Philippines seeks private funding to restore forests and sell carbon credits

The Philippine government is working with the CarbonPH Coalition to attract private investment in forest restoration projects and sell the resulting carbon credits across Southeast Asia.

For decades, the country’s reforestation efforts suffered from short-term funding and a lack of ongoing maintenance, leading to high tree mortality rates. Now, the Department of Environment and Natural Resources (DENR) plans to establish a national carbon registry and use satellite tracking to verify replanted forests, turning them into tradable carbon credits.

Officials at the DENR told corporate executives and carbon traders that they are changing policies to encourage long-term private capital. They are prepared to discuss financial arrangements with businesses and create regulations that appeal to investors. The planned registry will record forest data, track credits, and prevent double counting, while the National Forest Monitoring System will use satellite data to monitor forest canopies.

Aboitiz Equity Ventures, a supporter of the coalition, hosted a forum in Manila emphasizing the need for project integrity and verifiable climate benefits. Developers must also obtain consent from indigenous tribes before undertaking projects on ancestral lands, in accordance with Philippine law. The Philippines is seeking to join the ASEAN Common Carbon Framework, a regional initiative aiming to create unified carbon trading rules and connect Southeast Asian markets to global buyers.

A 40-year project in Cebu, led by Aboitiz Foundation, will rehabilitate 71,000 hectares of watershed, serving as a pilot program for the new regulations.