THE Department of Energy (DOE) has issued a framework policy for generating, managing and monitoring carbon credits in the energy sector — allowing new opportunities for stakeholders and mobilizing investments in clean energy projects.
The policy, the DOE said, serves as the foundational instrument in guiding energy stakeholders among the private sector in accessing carbon finance, preparing for future carbon market mechanisms and coordinating the sector’s actions through a dedicated DOE Task Force on Energy Carbon Credits.
A carbon credit is equal to 1 metric ton of carbon dioxide or its equivalent in other greenhouse gases that has been removed from or avoided in the atmosphere. Companies can buy these credits — to offset their own emissions if they can’t reduce them directly — to support projects like reforestation, renewable energy and methane capture. This creates a financial incentive for businesses to reduce their emissions and invest in green projects.
Energy Secretary Sharon Garin on Sept. 23 signed Department Circular DC2025-09-0018, titled Providing the General Guidelines for the Generation, Management and Monitoring of Carbon Credits in the Energy Sector. The circular was published on Oct. 10.
The policy “promotes transparency, accountability and environmental integrity by ensuring that projects generate real, measurable and verifiable emission reductions in accordance with international best practices and national policies.” It also safeguards against double counting and establishes clear rules on carbon credit ownership, use and transfer.
Under the framework, a Carbon Credit Certificate (CCC) will serve as the DOE-recognized unit representing 1 metric ton of carbon dioxide equivalent (MTCO2e) of emission reduction.
The CCC can undergo national and international verification and authorization processes to qualify and be transferred to another country or company as mitigation outcomes or emission reduction units, such as Internationally Transferred Mitigation Outcomes under Article 6 of the Paris Agreement, carbon allowances or credits under Corsia (Carbon Offsetting and Reduction Scheme for International Aviation).
The Philippines wants to engage in bilateral or multilateral carbon credit trading with Singapore, Japan and in Europe, to exchange best practices in developing high-integrity carbon markets and identify mutually beneficial, Article 6-compliant projects.
The DOE said the policy will help drive energy transition by leveraging the country’s renewable energy resources and promoting energy efficiency and low-carbon technologies, in line with the Paris Agreement’s goal of limiting global temperature rise.
It likewise advances the Philippine Energy Plan 2023–2050 toward a secure, sustainable and low-carbon energy future, and reaffirms the Philippines’ readiness to engage in international carbon cooperation, the DOE noted.
