In a recent press briefing in Davao City, the National Commission on Indigenous Peoples (NCIP) Region 11 Director Geroncio Aguio outlined the potential benefits of carbon credits for indigenous peoples (IPs) in the Davao Region. Aguio explained that through the Payment for Ecosystem Services (PES), IPs could earn income by preserving ecological balance and reforesting their ancestral lands. Carbon credits, a component of PES, allow for the trading of greenhouse gas emission reductions, encouraging sustainable environmental practices.
Aguio highlighted that some IPs in Davao Oriental are already involved in carbon credit initiatives, where they are contracted by companies to plant high-value crops and receive financial support. Despite these advancements, he pointed out the lack of a regulatory body for carbon credits in the Philippines, although IPs are seeing benefits, particularly in restoring idle lands to their natural state.
Mindanao Development Authority (MinDA) Secretary Leo Tereso Magno reiterated the government’s commitment to developing a robust carbon credit system under President Ferdinand R. Marcos Jr.’s administration. Magno stressed that the Philippines is strategically positioned to capitalize on the global carbon market, aligning with the nation’s vision of a sustainable and prosperous future under the Bagong Pilipinas initiative.
While many countries have established carbon markets, the Philippines is still developing the necessary legal and institutional frameworks. Significant steps include the Department of Environment and Natural Resources (DENR) Administrative Order 43 of 2021, which set up a system for carbon accounting, verification, and certification for forest-based carbon sequestration projects. In 2023, efforts led by DENR Secretary Maria Antonia Yulo-Loyzaga resulted in the introduction of House Bill 7705, the Low Carbon Economy Bill, aimed at facilitating domestic carbon credit trading and enhancing the country’s role in the global carbon market.
Magno expressed optimism about the global interest in carbon credits, viewing it as a significant opportunity for the Philippines to advance in the right direction.