December 2, 2025
Despite a global hope for stronger climate action, the 30th UN Climate Conference (COP30) ended without securing an explicit callout to phase out fossil fuels.
As global climate negotiations remain slow to push for a total fossil fuel phaseout, climate change is sure to continue worsening– the adverse impacts of which are greatly felt in the Philippines.
Local mechanisms now become increasingly critical in pushing for lowering emissions and securing finance to keep communities resilient from the climate crisis.
In line with this, The Climate Reality Project Philippines recently launched a report on the feasibility of establishing an emissions trading system (ETS) in the country as part of nationwide efforts to reduce emissions and fund local climate action efforts.
“The findings and recommendations presented in this report are intended to contribute to the ongoing discussions on carbon markets and carbon credits in the Philippines— with our sincere hope that this would advance science-based, on-ground perspectives to inform our legal frameworks promoting environmental integrity and equitable benefits for our communities,” said Aimee Oliveros, Interim Branch Manager of Climate Reality Philippines.
Civil society organizations stage protest, urging COP30 negotiators to ground policies in the experiences of climate-vulnerable nations
After two whole weeks of intense negotiations between world leaders and protests from civil society organizations and indigenous peoples communities, the COP30 agreement was finally gavelled down on November 22. Tensions rose particularly on the use of the term ‘fossil fuels’ in the official COP30 text— ‘the Global Mutirão’— a move heavily criticized by the Arab Group of delegates.
This contention is to be expected, as delegates from the Arab Group are well-known to be fossil fuel ‘heavyweights’ or major oil producers. Countries in this group include Saudi Arabia and the United Arab Emirates, who pointedly defended its energy industries from climate negotiations.
Despite the best efforts of those working to add ‘fossil fuels’ to the text, countries had to accept the compromise of having two key roadmaps: one on transitioning away from fossil fuels and another on stopping and reversing deforestation.
According to COP30 President André Corrêa do Lago, the drafting of these roadmaps will include the voices of a variety of stakeholders, including civil society and fossil fuel producers.
Because of these series of events surrounding the term ‘fossil fuels’, many have dubbed COP30 a ‘failure.’ With its usage being the top driver of climate change, it’s no wonder many feel as though the Belém negotiations failed by not having explicitly mentioned transitioning away from fossil fuels. After all, decarbonization initiatives hinge on decreasing reliance on fossil fuels and transitioning into cleaner, more sustainable ways to power our industries.
Climate Reality Philippines launch a policy analysis report detailing the many potential impacts and opportunities of a carbon trading
With global regulations on fossil fuels remain uncertain, it’s imperative for countries to establish strong local mechanisms to fast-track emissions reduction within and beyond their borders.
One such mechanism being discussed in the Philippines is that of an emissions trading system or ETS, particularly under the Low Carbon Economy Investment Bill. To examine the feasibility of a Philippine ETS, Climate Reality Philippines held multistakeholder discussions with academics, policymakers, civil society organizations, and the private sector.
Entitled Carbon for Sale: Weighing the Social and Environmental Costs and Opportunities of Establishing an Emissions Trading in the Philippines, the report was launched last October 24 at Quezon City.
The report examines the social, environmental, and legal foundations for carbon trading in the country. Particularly, it explores policy alignment with the pending Low Carbon Economy Investment Bill and the Nationally Determined Contribution under the Paris Agreement.
Climate Reality Philippines’ Climate Diplomacy Lead Mitzi G. Salcedo discusses the key results of the organization’s study, Carbon for Sale
“The major question for the Philippines: why are we considering this carbon pricing framework or a domestic regulatory policy tool in the Philippines? It gives an opportunity for the country to have more climate financing,” said Mitzi G. Salcedo, Climate Diplomacy Project Lead of Climate Reality Philippines.
Maximizing climate finance mechanisms such as an ETS can help fund the country’s climate adaptation and mitigation initiatives. But the challenge remains now on how the Philippines can integrate these mechanisms into existing local legislative efforts as well into global climate pledges.
In the face of its potential to reduce emissions, the Low Carbon Economy Investment Bill still bears some regulatory questions. According to the Carbon for Sale report, this is in terms of unclear carbon rights, the lack of national carbon stock data and land use protocol, and projected negative impacts on local communities.
Issues surrounding stakeholder consultations also arose in conversations about the ETS, the study highlighting the need for community empowerment in all things carbon trading. This includes the participation of local government units, indigenous populations, and the academe in related policies and decisions over carbon projects to ensure justice and equity.
“Because COP30 failed to address the problem of fossil fuels head-on, it is up to domestic mechanisms like ETS to ensure vulnerable countries like the Philippines drive local low-carbon development. A well-designed ETS can steer our local industries and sectors towards cleaner, more sustainable practices even in the absence of strong global commitments,” added Salcedo.
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