The Department of Energy (DOE) is developing a Carbon Credit Policy for the Energy Sector with the goal of unlocking new opportunities for energy stakeholders, reducing emissions, attracting investments in clean energy projects, and contributing to the nation’s climate goals.
In a statement, the Policy will achieve these goals by guiding energy stakeholders, especially the private sector, in leveraging carbon credits, preparing for future carbon market mechanisms, and coordinating efforts through a dedicated DOE Task Force.
The Policy also aims to ensure environmental integrity by promoting projects that genuinely reduce emissions, enhance transparency and accountability through clear rules for carbon credit generation and trading, promote private sector investment in clean energy and emissions reduction, and align with the Philippines’ commitments under the Paris Agreement and other climate frameworks. Specifically, the Paris Agreement commits its signatories to limit global temperature increase below 2°C above pre-industrial levels, with efforts to limit the increase to 1.5°C.
“This Carbon Credit Policy is a game-changer for the Philippine energy sector,” said Undersecretary Felix William B. Fuentebella. “It will equip our energy sector with the tools to generate and manage carbon credits with integrity, ensuring every ton of reduced carbon dioxide is real and verifiable. This builds trust and unlocks investment in effective climate solutions.”
To shape an inclusive and transparent policy development process that benefits both the environment and the economy, the DOE will convene a public consultation tomorrow, 19 August 2025 on the draft Department Circular which will provide general guidelines for the issuance, management, and monitoring of carbon credits in the energy sector. This consultation will gather insights and recommendations from stakeholders across the energy value chain.
Around 120 representatives from various energy stakeholders will be convened to gather feedback from stakeholders to improve and finalize the draft policy; clarify the proposed institutional roles, responsibilities, and implementation mechanisms under the proposed policy; promote awareness and readiness of energy sector stakeholders to participate in carbon markets; and strengthen collaboration and coordination among government agencies, private sector stakeholders, civil society, and development partners to support inclusive and effective policy development and implementation.
In August 2024, the Philippines and Singapore signed a Memorandum of Understanding to collaborate on carbon credits under Article 6 of the Paris Agreement. This framework will help operationalize the Implementation Agreement (Article 6.2) that is currently being negotiated and facilitate the exchange of best practices for high-integrity carbon markets and the identification of mutually beneficial Article 6-compliant projects, supporting both countries’ climate and sustainable development goals.
The DOE’s Carbon Credit Policy is a proactive step towards achieving the goals outlined in the Philippine Energy Plan 2023-2050 for a low-carbon energy future. Capitalizing on the Philippines’ vast renewable energy resources and aligning with the global energy transition, this policy incentivizes clean, indigenous sources, and promotes energy efficiency for a cleaner, more resilient, and sustainable energy system for the Philippines
