Philippines to Launch Carbon Credit Policy for Energy Sector
- Policy aims to strengthen the country’s role in carbon markets and drive clean energy transition
- Designed to attract private sector investment in renewables and emissions-reduction projects
- Builds on international cooperation, including a 2024 carbon credit pact with Singapore
The Philippines is preparing to introduce a Carbon Credit Policy for its energy sector, a move the Department of Energy (DOE) says will help the country access growing carbon markets while accelerating the shift to cleaner power.
Undersecretary Felix William B. Fuentebella called the initiative a turning point. “This Carbon Credit Policy is a game-changer for the Philippine energy sector. It will equip our energy sector with the tools to generate and manage carbon credits with integrity, ensuring every ton of reduced carbon dioxide is real and verifiable. This builds trust and unlocks investment in effective climate solutions,” he said.
The draft policy outlines rules for generating and trading carbon credits, while aligning the Philippines’ commitments with the Paris Agreement. It is also designed to encourage private investment in renewable energy and emissions-reduction projects.
To refine the framework, the DOE will hold a public consultation on August 19 with about 120 stakeholders across the energy value chain. Discussions will cover roles, responsibilities, and mechanisms for implementation, as well as preparations for participation in international carbon markets.
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The initiative follows a 2024 Memorandum of Understanding with Singapore to collaborate on carbon credits under Article 6 of the Paris Agreement, which enables cross-border cooperation in emissions reduction.
According to the DOE, the new Carbon Credit Policy complements the Philippine Energy Plan 2023–2050, which targets expanded renewable energy use, improved efficiency measures, and the development of a low-carbon, sustainable energy system.
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