Protecting forests, planting trees, and reducing pollution could soon generate additional income, attract investments, and create jobs for Filipinos under a new policy ordered by President Ferdinand R. Marcos Jr.
Through Executive Order No. 127, President Marcos has directed the government to establish a national carbon market policy framework that would allow qualified environmental projects to earn and trade carbon credits.
Under the proposed system, communities, farmers, businesses, and other groups that help reduce pollution or absorb harmful greenhouse gases could potentially earn additional income from their environmental efforts.
For example, a community that plants and protects trees may qualify to earn carbon credits because trees absorb carbon dioxide from the atmosphere. These credits could then be sold to companies or other buyers seeking to meet their climate commitments, providing an additional source of income for participating communities.
Executive Secretary Ralph G. Recto said the President wants environmental protection to create real economic opportunities for ordinary Filipinos.
“Sa madaling salita, puwedeng kumita mula sa pagtatanim at pag-aalaga ng mga puno, paggamit ng malinis na enerhiya, at iba pang gawaing nakatutulong sa kalikasan. Bibigyan ka ng carbon credits sa bawat aktibidad na napatunayang nakabawas sa greenhouse gases, na puwedeng ibenta,” Recto explained.
He stressed, however, that projects must meet government standards and undergo proper verification before they can qualify for carbon credits.
Recto said the initiative could encourage more investments in reforestation, sustainable agriculture, renewable energy, and waste management while opening up livelihood opportunities, particularly in rural communities.
“Ang gusto ng Pangulo, habang inaalagaan natin ang kalikasan, may dagdag na kita rin ang ating mga kababayan. Hindi lang malinis na hangin at mas luntiang kapaligiran ang pakinabang. Maaari rin itong magdala ng trabaho, negosyo, at bagong oportunidad sa mga komunidad,” Recto said.
“We’re hitting two birds with one stone. The President wants to protect the environment while helping people earn more,” Recto added.
He added that revenues from carbon credits could also help finance projects that protect communities against the effects of climate change, including climate-resilient infrastructure, water facilities, and other essential services.
“This is about making environmental protection work for the Filipino people. We want investments that protect our natural resources while creating jobs, improving livelihoods, and securing a better future for our communities,” Recto also said.
Under the EO, the Department of Environment and Natural Resources (DENR) will develop the rules governing which projects can qualify, how carbon credits will be measured and verified, and how revenues and other benefits will be shared.
The DENR will also establish a Philippine National Carbon Registry to monitor carbon credits and prevent double counting or other irregularities.
An inter-agency committee chaired by the Climate Change Commission, with the Department of Finance (DOF) as vice-chair, will oversee the development and implementation of the policy.
Recto emphasized that clear rules and proper safeguards are necessary to attract credible investors and ensure that local communities receive their fair share of the benefits.
The executive order does not impose a new carbon tax. It instead lays the groundwork for a regulated carbon market that could create new economic opportunities from verified environmental projects.
The DENR has 30 days from the effectivity of the order to submit the proposed framework to the inter-agency committee, which will have another 30 days to approve it.
Recto said the initiative reflects the administration’s goal of pursuing economic growth while protecting the environment.