The Department of Energy (DOE) has released guidelines through Department Circular No. 2025-09-000, signed by Energy Secretary Sharon Garin on September 23 and published on October 10, to manage the generation, handling, and monitoring of carbon credits. This policy supports the government’s energy transition efforts and aligns with the Paris Agreement, offering new opportunities for stakeholders while advancing climate and sustainable development goals.
The circular establishes a foundational framework for energy stakeholders, especially in the private sector, as outlined by the DOE: “serves as the agency’s foundational instrument in guiding energy stakeholders, particularly the private sector, in accessing carbon finance, preparing for future carbon market mechanisms, and coordinating the sector’s actions through a dedicated DOE Task Force on Energy Carbon Credits (TFECC).” It emphasizes transparency, accountability, and environmental integrity, stating, “It promotes transparency, accountability, and environmental integrity by ensuring that projects generate real, measurable, and verifiable emission reductions in accordance with international best practices and national policies. The Circular also safeguards against double counting and establishes clear rules on carbon credit ownership, use, and transfer.”
Under the guidelines, a Carbon Credit Certificate (CCC) will represent one metric ton of carbon dioxide equivalent (MTCO2-e) of emission reductions, potentially verified nationally or internationally. This could qualify as an emission reduction unit under Article 6 of the Paris Agreement, facilitating internationally transferred mitigation outcomes (ITMOs) and enabling financial support for developing countries.
The DOE plans to collaborate with nations like Singapore, Japan, and European countries for bilateral or multilateral carbon credit trades. As noted, “Using these engagements, the country hopes to facilitate the exchange of best practices with these partner countries in developing high-integrity carbon markets while also identifying and developing mutually beneficial, Article 6-compliant projects.” By utilizing the Philippines’ renewable energy resources and promoting energy efficiency and low-carbon technologies, the policy aims to drive the energy transition, as stated: “By leveraging the country’s abundant renewable energy resources and promoting energy efficiency and emerging low-carbon technologies, the Policy will help drive the energy transition in line with the Paris Agreement objective of limiting global temperature rise to well below 2°C, while pursuing efforts to limit it to 1.5°C.”