Energy Secretary Raphael Lotilla said that the Philippines will need at least USD 72 billion to significantly reduce greenhouse gas emissions across the energy, transport, and agriculture sectors, Inquirer reported.

Speaking at the GenZero summit, Lotilla said that the funding is tied to the country’s pledge to the Paris Agreement almost a decade ago alongside 174 countries. The target is to cut emissions by 75% by 2030.

“Mobilizing this capital from public, private and international sources is critical to achieving the targeted reductions in greenhouse gas emissions from these sectors,” said Lotilla.

The Marcos administration is now preparing a comprehensive update of the country’s Nationally Determined Contribution (NDC), which serves as a climate action plan.

The Department of Energy (DOE) is preparing to launch the Philippines’ first carbon credit market by September, beginning with a circular focused on the power sector. Energy Undersecretary Felix William Fuentebella said the measure could encourage other agencies to adopt similar initiatives.

Under international law, the Department of Environment and Natural Resources (DENR) is the designated national authority overseeing sectors covered by the carbon credit market, including forestry and energy. Trading may be done both locally and internationally.

A draft DOE circular identified “eligible mitigation activities” that could generate carbon credits. These include the early retirement of coal-fired power plants, renewable energy development, energy efficiency measures, emerging low-carbon technologies, and the switch to electric vehicles.

Ayala-led ACEN Corp., described as the most active local company pushing for carbon credits, plans to shut down its 246-megawatt coal plant in Batangas by 2030 as part of its goal to become a fully renewable energy company.

“We said it’s impossible except if there is a financing mechanism, and we’ll keep an open mind. At that time, carbon credits for early coal retirement did not exist,” Eric Francia, chief executive officer of ACEN, said at the GenZero Climate Summit 2025 in Makati City.

How can the Philippines ensure that carbon credits and climate financing mechanisms truly deliver long-term benefits for both the energy sector and local communities?

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