The National Power Corp. (NPC) has signed an agreement with Climate Smart Ventures (CSV) to create a framework for carbon credits, aiming to support the Philippines’ shift to a low-carbon future.
NPC said the partnership will help turn its environmental assets—such as forested watershed areas—into measurable carbon credits that can be sold. These credits represent verified reductions or removals of greenhouse gas emissions.
NPC chief Jericho Nograles said the agency is in a strong position to offset its emissions. While its diesel power plants emit about 477,000 metric tons of carbon dioxide, its forested watersheds absorb around 32 million metric tons. He added that developing carbon credits could open new funding sources and reduce reliance on government subsidies.
CSV CEO Andy Yap said the collaboration aims to ensure climate projects in the country follow credible standards and encourage broader participation in carbon markets.
The project will be rolled out in phases. The first phase will focus on building the technical, legal, and financial groundwork for carbon credit projects. If successful, the second phase will cover project development, validation, registration, and commercialization.
NPC said the initiative will help fund electrification efforts, support clean energy in off-grid areas, and protect watershed systems while keeping electricity rates stable.
NPC currently operates 274 small power plants in off-grid communities across the country, many of which rely on diesel. It also manages transmission systems in several island provinces and oversees watershed areas.
