MANILA – Studies instituting an appropriate carbon pricing instrument (CPI) are ongoing as the Philippines helps combat climate change.
The Office of Department of Finance (DOF) spokesperson and Assistant Secretary Paola Alvarez said the country currently does not have a carbon taxing plan but studies have been conducted in coordination with the World Bank (WB).
“Imposing a carbon tax would require significant institutional capacity from the government and sector stakeholders,” Alvarez said in a reply to questions from the Philippine News Agency.
She said the government will use the appropriate carbon pricing instruments (CPIs) in engaging relevant legislators who have shown interest in establishing policies in the Philippines.
“Currently, the House of Representatives and the Senate are in the process of developing legislation that will promote and establish appropriate CPIs in the Philippines,” she added.
Alvarez said that with the help of the WB, through the recently concluded Partnership for Market Readiness (PMR) Technical Assistance, DOF has developed a CPI suitable for domestic implementation.
She said the lender, through the Accelerating Climate Investments in the Philippines (ACIP), is also supporting the government through advisory services and analytics projects, such as the Risk Resiliency Program (RRP).
The partnership is aimed at assisting the government in bolstering the enabling environment for key climate adaptation and mitigation investments, as well as help in the implementation of the Nationally Determined Contributions (NDCs).
NDCs are country-specific climate change mitigation goals, such as programs against greenhouse gas emissions and policies that support global climate action.
Alvarez said ACIP has three pillars with the last called Readiness for Carbon Pricing, which discusses the socioeconomic and environmental co-benefits of CPIs, will harmonize CPIs with the current Renewable Energy Act as well as the Department of Energy’s (DOE) energy efficiency policies and will help facilitate stakeholder engagement.
“Moreover, ACIP will be utilized as a transition from Partnership to Market Readiness to PMI since there is currently no transition plan between the two initiatives,” she added. (PNA)