The Philippines is set to introduce a carbon credit policy for its energy sector, aiming to accelerate clean energy investment, reduce emissions, and fulfill its climate commitments under the Paris Agreement, Argus Media has reported.
The country’s Department of Energy (DOE) held a public consultation on August 19 to gather feedback on draft guidelines for issuing, managing, and monitoring carbon credits.
The policy will prioritize projects that demonstrate verifiable emission reductions and seek to create a transparent framework for carbon credit generation and trading.
This will reshape the energy sector, DOE Undersecretary Felix William B. Fuentebella was quoted as saying by Argus.
According to Fuentebella, the policy will provide stakeholders with the necessary tools to generate and manage carbon credits in a credible and transparent manner.
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The initiative is part of the government’s broader strategy to engage the private sector in climate action, particularly in transitioning away from fossil fuels.
The DOE emphasized that the policy would align with the country’s obligations under the Paris Agreement to limit global temperature increases to well below 2°C, with a strong push for 1.5°C.
A key goal is to strengthen trust and credibility in the market by ensuring that every ton of carbon dioxide (CO2) reduced is verifiable.
By doing so, the government hopes to attract both local and international investment into renewable energy and decarbonization projects.
In August 2024, the Philippines signed an initial agreement with Singapore to advance the implementation of Article 6.2 of the Paris Agreement, which allows countries to trade carbon credits internationally.
