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    Home » Turning trees into carbon credits for climate action
    Carbon Credits

    Turning trees into carbon credits for climate action

    userBy userApril 18, 2025No Comments5 Mins Read
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    IN the face of escalating climate change, the Philippines stands at a critical juncture. The nation’s vulnerability to extreme weather events underscores the urgent need for effective climate mitigation strategies. Central to this effort is reforestation — an endeavor that must be executed on a scale that truly matters.

    The House of Representatives’ approval of House Bill 11375, or the carbon pricing framework bill, on its second reading in February 2025 offers a promising tool to facilitate large-scale reforestation. However, its success hinges on meticulous and informed implementation.

    A group of environmentalists from the Save Arroceros Movement visited the forest park in Metro Manila on Nov. 12, 2021. PHOTO BY JOHN RYAN BALDEMOR

    A group of environmentalists from the Save Arroceros Movement visited the forest park in Metro Manila on Nov. 12, 2021. PHOTO BY JOHN RYAN BALDEMOR

    A group of environmentalists from the Save Arroceros Movement visited the forest park in Metro Manila on Nov. 12, 2021. PHOTO BY JOHN RYAN BALDEMOR

    According to Rep. Jose Manuel Alba, who introduced the bill, this goes beyond reducing emissions and opens doors to new opportunities for growth and innovation. He said, “By encouraging investments in sustainable technologies, the Philippines can lead the way in the global transition to a low-carbon economy. This is essential for our long-term economic resilience and for safeguarding our future against the devastating impacts of climate change.”

    The Swiss Re Institute reports that the Philippines could lose up to 3 percent of its gross domestic product by 2050 due to climate change. It said that the country is the most impacted by weather perils including floods, thunderstorms and tropical cyclones worldwide, followed by the United States and Thailand, with 0.38-percent and 0.36-percent annual economic loss, respectively.

    The landmark legislation aims to reduce that risk by accelerating the country’s shift to clean energy, decreasing dependence on unstable fossil fuel markets and improving energy security — all while ensuring a reliable power supply.

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    According to the Ecosystems and Development Journal (Vol. 13, 2024), the Philippines has grappled historically with severe deforestation, with nearly 93 percent of its forests decimated since the 1960s. This loss has disrupted ecosystems and exacerbated the country’s susceptibility to natural disasters.

    Reforestation emerges as a multifaceted solution, offering benefits such as carbon sequestration, biodiversity restoration and enhanced resilience against climate-induced calamities. It restores forests by planting trees in areas that were previously deforested. It helps recover lost biodiversity, improve air and water quality, and absorb carbon dioxide, making it a key strategy for climate change mitigation.

    Afforestation is the process of planting trees in areas that were never previously forested. Unlike reforestation, afforestation creates entirely new green spaces, providing benefits through sustainable forestry and carbon credits. Both reforestation and afforestation contribute to climate mitigation and environmental sustainability.

    Establishing a framework

    The National Greening Program, launched in 2011, exemplifies the nation’s commitment to reforestation. Aiming to plant 1.5 billion trees across 1.5 million hectares, it rejuvenated degraded landscapes and sequester carbon.

    The IPCC 6th Assessment Report in 2022 states that among all current solutions for cutting net emissions by 2030, “reducing forest and ecosystem conversion” is the second most effective, following solar energy. When combined with ecosystem restoration, afforestation, reforestation and sustainable forest management, forest carbon can remove nearly 8 gigatons of carbon dioxide from the atmosphere each year.

    House Bill 11375 establishes a carbon pricing framework, mandating enterprises to offset their carbon footprints through emission reductions, investments in low-carbon ventures or the acquisition of carbon credits. By assigning a tangible cost to carbon emissions, it incentivizes businesses to adopt sustainable practices and invest in environmental projects, including large-scale reforestation.

    Carbon credits play a crucial role in accelerating reforestation and afforestation efforts in the Philippines. They function as tradable permits, allowing businesses to compensate for their emissions by funding projects that remove or reduce carbon from the atmosphere. One carbon credit represents 1 tonne of reduced or removed carbon dioxide from the air.

    The Arroceros Forest Park, dubbed ‘the last lung of Manila,’ is a lush green oasis nestled amid the bustling cityscape of Manila, Philippines. PHOTO BY JOHN ORVEN

    The Arroceros Forest Park, dubbed ‘the last lung of Manila,’ is a lush green oasis nestled amid the bustling cityscape of Manila, Philippines. PHOTO BY JOHN ORVEN

    The Arroceros Forest Park, dubbed ‘the last lung of Manila,’ is a lush green oasis nestled amid the bustling cityscape of Manila, Philippines. PHOTO BY JOHN ORVEN

    The IPCC report highlights that for forest carbon activities to reach their full environmental potential, carbon credits need to be priced between $50 and $200 per ton.

    In the Philippine context, the forest carbon credit mechanism offers a dual advantage: enhancing reforestation efforts and ensuring financial viability. By allowing companies to purchase credits from verified reforestation projects, this system channels essential funds into forest restoration, addressing the nation’s susceptibility to climate change.

    Carbon credits serve as an economic incentive for landowners and local communities to participate in reforestation. Many forested areas in the Philippines are under private or communal ownership, and providing financial benefits for tree-planting activities encourages sustainable land use.

    Establishing a robust carbon pricing framework is pivotal for the Philippines to effectively combat climate change.

    However, the success of such a framework hinges on meticulous implementation, transparent governance and active participation from all societal sectors.



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