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Friday, March 29, 2024

Carbon tax on electricity use pushed by lawmakers

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Lawmakers seek the speedy congressional approval of a proposal to impose a first-ever carbon tax on electricity use (CTE) to raise extra funds for climate action initiatives and, thus, help the Philippines meet its ambitious de-carbonization target of cutting the greenhouse gas (GHG) emissions by 75 percent by 2030.

Camarines Sur Rep. LRay F. Villafuerte emphasized said that the enactment into law of the proposed CTE—to be tucked into monthly electricity bills—is urgent in light of government’s tight fiscal space after a whole-of-government approach to stem Covid-19.

Villafuerte’s House Bill (HB) 4939 proposes a carbon tax on electricity use equivalent to P1 for every kilogram (kg) of CO2 emission per kilowatt hour (kWh). The revenues from the CTE are to be used for programs on climate-change mitigation and adaptation.

“Abrupt climate change is not only imminent; it is here,” the lawmaker said. “It is consequently necessary for us to make a significant contribution to the global effort to stabilize GHG concentrations in the atmosphere; more so because the Philippines is considered as ground zero for climate disaster.”

Exemptions

HB 4939 seeks to exempt from CTE households that consume 60 kWh or below per month and those using renewable energy (RE) sources. The bill requires the latter to secure a certificate from the Department of Energy (DOE) confirming they are harnessing RE power and not using electricity from the grid.

Villafuerte believes the “swift congressional approval” of the bill “will send a strong message to the global community of our country’s steadfast commitment to international climate action policy and the 19th Congress’s affirmation of the people’s right to a balanced and healthy ecology as well as the State’s paramount duty to safeguard such right for the present and future generations.” Villafuerte has filed a similar climate-tax bill in the previous Congress.

‘Act now’

VILLAFUERTE said adoption of aggressive de-carbonization measures would help the country meet its ambitious Intended Nationally Determined Contribution (INDO) target set in 2015: to reduce GHG emissions by 75 percent over the 2020 to 2030 period.

“This measure recognizes the unfortunate status quo of the environment and encourages every Filipino to act now,” Villafuerte said. “The CTE proceeds shall be used to explore alternative and clean sources of energy, provide green public transportation and disseminate climate change awareness, among other objectives.”

HB 4939 noted that the volume of carbon released from electricity and heat production almost doubled from 25.83 percent of total fuel combustion in 1972 to 49.74 percent as of 2013.

Collections from the proposed climate tax shall be used exclusively for programs that explore and promote the use of alternative and clean power sources like RE and assist communities in adapting to climate change and managing disaster risks, among others.

Collections would also fund programs that would: improve the resiliency of critical infrastructure; provide better public transportation; disseminate climate change awareness; protect environmental quality and wildlife; and, meet international commitment made by the Philippines to assist with climate change adaptation and disaster risk reduction and management.

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