Business groups led by the Philippine Chamber of Commerce and Industry (PCCI) are urging legislators to ensure the decarbonization policies for the private sector through House Bill (HB) 7705 or the "Low Carbon Economy" Bill are balanced and rational.
HB 7705 was made in adherence to the national government's net-zero emission goals by 2050, in line with the Paris Agreement.
According to the bill, "annual emission avoidance/reduction shall be set for each calendar year by the President, through the recommendation of the NDC Steering Committee, with supporting investment and social safeguards, roadmap, and upon consultation through multi-stakeholders, whole of government, and whole o society approaches."
A cap will be imposed on the GHG of the sector with the "highest GHG, and most cost-effective opportunities to avoid/reduce emissions, to include considerations for externalities and social protection."
A polluters' pay principle will be employed. "For each quantity of excess GHG emissions, the amount of civil penalty shall be twice the market price for an allowance at the end of the calendar year in which the excess emissions occurred," it said.
“This legislation represents a bold step towards sustainability and responsibility. But it should not come at a cost to businesses and to the economy as a whole,” said PCCI Chairman and Director for Energy and Power George Barcelon in a meeting called by the PCCI’s Committees on Energy and Power, Industry and Environment and Climate Change.
PCCI’s Energy Committee Officers David Chua and Carlos Aboitiz described the standards in the proposed bill as "first world standards" with a need to "align with third world realities," given the Philippines produces three times less greenhouse gases (GHG) than th global carbon emission average per capita.
The group called for a thorough evaluation of the policy through a cost-benefit analysis, with insights from various industries, to determine best practices.
The PCCI highlighted the impact of the law on farming and food production processes and inputs across the value and supply chains, which will have imposed decarbonization targets.
“This will eventually affect the food production sector and threaten further the country’s already fragile food security situation,” said Atty. Joseph Fabul of the Philippine Chamber of Food Manufacturers.
For the cement and construction industry, Cirilo Pestano of the Cement Manufacturers Association of the Philippines (CEMAP) shared their concerns in the meeting, stating how 40 percent of their production cost are spent on energy, along with logistics and transportation for distribution.
“Compliance options will come at a heavy price. Even now, the cement industry is already suffering from cement imports from Vietnam, where production and cost of power are subsidized by their government,” Pestano said.
The group will continue to monitor the bill, along with forming a Technical Working Group representing the business sector's perspectives on global carbon emissions compliance.