crops common to the Philippines such as coconut oil, cassava and sugarcane, as well as farming and municipal wastes, will be used to brew ethanol and bio-fuel within the country. Of course, this will result in a positive change in the country's trade balance, reducing oil imports by hundreds of millions of gallons while creating a new domestic market for farmers. Increased fuel efficiency is likewise expected to at least balance the added cost of the bio-fuels.

Meanwhile, the debate continues over whether ethanol and bio-fuels are actually a step forward or merely a stopgap in our unabated addiction to petroleum. Regardless, the Philippines' legislative leadership in this instance exemplifies a similar concern throughout the entire global community.