FedEx is expanding its sustainable aviation fuel (SAF) procurement as the air-cargo company works to reduce emissions from the part of its business that produces the largest share of its direct carbon footprint.

The company announced on September 15 that new agreements are projected to secure more than 20 million gallons of neat SAF through 2027. The agreements cover five U.S. airports:

• Newark Liberty International Airport
• Oakland International Airport
• Miami International Airport
• John F. Kennedy International Airport
• Dallas-Fort Worth International Airport

Depending on the airport, the fuel will be supplied at blend ratios ranging from 30% to 50%. FedEx said the agreements build on about 5 million gallons of neat SAF secured in 2025, which supported the deployment of 16.5 million gallons of blended SAF across five U.S. airports.

FedEx’s 2040 Climate Target

The expansion comes as FedEx works toward its goal of carbon-neutral operations by 2040. The target covers Scope 1 and Scope 2 emissions from its operations as well as Scope 3 emissions associated with contracted transportation.

It also includes SAF, aircraft modernization, and operational efficiency as part of its wider climate strategy.

Karen Blanks Ellis, chief sustainability officer and vice president of Environmental Affairs at FedEx, said:

“SAF is one of the most impactful decarbonization solutions available to aviation today and an important part of our approach to reducing emissions. For the market to grow, supply needs to be reliable, affordable, and sustainable. Expanding our procurement allows us to employ more SAF in our network while bolstering the demand for greater production and scale.”

Aviation Drives FedEx’s Emissions

FedEx reported 13.93 million metric tons of CO2e in Scope 1 emissions for FY2025. These direct emissions come mainly from aircraft, vehicles, and facilities.

The company reported another 952,744 metric tons of Scope 2 emissions, primarily from purchased electricity. Its reported Scope 3 emissions totaled 14.88 million metric tons of CO2e.

• Together, the three categories totaled 29.76 million metric tons of reported emissions in FY2025. FedEx notes that its Scope 3 inventory continues to expand, so the figure does not represent every possible Scope 3 category.

Aviation remains the biggest contributor to direct emissions. Owned aircraft accounted for about 79% of FedEx’s Scope 1 footprint, while aviation fuel use generated roughly 11 million metric tons of CO2e during the year.

The company also reports emissions from conventional air pollutants. In 2025, its operations produced about 71,432 metric tons of nitrogen oxides (NOx), 10,773 metric tons of sulfur oxides (SOx), and 640 metric tons of particulate matter (PM10). These pollutants are separate from FedEx’s greenhouse-gas emissions inventory.

Fleet Modernization Cuts Fuel Use

FedEx is not relying on SAF alone to reduce aviation emissions. The company is replacing older aircraft with newer, more fuel-efficient models and optimizing fleet operations. It operates nearly 700 aircraft and is retiring less-efficient three-engine aircraft. The company plans to complete that retirement by 2032.

Aircraft modernization avoided approximately 1.15 million metric tons of CO2e in FY2025, according to FedEx’s 2026 Corporate Responsibility Report. The company also saved more than 120 million gallons of jet fuel through aircraft modernization and related efficiency measures.

Those savings have also reduced operating costs. FedEx estimates that its aircraft modernization program saved about $284 million in fuel costs during FY2025.

Its Fuel Sense program provides another source of efficiency. The program uses operational improvements, flight planning, and technology to reduce fuel consumption across the air network.

To sum up, FedEx has reduced aircraft emissions intensity by 32% from its 2005 baseline and now targets a 40% reduction by 2034.

• SEE MORE: Google Expands SAF Strategy with Amex GBT and Shell Aviation to Cut Aviation Emissions

SAF Takes a Larger Role

The latest agreements increase the scale of SAF in FedEx’s U.S. network while addressing one of the industry’s biggest challenges: supply.

As mentioned before, the new contracts will secure more than 20 million gallons of neat SAF through 2027. Because the fuel will be blended before use, more finished blended fuel will enter the network.

FedEx has set a target of sourcing 30% of its jet fuel as blended fuel from alternative sources by 2030.

The company has already expanded SAF use at several major hubs. Its 2025 agreements supported SAF deployment at airports including Los Angeles, Chicago O’Hare, Miami, Dallas Fort Worth, and New York-JFK. FedEx also secured more than 3 million gallons of blended SAF from Neste for Los Angeles.

The company says SAF supply needs to become more reliable, affordable, and sustainable for the market to scale. Its latest agreements increase demand while allowing FedEx to build SAF into regular network operations rather than treating it only as a pilot project.

For FedEx, the latest SAF agreements add another piece to a broader effort to decarbonize a logistics network that depends heavily on aviation. New aircraft can reduce fuel consumption, operational improvements can lower fuel demand, and SAF can replace part of the fossil jet fuel used across the network.

The challenge is scaling all three at the same time. FedEx’s latest agreements show that SAF is moving from limited deployments toward a more significant role in the company’s long-term aviation emissions strategy.

Now let’s look inside the SAF market in the content below:

In the U.S. SAF Market Is Growing, But Supply Still Trails Demand

FedEx’s latest agreements come as the sustainable aviation fuel market expands in the U.S. and globally, although production remains a small fraction of aviation fuel demand.

DOE data revealed that U.S. production has increased sharply, but actual output remains well below that target. Federal agencies reported that domestic SAF production reached 30 million gallons in the first three quarters of 2024, up from 5 million gallons in 2021.

