By Benjamin Cuaresma
MANILA — President Ferdinand Marcos Jr. has ordered the creation of a national carbon market that could give farmers, businesses and local communities a new source of income by protecting forests, planting trees and investing in clean energy.
Through Executive Order No. 127, signed on October 13, Marcos directed government agencies to establish a national policy allowing qualified environmental projects to generate and trade carbon credits, turning verified climate benefits into potential economic returns.
Executive Secretary Ralph Recto said the initiative seeks to make environmental protection a source of livelihood while attracting investments in sustainable development.
Under the proposed framework, individuals and communities could earn carbon credits by undertaking activities that reduce greenhouse gas emissions or remove carbon dioxide from the atmosphere. Once verified and approved under government standards, these credits could be sold to eligible buyers.
The system could open new opportunities for rural communities, particularly those involved in reforestation, sustainable agriculture, renewable energy and waste management.
Recto said the administration sees the carbon market as a way to combine environmental protection with job creation, business development and additional income for Filipinos.
Proceeds from carbon credit transactions could also help finance climate adaptation initiatives, including resilient infrastructure, water facilities and other essential services designed to protect communities from the effects of climate change.
The Department of Environment and Natural Resources (DENR) will lead the development of implementing rules, including standards for eligible projects, carbon measurement and verification, and the distribution of revenues and other benefits.
The department is also tasked with establishing a Philippine National Carbon Registry to track carbon credits and prevent double counting and other irregularities that could undermine the credibility of the market.
Recto stressed that the executive order does not impose a new carbon tax. Instead, it lays the foundation for a regulated system in which verified environmental achievements can be converted into tradable credits.
Carbon markets allow eligible buyers, including companies and governments, to purchase credits representing verified reductions or removals of greenhouse gas emissions. Depending on the applicable rules, these credits may be used toward emissions-reduction commitments.
The European Union has operated its emissions trading system since 2005, while China, Brazil, New Zealand and South Korea have also established carbon market mechanisms. Thailand, Indonesia and Vietnam are developing or piloting their own systems.
For the Philippines, the challenge will be to translate the policy into a credible market that delivers measurable environmental benefits, protects participating communities and ensures that promised financial gains reach those doing the work on the ground.
The framework’s implementation will determine how qualified projects are approved, how carbon credits are verified, and how the resulting revenues and benefits are distributed.
ia/xf
