Manila: The Department of Energy (DOE) has issued guidelines for the generation, management, and monitoring of carbon credits as part of the government’s energy transition bid in line with the Paris Agreement. Department Circular No. 2025-09-000, signed by Energy Secretary Sharon Garin on Sept. 23 and published on Oct. 10, establishes the policy framework for carbon credits and provides new opportunities for stakeholders while allowing the country to achieve its climate and sustainable development goals.

According to Philippines News Agency, the policy serves as the agency’s foundational instrument in guiding energy stakeholders, particularly the private sector, in accessing carbon finance, preparing for future carbon market mechanisms, and coordinating the sector’s actions through a dedicated DOE Task Force on Energy Carbon Credits (TFECC). It promotes transparency, accountability, and environmental integrity by ensuring that projects generate real, measurable, and verifiable emission reductions in accordance with international best practices and national policies. The Circular also safeguards against double counting and establishes clear rules on carbon credit ownership, use, and transfer.

The Circular specifies that a Carbon Credit Certificate (CCC) will serve as the DOE-recognized unit representing one metric ton of carbon dioxide equivalent (MTCO2-e) of emission reduction. This certification may be assessed through a national and international verification and authorization process and may eventually be qualified as an emission reduction unit under, among others, Article 6 of the Paris Agreement, specifically as the Internationally Transferred Mitigation Outcome (ITMO).

Article 6 of the Paris Agreement permits international cooperation to address climate change and provide opportunities for financial support to developing countries. DOE aims to tie up, through bilateral or multilateral trade for carbon credits, with Singapore, Japan, and European countries, among others, for this initiative. Using these engagements, the country hopes to facilitate the exchange of best practices with these partner countries in developing high-integrity carbon markets while also identifying and developing mutually beneficial, Article 6-compliant projects.

By leveraging the country’s abundant renewable energy resources and promoting energy efficiency and emerging low-carbon technologies, the policy will help drive the energy transition in line with the Paris Agreement’s objective of limiting global temperature rise to well below 2°C, while pursuing efforts to limit it to 1.5°C.