President Ferdinand Marcos Jr. has ordered the creation of a carbon market framework that will allow farmers and businesses, even regular folks from communities, to earn additional income by protecting forests, planting trees, and adopting clean energy.
Marcos signed, on Oct. 13, Executive Order No. 127 directing the government to establish a national carbon market policy that would allow qualified environmental projects to generate and trade carbon credits.
According to Executive Secretary Ralph Recto, the president wants environmental protection to create real economic opportunities for ordinary Filipinos.
‘In simple terms, people can earn from planting and caring for trees, using clean energy and other activities that help the environment. They will be awarded carbon credits for activities proven to reduce greenhouse gas emissions, which they can sell,’ Recto said in a statement on Sunday.
The United Nations Development Programme defines carbon markets as systems that trade carbon credits. These credits represent a reduction or removal of greenhouse gases from the atmosphere. Governments, companies and even individuals can buy these credits to offset their emissions.
Carbon credits are generated by activities that lower emissions or remove carbon from the atmosphere, such as protecting forests, restoring wetlands, switching from fossil fuels to renewable energy, capturing methane from landfills or improving energy efficiency in buildings and industries.
Once verified, these credits can be exchanged, bought or sold, allowing governments, companies or individuals to meet their emission reduction targets cost-effectively.
Protect and earn
Communities, for example, could qualify for carbon credits by planting and protecting trees because these absorb carbon dioxide from the atmosphere. But projects must first meet government standards and undergo verification before they can qualify, the framework for which Marcos has tasked relevant agencies with formulating.
Recto believes the initiative could attract investments in reforestation, sustainable agriculture, renewable energy and waste management while creating jobs and livelihood opportunities, particularly in rural communities.
‘The president wants our people to earn additional income while taking care of the environment. The benefits are not limited to cleaner air and a greener environment. These efforts can also generate jobs, businesses, and new opportunities for communities,’ Recto said.
‘We are hitting two birds with one stone. The president wants to protect the environment while helping people earn more,’ he added.
Recto said revenues from carbon credits could also help finance projects that protect communities against climate change, including climate-resilient infrastructure, water facilities and other essential services.
Carbon registry
EO 127 tasks the Department of Environment and Natural Resources (DENR) to formulate rules on eligible projects, the measurement and verification of carbon credits, and the distribution of revenues and other benefits.
The DENR will also establish a Philippine National Carbon Registry to track carbon credits and prevent double counting and other irregularities.
The EO does not impose a new carbon tax, Recto clarified. Instead, it lays the groundwork for a regulated carbon market that could turn verified environmental benefits into tradable credits.
The European Union remains the world’s most established and comprehensive carbon market since 2005.
Other countries with carbon markets include China, Brazil, New Zealand and South Korea.