Policymakers discussed the urgency of passing a recently approved bill to reduce emissions, bring in more investments, and spark a long-term climate plan for the country.

A new Congressional bill hopes to reduce the Philippines’ high carbon emissions and improve its record of being the most coal-dependent country in South East Asia.

Speaking at the Philippine edition of the Unlocking Capital for Sustainability forum, Congresswoman Anna Victoria Veloso Tuazon said that the Low Carbon Economy Investment Act 2023 will reduce the country’s reliance on coal and bring it closer to meeting Paris agreement targets if passed into law.

The House Committee on Climate Change approved the Low Carbon Economy Investment Act 2023 on August 6. The bill will require large companies to develop decarbonization plans aligned with the Paris Agreement, with clear milestones and targets, to ensure their progressive reduction of greenhouse gas (GHG) emissions over time.

“Through this bill, we hope to get the private sector to decarbonize and fund viable and cost-competitive, low-carbon investments. Although the Philippines doesn’t have a formal net zero commitment, this bill [champions] decarbonization aligned with the Paris Agreement goal of keeping global temperature rise well below 2 degrees Celsius above pre-industrial levels,” emphasized Veloso-Tuazon, who co-authored the bill.

The legislator explained that the country’s high carbon emissions have an economic cost estimated at PHP 645 billion annually across various sectors, including energy, transport, and communications. In improving the country’s sustainability practices, Veloso-Tuazon said the bill will complement other policy instruments released by the Climate Change Commission. This includes the Philippine National Adaptation Plan, which aims to reduce the country’s vulnerability to the impacts of climate change, and the Philippine Nationally Determined Contribution Plan, where the country committed to a GHG emission avoidance of 75% until 2030, in line with the United Nations Development Plan (UNDP).

Currently, the Philippines’ energy requirements are mainly fueled by coal at 62% of its total energy mix, outpacing others in the region.

The forum, which consisted of three panels, was attended by over 100 policymakers from governance, business, and civil society to discuss ways to combat climate change, including eliminating the country’s dependence on coal.

“The panels touched on the country’s foray into carbon markets, its critical energy and construction industries, and why more companies recognize the business case of a net zero-aligned portfolio,” explained forum organizer Eco Business.

According to GreenPeace, coal-fired power plants emit more than 60 different hazardous air pollutants, aside from destroying natural ecosystems through coal mining, hurting humans, animals, and plants.