New Study Projects Carbon Trading Model Could Reduce Electricity Costs for Philippines by 2054

Research from the University of Surrey indicates that carbon trading revenues could surpass $40 billion annually by 2050, aiding the Philippines in achieving net-zero emissions in its power sector by 2054. The study examines two pathways for the Luzon power grid, which accounts for 72% of the country's electricity, demonstrating that carbon trading could offset costs for renewable energy and emissions reduction technologies.

Currently, the Philippines faces the highest electricity costs in Southeast Asia at $187.60 million per terawatt-hour in 2023, impacting business competitiveness and low-income households. The study utilized the DECO2 software to model scenarios, revealing that incorporating carbon capture with renewable energy could lower electricity prices and significantly reduce emissions. The second scenario, which includes carbon capture and storage, is projected to meet renewable energy targets of 65-70% by 2054 but requires further investigation into CO2 storage feasibility.