Jennifer Laude-Salcedo
About the author: Jennifer Laude-Salcedo is a seasoned writer with years of experience in the environmental, sustainability and governance (ESG) sectors. As a dedicated carbon market specialist, she researches and analyzes carbon credit markets to promote sustainable practices and inform policy development. Her work raises awareness about the pivotal role of carbon credits in combating climate change. She has published over 2,000 news articles.
In the face of escalating climate change, the Philippines stands at a critical juncture. The nation’s vulnerability to extreme weather events underscores the urgent need for effective climate mitigation strategies. Central to this effort is reforestation—an endeavor that must be executed on a scale that truly matters.
The recent approval of the carbon pricing framework bill by the House of Representatives offers a promising tool to facilitate large-scale reforestation. However, its success hinges on meticulous and informed implementation.
According to Congressman Jose Manuel Alba who introduced the bill, it goes beyond reducing emissions—it opens doors to new opportunities for growth and innovation. Cong. Alba further noted that:
“By encouraging investments in sustainable technologies, the Philippines can lead the way in the global transition to a low-carbon economy. This is essential for our long-term economic resilience and for safeguarding our future against the devastating impacts of climate change.”
The Swiss Re Institute reports that the Philippines could lose up to 3% of its GDP by 2050 due to climate change. Not only that, the report further noted that the country is the most impacted by weather perils including floods, thunderstorms, and tropical cyclones worldwide, followed by the United States and Thailand, with 0.38% and 0.36% annual economic loss respectively.
The landmark legislation aims to reduce that risk by accelerating the country’s shift to clean energy, decreasing dependence on unstable fossil fuel markets, and improving energy security—all while ensuring a reliable power supply.
Reforesting the Philippines: The Imperative for Large-Scale Reforestation
Historically, the Philippines has grappled with severe deforestation, with nearly 93% of its forests decimated since the 1960s. This loss has not only disrupted ecosystems but also exacerbated the country’s susceptibility to natural disasters.
Reforestation emerges as a multifaceted solution, offering benefits such as carbon sequestration, biodiversity restoration, and enhanced resilience against climate-induced calamities.
Reforestation is the process of restoring forests by planting trees in areas that were previously deforested. It helps recover lost biodiversity, improve air and water quality, and absorb carbon dioxide, making it a key strategy for climate change mitigation.
Afforestation is the process of planting trees in areas that were never previously forested. Unlike reforestation, which restores lost forests, afforestation creates entirely new green spaces. It helps reduce desertification, creates new carbon sinks, improves air quality, and provides economic benefits through sustainable forestry and carbon credits. Both reforestation and afforestation contribute to climate mitigation and environmental sustainability, making them essential strategies for a greener future.
The National Greening Program (NGP), launched in 2011, exemplifies the nation’s commitment to reforestation. Aiming to plant 1.5 billion trees across 1.5 million hectares, the NGP sought to rejuvenate degraded landscapes and sequester carbon.
Beyond environmental gains, the program generated economic opportunities by engaging local communities in seedling production and site maintenance. This initiative underscores the potential of reforestation to address both ecological and socioeconomic challenges.
Leveraging Carbon Pricing: A New Financial Engine for Restoring Forests
In February 2025, the Philippine House of Representatives approved House Bill No. 11375 on its second reading. This landmark law establishes a carbon pricing framework, mandating enterprises to offset their carbon footprints through emission reductions, investments in low-carbon ventures, or the acquisition of carbon credits.
By assigning a tangible cost to carbon emissions, the bill incentivizes businesses to adopt sustainable practices and invest in environmental projects, including large-scale reforestation.
Turning Trees into Assets: The Power of Carbon Credits
Carbon credits play a crucial role in accelerating reforestation and afforestation efforts in the Philippines. These credits function as tradable permits, allowing businesses to compensate for their emissions by funding projects that remove or reduce carbon from the atmosphere.
- One carbon credit represents one tonne of reduced or removed carbon dioxide from the air.
The IPCC Report states that among all current solutions for cutting net emissions by 2030, “reducing forest and ecosystem conversion” is the second most effective, following solar energy. When combined with ecosystem restoration, afforestation, reforestation, and sustainable forest management, forest carbon can remove nearly 8 gigatons of carbon dioxide (GtCO2-eq) from the atmosphere each year, as seen in the chart.
