Ecobiz.asia – The Philippines will develop a national carbon market policy framework to regulate carbon credit projects and transactions, as the government seeks to attract climate investment and strengthen implementation of its emissions-reduction commitments under the Paris Agreement.
President Ferdinand R. Marcos Jr. ordered the development of the framework through Executive Order No. 127, signed on Oct. 13, directing the Department of Environment and Natural Resources (DENR) to establish rules for the country’s participation in domestic and international carbon markets.
The order, announced by the Presidential Communications Office on Saturday (Oct. 17), designates the DENR as the Philippines’ national authority for carbon markets and establishes an Inter-Agency Committee on Carbon Markets to coordinate government policy and oversee implementation.
The proposed Philippine Carbon Market Policy Framework will set requirements for carbon credit projects, project approvals, transaction monitoring and benefit-sharing arrangements. It will also establish safeguards to ensure that carbon market activities comply with national policies and international standards.
The government aims to use carbon markets to expand access to climate finance, technology and investment while supporting projects that reduce or remove greenhouse gas emissions.
“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,” the executive order states.
The Philippines’ nationally determined contribution (NDC) sets out its climate commitments under the Paris Agreement. Carbon markets can help finance emissions-reduction activities by allowing eligible projects to generate credits that can be traded, subject to applicable rules and safeguards.
Under the order, the Inter-Agency Committee on Carbon Markets will be 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 committee will coordinate policies across government agencies, review implementation of the framework and approve reasonable processing fees for carbon market applications and certifications.
The DENR will also establish and maintain the Philippine National Carbon Registry, a digital system intended to track carbon credits and related transactions. The agency is required to submit the proposed framework to the inter-agency committee for review and approval within 30 days of the executive order taking effect.
The order will take effect upon publication in the Official Gazette or a newspaper of general circulation.
The framework is expected to provide a coordinated basis for the Philippines’ participation in carbon markets, including mechanisms for international cooperation under the Paris Agreement and voluntary carbon markets. Its detailed rules, however, remain to be developed. ***
