- The Philippines DOE proposes a carbon credit framework for the energy sector.
- Policy to ensure transparency, credibility, and investor confidence.
- Supports Paris Agreement goals and cross-border carbon trading.
The Philippines plans to implement a carbon credit policy in its energy sector to boost clean energy investments, lower emissions, and meet its climate obligations from the Paris Agreement, according to Argus Media.
The Department of Energy (DOE) of the country conducted a public consultation to collect opinions on preliminary guidelines for the issuance, management, and oversight of carbon credits. The policy will focus on initiatives that show measurable emission reductions and aim to establish a clear framework for carbon credit creation and exchange.
According to Argus, DOE Undersecretary Felix William B. Fuentebella stated that this will transform the energy sector. According to Fuentebella, the policy will provide stakeholders with the right tools to produce and manage carbon credits in a transparent and credible manner. The effort is part of the government's larger effort to engage the private sector in climate action and in the removal of fossil fuels from the economy.
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The DOE also noted that the policy would align with the country's commitments under the Paris Agreement to limit global temperature increases to significantly less than 2°C but with an emphasis on 1.5°C. One of the primary objectives is to establish trust and confidence in the market to authorize every ton of carbon dioxide (CO2) withdrawn. In doing so, the government seeks to stimulate domestic and foreign investments into renewable energy and decarbonization initiatives.
In August of 2024, the Philippines entered a memorandum of understanding with Singapore and elevated its concerted efforts to implement Article 6.2 of the Paris Agreement, which allows nations to trade internationally carbon credits.