Marcos orders carbon market policy to attract investments

MANILA — President Ferdinand Marcos Jr. has ordered the creation of a national carbon market policy to attract green investments and reduce greenhouse gas emissions.

Under Executive Order No. 127, signed on October 13, Marcos directed the Department of Environment and Natural Resources (DENR) to develop a framework governing the trading of carbon credits in local and international markets.
Carbon credits are generated by projects that reduce or remove greenhouse gas emissions and can be bought and sold by companies and countries.

The framework will set rules for carbon credit trading, including project approval, participant requirements, transaction monitoring and benefit-sharing arrangements. It will also establish safeguards to ensure compliance with national policies and international standards.

To oversee implementation, Marcos created the Inter-Agency Committee on Carbon Markets (IACCM), chaired by the Climate Change Commission, with the Department of Finance as vice chair.

The committee will coordinate government policies, review implementation and approve reasonable processing fees for carbon market applications and certifications.

Its members include the DENR, Department of Energy, Department of Agriculture, Department of Transportation, Department of Trade and Industry, and Securities and Exchange Commission.

The DENR was designated as the country’s lead authority on carbon markets, responsible for authorizing emission-reduction projects and ensuring compliance with environmental policies. It will also establish a digital registry to track carbon credits and related transactions.

The agency must submit the proposed framework to the inter-agency committee for review and approval within 30 days from the order’s effectivity.

The executive order will take effect upon publication in the Official Gazette or a newspaper of general circulation.