Guidelines Governing the Establishment, Registration, and Monitoring of Voluntary Forest Carbon Credit Projects in Forest Lands, Protected Areas under NIPAS, and Ancestral Lands/Domains

DENR Administrative Order No. 2026-05

Subject: Guidelines Governing the Establishment, Registration, and Monitoring of Voluntary Forest Carbon Credit Projects in Forest Lands, Protected Areas under NIPAS, and Ancestral Lands/Domains

Signed: February 24, 2026 . Published: Manila Standard, February 28, 2026 . Acknowledged: ONAR, U.P. Law Center, March 2, 2026 . Pages: 30

Legal Basis

Pursuant to UNFCCC and the Paris Agreement; PD 705 (Revised Forestry Code); EO 192 (1987); RA 7586 (NIPAS Act); RA 9729 as amended by RA 10174 (Climate Change Act of 2009); RA 8371 (IPRA); EO 263 (1995) on community-based forest management; EO 318 (2004) on sustainable forest management; and EO 174 (2014) on the Philippine Greenhouse Gas Inventory Management and Reporting System.

SECTION 1. Basic Policy

The State recognizes the role of green investors and social enterprises in promoting sustainable forest management, encourages fair, transparent, and inclusive participation in forest carbon initiatives, and supports the development of equitable, responsible, and market-based carbon projects in accordance with national laws and climate commitments.

SECTION 2. Objectives

Forest Carbon Credit Projects shall be: (a) properly documented and registered in the DENR Forest Carbon Credit Database; (b) contribute to climate mitigation through carbon removals, avoiding emissions from deforestation and degradation, and enhancing forest carbon stocks; (c) uphold credibility principles (eligibility, additionality, permanence, transparency, environmental and social integrity); (d) support national climate and biodiversity commitments (NDC, National Adaptation Plan, National REDD+ Strategy, PBSAP); (e) be developed by qualified Project Proponents, Developers, and green investors; (f) ensure legally enforceable community safeguards including stakeholder engagement, benefit-sharing, and grievance mechanisms; and (g) may participate in international VCMs subject to DENR determination of eligibility for NDC counting.

SECTION 3. Scope and Coverage

Applies to all Forest Carbon Credit Projects in: (a) Forest Lands; (b) Protected Areas under NIPAS; (c) Ancestral Lands/Domains, subject to NCIP coordination and IPRA. Projects in ancestral domains overlapping with forest lands or NIPAS are subject to ICCs/IPs' Exercise of Priority Rights (EPR); if not exercised, other applicants may be considered subject to FPIC. Coastal and marine ecosystems (mangroves, seagrasses, wetlands, peatlands) are recognized as project areas. Projects pertain to the Voluntary Carbon Market with integrity safeguards and Article 6 corresponding adjustments where applicable. Project-level activities must align with national or jurisdictional REDD+ accounting frameworks to avoid double counting. Existing projects shall undergo registration under Section 10.2(b).

SECTION 4. Project Classifications

• Afforestation, Reforestation, and Revegetation (ARR / A/R) - Establish new forests or restore degraded areas. Prioritize indigenous or site-appropriate native species. Exotic species discouraged unless scientifically justified.
• Avoided Deforestation (AD) - Includes Avoided Planned Deforestation (APD) and Avoided Unplanned Deforestation (AUD). Must demonstrate emission reductions relative to scientifically established baselines.
• Complementary or Integrated Approaches - Combine ARR and AD interventions within a landscape or jurisdictional program.
• Other Forestry-Related Approaches - Improved forest management, restoration of degraded ecosystems, soil nutrient enhancement, sustainable grazing.
• Blue Carbon and Wetland Restoration - Mangroves, seagrasses, peatlands, marshes, and other wetland ecosystems.

Key Concepts

Carbon Credit: a verified and tradable certificate representing avoidance, reduction, or removal of one metric ton of CO2-eq.
Carbon Rights: distinct from carbon credits; determined by land tenure, project agreements, or applicable laws.
FPIC: the consensus of all members of ICCs/IPs obtained per customary laws, free from manipulation, after full disclosure.
International Carbon Standards: Verra (VCS), Gold Standard, and others endorsed under IC-VCM Core Carbon Principles. DENR may maintain a positive list.
VVBs: Independent Validation and Verification Bodies accredited by recognized international carbon standards and recognized by the DENR.

SECTION 19. Effectivity

Takes effect fifteen (15) days after publication in a newspaper of general circulation and upon submission of three (3) copies to ONAR, UP Law Center.

Signed by Secretary Raphael P.M. Lotilla. Source: User-uploaded official DENR PDF (DAO-2026-05, 30 pages).