The Department of Energy (DOE) is set to introduce a Carbon Credit Policy for the energy sector, positioning the Philippines to benefit from emerging carbon markets while advancing its clean energy transition.

Undersecretary Felix William B. Fuentebella described the initiative as a crucial turning point for industry players. “This Carbon Credit Policy is a game-changer for the Philippine energy sector. 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,” he said.

The policy is designed to attract private sector investment in renewable energy and emissions-reduction projects, establish transparent rules for carbon credit generation and trading, and align Philippine commitments with the Paris Agreement.

To refine the draft, the DOE will hold a public consultation on August 19, bringing together about 120 stakeholders across the energy value chain. The discussion will focus on roles, responsibilities, and mechanisms for implementing the policy, as well as preparing the industry to participate in future carbon markets.

The move builds on the Philippines’ 2024 Memorandum of Understanding with Singapore to collaborate on carbon credits under Article 6 of the Paris Agreement, which covers cross-border cooperation in reducing emissions.

DOE said the Carbon Credit Policy complements the Philippine Energy Plan 2023–2050, which aims to maximize renewable energy potential, strengthen energy efficiency measures, and drive a low-carbon and sustainable energy system.

What do you think? Will the DOE’s proposed carbon credit policy help fast-track clean energy investments in the Philippines, or will industry challenges slow its adoption.

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