Philippines, other developing nations OK carbon pricing in 10 years

MANILA, Philippines - Amid the scorching El Niño phenomenon, the Philippines led an expanded group of climate-vulnerable nations to agree in charging each other for the amount of carbon they emit beginning the next decade.

 

"We commit to support carbon pricing by working to establish pricing regimes within the next decade," the Vulnerable 20 Group of Finance Ministers said in its communique.

 

As a first step, the group decided to begin gathering best practices on carbon pricing, draft a working paper on it, and review the viability of its implementation on member-countries.

 

This comes on top of last year's pledge to establish a pool of funds by 2020 to share the cost of climate change among members.

 

Carbon pricing is a financial method wherein countries "buy" the right to emit carbon dioxide to the air based on a so-called carbon price.

 

For instance, in the European Union, participating nations are charged around seven euros per metric ton of carbon dioxide. Price changes depending on market movements.

 

The V20, which now more than doubled its members to 43, met on the sidelines of meetings of the World Bank and International Monetary Fund in Washington D.C.

 

Finance Secretary Cesar Purisima, current V20 chair, said he wants the group to deliver "concrete" solutions to climate change.

 

"Without pushing a concrete and viable financial roadmap forward, we risk turning this forum into another talk shop that fails the most vulnerable of our populations," Purisima said in his message.

 

"This is a risk we refuse to take," he added.

 

Aside from carbon pricing, the V20 also agreed that there is an "urgency" to introduce other revenue-raising policies such as a financial transactions tax.

 

Proposals should also be in for consultations by next year for risk pooling mechanisms.

 

Focus groups on this, climate accounting, and advocacy were also formed to begin negotiations within and outside V20.

 

"We note that half the population of V20 countries lack access for external pooling mechanisms of any kind," the communique said.

 

"Recognizing the importance of risk pooling for lowering premiums, extending insurance coverage, increasing pay-out reliability and promoting risk reduction, we agreed to move forward with the initiative," it added.

 

The V20 has primarily batted for more state resources — particularly from industrialized countries — funneled to meet commitments to limit global warming to 1.5 degrees Celsius under a new agreement made in Paris last year.

 

RELATED: Historic pact to slow global warming celebrated in Paris

 

"We further appreciate the new UNFCCC (United Nations Framework Convention on Climate Change) post-2025 joint finance commitment from a floor of $100 billion by developed countries in support of meaningful developing country climate action," the communique said.

 

The meeting comes as weather conditions in Asia-Pacific, including in the Philippines, continue to get hotter amid months-long of drought.

 

On Monday, the heat index — or the heat felt by the body considering both air temperature and humidity — reached 51 degrees Celsius in Nueva Ecija, the highest so far this year.