The same IPCC report highlights that for those forest carbon activities to reach their full environmental potential, carbon credits need to be priced between $50 and $200 per ton.
In the context of the Philippines, the forest carbon credit mechanism presents a unique opportunity to scale up tree-planting initiatives while ensuring financial sustainability.
Given the country’s vulnerability to climate change, carbon credits can provide much-needed funding for forest restoration projects. Companies required to offset their emissions can purchase credits from verified reforestation and afforestation projects, directly injecting capital into large-scale tree-planting efforts. This system not only reduces net emissions but also fosters ecological resilience by restoring degraded landscapes.
Furthermore, carbon credits serve as an economic incentive for landowners and local communities to participate in reforestation. Many forested areas in the Philippines are under private or communal ownership, and providing financial benefits for tree-planting activities encourages sustainable land use. Through properly structured carbon credit programs, indigenous groups, smallholder farmers, and community organizations can generate income while contributing to climate mitigation.
Strengthening Carbon Credit Infrastructure
For the carbon pricing framework to drive meaningful change, the Philippines must establish a robust infrastructure for monitoring, verifying, and certifying carbon credits. This includes clear guidelines on project eligibility, standardized methodologies for measuring carbon sequestration, and stringent verification processes to ensure transparency and credibility. Without these safeguards, the risk of “greenwashing”—where companies claim carbon offsets without genuine environmental benefits—remains a concern.
Investments in technology, such as satellite monitoring and AI-driven carbon accounting, can help improve accuracy and efficiency in tracking reforestation efforts. The government must also collaborate with international organizations and carbon registries to align local initiatives with global best practices. By ensuring integrity in its carbon credit system, the Philippines can attract both local and foreign investments in its reforestation and afforestation projects.
Encouraging Public-Private Partnerships
The success of the carbon pricing framework depends on strong collaboration between the public and private sectors. The government must actively engage corporations, financial institutions, and conservation groups to create a thriving carbon market that benefits both the environment and the economy. By offering tax incentives or preferential financing for businesses that invest in reforestation, policymakers can accelerate corporate participation in carbon offset projects.
Additionally, linking carbon credits with international carbon markets can open up new revenue streams for Philippine reforestation efforts. With the growing global demand for high-quality carbon offsets, the country has the potential to become a leader in nature-based climate solutions.
However, achieving this requires clear regulations, robust governance, and an emphasis on projects that deliver genuine environmental and social benefits. One such project is the following.
Re-Greening of Panay: A Model for Large-Scale Forest Revival
A tangible example of large-scale reforestation is the “Re-Greening of Panay” project initiated by the Sulu Garden Foundation, Inc. with headquarters in Miag-ao, Iloilo (SGF; www.sulugardenfoundation.org). This ambitious program aims to reforest approximately 200,000 hectares of denuded timberland on Panay Island, addressing both environmental degradation and climate change. See this video that describes the program: https://www.youtube.com/watch?v=ryY85xD8Wcg.
The project employs innovative seed ball technology, where seeds of native trees are encased in clay to protect them from predators and harsh environmental conditions. These seed balls are dispersed during the dry season protecting the seeds from being eaten by rodents and birds, and upon the onset of rains, the clay dissolves, allowing the seeds to germinate. This method facilitates reforestation in hard-to-reach areas and reduces the expensive labor cost and logistics associated with traditional tree-planting methods.
The project also plans to use drone technology for efficient seed ball dispersal and utilizes a comprehensive monitoring system with drones and satellite imagery to track progress. Collaborations with Poseidon Sciences Group, the Philippine Army’s 301st Infantry Brigade, West Visayas State University -College of Agriculture and Forestry, CIFOR-ICRAF (Center for International Forestry Research and World Agroforestry), the Iloilo Province Bureau of Fire Protection and RainForest Botanical Gardens bolster the initiative, highlighting the importance of multi-sectoral partnerships in achieving large-scale reforestation goals.
