The Philippine government is currently deliberating on how to implement carbon pricing, considering options between a carbon tax or an Emissions Trading System (ETS). The influential Makati Business Club (MBC) has publicly supported the latter and emphasized that imposing a carbon tax would result in a significant increase in electricity prices.
Edgar Chua, Chairman of the Makati Business Club, stated during a climate change forum that the majority of the Philippines' electricity is generated from coal and hydrocarbons. He warned that implementing a carbon tax would shift the burden onto consumers, leading to higher electricity costs.
“Our country is one of the most expensive when it comes to power for a number of reasons,” he said.
He also urged the government to build an enabling environment to carbon reduction rather than penalizing users of hydrocarbons and coal. Chua believes that establishing an Emissions Trading System would be the "best" incentive for the government, as it could encourage businesses to reduce carbon emissions or allow the market to regulate carbon prices.
Chua conveyed the sentiments of the organization's members, expressing hope that the government would implement the carbon emissions trading system as soon as this year (2024). He revealed ongoing collaborations with international entities and academia to discuss the most suitable model for the Philippines.
Established in 1981, the Makati Business Club's membership is by invitation from the board of directors and comprises mostly CEOs and top executives of businesses that have significant influence on the Philippines' economic development.
