This study assesses the environmental and health impacts of the development of indigenous and renewable energy sources in the Philippines. It finds that, over the period 2001-2011, such developments would result in less air pollution than a scenario in which only current energy sources are developed. The study also finds that, whatever energy sources are used, the planned increase in generating capacity in the country will result in increases in overall levels of air pollution. Local coal is singled out as a particularly polluting energy source. Overall the study recommends a number of pollution reduction initiatives including improved pollution monitoring and the promotion of energy efficiency.