37 ASIAN LEGAL BUSINESS – OCTOBER 2023 WWW.LEGALBUSINESSONLINE.COM ing in 2025 and full-scale operation in 2028. Vietnam is also pushing hard for a transition to low-carbon energy sources. “Inefficient and outdated coal-fired power plants will be negotiated for closure, and coal-fired power plants failing to meet environmental standards will cease operations. By 2030, the aim is to use E5 gasoline exclusively. Investors undertaking energy transition projects will be eligible for incentives related to infrastructure (land), financial benefits (taxes) through land use planning policies, and economic and social development plans at various levels,” Vu adds. Consequently, law firms specialising in energy and infrastructure practices are seeing an increasing number of representations throughout the lifecycle of energy transition projects – from advising on local regulatory framework and bidding to finance and supply contract negotiation and finalisation, Vu says. “Lawyers are also currently supporting local credit institutions in negotiating and signing two-step loan contracts with international financial institutions (IFC, World Bank, JBIC, IFC, AIIB...) to fund green projects,” Vu adds. Law firms will also advise stakeholders on the country’s drive to shut down certain coal-fired power plants. “Lawyers will also support investors in negotiating with the government regarding the consequences of prematurely terminating investment projects, including issues related to investment capital, labour (in supporting unemployed workers, providing allowance, and retraining), land, assets, or transforming the functions of coal-fired power plants,” Vu explains. As Vietnam’s roadmap to carbon neutrality gradually takes shape and new regulations are put in place, Minh believes that lawmakers’ top priorities going forward must be to build a detailed regulatory mechanism for energy transition, work with investors and financiers to issue clear instructions on new and upcoming schemes, and clarify incentives for green investments. PHILIPPINES The Philippines is the only ASEAN country that has not committed to a net-zero target. While the country has put in place several policies to promote renewables, climate-tracking groups say those are not likely going to be sufficient to halt emission growth in the country. Manila has submitted an ambitious nationally determined contribution target of reducing greenhouse gas emissions by 75 percent below a cumulative business-as-usual pathway for 2020-2030. Most of this commitment is conditional on international support. A small fraction, 2.71 percent, of the 75 percent targeted emissions avoidance, is unconditional. The Philippines also became the first Southeast Asian country to set a moratorium on new coal plants in December 2020, but allowed already approved plants to move forward, which means that 2.6 GW of coal capacity will still come online by 2025. Coal today constitutes around 57 percent of the country’s energy mix. The country has had specific regulations to promote renewable energy projects as far back as 2008, which provided for various tax benefits to those looking to set up renewable energy plants. This was given a substantial boost at the end of 2022, when the government fully opened the renewable sector to foreign ownership, representing a significant shift in the country’s energy policy. The Philippines also launched its second green energy auction, which brings the combined total of auctioned renewables capacity to 13.6 GW or 52 percent as of 2026, and adds approximately 100 new projects to the country’s infrastructure pipeline. With the recent developments in the legislation on the development and use of renewable energy, there is now a significant movement towards projects and deals in the renewable energy sector, says Aris Gulapa, the founding partner of leading Philippine law firm Gulapa Law. “It is expected that more foreign investors will engage in more M&A deals and enter into various procurement and construction of renewable energy facilities in the country,” Gulapa says. This inflow, according to Gulapa, will keep lawyers in the country busy as they advise public and private sector stakeholders on compliance with fastdeveloping regulations related to the exploration, development, and use of renewable energy. There is also work expected from the growth of public-private partnerships in the renewable energy sector, which is specifically encouraged by the government, Gulapa adds. “The partnerships that may arise from this among the Local Government Units, the private sector, and the legal community are evidence that public service, energy, and law are intertwined sectors and industries, which are deemed valuable in achieving milestones towards decarbonisation and achieving the country’s commitments under the Paris Agreement.” ENERGY “Lawyers will also support investors in negotiating with the government regarding the consequences of prematurely terminating investment projects, including issues related to investment capital, labour (in supporting unemployed workers, providing allowance, and retraining), land, assets, or transforming the functions of coal-fired power plants.” — Vu Thanh Minh, LNT & Partners
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