Micro, Small, and Medium Enterprises (MSMEs) are the lifeblood of the Philippine economy, accounting for 99% of all businesses and employing 60% of the country’s workforce. However, for many years, countless entrepreneurs have struggled to survive as rising energy costs and mounting environmental pressures threaten the competitiveness of their businesses.

One way out of this challenging situation is the adoption of energy efficiency policies and practices. Yet many MSMEs remain hesitant, convinced that implementing such initiatives would place a heavy financial burden on them.

“We always thought energy efficiency meant big investments,” recalls Ms. Golda Silla, owner of Golda’s Cakes and Pastries in Mindanao, the Philippines’ second-largest island. Two years ago, Mindanao together with the Province of Palawan was included in the Mainstreaming Energy Efficiency in MSME Buildings project, becoming a demonstration hub for how energy efficiency can deliver both economic and environmental benefits.

One of the project’s most immediate impacts came from energy audits conducted across 10 MSMEs in sectors such as food processing, hospitality, agriculture, and services. The audits revealed clear opportunities including replacing outdated refrigerators, adopting inverter-based air-conditioning, shifting to induction stoves, and installing rooftop solar PV.

According to Ms. Silla, the audit completely changed her view of energy efficiency practices. “It showed us small steps — like changing chillers and using more efficient ovens — that can save us money right away,” she shared.

Her view was echoed by the manager of Camp Backpackers Port Barton in Palawan. “The recommendations were practical. Knowing the savings and payback gave us confidence to invest,” he noted. Other participants also emphasized that for MSMEs the benefits were not abstract: payback periods for investments were often as short as one to two years.

Caption: Camp Backpackers sharing the MSMEs challenges in EE scaled

Caption: Energy audit in Bestfriend Goodies in Mindanao

The Mainstreaming Energy Efficiency in MSME Buildings project was launched in 2023 in two Philippine regions by the Global Green Growth Institute (GGGI), in partnership with the Department of Trade and Industry (DTI) and with support from the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) Korea Cooperation Fund (BKCF). Palawan and Mindanao were selected not only for their dynamic MSME presence but also because they form part of the BIMP-EAGA subregion.

Completed in July 2025, the project brought energy efficiency policies to life by translating them into practical solutions for enterprises on the ground. Most importantly, the energy audits delivered tangible results: potential annual energy savings of about ₱1.9 billion and the avoidance of more than 2.2 million tons of CO₂ emissions.

Caption: Learning visit in one of the MSMEs in Mindanao with good energy and environmental practices

Beyond the audits, the project generated momentum through regional investment roadshows in Palawan and Mindanao. These events brought together MSMEs, government partners, service providers, and financial institutions, often providing MSMEs with their first exposure to credible financing options. By showcasing technologies and connecting entrepreneurs with investors, the roadshows turned awareness into concrete intent to act.

Caption: GGGI and DTI principals with financial institutions during the EE investment roadshow

At the policy level, the project produced an Energy Efficiency Policy Map and Gap Analysis, together with a monitoring and sustainability framework. These outputs are already guiding DTI and regional offices in aligning MSME programs with national energy efficiency and climate targets.

In the short term, the project’s legacy is clear: MSMEs now have practical, tailored guidance; government agencies have evidence-based tools; and stakeholders are better connected to pursue efficiency investments. While the full financial and environmental impacts will unfold as measures are implemented, the foundation has been laid for a more competitive, resilient, and sustainable MSME sector in the Philippines.

Featured image caption: Energy audit in Golda’s Cake and Pastries in Mindanao