Coal tax to help PHL meet emission targets–group

By Jonathan L. Mayuga - December 18, 2017
https://businessmirror.com.ph/coal-tax-to-help-phl-meet-emission-targets-group/

The Institute for Climate and Sustainable Cities (ICSC) said the approval of the tax hike on coal will allow the Philippines to inch closer to achieving environmental sustainability, as it will help correct market outcomes and inject a degree of parity in a playing field “incredibly in favor of coal.”

Renato R. Constantino, executive director of ICSC said four decades virtually free from taxes has made coal “artificially cheap.”

“Coal subsidies are staggering and now the dominance of coal has begun to erode,” he said.

Constantino added that the approval of the bicameral conference committee to increase taxes in coal from P10 per ton to P50 in 2018, P100 in 2018 and P150 in 2020, only means the Philippines is set to transition itself from “dirty” coal to clean, renewable energy sources.

Further, he said the coal tax sends a strong policy signal to all investors.

“The Duterte government is set to transition to more affordable, more reliable and certainly truly cleaner energy. It means more jobs and a more modern economy and a future defined by real competition. The public wins,” he said.

The ICSC believes that the carbon-tax approach will help the country achieve its COP21 commitment—which is to reduce the country’s carbon emission by 70 percent—between 2020 to 2030.

While not a major emitter of carbon, the Philippines made the conditional promise to reduce carbon emission, which is anchored on a number of climate-change actions, including the expansion of forests to enhance its carbon-absorption capacity and promote electricity-powered vehicles, including bus, jeepney and tricycles, which all run on gasoline or diesel.

More important, however, Constantino said the carbon tax is a “corrective initiative” that levels the playing field and promotes real competition.

“The ultimate goal must be an energy-secure economy that is more efficiently and more reliably powered by clean energy. Keeping to the Paris Agreement is a cobenefit that will be achieved as a result,” he added.

Constantino also lauded Sens. Joel Villanueva, Miguel Zubiri and Loren B. Legarda for their leadership.

“Due to the might of the industry, the passage of the coal tax was a long shot. But we won this battle with the help of the urban poor, homeowners association members, mining communities and economists,” he said.

Constantino said the increase in tax on coal will have minimal impact to the consumers compared to that of fuel products.

“Four decades virtually with zero taxes and now it’s P0.15 per kilogram (kg). This is nothing compared to the P2.00 per liter increase they want to slap on diesel and the P1.00 increase per kg of LPG,” he said.

However, he said that the government, particularly the Climate Change Commission led by Secretary Emmanuel de Guzman has to work more closely with Congress to ensure the transition to clean, renewable energy sources is realized.