President Bongbong Marcos recently tweeted about the grant of EUR 60 million from the European Commission to empower the Philippines’ climate action, renewable energy sector, and circular economy.

While this development promises a greener future for the country, it raises concerns about the potential quid pro quo that may require the Marcos administration to impose additional climate change-related or carbon taxes and economic restrictions on Filipinos.

In his tweet, President Marcos stated, “With the grant of EUR 60 million, we will empower the country’s climate action, renewable energy sector, and circular economy, promoting resource efficiency and waste reduction. We are glad to announce the signing of the Green Economy Program with the European Commission today. Together, we’re creating lasting growth, quality jobs, and a greener future for all.”

However, these seemingly positive intentions have drawn attention to the possibility of the EU aid coming with strings attached.

Albay Rep. Joey Salceda, Chair of the House Committee on Ways and Means, highlighted the government’s legislative priorities in President Marcos Jr.’s recent State of the Nation Address (SONA). Among these priorities are the Motor Vehicle Road Users’ Tax (MVRUT) and the Single-Use Plastic Tax Act.

Salceda pointed out that imposing a P100 levy per kilogram of single-use plastics would be coupled with the Expanded Producer’s Responsibility (EPR) Law, which mandates major corporations to implement their own plastic recovery and diversion programs. While these measures aim to address the environmental impact of plastic waste, critics fear that these taxes may eventually be passed down to consumers, leading to higher commodity prices and additional burdens on ordinary Filipinos.

Moreover, Salceda stressed the need to revisit the MVRUT, implying that more taxes could be imposed on private vehicles, particularly pickup trucks, to counter their higher emissions and road usage. He argued, “We generate some P179 billion every year on taxes from car users, but we spend at least P280 billion every year on road construction and maintenance, on top of the P1.227 trillion annual economic cost of traffic in Metro Manila alone.”

The proposal to impose additional taxes on private vehicles raises concerns about the potential impact on the already struggling Filipino households. The burden of higher taxes and increased regulations may exacerbate the challenges posed by inflation, unemployment, and rising commodity costs, further straining the lives of millions of Filipinos.

While the EU aid aims to drive positive change, it also presents challenges that require careful consideration and sensitivity to the needs of the Filipino people. Only time will tell how these initiatives unfold and whether they strike the right balance between environmental progress and the welfare of the nation’s citizens.