Carbon Emissions Regulation in the Philippines
A comprehensive legal‑policy survey (April 2025)

Abstract

This article maps the entire Philippine legal and institutional landscape governing carbon‑emissions control. It traces authority from the 1987 Constitution through statutes, regulations, executive issuances, judicial doctrine, and emerging market‑based instruments, then situates these rules within the country’s Paris‑Agreement commitments and ASEAN cooperation. Sector‑by‑sector coverage (energy, transport, industry, waste, AFOLU) is followed by discussion of monitoring‑and‑verification (MRV), enforcement, finance and incentives, sub‑national action, private‑sector disclosure, pending carbon‑pricing bills, and forward‑looking challenges. Citations are to official issuances current to 17 April 2025.

I. International & Constitutional Foundations

Instrument	Philippine status	Key obligations relevant to CO₂
UNFCCC, 1992	Ratified 02 Aug 1994 (Senate Res. 05‑94)	National inventories; mitigation & adaptation plans
Kyoto Protocol, 1997	Acceded 20 Nov 2003	Non‑Annex I reporting; CDM participation
Paris Agreement, 2015	Ratified 23 Mar 2017 (Senate Res. 320)	NDC: 75 % reduction vs. BAU by 2030 (2.71 % unconditional, 72.29 % conditional); five‑year stock‑takes
ASEAN Working Group on Climate Change	Ongoing	MRV, carbon‑market linkages under ASEAN Taxonomy v2

1987 Constitution, Art. II §16

“The State shall protect and advance the right of the people to a balanced and healthful ecology…”

This self‑executing provision anchors all climate statutes and has been judicially enforced since Oposa v. Factoran (G.R. 101083, 30 Jul 1993).

II. Core Statutes and Executive Framework

Statute / Issuance	Salient carbon‑relevant mandates
R.A. 8749 (Clean Air Act 1999)	Stationary & mobile source emission ceilings; DENR ambient air‑quality standards (DAO 2000‑82); Motor‑Vehicle Emission Control Program
R.A. 9513 (Renewable Energy Act 2008)	Feed‑in Tariff (FIT), Renewable Portfolio Standards (DOE DC 2020‑12‑0026), Green Energy Option Program
R.A. 9729 (Climate Change Act 2009), as amended by R.A. 10174	Creates Climate Change Commission (CCC); requires LGU‑level Local Climate Change Action Plans (LCCAPs); establishes People’s Survival Fund (₱1 bn/year)
R.A. 9003 (Ecological Solid Waste Mgmt. Act 2000)	Methane‑reducing waste‑diversion targets; open‑dump ban
R.A. 11285 (Energy Efficiency & Conservation Act 2019)	Mandatory energy audits & BPS labelling; DOE cap‑and‑trade for energy savings credits
R.A. 11697 (EV Industry Development Act 2022)	EV shares in government & corporate fleets; charging‑station build‑out
TRAIN Law (R.A. 10963 §43, 2017)	First Philippine implicit carbon‑pricing: excise tax on coal (₱50→₱150/MT 2020), petroleum, and LPG
Executive Order 30 (2017)	Energy Investment Coordinating Council fast‑tracks low‑carbon generation
DENR DAO 2021‑19	Emission Standards for New and In‑Use Power Plants (stricter CO₂ proxies via particulate limits)

Institutional actors

Climate Change Commission (CCC) – policy coordinator & UNFCCC focal point
Department of Environment & Natural Resources (DENR) – emissions permitting & enforcement through Environmental Management Bureau (EMB)
Department of Energy (DOE) – energy‑sector mitigation, RE & EE targets
Department of Transportation (DOTr) – Euro 6 vehicle standards, public‑transport modernization
Securities and Exchange Commission (SEC) – Sustainability Reporting Guidelines (2019) impose Scope 1 & 2 GHG disclosure on listed companies

III. Measurement, Reporting, Verification (MRV)

National GHG Inventory – consolidated quinquennially by CCC since the 2010 base inventory.
GHG Inventory Management & Reporting System (PGHGIMRS) – inter‑agency data portal; methodologies harmonized with 2006 IPCC Guidelines.
MRV for NDC implementation – DOE Circular DC2023‑06‑0012 requires power plants ≥50 MW to submit verified CO₂e data; EMB Admin. Order 2022‑03 applies parallel rules to industrial sources.

Non‑compliance penalties under DAO 2005‑18: ₱10k–₱500k per day plus closure in egregious cases.

IV. Sector‑Specific Regulation

1. Energy & Power

Coal Moratorium – DOE Memorandum 16 Nov 2020 prohibits new greenfield coal plants (except committed pipeline).
Renewable Portfolio Standards (On‑Grid & Off‑Grid) – progressive annual RE share increases: 2.52 % start, rising to ≥35 % by 2030.
Green Energy Auction Program (GEAP) – competitive procurement for RE; 2024 auction cleared 3 GW solar & wind.

2. Transport

Euro 6 / Vi emission limits phased from 2023 for new light‑duty diesel; blending mandates: Bioethanol 10 %, Biodiesel 5 %.
Public Utility Vehicle Modernization Program targets jeepney fleet replacement with Euro 4/EV by 2030.
Aviation – CAAP adopts CORSIA monitoring; airlines file annual CO₂ reports since 2024.

