The Philippines are taking bold steps to transform their energy sector by releasing the world’s first policy framework for carbon credits. On 10 October 2025, 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.” This circular presents the basic principles for the creation and administration of carbon credits. The country is interested in participating in international trade of these credits.
The issuance of the circular is a major turning point for the Philippines. It puts the country squarely in line with the worldwide commitment to combat climate change. The Philippines is establishing a transparent process for carbon credits. This effort is a great move toward deepening bilateral and multilateral trade with fast-growing partners like Singapore, Japan, and many European countries. We think inclusion of this Paris-aligned initiative would reflect the nation’s earnest desire to follow the spirit and intent of the Paris Agreement. We’ve committed to holding increases in global temperature to far less than 2°C and even to 1.5°C.
Framework for Carbon Credits
Department Circular No. DC2025-09-0018 provides five key guidelines. These rules will govern the production and real-world implementation of carbon credits in the energy sector. The policy blueprint Acton creates would increase transparency and accountability by serving as a detailed roadmap. It describes how carbon credits are created and tracked. That way stakeholders are held accountable for following through with emissions reducing best practices.
The circular also stresses the need for frequent, meaningful oversight through established and robust monitoring and reporting processes. By implementing these protocols, the Philippines seeks to foster trust among trading partners and establish itself as a credible player in the global carbon market. The federal government hopes this new framework will motivate local energy producers to take part in developing carbon credits.
International Collaboration
One of the key objectives of the newly released circular is to encourage international cooperation through carbon trading. The Philippines, on the other hand, is so keen to attract investments from countries including Singapore, Japan, and European nations. We hope this engagement will lead to fruitful opportunities for attraction of capital investments, technological and industrial cooperation to support our mutual goals to reduce greenhouse gas emissions.
The country’s long-term strategy involves strengthening its systems for handling carbon credits. It intends to do so by maximizing collective impact through shared learning and initiatives made possible through collaboration. This major federal initiative is direct evidence of the administration’s commitment to climate objectives. In doing so, it fuels the economic opportunities that in turn lift local communities and benefit important international partners.
Commitment to Climate Goals
The Philippines has been busy launching new initiatives around the management of carbon credits. All the while, it’s doubling down on its commitment to fulfill its climate obligations under the Paris Agreement. Issuance of the circular is in keeping with national strategies to foster sustainable development and climate change adaptation.
Currently, the Philippines is putting in place a very transparent policy landscape for carbon credits. Underneath the grim headlines, this initiative is making the future of our energy sector more resilient and sustainable. This initiative highlights the increasing importance of environmental responsibility among nations and sets a precedent for future policies aimed at combating climate change.