Carbon trading regulations in the Philippines set for release in September, as announced by an energy official

The Department of Energy (DOE) in the Philippines is set to release rules for trading carbon credits next month, marking a significant step towards the country's participation in international carbon markets. This move is part of a broader national strategy to combat climate change and align with the development of the NDC implementation plan and the national greenhouse gas system.

Felix William Fuentebella, energy undersecretary, has stated that the carbon credit policy is intended as a first step in providing early guidance for the energy sector's participation in both compliance and voluntary carbon markets. The DOE is coordinating with the Climate Change Commission and the Department of Environment and Natural Resources (DENR) to operationalise Article 6 of the Paris Agreement.

The DOE is also working with the Department of Finance (DOF) to strengthen the policy and attract investments in clean energy. Last year, the Philippines signed its inaugural carbon credits agreement with Singapore, a leader in Southeast Asia's participation in international carbon markets.

However, civil society leaders have raised concerns about the lack of consultation on the national framework on carbon credits. The DENR has been working on such a framework, but it has yet to be reviewed by civil society. In a meeting on 19 August, 120 stakeholder representatives, including civil society leaders, participated in a discussion with the DOE.

Jefferson Chua, a campaigner for Greenpeace, expressed concerns about the readiness of the country to operationalise the carbon market without a guiding national framework. He questioned the fast tracking of the policy due to the lack of targets for the carbon market in the country.

The DOE held a public consultation on the draft policy on an unspecified date prior to the current statement. The DOE views the carbon credit policy for the energy sector as an "evolving framework" that will be strengthened through continued consultations and coordination.

Meanwhile, Congress approved the low carbon economy bill last year, which mandates Paris-aligned decarbonisation plans from large corporates. However, the bill has been sitting in the Senate for over a year and has yet to be passed into law.

Countries at COP29 forged an agreement for rules for Article 6.4, a section under the Paris Agreement which lays out the foundation for countries to trade carbon credits. The rules being released by the DOE are part of this broader international agreement.

In conclusion, the Philippines is taking steps to participate in international carbon markets through the development of a carbon credit policy for the energy sector. While there are concerns about the lack of consultation and guidance on targets, the DOE is committed to an evolving framework that will attract investments in clean energy and align with the country's commitment to combat climate change.

Carbon trading regulations in the Philippines set for release in September, as announced by an energy official