The Philippines Department of Environment and Natural Resources (DENR) has officially adopted a national framework to prepare the country for the voluntary forest carbon market. Announced through a newly signed Department Administrative Order, the Roadmap to Readiness in the Voluntary Forest Carbon Market (2026–2030) aims to position the nation as a high-integrity investment destination for forest protection and restoration while unlocking vital climate finance.
Strategic Framework and International Support
Developed with technical assistance from the United Nations Development Programme (UNDP), the roadmap is part of the broader Accelerating Green and Climate Finance Project funded by the Government of Canada. The initiative addresses key gaps in policy, institutional capacity, data infrastructure, and financing mechanisms to ensure forest and wetland ecosystems contribute effectively to the country’s Nationally Determined Contributions.
According to DENR Undersecretary for Finance, Information Systems and Climate Change Atty. Analiza Rebuelta-Teh, the framework treats carbon forestry as a critical tool for natural resource governance. “We must view our carbon forestry projects not as simple ventures, but as initiatives with profound implications for climate action, environmental stewardship, and natural resource governance,” Atty. Rebuelta-Teh stated.
The roadmap was shaped by extensive consultations held between 2023 and 2025, bringing together national government agencies, local governments, civil society organizations, academe, and private-sector partners.
Four Priority Areas for 2026–2030
To establish a credible and transparent market, the Department Administrative Order mandates the implementation of four core pillars through 2030:
- Policy Framework for VFCM Engagement: Harmonizes policies governing forest assets and mandates clear guidelines on carbon rights and trading.
- Data Analytics and Digital Infrastructure: Deploys a National Forest Monitoring System alongside a Forest Carbon Credit Database to ensure environmental integrity and prevent the double-counting of credits.
- Institutional Mechanisms: Resolves jurisdictional overlaps by designating the Forest Management Bureau to oversee terrestrial forests, while assigning the Biodiversity Management Bureau to manage blue carbon ecosystems, including mangroves and seagrass beds.
- Sustainable Financing and Market Development: Focuses on long-term financial viability and social equity, prioritizing fair benefit-sharing structures with local communities and Indigenous Peoples.
Ensuring Community Rights and Sustainable Financing
A central tenet of the newly adopted framework is the protection of marginalized groups who serve as frontline environmental stewards. According to Atty. Rebuelta-Teh, Indigenous groups will play a crucial role in the carbon market as stewards of forests and wetlands. “We need to ensure that their rights and participation are central to the discussion of the carbon trading policy,” she noted.
UNDP Resident Representative Christopher Bahuet emphasized that the initiative targets both public and private capital to deliver broad socioeconomic gains. “With support from Canada, we are mobilizing greater resources for climate actions, not only from public finance but also by unlocking private sector investment,” Bahuet stated. “Forest carbon projects offer climate, economic, and community benefits.”
To maintain rigorous oversight, the DENR Climate Change Service will monitor the framework’s execution. Working alongside the Department of Finance, the DENR will also investigate sustainable financing mechanisms—such as a possible trust fund—to reinvest future carbon revenues directly back into forest management and protection initiatives. The Department Administrative Order is scheduled to take effect 15 days following its official publication.
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