The Department of Energy (DOE) on Thursday said that efforts to reduce carbon emissions need not come at the cost of economic growth. Energy Secretary Sharon Garin, through a speech delivered by Undersecretary Felix William Fuentebella at a Makati forum, said decarbonization and development should be seen as complementary goals.
“Today’s climate challenge demands new tools—creativity, agility, and frontier solutions like transition credits and blended finance,” Garin said.
She highlighted the high costs of retiring coal plants early—over $70 million per gigawatt—underscoring the need for private capital involvement. The DOE sees carbon credit certificates (CCCs) as a key mechanism for financing the transition, enabling early coal retirement and clean energy expansion.
CCCs represent one metric ton of reduced or removed carbon emissions, and must meet strict international verification standards. Garin warned that credibility is critical for the market’s success, stressing that “if the system is not credible, it will collapse under its own weight.”
The DOE is pushing for the establishment of a designated national authority to manage CCC trading, aiming to position the Philippines in both local and global markets. A draft circular on the trading framework is currently under public consultation.
As of June 2025, coal remains the country’s largest energy source, accounting for 41.9% (13,006 MW) of the 31,073 MW grid-connected capacity.
