The Department of Energy (DOE) is moving forward with an energy-specific carbon trading policy even as a broader national framework for carbon credits remains under development.

Energy Secretary Sharon Garin, speaking at the sidelines of the Net Zero Carbon Alliance (NZCA) Conference 2025, confirmed that the DOE intends to push through with its own scheme focused on the power sector. “On the carbon credit policy of DOE, that’s only for energy. It doesn’t cover the rest of the carbon credit universe,” she said.

Garin noted that while the Department of Environment and Natural Resources (DENR) and Department of Finance (DOF) are still finalizing a more comprehensive national framework, the DOE wants to proceed independently to accelerate opportunities for international trading. 

“There’s already a draft, I think, with DENR and DOF because it will involve financing also. So hopefully they will finish within the year. But since there is a very specific energy, we want to go ahead para we can already deal with Singapore and Japan on the carbon credit policy that we have,” she said.

The DOE’s planned carbon trading scheme will allow the energy sector to engage in bilateral agreements, providing a platform for utilities and companies to monetize emission reductions. This early move comes as the Philippines works to balance its greenhouse gas reduction commitments with the need to secure financing for the energy transition.

The government has previously identified carbon markets as a potential source of funding for coal plant retirements, renewable energy integration, and transmission upgrades. With the DOE leading on the energy-specific side, a parallel effort from DENR and DOF is expected to provide the overarching framework covering reforestation and other non-energy carbon reduction initiatives.

Garin emphasized that momentum must not be lost while waiting for the national policy to take shape. “Hopefully we’ll work it out soon with energy,” she said.

Do you think the DOE’s early move on carbon credits will give the Philippines an edge in climate finance, or should the government wait for a unified national framework first?

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