The imposition of a carbon tax in the Philippines will help the cash-strapped government secure additional revenue needed to recover from the pandemic and address long-term risks of climate change, the World Bank said.
In its latest report, the Washington-based multilateral financing institution said carbon pricing now applies to over a fifth of global greenhouse gases, generating some 53 billion dollars in revenues.
Despite the progress, global efforts to slap taxes on carbon remain small and are not on track to meet the Paris Agreement goals. Many countries, including the Philippines, have yet to ride on the carbon tax.
The Asia-Pacific is both exposed to climate risk and a major contributor to greenhouse gas emissions considering that the region is home to the majority of the world’s population and has been the main driver of global growth in decades.
The Department of Energy earlier said the Philippines was not ready for carbon tax.