A TOP solon in the House of Representatives said that the country’s entry into the sovereign carbon credit market can be seen as a potential groundbreaking feat by the administration of President Ferdinand Marcos, Jr., aside from the huge benefits that will redound to the Philippine economy.
In his remarks given during the signing of a Memorandum of Understanding (MOU) between the Climate Change Commission (CCC) and Maharlika Carbon Technologies, LLC., House Ways and Means Chair Joey Sarte Salceda of the 2nd district of Albay said the country’s foray into the sovereign carbon credit market under the 2015 Paris Agreement could be a key accomplishment of the Marcos administration, as “the law and the incentives are already in place for making it work” and “we should aim to be the first country in Asia, and perhaps the world, to sell sovereign carbon credits.”
Under the MOU, the company will assist the Philippine government set up the registry which will link to the United Nations Framework Convention on Climate Change (UNFCCC).
Through this, the country can now participate in the trading of Certified Emissions Reductions (CER) or voluntary carbon credits, and Internationally Transferred Mitigation Outcomes (ITMOs) between countries, which includes “sovereign carbon credits.”
“In short, it sets up the foundation for us to be in the market. There is a race among developing countries to be the first to sell sovereign carbon credits in the global market, and the Philippines should be in that race. That will be a key PBBM accomplishment, if ever,” Salceda said.
Countries and companies buy carbon credits to offset their emissions and meet their targets net emission levels.
“In recent years, there has been a push towards government-backed carbon credits, as some perceive them as more credible sources of emissions reduction,” Salceda said.
Salceda, who co-chairs the UN-established Green Climate Fund, said this latest development could mean the country raking in an initial US$14 billion worth of benefits, in cash and in kind like climate benign technologies, which are vital as the country shifts towards sustainable socioeconomic development.
PPP Code to boost PH carbon credits
The Albay solon, long considered the House’s economic whiz, said that the new Public-Private Partnership (PPP) Code, where he is the principal author and chair of the technical working group that drafted the measure, will accelerate the country’s carbon credits efforts because it identifies carbon credits as a sovereign asset that can be subjected to PPP arrangements.
“That means the private sector can engage in projects and partnerships with the national government that generate and package carbon credits,” Salceda remarked.
“This will be very good for us, and the tax incentives also already exist for renewable energy companies who want to work with us here,” he added.
Salceda cited Section 15 of Republic Act No. 9513, or the Renewable Energy Law, which exempts the sale of carbon emissions credits by renewable energy developers from any and all taxes.
He said the country was not able to maximize that provision so he will be working with the PPP Center, the CCC, and the Department of Energy in order to come up with joint guidelines on how the private sector and the government can work together on the effort.
Salceda hopes that such initiatives “will build financing for our clean energy transition.”
“President Marcos set the tone early on in his term that he will be a Green President. Making the Philippines a pioneer in carbon credits will be a key accomplishment. It will also provide much needed financial resources for our development,” Salceda said.