Story perspectives

Philippines Launches Controversial Carbon Credit Experiment

12/12/2025

50 7

Summary

Story summary

The Philippines is testing a new carbon credit system called transition credits to spur emissions reductions and phase out coal by funding plant conversions.
The transition credit experiment is underway at the South Luzon Thermal Energy Corporation (SLTEC) power plant, which is retiring by 2040.
Experts express skepticism due to integrity issues in the carbon market.
Critics warn transition credits may not benefit local communities or accelerate renewables without reforms.

1 of 1

Story summary

The Philippines is testing a new carbon credit system called transition credits to spur emissions reductions and phase out coal by funding plant conversions.
The transition credit experiment is underway at the South Luzon Thermal Energy Corporation (SLTEC) power plant, which is retiring by 2040.
Experts express skepticism due to integrity issues in the carbon market.
Critics warn transition credits may not benefit local communities or accelerate renewables without reforms.