Energy Secretary Sharon S. Garin signed Department Circular No. DC2025-09-0018, titled Providing the General Guidelines for the Generation, Management, and Monitoring of Carbon Credits in the Energy Sector,” on 23 September 2025. The said Circular published on 10 October 2025 establishes the policy framework for energy sector carbon credits and aims to unlock new opportunities for energy stakeholders, reduce greenhouse gas emissions, mobilize investments in clean energy projects, while further advancing the country’s climate and sustainable development goals.
The policy serves as the DOE’s foundational instrument in guiding energy stakeholders, particularly 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 (TFECC). It 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. The Circular 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 (MTCO2-e) of emission reduction. The CCC can undergo the national and international verification and authorization processes through the Designated National Authority to eventually qualify and be transferred to another country or company as mitigation outcomes or emission reduction units, i.e. Internationally Transferred Mitigation Outcome (ITMO) under Article 6 of the Paris Agreement, Carbon Allowances, CORSIA, etc.
The Philippines aims to collaborate either thru bilateral or multilateral trade of carbon credits with countries like Singapore, Japan and European countries. Using these engagements, the country hopes to facilitate the exchange of best practices with these partner countries in developing high integrity carbon markets while also identifying and developing mutually beneficial, Article 6 compliant projects.
By leveraging the country’s abundant renewable energy resources and promoting energy efficiency and emerging low-carbon technologies, the Policy will help drive the energy transition in line with the Paris Agreement objective of limiting global temperature rise to well below 2°C, while pursuing efforts to limit it to 1.5°C.
The issuance of this Circular demonstrates DOE’s proactive approach in advancing the goals of the Philippine Energy Plan (PEP) 2023–2050 toward a secure, sustainable, and low-carbon energy future. It likewise strengthens the DOE’s commitment to pursue policies that enable the energy sector to actively participate in carbon markets, attract clean energy investments while it also reaffirms the Philippines’ readiness to engage in various international carbon cooperation approaches.
