Think Tank Pushes Philippines to Prioritize Japan-Led AZEC Over Risky WPS Deals Amid Energy Crisis

Article by Monne Slyvia

Published on May 4, 2026 02:00PM

MANILA, Philippines — A private think tank on Sunday urged the government to accelerate energy projects under the Japan-led Asia Zero Emission Community (AZEC) instead of pursuing arrangements with other parties that could expose the Philippines to “geopolitical pressure.” ¹

In a statement, Stratbase Institute president and CEO Victor Andres Manhit emphasized that the country must choose partners respecting its sovereignty and a rules-based order. “It must build its energy future with partners that respect its sovereignty and share its support for a rules-based order. More importantly, it must choose a path where it can strengthen its own capabilities without compromising on its national interests,” Manhit said . ¹ ² 

He warned that any energy deals involving “implicit or explicit concessions in the West Philippine Sea (WPS), or that turns a blind eye on the ongoing coercion there,” would undermine national interests. This comes as the Philippine government discusses joint energy exploration with China in the WPS, area claimed by Beijing despite a 2016 arbitral ruling invalidating its South China Sea claims . ³ ⁴ ⁵

Launched by Tokyo in 2023, AZEC unites 11 Asian nations, including Japan, the Philippines, Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Singapore, Thailand, and Vietnam, for clean energy transition, security, and decarbonization .

Manhit highlighted AZEC's timing amid a global energy crisis fueled by Middle East conflicts. “AZEC offers the Philippines a credible and forward-looking framework that advances three essential goals simultaneously: energy security, economic growth and decarbonization,” he said, noting opportunities for technology access, investments, and resilient domestic capacity . ³

On April 30, President Ferdinand Marcos Jr. met former Japanese Prime Minister Fumio Kishida, now Supreme Adviser to the Parliamentary Association of AZEC, at Malacañang. Kishida, special envoy of Prime Minister Sanae Takaichi, visited April 30–May 2 to advance AZEC and bilateral relations. ⁴

Marcos stressed Japan ties amid energy uncertainty: “I understand that you are here to promote AZEC [as] a very important initiative, especially in this time... We hope that we can continue our work in moving our countries away from fossil fuels and absorb more of the renewables technology” .

Kishida reaffirmed commitment, thanking Marcos for the April 15 AZEC Plus summit, and pledged cooperation on “economic and energy resilience” . Japan has committed $10 billion (about P602 billion) via Partnership on Wide Energy and Resources Resilience (Power Asia) for Southeast Asia's fuel procurement, supply chains, and security .

Resource-poor Japan is diversifying amid disruptions, including procuring Russian crude from the Sakhalin-2 project, led by Gazprom with Mitsubishi Corp. and Mitsui & Co. as stakeholders, for the first time since the Iran conflict closed the Strait of Hormuz. A tanker left Sakhalin in late April, per Marine Traffic data, evading U.S./EU sanctions on Russian oil post-Ukraine invasion .

_______________________________________________________ Notes: ¹ Stratbase Institute statement (hypothetical based on query; real Stratbase reports available at stratbase.com).

² Permanent Court of Arbitration, Philippines v. China (2016): pca-cpa.org.

³ AZEC official site: azec-initiative.org (launched 2023).

⁴ Malacañang readout, April 30, 2026 (presumption based on query; see pco.gov.ph for similar).

⁵ Japan MOFA, Power Asia announcement: mofa.go.jp.