The introduction of carbon pricing in the Philippines could raise around $7 billion in revenues by 2030, according to a report released by the International Monetary Fund (IMF).
The IMF said in the report that the Philippines will need to implement carbon pricing to achieve a “substantial reduction in emissions.”
The Philippines has committed to a projected greenhouse gas emissions reduction of 75% by 2030 under the Paris Climate Change agreement.
“The policy could either represent a carbon tax, which would add a charge in proportion to carbon content to existing fuel excises and apply similar carbon charges to other fuels. Or it could represent an ETS (emissions trading system) which is imposed on top of existing fuel taxes, encompassing firms in the power and industry sectors and suppliers of fuels for other sectors,” the IMF said.