October 24, 2025
Drawing from our conversations with a wide range of stakeholders, this report tackles a very intriguing question for climate policymakers: should the Philippines put a price on emissions?
On the subject of reducing emissions to combat climate change, local advocates, researchers, and scientists have a lot to say. An approach often considered for this task is that of an emissions trading system (ETS), a market-based mechanism that sets a cap on total emissions and serves as a platform for entities to buy and sell carbon credits.
This policy analysis addresses the pivotal opportunity and considerable risks inherentin establishing a national ETS via the Low Carbon Economy Investment Bill.
As a nation standing against global climate impacts, the imperative to transition toward a resilient, low-carbon economy is both an environmental necessity and a socio-economic challenge. An ETS presents a market-based mechanism to drive this transition, channeling investment and incentivization toward decarbonizing the private sector.
