DOE to Roll Out Energy-Specific Carbon Trading Ahead of National Framework

The Department of Energy (DOE) is preparing to launch its own carbon trading scheme for the power sector, even as a broader national framework for carbon credits remains under development.

Energy Secretary Sharon Garin, speaking on the sidelines of the Net Zero Carbon Alliance (NZCA) Conference 2025, said the DOE intends to move forward independently to fast-track international trading opportunities. “On the carbon credit policy of DOE, that’s only for energy. It doesn’t cover the rest of the carbon credit universe,” she noted.

While the Department of Environment and Natural Resources (DENR) and the Department of Finance (DOF) are finalizing a comprehensive national policy, Garin said the DOE’s initiative would allow early bilateral agreements, particularly with Singapore and Japan. “There’s already a draft with DENR and DOF because it will involve financing also. Hopefully they will finish within the year. But since there is a very specific energy [policy], we want to go ahead para we can already deal with Singapore and Japan,” she explained.

The DOE scheme will enable energy companies and utilities to monetize emission reductions through bilateral trading, creating an early platform for carbon finance within the sector. This comes as the Philippines seeks to fund its energy transition, including coal plant retirements, renewable integration, and grid upgrades.

The government has identified carbon markets as a key financing tool, with DENR and DOF expected to deliver an overarching framework covering non-energy initiatives such as reforestation.

Garin emphasized the urgency of moving forward. “Hopefully we’ll work it out soon with energy,” she said, underscoring the need to sustain momentum while awaiting national policy alignment.