The Philippines is laying the policy groundwork for a low-carbon, climate-resilient future, with a new bill aimed at a carbon trading framework and other measures.
Department of Environment and Natural Resources (DENR) Secretary Raphael Lotilla told the second Philippine Net Zero Conference 2025 that the Low Carbon Economy Investment Bill has passed its third reading in the House of Representatives.
The proposed bill mandates large emitters to develop decarbonization plans, set emissions ceilings and invest in ways that are both accountable and flexible, Lotilla said.
“It also enables an emissions trading framework, incentivizes low-carbon investments and facilitates access to carbon markets and international climate finance,” he said.
“For companies, this is not a regulatory burden; it is a structured opportunity to innovate, reduce emissions and access green financing,” said Lotilla.
The Net Zero Carbon Alliance, a multi-sectoral movement co-founded by First Gen Corp., organized the event in partnership with the Southeast Asia Corporate Decarbonization Exchange (CDx).
Lotilla said the Carbon Rights Bill is also advancing, which would clarify ownership of carbon benefits and “unlock opportunities for carbon forestry and ecosystem credits.”
He said the Bangko Sentral ng Pilipinas’ Sustainable Finance Guidelines, which require financial institutions to assess climate risks, and the Securities and Exchange Commission’s proposed sustainability reporting standards are also complementing these laws.
To help the country achieve its goals, the DENR is implementing a multi-pronged strategy, including transparent measurement and monitoring of greenhouse gas emissions.
The Philippine Greenhouse Gas Inventory Management System, a “robust, science-based framework for measuring, reporting and verifying emissions,” is being used to provide companies with access to credible carbon credits and improved market credibility, Lotilla said.
The DENR is also developing the Philippine Carbon Regulations to ensure all carbon credits are verifiable, science-based and “additional, permanent and real.”
“High-integrity carbon markets enable companies to transition to low-carbon operations and eventually achieve net zero, while channeling investments into reforestation, renewable energy and ecosystem protection,” he said.
Lotilla said carbon markets could accelerate private sector transition but only if built on integrity.
“Without credibility, carbon markets become symbolic, displacing real action. With trust, they become engines of investment, progress and resilience, channeling capital to solutions that benefit both business and society,” he said.
The Net Zero Carbon Alliance provides a platform for sharing decarbonization best practices, helping businesses embed climate action into their core strategy and accelerate collective climate ambition, Lotilla said.
“Through this collaborative approach, Philippine businesses, which contribute more than 50% of our country’s emissions, can significantly support our target commitments outlined in the Philippine Nationally Determined Contribution (NDC) in line with the Paris Agreement,” he said.
Lotilla challenged the alliance to “act even more boldly—as a catalyst for credible decarbonization, integrity in carbon markets, and collective resilience-building.”
