PH needs PHP4.07T to cut emissions by 2030

The Philippines must secure at least $72 billion (approximately PHP4.07 trillion) in funding to significantly reduce its greenhouse gas emissions by 2030, Environment Secretary Raphael Lotilla said at the GenZero Climate Summit Insights in Manila.

The amount is required to meet the country’s commitment under the Paris Agreement, which aims to slash national emissions by 75% by the end of the decade.

“Mobilizing this capital from public, private and international sources is critical to achieving the targeted reductions in greenhouse gas emissions from these sectors,” Lotilla said.

The funding will cover emission-reduction efforts in energy, transport, and agriculture — the three most carbon-intensive sectors in the country.

The government is currently preparing an updated Nationally Determined Contribution (NDC), the climate action roadmap that aligns with the Philippine Energy Plan and prioritizes renewable energy and energy efficiency.

“For the energy sector, updating of the NDC is aligned with the Philippine Energy Plan and focuses on policy measures that promote renewable energy and energy efficiency,” Lotilla added.

As part of its strategy, the Department of Energy (DOE) is set to launch the country’s first carbon credit market by September.

Energy Undersecretary Felix William Fuentebella said the DOE will begin with a policy circular targeting the power sector and encouraging broader agency participation.

“An entity will be established to oversee, preserve the integrity and the reliability of the market,” Fuentebella told reporters at the summit.

Carbon credits allow countries and companies to offset emissions by investing in environmental mitigation projects.

According to a DOE draft circular, eligible mitigation activities include the early voluntary retirement of coal-fired power plants, renewable energy development, energy efficiency projects, electric vehicle transitions, and emerging low- or zero-carbon technologies.

Under international law, the Department of Environment and Natural Resources (DENR) is the designated national authority for sectors under the carbon market, such as forestry and energy.

Both domestic and international carbon credit trading will be permitted under the proposed framework.

Ayala-led ACEN Corp. is the most active local participant in the carbon credit movement, aiming to become a fully renewable company by 2030.

The firm has committed to shutting down its 246-megawatt coal plant in Batangas by that year — one of the first early retirements tied to potential carbon credit financing.

“We said it’s impossible except if there is a financing mechanism, and we’ll keep an open mind. At that time, carbon credits for early coal retirement did not exist,” said ACEN CEO Eric Francia during the GenZero Climate Summit Insights 2025 (Manila).

Francia emphasized that private-sector engagement will require credible financial incentives to speed up fossil fuel phaseouts.

The planned carbon market is part of the Marcos administration’s broader push to decarbonize the economy, while attracting clean energy investments and aligning with international climate targets.

(The 16 paragraph of this story was updated to correctly describe the event where Mr. Francia spoke – GenZero Climate Summit Insights 2025 (Manila), not GenZero Climate Summit Insights 2025.)