3. Industrial Processes & Product Use (IPPU)

DENR DAO 2019‑21 – CO₂e caps for cement, steel, and glass plants; facilities must install continuous emissions monitoring systems (CEMS).
Board of Investments Green Incentives – 5‑year income‑tax holiday for low‑carbon technologies under CREATE Law (R.A. 11534 2021).

4. Waste

Waste‑to‑Energy Guidelines (DAO‑DOE‑DBM JMC 2023‑01) – lifecycle assessment must show ≥20 % GHG benefit versus landfill baseline.
Open‑burn ban under R.A. 9003 enforces methane reductions; LGUs deploy composting and anaerobic‑digestion projects eligible for carbon credits.

5. Agriculture, Forestry & Other Land Use (AFOLU)

National Greening Program 2.0 (EO 193 2015, ext. to 2028) – reforestation of 7 million ha; sequestration ≈ 50 MtCO₂/yr by 2030.
REDD+ Strategy 2017–2028 – DENR‑FAO results‑based payment pilots in Sierra Madre & Palawan.

V. Carbon‑Pricing & Market Mechanisms

Instrument	Status (Apr 2025)	Coverage & price signal
Carbon Emission Fee Act (House Bill 8964, Senate Bill 2494)	Committee‑approved (House, Feb 2025); pending Senate	PhP 150/tCO₂e in 2026, rising 6 %/yr; applies to power, oil & gas, cement, steel, aviation
Voluntary Carbon Market Development Act (HB 8728)	Plenary debates	Creates DENR‑DOE‑DOF registry; aligns with IC‑VCM Core Carbon Principles
DOE Energy Savings Certificate Trading	Pilot (2024–25)	Tradable ESCs for kWh saved beyond corporate targets
Regional linkages	Under study with Singapore, Thailand ETS task forces	Mutual recognition of offsets by 2027

Meanwhile, the TRAIN coal levy (₱150/t) and fuel excises (effective 2018) remain the country’s de‑facto carbon price.

VI. Climate Finance & Incentives

People’s Survival Fund (PSF) – ₱9 bn allocated 2013‑2024; LGU adaptation & mitigation projects receive up to ₱100 m each.
Sustainable Finance Roadmap (2021) – Bangko Sentral ng Pilipinas requires climate‑risk disclosure and offers Tier‑2 capital relief for green loans.
SEC Green Bond Guidelines (Mem‑Circular 9‑2019) – ASEAN+3 complaint; ₱95 bn green bonds issued 2019‑2024, majority for solar/wind.
CREATE Law – 10 % corporate tax (vs 25 % regular) for renewables, EV manufacturing, green hydrogen through 2030.

VII. Sub‑national Action

Local governments are “front‑liners” under R.A. 9729:

LGU	GHG target	Key ordinances
Quezon City	Carbon‑neutral 2050 (Ord. 2990‑2020)	Building energy code; city‑wide carbon budget
Baguio	60 % ↓ vs. 2020 by 2040	Plastic‑bag ban; e‑jeepney fleet
Iloilo	Net‑zero 2050 (Res. 2023‑301)	Solar‑net‑metering incentives
Batangas City	Conditional moratorium on new fossil plants	LGU‑level carbon fee (₱200/t) on industrial zones

VIII. Enforcement & Judicial Oversight

Citizen suits – Resident Marine Mammals v. DENR (RTC‑Palawan 2022) ordered stricter EIAs for gas‑plant expansion due to carbon impact.
Writ of Kalikasan – Supreme Court remedy allows collective climate claims; standing recognized even for unborn generations.
Administrative sanctions – EMB can suspend ECCs; DOE may revoke generation licenses for RPS non‑compliance; SEC may delist issuers for false GHG disclosure.

IX. Private‑Sector Disclosure & ESG

SEC Memorandum Circular 4‑2019 – Public firms must publish Sustainability Reports aligned with GRI or TCFD; Scope 3 reporting “comply‑or‑explain” from FY 2024.
Bangko Sentral Circular 1085 (2020) – banks integrate carbon‑risk in credit evaluation; green taxonomy adopted 2023.

X. Key Challenges & Forward Outlook

Legislating an economy‑wide carbon tax or ETS – Political economy hurdles persist; 2025‑27 window critical to meet NDC.
Transitioning coal‑heavy grid – 58 % of 2024 generation still coal; accelerated renewables and grid storage required.
MRV Capacity – LGUs and SMEs need technical support to generate verifiable data.
Just Transition – labor reskilling and social protection for 50 000 coal‑sector workers.
Nature‑based offsets integrity – harmonizing REDD+, voluntary markets, and ancestral‑domain rights.

Conclusion

The Philippines already possesses a dense matrix of constitutional guarantees, framework climate statutes, sector‑specific regulations, and an incipient mix of market‑based instruments to curb carbon emissions. Effective carbon governance now hinges less on passing new laws than on rigorous implementation, data‑driven MRV, and equitable transition finance. Final passage of a standalone carbon‑pricing law—together with regional market linkages—would cement the country’s shift toward its 2030 and 2050 decarbonization milestones.

Key Legal Abbreviations
CCC – Climate Change Commission • DENR – Department of Environment & Natural Resources • DOE – Department of Energy • EMB – Environmental Management Bureau • SEC – Securities & Exchange Commission • LGU – Local Government Unit • MRV – Measurement, Reporting & Verification • NDC – Nationally Determined Contribution • ETS – Emissions Trading System