President Ferdinand Marcos Jr. recently issued Executive Order (EO) No. 127, which could provide Filipinos with additional income while promoting forest protection, tree planting and pollution reduction.
The EO mandates the formulation of the Philippine Carbon Market Policy Framework to support the country's climate change commitments under the Paris Agreement, attract investments in green projects, designate the Department of Environment and Natural Resources (DENR) as the national authority and establish the Inter-Agency Committee on Carbon Markets.
According to Executive Secretary Ralph Recto, under the new policy, communities, farmers, businesses and other groups that help reduce pollution or absorb harmful greenhouse gases could potentially earn additional income from their environmental efforts.
The national carbon market policy framework would allow qualified environmental projects to earn and trade carbon credits.
He said, for example, that a community that plants and protects trees may qualify to earn carbon credits because trees absorb carbon dioxide from the atmosphere.
These credits could then be sold to companies or other buyers seeking to meet their climate commitments, providing an additional source of income for participating communities.
Recto said the President wants environmental protection to create real economic opportunities for ordinary Filipinos.
“In other words, puwedeng kumita mula sa pagtatanim at pag-aalaga ng mga puno, paggamit ng malinis na enerhiya, at iba pang gawaing nakatutulong sa kalikasan. Bibigyan ka ng carbon credits sa bawat aktibidad na napatunayang nakabawas sa greenhouse gases, na puwedeng ibenta,” Recto explained.
However, Recto said projects must meet government standards and undergo proper verification before they can qualify for carbon credits.
He said the initiative could encourage more investments in reforestation, sustainable agriculture, renewable energy and waste management while creating livelihood opportunities, particularly in rural communities.
“We’re hitting two birds with one stone. The President wants to protect the environment while helping people earn more,” Recto added.
He said revenues from carbon credits could also help finance projects that protect communities against the effects of climate change, including climate-resilient infrastructure, water facilities and other essential services.
The EO also mandates the DENR to develop rules governing which projects can qualify, how carbon credits will be measured and verified, and how revenues and other benefits will be shared.
The DENR will also establish a Philippine National Carbon Registry to monitor carbon credits and prevent double counting or other irregularities.
An interagency committee chaired by the Climate Change Commission, with the Department of Finance (DOF) as vice chair, will oversee the development and implementation of the policy.