DOE Sets Rules for Carbon Credit Generation and Trading

The Department of Energy (DOE) has established the regulatory framework for managing carbon assets in the energy sector through Department Circular No. DC2025-09-0018, which outlines the guidelines for generating, managing, and monitoring Carbon Credit Certificates (CCCs). This Circular aligns the national energy policy—ensuring a secure and affordable energy supply—with the Philippines’ commitments under the Paris Agreement to reduce global temperature rise.

A Carbon Credit Certificate (CCC) is a tradeable instrument representing the verified reduction or removal of one tonne of carbon dioxide equivalent (tCO₂e). To ensure credibility, mitigation activities must produce outcomes that are Real, Measurable, Permanent, and Additional, meaning they would not occur without the carbon credit incentive.

Eligible mitigation activities include the early retirement of coal-fired power plants, renewable energy projects, energy efficiency measures, zero- and low-carbon technologies (such as hydrogen, nuclear, and energy storage), as well as electric vehicle adoption and biofuel blending.

Generated CCCs may be traded or used for offsetting in the International, Domestic, or Voluntary Carbon Markets. The Circular prohibits double counting and requires authorization and a corresponding adjustment for credits intended for Other International Mitigation Purposes (OIMP).The Circular serves as a key step toward carbon market participation. The DOE’s Task Force on Energy Carbon Credits (TFECC) will issue further rules on registration, reporting, and verification.