The Department of Energy (DoE) is moving to establish a Carbon Credit Policy for the energy sector to attract private investment in clean energy projects, cut emissions, and help the country meet its climate commitments.

The DoE said Monday the draft policy would serve as a guide for stakeholders, particularly the private sector, in generating and managing carbon credits, preparing for future carbon market mechanisms, and ensuring that emission-reduction projects are credible and verifiable.

“This Carbon Credit Policy is a game-changer for the Philippine energy sector,” Undersecretary Felix William Fuentebella said.

“It will equip our energy sector with the tools to generate and manage carbon credits with integrity, ensuring every ton of reduced carbon dioxide is real and verifiable. This builds trust and unlocks investment in effective climate solutions.”

To refine the draft, the DoE held a public consultation today, which will bring together around 120 representatives from across the energy value chain.

The consultation will gather feedback to improve and finalize the policy, clarify institutional roles and implementation mechanisms, and promote awareness and readiness for participation in carbon markets.

The draft Department Circular will outline the issuance, management, and monitoring of carbon credits in the energy sector.

It will also strengthen collaboration among government agencies, the private sector, civil society, and development partners.

The policy supports the country’s commitments under the Paris Agreement to limit global warming and builds on its 2024 agreement with Singapore to collaborate on carbon credits under Article 6.