Environmental advocates called on the Philippine government to support the Climate Damages Tax (CDT), a levy targeting fossil fuel companies to fund loss and damage financing.
Organized by Greenpeace Philippines, the press conference in Quezon City emphasized the urgency of action as the nation faces record-breaking heat linked to El Niño while preparing for a possible La Niña that could exacerbate tropical cyclone damage later this year.
The CDT report, backed by over 100 climate organizations worldwide, suggests that OECD countries—especially G7 members—impose a USD 5 per tonne levy on domestic fossil fuel extraction.
This fee will increase annually, aiming to discourage continued fossil fuel extraction. With potential revenue reaching USD 720 billion by the end of the decade, the tax could significantly aid the most vulnerable countries affected by climate damages.
In the past decade, the Philippines has suffered approximately USD 10 billion in climate-related damages, according to the Department of Finance. Current El Niño conditions have already resulted in PHP 5.9 billion in damages, underscoring the need for robust financing to manage climate impacts.
Greenpeace emphasized that the CDT could provide vital funding while holding fossil fuel companies accountable. The tax could complement domestic measures like the Climate Accountability Bill (CLIMA Bill), introduced in Congress last year, to ensure comprehensive climate governance.
“Super Typhoon Odette was one of the most terrifying experiences of my life,” said Frank Nicol Marba, a Sangguniang Barangay member from Dinagat Islands. “The typhoon flattened houses and swept boats away. Every weather report brings back those traumatic memories.”
“The Philippines cannot continue to pay the price for climate impacts caused by the world’s biggest polluters. The government must demand payment from oil and gas companies and implement mechanisms like the CDT,” said Greenpeace campaigner Jefferson Chua.
Dr. Rosa Perez, an independent climate change specialist, noted that the CDT could help finance recovery efforts through reconstruction, emergency aid, and social programs. Additionally, it could support displaced workers whose livelihoods are affected by climate change.
The CDT report was released ahead of the annual general meetings of major fossil fuel companies. As these firms are expected to announce substantial profits, Greenpeace stressed that the Philippine government should seize this opportunity to hold polluters accountable and advocate for a fair transition away from fossil fuels.
“If President Marcos Jr. is serious about addressing the climate crisis, he will listen to the calls of communities standing up to the carbon majors,” Chua said. Supporting the CDT and passing the CLIMA Bill, he added, would give these communities a chance to secure a sustainable, fossil fuel-free future.
