The Philippines is seeking to establish bilateral or multilateral trade of carbon credits with Singapore, Japan and European countries as a key strategy in its energy transition pathway.
The Department of Energy (DOE) said these international engagements will facilitate the exchange of best practices in developing high-integrity carbon markets and help identify and develop mutually beneficial projects that comply with Article 6 of the Paris Agreement.
– Advertisement –
It said the push for international carbon market engagement follows the recent signing of Department Circular No. DC2025-09-0018, titled “Providing the General Guidelines for the Generation, Management and Monitoring of Carbon Credits in the Energy Sector,” by Secretary Sharon Garin on Sept. 23, 2025.
The circular, published on Oct. 10, 2025, establishes the policy framework for energy sector carbon credits to unlock new opportunities for energy stakeholders, reduce greenhouse gas emissions and mobilize investments in clean energy projects.
The policy serves as the DOE’s foundational instrument, guiding stakeholders, particularly the private sector, in accessing carbon finance, preparing for future carbon market mechanisms, and coordinating sector actions through a dedicated DOE Task Force on Energy Carbon Credits (TFECC).
Under the new framework, a carbon credit certificate (CCC) will serve as the DOE-recognized unit, representing one metric ton of carbon dioxide equivalent (MTCO2-e) of emission reduction.
The CCC can undergo national and international verification to qualify for transfer to another country or company as mitigation outcomes or emission reduction units, such as Internationally Transferred Mitigation Outcome (ITMO) under Article 6 of the Paris Agreement, Carbon Allowances, or CORSIA.
The framework promotes transparency and environmental integrity by ensuring projects generate real, measurable and verifiable emission reductions while also safeguarding against double counting and establishing clear rules on ownership and transfer.
The DOE said that by leveraging the nation’s abundant renewable energy resources, the policy would help drive the energy transition in line with the Paris Agreement objective of limiting global temperature rise.
The DOE said the circular demonstrates its proactive approach in advancing the goals of the Philippine Energy Plan (PEP) 2023–2050 toward a secure, sustainable and low-carbon energy future.
– Advertisement –
