Low-carbon economy bill hurdles House committee
A HOUSE of Representatives committee last week approved a bill that will force companies to take part in the government’s decarbonization plans, aligning the Philippines with a United Nations (UN) agreement limiting global temperatures from rising by more than 2°C this century.
The climate change committee approved an unnumbered substitute bill that seeks to limit companies’ greenhouse gas emissions.
The measure creates a carbon pricing framework that requires companies exceeding government-set emission targets to spend or invest in environmental sustainability projects to offset their carbon footprint.
“It not only sets a clear policy direction for decarbonization but also provides businesses with the tools and flexibility to achieve these goals in a way that supports economic growth,” Bohol Rep. Edgar M. Chatto said in a statement last week.
“The bill encourages investments in low-carbon technologies that can deliver cost efficiencies for businesses, while significantly reducing their environmental impact,” he added.
The Philippines loses 3% of its economic output yearly due to climate change, according to a Swiss Re Group statement in February.
Under the House bill, companies can choose their decarbonization initiatives, including the ability to invest in their own low-carbon projects, jointly investing with other businesses to fund companies creating low-carbon technologies and equity investments in enterprises that specialize in environmental sustainability.
“The bill’s flexibility is designed to empower businesses to choose the most effective and economically viable path to decarbonization, whether through direct investments in their operations or by supporting broader industry-wide initiatives,” the House climate change committee said.
The measure seeks to encourage investments in sustainable technology companies, enabling economic growth and innovation, Bukidnon Rep. Jose Manuel F. Alba said in the same statement.
It also creates a domestic carbon market, allowing Philippine companies to sell, trade or buy carbon credits for their operations.
“The bill provides enabling measures to support investments… facilitating access to carbon markets and international climate finance, which can help de-risk investments and make them more profitable,” according to the statement. — Kenneth Christiane L. Basilio
