Finance Secretary Benjamin Diokno is open to the possibility of imposing carbon tax as one of the ways to address climate-related issues.
Diokno told reporters yesterday that carbon tax could be one of the measures that may be considered by the Marcos administration, “if feasible.”
The previous administration’s proposed fiscal consolidation and resource mobilization plan that was turned over to the current administration included a proposed carbon tax structure for implementation in 2025.
“The Philippines is probably one of the most vulnerable (countries) with respect to climate change and so it’s in our own interest that the movement towards (addressing) climate change should be supported,” Diokno said in a recent interview with ANC.
“On our part, on the tax side, I think we should think of some measures that we can do to reduce pollution. For example, tax on single-use plastic, it is worth considering, and on the expenditure side, some kind of a joint effort by the national government and the local government on some green activities like cleaning of the river, reforestation, developing mangroves, I think that should be considered by the government,” he added.
A report released by the Asian Development Bank (ADB) last Wednesday said a green recovery from the COVID-19 pandemic in Southeast Asia could potentially create $172 billion in investment opportunities yearly and produce more than 30 million jobs by 2030.
The ADB report, Implementing a Green Recovery in Southeast Asia, identified five areas that support a post-COVID-19 recovery through greener development — productive and regenerative agriculture, healthy and productive oceans, sustainable urban development and transport models, circular economy models and renewable and efficient energy.
“While several countries in the region have begun to support a green recovery, more needs to be done. We must encourage additional green stimulus, design carbon pricing schemes, reduce dependence on fossil-fuel intensive power, and attract private sector investors to large-scale renewable energy, sustainable transport and clean urban projects,” said Ramesh Subramaniam, ADB director general for Southeast Asia. – Angela Celis
