Executive Summary

The Philippines is gaining experience with nature-based carbon credit projects in the Voluntary Carbon Market (VCM). One mangrove carbon project is registered under Verra's standard, and six other nature-based projects in peatlands, forests, and agriculture under Verra and Plan Vivo. These initiatives highlight the potential for scaling up carbon markets but also expose gaps in regulatory clarity and long-term investment security.
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The government regulates nature-based carbon projects through the Carbon Accounting, Verification, and Certification System (CAVCS). All projects on forest lands, ancestral domains, private lands, and protected areas must apply to the Department of Environment and Natural Resources (DENR) and submit key documents, including a project concept note, proof of tenure, and a Forest Carbon Project Plan (FCPP). The DENR oversees project approval, validation, and certification to ensure compliance with permanence requirements. A national carbon registry under the CAVCS, managed by the Forest Management Bureau
(FMB), is in development but remains inaccessible to the public. The government mandates benefit-sharing agreements under the National REDD+ Strategy, the Local Government Code, and the Indigenous Peoples' Rights Act, ensuring equitable revenue distribution. Projects on Indigenous lands must secure Free, Prior, and Informed Consent (FPIC). In addition, all projects must also follow Measuring, Reporting, and Verification (MRV) processes.

Mangrove forests are primarily state-owned, but private and community ownership is allowed under certain conditions. Individuals and communities can obtain land titles such as the Certificate of Ancestral Domain Title (CADT) or Certificate of Ancestral Land Title (CALT). Mangrove concessions are permitted, but land tenure remains complex due to overlapping jurisdictions, multiple agencies managing land titles, and the absence of a unified national titling policy, leading to disputes and registration challenges. Leaseholds, concessions, and community management agreements for state-owned mangroves are allowed for carbon projects. However, forest land leases and Community-Based Forest Management Agreements (CBFMAs) are limited to 25 years, with a one-time renewal, posing
challenges to VCM permanence requirements. Carbon rights remain undefined in current regulations, with no standardized process for securing, transferring, or revoking them. Clarifying these rights and streamlining tenure policies are critical to strengthening the country's participation in carbon markets.
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Overall, the Philippines has favorable enabling conditions for blue carbon projects. Project authorization requirements for the Carbon Accounting, Verification, and Certification System are precise. However, there is no publicly accessible national carbon registry. Challenges also exist around land tenure disputes, leases, and Community-Based Forest Management (CBFM) terms, which could impact the permanence requirements of international standards. Additionally, it is crucial to establish a explicit legal framework for carbon rights.

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