President Ferdinand R. Marcos Jr. has ordered the formulation of a national policy framework for carbon markets, designating the Department of Environment and Natural Resources (DENR) as the country’s national authority for regulating participation in carbon-credit mechanisms.
Under Executive Order 127, Marcos directed the DENR to formulate the Philippine Carbon Market Policy Framework, subject to approval by the newly created Inter-Agency Committee on Carbon Markets.
The framework seeks to establish a coordinated national approach to the Philippines’ participation in international and voluntary carbon markets, ensuring that carbon-credit activities align with the country’s climate commitments and applicable safeguards.
It will cover the country’s participation in international carbon markets under Article 6 of the Paris Agreement, as well as in voluntary carbon markets.
Article 6 allows countries to cooperate voluntarily in achieving their climate targets, including through the transfer of verified emissions-reduction outcomes between countries. Such transactions require proper accounting to prevent the same emissions reductions from being counted more than once.
The framework will set the principles and eligibility requirements for carbon-credit projects, establish criteria for authorizing international transfers of emissions-reduction outcomes, and prescribe rules governing the issuance and transfer of carbon credits.
It will also cover benefit-sharing mechanisms, recognized carbon-credit standards, safeguards, reporting requirements, and administrative fees.
The executive order provides for the operation of the Philippine National Carbon Registry to track and report internationally transferred mitigation outcomes, helping ensure proper accounting of emissions reductions associated with carbon-credit transactions.
Through carbon markets, the government aims to advance the country’s climate commitments while expanding access to climate finance, technology, investments, and capacity-building support. (PNA)
