The circular was issued on 10 October.
Energy Secretary Sharon S. Garin signed Department Circular No. DC2025-09-0018, titled “Providing the General Guidelines for the Generation, Management, and Monitoring of Carbon Credits in the Energy Sector,” on 23 September 2025. The circular was formally issued on 10 October and establishes the policy framework for carbon credits within the national energy sector.
The new policy serves as the DoE’s main instrument to guide energy stakeholders—particularly private sector participants—in accessing carbon finance opportunities. It prepares them for future carbon market mechanisms and ensures sector-wide alignment through the establishment of a dedicated DoE Task Force on Energy Carbon Credits. The framework emphasizes transparency, accountability, and environmental integrity in the implementation of carbon reduction projects.
Under the circular, all carbon credit projects must generate verifiable and credible emission reductions consistent with both international best practices and national policies. It also introduces clear rules to prevent double counting and defines the ownership, use, and transfer of carbon credits. A Carbon Credit Certificate (CCC) will represent the verified reduction of one tonne of carbon dioxide equivalent, and can undergo both domestic and international verification and authorization through the country’s Designated National Authority.
The Philippines aims to pursue bilateral and multilateral carbon credit trading with countries such as Singapore, Japan, and several European nations. These partnerships are expected to promote the exchange of technical expertise and contribute to the creation of credible, high-integrity carbon markets.
According to the DoE, the carbon credit policy is designed to accelerate the nation’s energy transition by promoting renewable energy development, enhancing energy efficiency, and supporting low-carbon technologies. These efforts are in line with the Paris Agreement’s target of limiting global temperature rise to well below 2°C, with efforts to restrict it to 1.5°C.
The issuance of this circular also demonstrates the DoE’s proactive implementation of the Philippine Energy Plan 2023–2050, which envisions a secure, sustainable, and low-carbon energy future. By establishing a clear framework for carbon credits, the DoE seeks to attract green investments and ensure that the country’s energy sector aligns with global sustainability goals while strengthening its position in emerging international carbon markets.
