Imposing a carbon tax in the Philippines to speed up the transition to cleaner energy sources will cause more burden than benefits yo consumers, according to Alfonso Cusi, secretary of the Department of Energy.
In an online briefing hosted by Siemens Energy yesterday, Cusi said a carbon tax will increase power rates and make the Philippines more uncompetitive.
“Carbon tax for us at this moment is not… We are not just yet ready for that. The Philippines is a victim of climate change and I am asking (for) climate justice and we need support to transition properly. Burdening the generation sector with carbon tax will make the Philippines uncompetitive,” Cusi said.
Recently-introduced policies such as the green energy option program, the moratorium on greenfield coal-fired power plants as well as the allowing of 100 percent foreign ownership on geothermal power projects can help the country’s shift for cleaner power sources without much effect on power rates, Cusi said.
He added other possible sources of electricity from hydrogen and nuclear for power generation are still on the table.
As of first half 2020, the total installed on-grid capacity in the country is at 25,109 megawatts (MW), 41.5 percent of which or 10,417 MW is from coal.