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Development of an implementation plan for the adoption of the Philippines’ Readiness for Forest Carbon Market Roadmap

About this opportunity

**The Collaborative Instrument for Ambitious Climate Action (CiACA) initiative**

Carbon pricing is a widely recognized approach for addressing greenhouse gas (GHG) emissions by placing a price on carbon and creating incentives for investment in climate-friendly solutions. A growing number of Parties are considering carbon pricing instruments as a means of implementing their climate commitments under the Paris Agreement. The Paris Agreement explicitly recognizes the important role of incentives for emissions-reduction activities, including tools such as domestic policies and carbon pricing (Decision 1/CP21, para. 136).

The CiACA initiative was launched during the 22nd Conference of the Parties (COP22) in Marrakesh, with the objective of supporting Parties in developing carbon pricing approaches to implement their NDCs under the Paris Agreement while fostering collaboration. The initiative is purely voluntary and does not create obligations for the jurisdictions supported or for its donors. It is currently funded through voluntary contributions from the Government of Germany, provided by the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN). The initiative is jointly managed by the UNFCCC Secretariat and its Regional Collaboration Centres (RCCs).

**National context**

The Philippines, as a developing-country Party, has articulated an ambitious mitigation target in its Nationally Determined Contribution (NDC), committing to a 75% reduction in greenhouse gas emissions relative to business-as-usual levels by 2030, conditional on international support. National greenhouse gas (GHG) emissions, estimated at approximately 234 MtCO₂e in 2019 (excluding LULUCF), are primarily driven by the energy, transport, and industrial sectors; however, the forestry sector remains integral to the country’s mitigation portfolio. In addition to its carbon sequestration potential, the sector provides critical co-benefits, including biodiversity conservation and climate resilience, thereby positioning forest-based mitigation activities as a key component in Philippines’ NDC Implementation Plan (2020-2030).

The Government of the Philippines is advancing the development of a comprehensive carbon pricing framework, including the potential establishment of an emissions trading system (ETS). House Bill No. 11375, currently under legislative consideration, establishes an enabling framework for carbon pricing and mandates that covered entities in key sectors undertake decarbonization measures. The proposed system provides flexibility through the use of emissions allowances, internationally transferred mitigation outcomes (ITMOs) under Article 6 of the Paris Agreement, and other eligible carbon credits.

In this context, the Department of Environment and Natural Resources (DENR) has issued two landmark Department Administrative Orders that establish the regulatory foundation for voluntary forest carbon market development in the Philippines:

- DAO 2026-02: Adoption of the Philippines’ Readiness in the Voluntary Forest Carbon Market: Roadmap (2026–2030), which provides the strategic framework for forest carbon market development and assigns implementation responsibilities to the Forest Management Bureau (FMB) and other relevant agencies.
- DAO 2026-05: Guidelines Governing the Establishment, Registration, and Monitoring of Voluntary Forest Carbon Credit Projects in Forest Lands, Protected Areas under NIPAS, and Ancestral Lands/Domains, which establishes the regulatory framework for forest carbon project registration and oversight.

DAO 2026-02 identifies the FMB as the overall technical coordinator for the roadmap and mandates the formulation of annual implementation and financing plans. The DAO further tasks DENR with commissioning studies on revenue sharing, the feasibility of carbon revenue taxation, and sustainable financing instruments, including the viability of a national Carbon Exchange. Implementation of the Roadmap requires close coordination among DENR, the Climate Change Commission, the Department of Finance, local government units (LGUs), the National Commission on Indigenous Peoples (NCIP), and development partners.

The institutional landscape involves multiple stakeholders with distinct but complementary mandates. Effective inter-institutional coordination will be critical to operationalizing a transparent, robust, and inclusive forest carbon market framework that upholds environmental integrity and ensures equitable benefit-sharing for local communities and Indigenous Peoples.

**Objectives**

The primary objective of this assignment is to support the Forest Management Bureau (FMB) of the Department of Environment and Natural Resources (DENR) in developing key elements of the implementation plan for DAO 2026-02, the Philippines’ Voluntary Forest Carbon Market Roadmap (2026–2030), including identifying the capacity-building needs of relevant government institutions required to operationalize the roadmap effectively.

Specifically, the assignment will:

- Assess the regulatory and institutional framework established by DAO 2026-02, identify implementation gaps, and propose actionable recommendations to address them.
- Develop a phased, prioritized implementation plan for DAO 2026-02 that provides clear timelines, institutional responsibilities, resource requirements, and sequencing of actions aligned with the roadmap’s strategic objectives.
- Conduct a systematic assessment of capacity-building needs across FMB and relevant agencies (DENR field offices, NCIP, LGUs) required to operationalize forest carbon market governance, MRV, and oversight functions under DAO 2026-02.
- Recommend targeted capacity-building interventions to address identified gaps, drawing on international best practices and regional precedents.
- Facilitate stakeholder validation of the implementation plan and capacity building recommendations through a national consultation workshop.

**Scope of work**

The Consultant shall be responsible for the tasks outlined below and required to ensure broad and inclusive participation of all relevant stakeholders in any workshops or consultations conducted as part of this assignment, including national agencies, LGUs, Indigenous Peoples’ organizations, civil society, and development partners.

**1. Inception Meeting and Workplan**

Upon signing the contract, the Consultant shall hold a virtual inception meeting with the UNFCCC RCC-Asia Pacific team, DENR Climate Change Service and FMB counterparts, including the Climate Change Commission, to present their work plan, clarify understanding of the assignment, agree on methodological approaches, and confirm timelines for all deliverables. The inception report shall document the agreed workplan, methodology, and any revised timelines.

**2. Regulatory and Institutional Stocktake**

The Consultant shall conduct a comprehensive review of the regulatory and institutional landscape relevant to the implementation of DAO 2026-02, including but not limited to:

- Review of DAO 2026-02, DAO 2026-05, and associated policy instruments (including House Bill No. 11375 and relevant REDD+ frameworks), with analysis of mandated follow-up actions assigned to FMB, DENR, NCIP, and other agencies. The review should also include the complementary roles of the two DAOs, highlighting that DAO 2026-02 contains the roadmap, while DAO 2026-05 operationalizes the forest carbon market, its reporting, M&E, and implementation.
- Mapping of institutional mandates, responsibilities, and inter-agency coordination mechanisms relevant to forest carbon market governance, including links to the National Carbon Registry and the GHG reporting system (BTR/ETF framework) and an assessment of the interoperability and the current development status of data-sharing protocols such as the National Forest Monitoring System, Forest Spatial Dataset Portal, and Forest Carbon Credit Database
- Assessment of exi

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