The Philippine Chamber of Commerce and Industry (PCCI) urged policymakers to implement decarbonization regulations, policies, and programs that consider the needs of industries while striving for net-zero emissions by 2050, as outlined in the Paris Agreement.
The private sector earlier raised its concerns on the impact of House Bill 7705 or the Low Carbon Economy Bill to industries and the economy if the bill is enacted into law.
“This legislation represents a bold step toward 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 with stakeholders.
The cost is most pronounced in the agriculture and food industry, particularly, on farm inputs and processes and that go with food production. Even the supply chain will be required to have de-carbonization targets.
The PCCI urged the country’s legislators and policymakers to anchor de-carbonizaton targets on actual data gathered from various industries and to come up with policy or program recommendations after undertaking a thorough cost-benefit analysis, benchmarking on what other countries in ASEAN are doing with respect to reducing their carbon emissions and identifying best practices.
Cement manufacturers, likewise, noted that the cement industry, as well as steel and construction, relies heavily on energy and power which is 40 percent of their production and logistics costs.
“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,” said Cement Manufacturers Association of the Philippines (CEMAP) president Pestano.
The PCCI noted that the standards identified in the proposed bill are first world standards that need to be aligned with third world realities.
The group highlighted that the Philippines is a small country consuming small amounts of energy and produces little amounts of greenhouse gas (GHG) emissions which is 3 times less than the global average.
Barcelon stressed that attaining targets for a low carbon growth will entail advances in technology which may prove costly to the environment. He cited the case of a Tesla battery, which needs 12 tons of rock for Lithium, 5 tons of cobalt minerals, 3 tons of nickel ore and 12 tons of copper ore.
Government may also consider other proactive measures such as establishing a voluntary carbon market, encouraging and incentivizing Tree-Planting Agreements and implementing Forest Cadastre.