Legarda calls for gov’t accountability as carbon market takes shape

MANILA, Philippines — Government agencies should examine their own carbon footprints and demonstrate how they are reducing emissions now that the Philippine Carbon Market Policy Framework is being developed, Sen. Loren Legarda said in a statement on Wednesday.

“We are asking businesses to prepare for a more accountable, low-carbon economy. Government must be prepared to meet that same standard. Do our agencies know how much they emit from their buildings, vehicles, and daily operations? Are they measuring it, and what are they doing to bring it down?” Legarda said.

She said agency-level accounting should translate into practical steps such as more efficient electricity use, cleaner operations, and transparent reporting of progress.

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She noted that her office had undertaken carbon accounting efforts and called for a clearer picture of whether similar practices are consistently adopted across government.

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Her statement follows Executive Order No. 127, issued on Oct. 13, 2026, which directs the development of a Philippine Carbon Market Policy Framework, which lays the groundwork for market rules and institutions but does not itself impose a blanket emissions cap or carbon tax on businesses.

READ: Marcos orders creation of carbon market

Legarda has also filed Senate Bill No. 166 — the proposed Low Carbon Economy Act — which seeks to establish a domestic emissions trading system.

Under the proposal, covered sectors would face emissions limits and trade allowances within an overall cap, creating an economic incentive to adopt cleaner technologies. The bill also proposes a Climate Reinvestment Fund and safeguards for affected workers and vulnerable consumers.

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“There should be clear incentives to encourage businesses to invest in cleaner technology. There should be a real benefit to their operations — that they can economize and that they can recover their investment. It’s not enough to rely on their caring for nature,” Legarda said in Filipino.

She added that the public should also be able to see tangible results.

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Project-based carbon credits, including those associated with forest conservation and restoration, are distinct from the emissions allowances proposed under her bill. Both raise questions about environmental integrity and whether communities receive a fair share of potential benefits.

“If there are some who would profit from taking care of forests, the people who have long been taking care of them should also benefit. It’s important that the sharing be fair, and the results should be clear to communities,” she said.

Legarda’s position builds on her work as principal author and sponsor of the Climate Change Act of 2009 and her sponsorship of the Senate’s concurrence in the Philippines’ accession to the Paris Agreement in 2017.

READ: A player in the carbon market – Inquirer Opinion

She stressed that the country’s relatively small share of global emissions underscores the need for major emitters to fulfill their responsibilities, while the Philippines pursues cleaner industries and more resilient livelihoods in its own national interest.

“These commitments must also be reflected in our national budget. Are we providing enough funding to implement these policies? Do we have qualified people in the agencies responsible, and are their responsibilities clearly defined? We must also set realistic timelines and make sure that these are followed,” Legarda said.

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“I hope that as we develop our carbon market framework, we give equal attention to the resources, people, and institutional capacity needed to make it work. Otherwise, we risk adopting another policy that looks promising on paper but struggles in implementation,” she added. /atm