P122B revenue may come from ‘carbon tax’ – NTRC

P122B revenue may come from ‘Carbon Tax’ – NTRC

An additional P121.97 billion in annual revenue can be generated from carbon dioxide emitting sectors by imposing carbon tax, the National Tax Research Center (NTRC) said on Thursday.

The annual average carbon dioxide (CO2) emission in the Philippines during 2015 to 2030 is estimated to reach 122 million tons as emissions increase by 169 percent, from 39 million in 2015 to 106 million tons in 2030.

The NTRC said that the rates from the proposed carbon tax would be P100 to P1000 per ton of CO2 is suggested – for the purpose of estimating revenue. This estimate is for the Philippines to be at par with countries who have carbon tax.

With this, around P6.52 to P65.17 billion may be generated from electricity generation; P2.81 to P28.10 billion from transportation; P2.08 to P20.79 billion from the industry sector, and P790 million to P7.91 billion from the commercial, residential and agriculture sectors.

Meanwhile, around P6.99 to P69.88 billion may be generated from coal use; P4.04 to P40.44 billion from oil; and P1.17 billion to P11.16 billion from Natural Gas.

The revenue may be used to finance environmental programs and projects of the Department of Environment and Natural Resources (DENR), the NTRC noted.

“The fund may also be used to improve and upgrade the facilities of DENR, particularly, those that are used in monitoring air quality of the country,” it said.

Carbon tax may be collected at any point in the energy supply chain, the NTRC said. But for administrative simplicity, it may be levied at a point where there are relatively few entities subject to tax.

“Most proposals suggest the tax may be better applied to upstream suppliers (firms engaged in exploration and production) of coal than to “midstream” (electric utilities),” it said.

CO2 Emissions

Majority of estimated CO2 emission would come from electricity generation with 53 percent, transportation follows with 23 percent, industry with 17 percent, and residential  and commercial with 3 percent each.

Meanwhile in fuel, 57 percent of CO2 emissions come from coal, 33 percent from oil and 10 percent in natural gas.

The Philippines’ CO2 emissions form 2000 to 2014 recorded a 69 million ton annual average coming from electricity generation (41%), transportation (34%) and industry (15%) sectors.

Studies have also shown that the Philippines is one of the most vulnerable countries to climate change.

“There is, therefore, an urgent need to control the levels of CO2 to address the distressing effects of climate change not only to the environment but also to human health,” NTRC said.

The government group added that an ideal carbon tax would help address the growing concern of greenhouse gas, especially CO2.

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  1. Elmer B. Sambo

    NTRC is completely missing the point on the objective of carbon tax.
    What is a carbon tax?
    A tax on greenhouse gases (GHG), often called a carbon tax, is a market-based policy instrument that can be used to achieve a cost-effective reduction in emissions.
    What is the impact of carbon tax?
    Carbon tax would harm the country’s competitiveness and our low-income Filipinos. It is anticipated that the overwhelming economic impact of any climate policy will be borne by energy end-users and households in the form of higher prices for energy and other goods.
    Shall we implement carbon tax? Yes and No
    YES – If the president and senate will ratify the Paris conference on Climate Change (COP21) and honor our commitment of reducing GHG by 70% in 2030. With the ratification the government can then set the Climate Change Action Plans which will outline our path towards low carbon target. This will also provide a transparent justification for the carbon tax.
    NO – If Paris Conference on Climate Change (COP21) is NOT ratified. This will only be another form of tax which will further burden the majority of the now suffering population!


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