Turning trees into carbon credits for climate action

The Challenges of Turning Trees into Carbon Credits for Climate Action

As the world grapples with the escalating threat of climate change, the Philippines stands at a critical juncture. The country's vulnerability to extreme weather events underscores the urgent need for effective climate mitigation strategies. At the forefront of this effort is reforestation – an endeavor that must be executed on a scale that truly matters.

A Promising Tool Carbon Pricing Framework

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

The Role of Reforestation in Climate Mitigation

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

Establishing a Framework

The National Greening Program, launched in 2011, exemplifies the nation's commitment to reforestation. With the goal of planting 1.5 billion trees across 1.5 million hectares, it rejuvenated degraded landscapes and sequestered carbon. The IPCC 6th Assessment Report in 2022 highlights that among all current solutions for cutting net emissions by 2030, reducing forest and ecosystem conversion is the second most effective solution, following solar energy.

Carbon Credits A Crucial Component

Carbon credits play a critical role in accelerating reforestation and afforestation efforts in the Philippines. These tradable permits enable 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.

Pricing Carbon Credits A Key Factor

The IPCC report emphasizes 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.

Overcoming Challenges

However, the success of such a framework hinges on meticulous implementation, transparent governance, and active participation from all societal sectors. To overcome these challenges, it is essential to

1. Establish a robust carbon pricing framework Ensure that the system is transparent, accountable, and financially viable.
2. Develop a comprehensive reforestation strategy Identify areas for reforestation, develop a plan for tree planting, and ensure sustainable land use practices.
3. Engage stakeholders Encourage active participation from local communities, NGOs, and businesses to ensure a collaborative approach.

Conclusion

Establishing a robust carbon pricing framework is pivotal for the Philippines to effectively combat climate change. By facilitating large-scale reforestation and afforestation efforts, we can mitigate the impacts of climate change, promote sustainable development, and ensure a resilient future. With meticulous implementation, transparent governance, and active participation from all societal sectors, the Philippines can overcome the challenges of turning trees into carbon credits and take a significant step towards addressing climate change.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

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