Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
Philippines is described as "ground zero for climate disaster". The World Bank 
designated the Southeast Asian expanse of 7, 107 islands as one of the world Vs most 
"vulnerable" countries in terms of susceptibility to natural disasters attributed to climate 
change. 
Abrupt climate change is not only imminent, it is here. It is consequently necessary to 
make a significant contribution to the global effort to stabilize greenhouse gas (GHG) 
concentrations in the atmosphere. Carbon dioxide (C02) is one of the most dangerous 
greenhouse gases. C02 stays in the atmosphere for a thousand of years. It traps heat 
end make the planet warmer. Major sources of C02 emissions from human activities 
in the Philippines are from burning fuels for electricity, transportation, heat, among 
others. 3 To illustrate, C02 emissions from electricity end heat production in the 
country has been increasing — total (% of total fuel combustion) was 49.74 as of 2013. 
Its highest value over the past 42 years was 49.74 in 2013, while its lowest was 25.83 
in 1972. 
Based on the foregoing, the Philippines must adopt aggressive measures to address 
the GHG emission crisis. In October 2015, the country submitted its Intended 
Nationally Determined Contribution (INDO) to the United Nations (UN) where it  
Worland, Justin. 2015 December a. Philippines; Ground Zero for Climate Disaster. Time magazina Retrieved from 
httg:/time.ccm!4137154/philippineg-ground-2ero-for-clirngtg-diggster/ 
The 
World 
Bank, 
Getting 
a 
Grip 
on 
Climate 
Change 
in 
Philippines, 
Retrieved 
from 
http://mm.worldbank.org/en\countrwphilippinespublication\getting-a.grip-on-climate.change.in-the-philippines 
Republic of the Philippines, Intended National Determined Contributions (INDC), 1 October 2015, 
Carbon Dioxide Information Analysis Center, Environmental Sciences Division, Oak Ridge National Laboratory. Tennessee, 
united States, Retrieved from: http://wv.n.v indexmundi_c0m/facts/Philippines/c02-emissions Republic of the Philippines, 
Intended Nationally Determined Contributions 1 October 2015.
August 1, 2022
4:22 pm
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"intends to undertake GHG emissions reduction of about 70% relative to its Business 
as Usual scenario of 2000-2030- "5 Pursuant to this undertaking, this bill introduces 
the climate tax — a levy on the level of ca bon dioxide emissions from electricity 
consumption. The C02 emission shall be measured in kilograms per kilowatt hour. A 
kilogram of C02 emission shall be worth One Peso (PhP1.00). 
All monies collected under this Act shall be earmarked solely and used exclusively for 
providing programs that assist communities in adapting to climate change and 
managing disaster risks; improving the resiliency of critical infrastructure; protecting 
environmental quality and wildlife; and meeting international commitment made by the 
Philippines to assist with climate change adaptation and disaster risk reduction and 
management. 
This bill is a first of its kind in the country. It recognizes the unfortunate status quo of 
the environment and encourages every Filipino to act The Proceeds of the fund shall 
be used to explore alternative and cleaner sources of energy, provide better public 
transportation, and disseminate climate change awareness, 
The "Piso Para sa Kalikasan Act" is important not only because it signals our country's 
commitment to international climate policy but also it sends the important message 
that a Philippine climate policy is serious end here to Stay. Since the right to a 
balanced and healthful ecology carries with it the correlative duty to refrain from 
impairing the environment, it is a paramount obligation of the State to safeguard such 
right lest such day will come when' all else would be lost and the generations to come 
shall inherit nothing but a parched earth incapable of sustaining life. 
The immediate approval of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT  
IMPOSING CLIMATE TAX ON ELECTRIC POWER CONSUMPTION 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Piso Para sa Kalikasan 
Act”. 
SECTION 2. Declaration of Policy. – It is a declared policy that the State shall protect 
and advance the right of the people to a balanced and healthful ecology in accord with 
the rhythm and harmony of nature. The State shall also attain and maintain a balance 
between development and environmental protection 
Accordingly, the State shall promote methods that will preserve a healthy 
environment for future generations and prevent factors that greatly contribute to its 
destruction. 
SECTION 3. Definition of Terms. – For purposes of this Act, the following definitions 
shall apply to the following terms: 
a.
Carbon emission or C02e means the amount of carbon dioxide emitted to
the environment from electricity consumption and vehicle usage.
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b. 
Climate Tax on Electricity or CTE means the amount imposed on C02e from 
electricity consumption measured in kilograms per kilowatt hour. 
 
c. 
Renewable energy means any energy source that is naturally generated 
over a short time scale and derived directly from the sun (such as thermal, 
photochemical, and photoelectric), indirectly from the sun (such as wind, 
hydropower, and photosynthetic energy stared in biomass), or from other 
natural movements and mechanisms of the environment (such as 
geothermal and tidal energy). Renewable energy does not include energy 
resources derived from fossil fuels, waste products from fossil sources, or 
waste products from inorganic resources. 
 
d. 
Person means natural or juridical person. 
 
e. 
Residential user means any person who Consumes electricity and receives 
monthly electric utility bill. 
 
SECTION 4. Amount of Climate Tax. – The amount of Climate Tax on Electricity 
(CTE) shall be equal to One Peso (P1.00) per one kilogram of C02e. 
 
SECTION 5. Coverage and Fees. – CTE shall be imposed on the monthly electric 
power consumption per electric utility bill of every Residential user of electric power 
utilities in proportion to the C02 emission generated from electricity consumed, to Wit: 
Formula: E x 0.553 = CTE 
E is the electricity consumption in kWh; 
0.553 is the C02 emission in kilogram per kWh of electricity; and 
CTE is applicable tax 
SECTION 6. Exemptions. – Any Residential user shall be exempt from the coverage 
of this Act provided that: 
a. The monthly electricity bill does not exceed 60 kilowatt hour; or 
b. Any form of Renewable energy is used as a source of electricity. 


 
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Provided, further that, Residential Users Shall be issued a certificate from the 
Department of Energy (DOE) showing utilization of Renewable energy to claim 
exemption or a refund under Section (b). 
 
SECTION 7. Disposition of Monies Collected. – All monies collected under this Act 
shall be earmarked solely and used exclusively for the following purposes: 
a. Providing programs that assist communities in adapting to climate change and 
managing/reducing disaster risks; 
b. Improving the resiliency of critical infrastructure; 
c. Protecting environmental quality and wildlife; 
d. Meeting international commitment made by the Philippines to assist with 
climate change adaptation and disaster risk reduction and management; and 
e. Other programs and/or commitments related to the foregoing purposes and 
necessary to attain the objectives of this Act. 
 
SECTION 8. Implementing Rules and Regulations. – Department of Finance (DOF) 
in coordination with DOE, the Department of Environment and Natural Resources 
(DENR) and Department of Budget and Management (DBM) shall promulgate not later 
than thirty (30) days upon the effectivity of this Act the necessary rules and regulations 
for its effective implementation. 
 
SECTION 9. Separability Clause. – If any section or part of this Act is held 
unconstitutional or invalid, the other sections or provisions no other affected shall 
remain in full force and effect. 
 
SECTION 10. Repealing Clause. – All laws, decrees, executive orders, rules and 
regulations, issuances are any part thereof inconsistent with the provisions of this Act, 
are hereby repealed, amended or modified accordingly. 
 
SECTION 11. Effectivity Clause. – This Act shall take effect in fifteen (15) days after 
publication in the Official Gazette or in one (1) newspaper of general circulation in the 
Philippines. 
 
Approved,