DENR sets forest carbon market roadmap for 2026–2030

The Department of Environment and Natural Resources (DENR) has formally adopted a national roadmap aimed at preparing the Philippines for participation in the voluntary forest carbon market, a move seen as unlocking the economic value of the country’s forest carbon assets while supporting climate and conservation goals.

Environment Secretary Raphael P.M. Lotilla signed a Department Administrative Order (DAO) adopting the Philippines’ Roadmap to Readiness in the Voluntary Forest Carbon Market (2026–2030), developed with technical support from the United Nations Development Program (UNDP), the DENR said in a press statement.

National framework adopted

The roadmap serves as a national strategic framework to position the Philippines as a high-integrity investment destination for forest carbon. It seeks to ensure that forest protection and restoration efforts contribute to the country’s climate commitments under its Nationally Determined Contributions (NDCs) while promoting sustainable livelihoods for local communities.

Four priority areas

To ensure a robust and credible voluntary forest carbon market, the DAO mandates the implementation of four priority areas from 2026 to 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. Ensures environmental integrity and prevents double counting through a National Forest Monitoring System and a Forest Carbon Credit Database.
• Institutional Mechanisms. Resolves jurisdictional overlaps by designating the Forest Management Bureau as lead for terrestrial forests and the Biodiversity Management Bureau for blue carbon ecosystems, such as mangroves and seagrass beds.
• Sustainable Financing and Market Development. Promotes financial sustainability and social equity, including fair benefit-sharing with local communities and Indigenous Peoples.

Oversight, financing plans

The DAO emphasizes high-integrity standards and assigns oversight to the DENR Climate Change Service to ensure alignment with national climate strategies. 

In consultation with the Department of Finance, the DENR will explore sustainable financing mechanisms, including a possible trust fund to reinvest carbon revenues into forest management and protection.

Broad consultations held

The roadmap was crafted through extensive consultations involving national agencies, local governments, the private sector, and civil society groups, with technical assistance from UNDP.

The DAO will take effect 15 days after its publication. —-Ed: Corrie S. Narisma