Philippines’s carbon emission pledge to take toll on economy – PCCI

MANILA, Philippines – The country’s commitment to slash carbon emissions nearly three fourths by 2030 is likely to take its toll on the economy, the Philippine Chamber of Commerce and Industry (PCCI) said.

The country’s largest business organization said it sees a 70-percent carbon emission cut too high for industries, small and medium enterprises, and consumers.

In a letter to Climate Change commissioner Emmanuel de Guzman, PCCI president George Barcelon said his group supports a government initiative to cut carbon emissions and promote environmental sustainability, but how the government plans to achieve its 70 percent commitment could affect the growth of the economy.

PCCI asked the commission for the specific mitigation options that would lead to the 70-percent cut, noting that the 40-percent reduction supported by the private sector is already the threshold by which industries could reduce their carbon emissions.

“We are very much concerned on how this 70 percent commitment will impact on industries especially those in the manufacturing sector and the small and medium enterprises,” Barcelon said, as he urged the government to assess the effect of a high target for gas emissions on the national economy.

If the interventions to reach a 70-percent reduction would be capital-intensive, Barcelon said enterprises and industries would be under pressure to incur higher operational costs and consumers would also be paying higher for goods and services.

He added the target annual growth of 6.5 percent of the economy within the next few years would also be compromised with the implementation of capital-intensive interventions to achieve the emissions target.

“A 70-percent reduction would be counterproductive. With Philippine manufacturing only starting to revive, the measures that should be adopted must balance the need to sustain economic growth with the need to protect the environment,” Barcelon said.

The Philippines in October last year submitted to the United Nations its initial commitments to address climate change that included a 70-percent reduction of carbon emissions by 2030.

The reduction is targeted to come from the energy, transport, waste, forestry and industry sectors.