Forward of the invoice turning into regulation, we’re already seeing indicators of a low-carbon transformation taking place within the Philippines. Having rules in place will speed up this transformation and unlock alternatives for enterprise and society. HB 7705 presents us with an opportunity to rewrite our future.
Listed below are 3 ways.
From sufferer to empowered actor
HB 7705 adjustments the narrative of the Philippines from a sufferer to an empowered actor within the local weather discourse.
Local weather change is exacting a heavy toll on Filipinos’ lives and livelihoods though the Philippines contributed little or no to its trigger. Demanding historic duty particularly for losses and damages is justified.
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This invoice will give us the prospect to transcend demanding local weather justice and as an alternative put our personal pores and skin within the sport.
Past this, the Philippines is uniquely positioned to guide the world in advancing local weather motion particularly because it addresses the rising emissions from its personal yard. The nation presently ranks 37th out of 200 nations surveyed for nationwide GHG emissions, increased than Ukraine and Qatar, each oil-producing states.
As one of many fastest-growing growing nations, the Philippines’ vitality demand can also be anticipated to rise within the subsequent many years. This demand is presently met, primarily by fossil fuels accounting for 78 per cent of energy era in 2022. Underneath business-as-usual situations, emissions from the vitality sector is projected to quadruple by 2030, and twice the expansion in emissions is predicted from the transport sector. We’re more likely to miss out on the nationwide goal of assembly our vitality calls for with as much as 35 per cent renewables by 2030.
The Philippines ranked thirty seventh out of 200 nations surveyed for whole GHG emissions contribution, increased than Ukraine and Qatar.
HB 7705, which proposes transitioning to a low-carbon economic system by capping emissions from important sectors, together with vitality, waste, agriculture, and transportation, will allow the Philippines to develop its economic system whereas assembly its contribution to fixing its personal and humankind’s greatest problem – local weather change.
This invoice will give us the prospect to transcend demanding local weather justice and as an alternative put our personal pores and skin within the sport.
By embracing a low-carbon transformation, we will turn into a part of the answer to the local weather disaster and seize the financial alternatives it presents.
From fossil fuels dependence to a clear vitality future
HB 7705 requires an appreciation of the position of the State to guard and advance the Filipinos’ proper to a steady local weather and a balanced and healthful ecology.
To realize this, the invoice proposes pathways for industries to decarbonise their worth chains by means of an emissions buying and selling system and the introduction of a carbon value mechanism.
The invoice proposes to set caps and allowances amongst important industries, with any extra or unused allowance to be traded based mostly on stated carbon value. The invoice has but to find out the value per tonne of carbon. On this scenario, nonetheless, low-carbon emitting firms stand to achieve from the commerce.
There are a number of attainable pathways to implement the ETS. Considered one of which proposes setting an inside carbon pricing the place the federal government can enable firms to reinvest the cash they need to have paid on emissions above their allowance, into their very own low-carbon investments, as an alternative of getting to buy carbon credit to offset this extra.
Notice that the present draft of the invoice suggests imposing the carbon tax as a final resort. Whereas a direct carbon tax, the place the federal government levies a tax per tonne of direct emissions, could promise increased decarbonisation outcomes, the talk on the draft of the invoice lies on whether or not this might outcome in prices being handed on to customers, and in addition how the income from this carbon tax must be allotted.
In any case, having a carbon pricing and emissions buying and selling mechanism in place creates market alternatives for the decrease emitting industries, and that is an incentive within the decarbonisation journey.
However with decarbonisation being incentivised, the query is whether or not the Philippine economic system can decouple its progress from fossil fuels dependence.
From local weather catastrophe to local weather alternative
The reply is sure. A research by Local weather Analytics reveals that it’s possible for the Philippines to part out coal-fired energy by 2035, and virtually all gas-fired crops by 2040. This transition will create greater than one million inexperienced jobs by 2050.
The Philippines has sufficient cost-effective renewable sources to each exchange fossil fuels in its vitality combine and meet future vitality calls for. The nation’s renewable vitality potential, presently estimated at round 1,200 gigawatts, will probably be generated primarily from photo voltaic rooftop, photo voltaic farms, and onshore and offshore wind vitality.
The Philippine Power Plan 2023 is not going to meet the Paris Settlement targets. Supply: ClimateAnalytics
The research reveals a transparent route for Philippines’ energy sector to achieve a pathway appropriate with the 1.5C temperature threshold. This with out having to retrofit present coal crops for so-called “cleaner” coal, or buy costly and unproven carbon seize know-how, and even construct nuclear capability.
With extra renewables being developed and deployed, the levelised price of electricitity (LCOE) decreases by 12 per cent between 2019 and 2030, and is projected to return to 2019 ranges solely by 2050.
Batteries and storage capability additionally play a important position in figuring out the general LCOE in a 1.5C pathway for the Philippines. Thus, attracting overseas investments by means of authorities subsidies or sustainability financing sources is crucial, making the Philippines’ vitality transition extra engaging to overseas investments, the research says.
BloombergNEF’s newest ClimateScope report ranked the Philippines fourth amongst 110 growing economies with the very best progress for clear vitality funding. The report additionally confirmed that international funding for renewable vitality reached a file US$560 billion in 2022, and concluded that the share of zero-carbon electrical energy has now reached 46 per cent of worldwide put in energy capability, up from 33 per cent in 2012.
The Philippines ranked 4th amongst 110 growing economies surveyed for renewable vitality progress. Supply: BloombergNEF 2023 Climatescope report.
A compelling case for decarbonisation
In conclusion, the Philippines presents a compelling case for decarbonisation. With considerable sources of renewable vitality, a local weather combat that we can’t stand to lose, and the largest alternative of a lifetime from which we stand to achieve, decarbonisation turns into an financial crucial. What’s left is for us to have the coverage push to strengthen the ambition to a low-carbon future, appeal to and incentivise funding, and shield our biodiversity.
HB 7705 may be our one likelihood to unlock a way forward for alternatives in a sustainable, low-carbon society the place companies, folks, and nature co-exist in a restored stability.
Ping Manongdo is the nation director for Philippines and affiliate director for partnerships at Eco-Enterprise.
