LEGISLATION requiring enterprises to draft their own decarbonization plans and establishing a carbon emission pricing framework will help attract more green investment into the country, a member of the House of Representatives said.
On the sidelines of the European Chamber of Commerce of the Philippines’ Luncheon Meeting, Rep. Jose Manuel F. Alba said the proposed Low Carbon Economy Investment Act will be a catalyst for investments.
“If you look at the situation right now globally, the direction is supporting businesses and projects that are geared towards sustainability,” he said on Thursday.
“There’s a huge wave of investment right now … and the question is, are we able to access the resources that are available? Without clear policy guidelines, it will be very hard for the private sector,” he added.
Filed as House Bill No. 2055, the measure seeks to establish a comprehensive carbon emission pricing framework and implement mechanisms that reduce greenhouse gas emissions, enhance climate resilience, and foster sustainable economic growth.
A similar bill was introduced in the 19th Congress and was approved on third reading at the House, but the Senate was unable to deliberate on it.
“I refiled it in the 20th Congress, but we’re not able to deliberate on the bill yet because we prioritized the budget. Now that we’re done with the budget, this November, I think that (will be) a priority measure of the Committee on Climate Change,” he said.
“I’m actually more positive this time around because we have more legislators that are actually supportive of this measure,” he added.
A Senate bill, the proposed Low Carbon Economy Act, was filed by Sen. Loren B. Legarda on July 7, which is still in committee.
“Aside from mandating the private sector to come up with their respective decarbonization plans, we are also giving them several options to comply with the requirements of the law,” he said.
He said that the bill has the potential to allow enterprises to tap international funds meant to address climate change.
“There are so much financial resources at the international level that we are not able to access because of policy limitations. This is an opportunity for the Philippines to access that financing internationally,” he said.
He said the Philippines is committed to reduce greenhouse gas emissions by 75% with about 72% of the reduction not possible without international support.
“The Green Climate Fund and all these resources are just waiting to be tapped. But you need a local framework. So this is the framework that we’re trying to introduce,” he added.
Currently, the Philippines has a Voluntary Carbon Market (VCM), under which the private sector engages with international partners to sell or buy credits.
However, Mr. Alba said the VCM is not enough for the Philippines, with the National Government having to spend large sums for rehabilitation after natural disasters.
“These will require more resources from the government in the years to come; I think we cannot keep on borrowing. This bill will help facilitate more foreign direct investment in all the initiatives addressing climate change,” he said. — Justine Irish D. Table