Lawmaker proposes P1 carbon tax on power use

Camarines Sur Rep. Luis Raymund Villafuerte has proposed the imposition of a P1 carbon tax on electricity consumption.

He said his proposed “Piso Para sa Kalikasan Act” aims to reduce carbon dioxide emissions, promote the use of green energy and raise funds for climate change mitigation measures.

He said proceeds from his proposed tax would be “used for providing programs to assist communities in adapting to climate change and managing disaster risks.”

The money would also be used to make infrastructure resilient to calamities, protect the environment, including wildlife, explore cleaner sources of energy, and disseminate climate change awareness, he said.

“The Piso Para sa Kalikasan Act is important not only because it signals our commitment to international climate policy but it also sends the message that a Philippine climate change policy is serious and here to stay,” he added.

Under the bill, the proposed climate tax would be computed by multiplying electricity consumption in terms of kilowatt-hours (kwh) with 0.553, which represents carbon emission in kilogram.

A household using electricity of up to 60 kwh or any form of renewable energy would be exempt from the tax.

Villafuerte cited a study done by the International Food Policy Research Institute which showed that reducing the country’s import dependence on petroleum products via the imposition of a carbon tax plus subsidies for renewable energy source could boost the share of renewable power by as much as 60 percent by 2040 and cut carbon dioxide emissions by up to 50 percent in the long term.

Without diversification, the country’s fossil fuel dependency could grow by an average of seven percent a year and carbon dioxide emissions could increase from 43 million tons in 2014 to 144 million tons by 2040, according to the study.