The Department of Energy (DOE) is considering issuing a circular that would provide rules for the trading of carbon credit certificates (CCCs) in the country next month.
DOE Undersecretary Felix William Fuentebella revealed as much on the sidelines of a corporate event in Makati on Wednesday night, hinting that his office is working on making it happen.
The objective: to jumpstart the sector, as well as for other involved government agencies, to also issue their own rules that may be collated into one single blanket policy for CCC trading in the Philippines.
CCCs are tradeable certificates representing one metric ton of carbon dioxide equivalent of greenhouse gas emissions reduced, avoided, or removed from the atmosphere that has been verified by accredited independent third-party entities, using internationally accepted standards.
“We will have a single body who will work like the SEC (Securities and Exchange Commission) based on what will be the rules,” Fuentebella said. “There will be a standard to recognize a project as well as a procedure and an audit to preserve the integrity and the reliability of the market.”
He added that like the SEC and the Bangko Sentral ng Pilipinas, the regulatory body that will be formed must have a good reputation and proper capabilities to assure that the local CCC trading market will not crash.
The DOE official also cited that under international law, a designated national authority on CCC trading must be created.
Fuentebella also mentioned that the government is keen on allowing CCCs originating from the Philippines to be allowed for trading in both local and international markets.
“The circular, we plan to have it out and effective next month since if we do not do that, other agencies cannot start their own initiatives,” the DOE undersecretary further said.
The agency said that at present, the Department of Environment and Natural Resources is also heavily involved in pushing for this move, noting that rates involved in the actual conduct of CCC trading is still being determined.
DOE earlier said the circular for CCC trading is now up for public consultation to gather insights and recommendations from stakeholders across the energy value chain.
The agency added that a policy is needed to assure that the country will have the proper tools to generate and manage CCCs with integrity, ensuring that reduced emissions are real and verifiable.
