President Marcos Jr. has ordered the government to establish a national policy framework for carbon markets, a move aimed at attracting investments in climate-friendly projects and helping the Philippines reduce greenhouse gas emissions.
Under Executive Order No. 127, signed on October 13, the Department of Environment and Natural Resources (DENR) must develop the Philippine Carbon Market Policy Framework, which will set the rules for trading carbon credits in local and international markets.
Carbon credits are generated by projects that reduce or remove greenhouse gas emissions. Companies and countries can buy these credits as part of efforts to meet their climate commitments.
“There is a need to formulate a national carbon market framework aligned with international standards, through a whole-of-government approach, to support the achievement of the country’s NDCs (nationally determined contributions),” the order stated.
The framework will set requirements for companies participating in carbon markets, the approval of projects, the monitoring of transactions and the sharing of benefits. It will also include safeguards to ensure that trading activities follow national policies and international standards.
Marcos Jr. created the Inter-Agency Committee on Carbon Markets, chaired by the Climate Change Commission, with the Department of Finance as vice chair. Other members include the DENR, Department of Energy, Department of Agriculture, Department of Transportation, Department of Trade and Industry, and Securities and Exchange Commission.
The DENR will serve as the country’s national authority for carbon markets and maintain a digital registry to track carbon credits and related transactions. It must submit the proposed framework to the inter-agency committee for review and approval within 30 days from the order’s effectivity.IMT
