The Philippine Chamber of Commerce and Industry (PCCI) asked Congress to review the carbon tax and carbon trading system proposed under House Bill (HB) 7705, also known as the Low Carbon Bill.
The business group expressed concern about the potential of these measures to negatively impact businesses financially.
HB 7705, under discussion by the House Committee on Climate Change, aims to establish an emissions trading scheme to achieve national climate targets.
The bill proposes annual reduction targets and caps on greenhouse gas (GHG) emissions for specific industries identified as major contributors.
These include energy, transportation, construction and manufacturing sectors as well as industries with significant waste emissions and agricultural activities linked to deforestation and emissions.
The PCCI submitted a position paper to the committee, requesting collaboration with industry stakeholders. They proposed studies, simulations and economic modeling to assess the bill’s impact and ensure fair implementation without undue cost burdens on businesses and consumers.
PCCI director for environment and climate change committee Edgardo Lacson cited the need for comprehensive data collection across industries to avoid unfair competition, inflation spikes and cost pass-through to consumers.
He also raised concerns about potential stranded costs and production cost increases.
The PCCI also underscored the need for clarity on how the policy will be applied to sectors like transportation and agriculture, which are crucial for livelihoods and competitiveness but also significant GHG emitters.
PCCI chairman George Barcelon called for benchmarking against neighboring ASEAN countries’ strategies for reducing their carbon footprint while maintaining competitiveness.
He noted the Philippines’ gaps in technology, expertise and infrastructure for implementing carbon taxes or trading systems. Barcelon said there is a need to establish these elements and potentially adapt global best practices.
“We do recognize the urgency of passing the bill on Low Carbon Economy but we need to be extra careful that our proposed solution will not bring greater harm to our country,” said PCCI president Enunina Mangio, noting the need for exhaustive and comprehensive discussion and analysis to determine the most appropriate system suitable for the Philippines.