The Department of Energy (DOE) has issued a circular providing guidelines for the generation, management and monitoring of Carbon Credit Certificates (CCCs) in the energy sector, a move it called a “game-changer” for the country’s climate mitigation efforts.
Department Circular No. DC 2025-09-0018, signed by Secretary Sharon Garin on Sept. 23, 2025, aims to help energy stakeholders reduce operational costs, comply with regulations and access incentives by leveraging CCCs.
A CCC is a tradeable certificate representing one ton of carbon dioxide equivalent of greenhouse gas (GHG) emissions reduced or removed from the atmosphere through a mitigation activity that is real, additional and verified by accredited independent third-party entities.
Under the circular, eligible mitigation activities include voluntary early retirement of coal-fired power plants, renewable energy development, energy efficiency improvements, emerging zero- and low-carbon energy technologies and the switch to electric vehicles.
“Only projects that are supported by a recognized carbon crediting standard and a corresponding methodology shall be eligible for the generation of CCCs,” the circular said.
“This carbon credit policy is a game-changer for the Philippine energy sector,” DOE Undersecretary Felix William Fuentebella said earlier.
“It will equip our energy sector with the tools to generate and manage carbon credits with integrity, ensuring every ton of reduced carbon dioxide is real and verifiable,” he said.
The policy is designed to align with the Philippines’ commitments under the Paris Agreement to limit global temperature increase and ensure environmental integrity.
CCCs will be referred to as Internationally Transferred Mitigation Outcomes (ITMOs) when authorized for transfer to another country under Article six of the Paris Agreement.
The DOE’s policy follows a memorandum of understanding signed between the Philippines and Singapore in August 2024 to collaborate on carbon credits under Article 6 of the Paris Agreement.
The policy is a proactive step toward the goals outlined in the Philippine Energy Plan 2023-2050 for a low-carbon energy future by incentivizing clean, indigenous energy sources.
