DOE issues first carbon credit rules for energy sector

The Department of Energy (DOE) has released the Philippines’ first regulatory framework for carbon credits in the energy sector to accelerate clean energy investments and reduce greenhouse gas emissions.

Department Circular No. DC2025-09-0018, signed by Energy Secretary Sharon S. Garin on September 23 and published on October 10, outlines the processes for generating, verifying, owning, and trading carbon credits.

Carbon credits are units representing one metric ton of carbon dioxide emissions avoided, commonly generated through renewable energy projects, energy efficiency improvements, or early retirement of fossil fuel plants.

These credits can be sold to organizations seeking to offset their carbon footprint and are expected to boost carbon finance flows into the country.

The DOE said the policy will help the Philippines participate in global carbon markets under the Paris Agreement, while offering new incentives for low-carbon energy solutions.

A DOE Task Force on Energy Carbon Credits (TFECC) has also been established to oversee implementation, uphold transparency, and prevent the “double counting” of credits.

“The Circular promotes transparency, accountability, and environmental integrity by ensuring that projects generate real, measurable, and verifiable emission reductions,” the DOE stated.

The policy also supports collaboration with countries such as Singapore, Japan, and members of the European Union to align with international carbon trading standards.

This initiative is part of the Philippine Energy Plan (PEP) 2023–2050, which aims for a secure and low-carbon future through increased renewable energy use, enhanced energy efficiency, and the deployment of green technologies.

A full copy of Department Circular No. DC2025-09-0018 is available online.