“With less than 7% forest cover and the increasing hardships caused by global warming, the island of Panay must undertake reforestation on a scale that will truly make a difference for future generations. Planting one seedling at a time is not enough—we need to scale up and use modern methods to ensure the success of our efforts. With the help of our partners, SGF plans to use drone technology to disperse native seeds encased in the seedballs, track their distribution using RFID, and monitor reforestation progress through an innovative tracking system that identifies every tree that germinates. We know the risks ahead, and we must act now.”
– Jonathan R. Matias, Chairman, Sulu Garden Foundation
Potential Impact on Climate Mitigation and Carbon Credits
The Re-Greening of Panay project holds immense potential to contribute to the Philippines’ climate mitigation efforts. By restoring vast areas of degraded forests, the initiative enhances carbon sequestration capacity, reduces soil erosion, and improves watershed protection. In turn, this supports biodiversity conservation and strengthens the region’s resilience against climate-induced disasters such as typhoons and floods.
Moreover, the project presents a significant opportunity for generating carbon credits. With proper verification and certification, the reforestation efforts in Panay could qualify as carbon offset projects, allowing businesses and institutions to purchase carbon credits as part of their emission reduction strategies. This financial model not only sustains the long-term viability of the project but also encourages further expansion and replication of similar initiatives across the country.
By integrating climate finance mechanisms and innovative reforestation techniques, the Re-Greening of Panay project exemplifies how the Philippines can harness carbon markets to drive meaningful environmental change. Ensuring transparent governance, equitable benefit-sharing, and strong monitoring systems will be crucial in maximizing the project’s impact and positioning the country as a leader in nature-based solutions.
How to Ensure Effective Implementation of Carbon Pricing Mechanism
While the carbon pricing framework presents a robust mechanism to drive reforestation, its efficacy depends on strategic implementation. Key considerations include:
- Defining Carbon Rights: Clear delineation of carbon rights is essential to attract investments in reforestation. The proposed Carbon Rights Act (House Bill No. 10635) aims to clarify ownership and establish mechanisms for transferring carbon rights, thereby facilitating participation in global carbon markets.
- Engaging Local Communities: The success of reforestation initiatives hinges on the involvement of local populations. Empowering communities through capacity-building and equitable benefit-sharing ensures the sustainability of projects and fosters stewardship of restored forests.
- Monitoring and Verification: Implementing robust systems for tracking carbon sequestration and forest health is vital. Accurate data collection and reporting enhance transparency, build investor confidence, and ensure that reforestation efforts yield the intended environmental benefits.
- Integrating Nature-Based Solutions: Prioritizing natural forest regeneration alongside tree planting can enhance cost-effectiveness and ecological integrity. Studies indicate that natural regeneration can be more efficient in mitigating climate change than plantation-based approaches in certain contexts.
Tech-Driven Reforestation: Tracking Trees with Data and AI
Advancements in technology offer promising avenues to scale reforestation efforts. Integrating data analytics with AI and remote sensing can optimize site selection and monitor forest growth. For example, the Sulu Garden Foundation is developing advanced software to track and identify individual trees via drone-based imaging.
This initiative involves imaging each tree in Panay Island at various growth stages—from 2 feet to 30 feet tall—including detailed leaf analysis. The collected data will train AI models to recognize and monitor each tree during surveillance, enhancing the accuracy of growth assessments and health evaluations.
Continuous monitoring and verification are crucial for successful participation in the carbon market, ensuring that reforestation efforts translate into credible carbon credits. By employing drone technology and AI-driven analysis, projects like the Re-Greening of Panay exemplify how tech-driven strategies can revolutionize reforestation initiatives.
Additionally, innovative financing mechanisms, such as debt-for-nature swaps and blended finance, can mobilize private investments for reforestation projects. These approaches mitigate financial risks while also attracting a broader spectrum of stakeholders, thereby accelerating the pace of reforestation.
A Green Investment: How the Philippines Can Lead the Way
The convergence of legislative action, community engagement, and technological innovation positions the Philippines to undertake reforestation on a scale that truly matters. The carbon pricing framework serves as a pivotal tool in this endeavor, aligning economic incentives with environmental imperatives. By embracing comprehensive and well-structured reforestation strategies, the nation can make significant strides in climate mitigation, ecological restoration, and sustainable development.
