A clear direction for reducing Greenhouse Gas emissions while promoting sustainable economic growth is being sought.
Cong. Edgar Chatto sponsored House Bill No. 11375 or An Act Promoting Investments in Low Carbon Economy, Establishing for this Purpose a Carbon Emission Pricing Framework and Implementation Mechanism to Achieve Low Carbon and Climate Resilient Economic Development.
The Low Carbon Economy Bill, authored by Chatto, chair of the House Committee on Climate Change, seeks to attract investments in renewable energy, improve energy efficiency, and support green technologies, hence, its change of title to Low Carbon Economy Investment Act.
The bill also establishes a hybrid model of Emissions Trading System or ETS which is not limited to trading of carbon emission allowances.
The covered enterprises can choose among three (3) compliance options under the bill’s Sec. 26 to pay for their carbon emission liabilities:
First, is through Reduction of Emissions within its Value Chain. This includes implementing energy efficiency improvements, transitioning to renewable energy sources, and enhancing waste management practices.
The second is through Investment in Viable Low Carbon Ventures Outside its Organization. The covered enterprise can decide whether (a) to invest and operate; (b) for smaller enterprises, to pool resources with other investors for joint investment; and (c) purchase equity for credits.
Another is through Transfer of Decarbonization Funds and Obligations to Third Parties. This includes transfer of funds to the government for allocation towards national decarbonization and climate resilience activities such as in the People’s Survival Fund. Another option is through purchase of excess allowance from obliged enterprises experiencing a slack in production, just like in standard ETS; or purchase of carbon offsets from certified projects implemented in the Philippines.
Chatto in his sponsorship speech also said the bill allows more flexibility for the private sector to encourage compliance. Tax incentives which were approved by the Committee on Ways and Means are also provided in the proposed measure.
Greenhouse gas (GHG) emissions due to human activity are the dominant cause of observed climate change since the mid-20th century.
Promoting the use of renewable energy sources and implementing energy-efficient practices help minimize carbon emissions and reduce dependence on fossil fuels.