DENR sets forest carbon market regulatory foundations

The Department of Environment and Natural Resources (DENR) recently disclosed that the Philippines has already established the regulatory foundations of a credible forest carbon market by issuing two major policy instruments designed to directly address private sector expectations for clear rules, credible safeguards, and transparent project pathways.

Atty. Daniel Darius M. Nicer, DENR assistant secretary for integrated management system and information systems, spoke at the High-Level Roundtable convened in the sidelines of 81st United Nations General Assembly in New York last week, and declared that these regulatory milestones position the country to attract high-integrity private investments in nature-based carbon projects.

Addressing international ministers, climate envoys and business executives at the session titled “Shaping High-Integrity Carbon Markets,” Nicer emphasized that corporate buyers require predictability and environmental rigor before deploying capital at scale.

“To date, the Philippines, through its Department of Environment and Natural Resources, issued two major policy instruments that establish the foundations of a credible forest carbon market directly addressing private sector expectations for clear rules, credible safeguards, and transparent project pathways,” he said during the meeting convened by the Coalition to Grow Carbon Markets and the World Business Council for Sustainable Development at Climate Week NYC.

The first policy instrument is the adoption of the Philippines’ Readiness in the Voluntary Forest Carbon Market Roadmap (2026 to 2030). The strategic framework sets out national direction for policy development, measurement, reporting and verification (MRV) systems, data management, and registry readiness — key elements corporate investors evaluate when assessing market reliability.

The second instrument is the national guidelines for the establishment, registration and monitoring of voluntary forest carbon credit projects.

These rules enforce environmental integrity, Free, Prior and Informed Consent compliance, and guaranteed community benefit-sharing, while mandating transparent project registration to significantly reduce reputational and delivery risks for corporate buyers.

“For the Philippines, carbon markets — both voluntary and compliance pathways — are central to our strategy for accelerating mitigation and unlocking climate finance,” Nicer said. “But for markets to function, the private sector needs clarity, predictability, and confidence that the credits they purchase are real, additional, and backed by strong governance.”

Beyond forestry, Nicer highlighted broader national carbon governance efforts, including the Department of Energy’s guidelines for renewable energy projects, the overarching Philippine Carbon Market Policy Framework, and the rollout of the Philippine National Carbon Registry to ensure full accounting traceability and prevent double counting.

He added that domestic policies are aligned with Article 6 of the Paris Agreement through bilateral partnerships, such as the Implementation Agreement with Singapore and the Joint Crediting Mechanism with Japan.

Looking ahead to the COP31 climate summit, he called for stronger global guidance on market infrastructure and supply-side integrity for forest and blue carbon ecosystems.

“High-integrity markets should not only accelerate global ambition, but also deliver real, measurable mitigation outcomes that directly benefit and reach the communities, ecosystems, and sectors that need them most,” Nicer said.