Environmental groups have criticized the plan of the Department of Environment and Natural Resources (DENR) to implement a carbon credit system, deeming the proposal as an unsustainable solution that would not benefit a low-emission country like the Philippines.
This, following the announcement of the DENR in December 2022 that the agency will be pushing for a law to institutionalize carbon credit systems. In the proposed system, governments can issue carbon credits to businesses, which will then allow them to emit specified amounts of carbon dioxide or other greenhouse gasses in a certain amount of time.
“Carbon credits favor countries that are heavy on emission,” said Chito Arceo, national education coordinator of the Youth Advocates for Climate Action Philippines. “Countries such as the US and EU member-states are all for carbon marketing as they benefit from the system because of their high emissions.”
The Philippines only contributes 0.48 percent of the total global greenhouse gas emissions, according to 2019 United Nations (UN) estimates.
In December 2022, DENR Secretary Ma. Antonia Yulo-Loyzaga said there may be a need to craft legislation for carbon credits. She added that the DENR will be working with the Climate Change Commission (CCC) to develop a carbon credit framework, which will hasten the country’s global commitment to reducing greenhouse gas emissions by 75 percent by 2030.
After the approval of the Kyoto Protocol in 1997, carbon marketing systems were introduced to decrease carbon emissions. In such systems, businesses are granted carbon credits by governments under a cap-and-trade program, where governments set a cap on carbon emissions and businesses can trade allowances that will permit them to emit a certain amount of carbon dioxide.
A trial carbon credit market was started in September 2022 at the Tokyo Stock Exchange, following Japan’s goal of becoming carbon neutral by 2050. Companies can trade existing carbon credits, known as J-Credits, to monetize businesses’ reduced emissions if they also pledge and disclose their emissions reduction targets in accordance with government regulations.
In 2019, Japan emitted 8.54 metric tons of carbon emissions, its lowest recorded, according to the World Bank.
“Carbon credits are a popular scheme internationally,” said Jon Bonifacio, National Coordinator of Kalikasan People's Network for the Environment. “The Philippines is just complying with it, and in doing so, reduces the problem of climate change to only one problem–carbon emissions–which is not the case.”
Climate action is divided into two categories: mitigation and adaptation. Mitigation focuses on merely reducing carbon emissions. Adaptation, on the other hand, focuses on adapting to the changes brought upon by climate change, which is a fundamental aspect of climate action.
The National Disaster Risk Reduction and Management Council is one effort of the country in climate adaptation. However, it has been criticized as merely reactive to extreme weather events with no long-term plan for climate action. In the country, the leading policy on climate action is the Climate Change Act of 2009. Establishing the CCC, the law mandates the development of the Local Climate Change Action Plan. But, as of July 2016, only 160 out of 1700 LGUs had such plans in place.
“[The discussion] of climate change only comes to the forefront during extreme weather events,” noted Bonifacio. “There’s no long-term plan, and the plans that do exist are not promulgated well enough to be used by grassroot groups effectively.”
In 2019, the Philippines experienced one of the costliest typhoon seasons, with 29 storms, 17 typhoons, and four super typhoons. That same year, then Antique Rep. Loren Legarda filed House Bill 2184, also known as the Low Carbon Economy Act, which aimed to establish a cap-and-trade system for the industry sector.
“Instead of carbon credits, we have to consider more climate adaptation measures, kasi hindi naman tayo high carbon-emitting countries,” said Bonifacio. “That starts with studying how climate change manifests in the Philippines.”
Arceo also noted that there must be a need to institutionalize laws for loss and damages to fully understand the source of the climate crisis. Loss and damages refer to the negative consequences that arise from the risks of climate change. During the last Conference of Parties, the UN recognized a clause for loss and damages, and created a fund that aims to provide financial assistance to nations that are most vulnerable and impacted by the effects of climate change.
Ultimately, the carbon marketing system may not be the most effective way to mitigate the effects of climate change in the Philippines, environmental groups said. Instead, the government should consider studying climate change mitigation and adaptation strategies first at the local level, they added.
“There is still a need to recognize and assess the losses garnered from the climate crisis, especially from the environment, the people, and biodiversity,” said Arceo. “Pero, alalahanin natin na while the fight for climate justice is long and tedious, it will be achievable with collective action from the youth and other sectors.” ●