The government is targeting 3 billion gallons of domestic SAF production a year by 2030 and 35 billion gallons by 2050. The 2030 target would equal about 10% of projected U.S. jet-fuel demand.

More recent EIA data also shows the U.S. is becoming an important supplier to international markets. In the second half of 2025, the U.S. exported nearly 50,000 barrels per day of renewable diesel and other biofuels, a category that includes SAF. Those exports represented about 20% of combined production in the category, with Canada and Europe taking most of the volumes.

Global SAF Supply Remains Small

Globally, SAF production is growing but has not kept pace with the industry’s ambitions.

The International Air Transport Association (IATA) estimates that global SAF production reached about 1.9 million metric tons in 2025, roughly double 2024 production. That still represented only about 0.6% of total jet-fuel consumption. IATA expects production to rise to approximately 2.4 million metric tons in 2026, but that would cover only about 0.8% of aviation fuel demand.

• The gap between production and potential demand remains significant. IATA estimates that airlines will spend about $4.3 billion on SAF in 2026, even though the fuel will supply less than 1% of global aviation fuel needs.

For FedEx, the latest commitment to secure more than 20 million gallons of neat SAF through 2027 fits into this broader market expansion. The company is effectively locking in a portion of future supply while SAF production capacity continues to scale.

The U.S. has the production targets and project pipeline to become a major SAF market, but the gap between announced capacity and actual production remains important. Globally, the same issue is even more pronounced: SAF output is growing rapidly from a small base, while aviation fuel demand remains measured in hundreds of millions of tonnes.

• READ MORE: SAF Crisis Deepens: IATA Says Aviation’s Net Zero Goal Is at Risk, but Brazil Offers New Hope

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Skyborn Renewables has reached financial close on the Gennaker offshore wind farm, securing a €2.1 billion financing package, or roughly $2.4 billion, for one of Germany’s largest new renewable energy projects. The project, located in the German Baltic Sea, will have up to 976.5 megawatts (MW) of capacity. More than €3 billion in total investment is expected to be mobilized.

Gennaker will start commercial operations by the end of 2028. It aims to generate enough electricity for about 1 million German households.

The financing comes from 16 commercial lenders and the European Investment Bank (EIB). The EIB previously approved up to €700 million for the project, whose total cost was estimated at about €3.1 billion.

Nicola Beer, Vice-President of the European Investment Bank (EIB), noted:

“Gennaker shows Europe turning its clean‑energy goals into real benefits for people. Built off the coast of Mecklenburg‑Western Pomerania, where winds are strong and reliable, this wind farm will help Germany produce more of its own power and lower dependence on imported energy. Once running, it will supply clean electricity to around one million homes and businesses across the country, helping to bring down energy bills from Schwerin to Munich.”

The deal is also significant for BlackRock. Skyborn is a portfolio company of Global Infrastructure Partners (GIP), which has been part of BlackRock since it completed its acquisition of GIP in October 2024.

Gennaker Secures €2.1B to Move Into Construction

Financial close means the major financing, supply, power sales, and ownership agreements are now in place. Skyborn developed Gennaker from the ground up and will lead construction management and long-term asset management.

The project is located about 15 kilometers north of the Fischland-Darß-Zingst peninsula in Mecklenburg-Western Pomerania. Once complete, its nearly 1 GW capacity will make it the largest offshore wind farm in Germany’s Baltic Sea.

The wind project secured its construction and operations permit in December 2025. Major supply and installation contracts were also signed for foundations, cables, and wind turbines.

Siemens Gamesa is supplying the turbines, while other contractors include EEW, Seaway 7, Boskalis, and Fred. Olsen Windcarrier. Stadtwerke München, or SWM, is also now a 25% equity partner in the project, leaving Skyborn with a 75% stake.

Amazon and Uniper Lock In 700 MW of Power

Gennaker has also secured major buyers for its electricity. In June, Amazon signed a 600 MW power purchase agreement (PPA) covering about 61% of the project’s total capacity. Skyborn and Amazon described it as the largest single PPA ever signed in Germany.

The long-term contract was an important step because it gives the project predictable revenue from electricity sales.

Uniper also signed a 100 MW PPA with Skyborn. The agreement runs for an initial 10 years after commercial operation, with an option to extend. Together, the two contracts cover 700 MW, or roughly 72% of Gennaker’s maximum capacity.

These agreements illustrate how PPAs are becoming an important financing tool for large renewable projects. Long-term electricity contracts can provide revenue visibility that helps banks assess the project’s ability to repay debt.

• SEE MORE: Amazon, Skyborn Renewables Seal Germany’s Largest 600 MW Offshore Wind Energy Deal

Germany Needs Gennaker and Many More Like It

Gennaker arrives as Germany tries to expand offshore wind rapidly. The country has set a target of at least 30 GW of offshore wind capacity by 2030, 40 GW by 2035 and 70 GW by 2045.

The country is also targeting 80% renewable electricity by 2030. Gennaker’s 976.5 MW would equal about 3.3% of Germany’s 2030 offshore wind target once fully operational.

The project will, therefore, make a meaningful contribution, but Germany will need many more large projects to reach its targets.

Moreover, offshore development remains challenging. Germany postponed offshore wind auctions originally planned for 2026 until 2027 as part of changes to its offshore wind development plan. The government said the delay would not affect the long-term 70 GW target for 2045.

A Large Bet on Energy Security

Offshore wind is also becoming part of Germany’s energy security strategy. The country is trying to reduce its dependence on imported fossil fuels while increasing domestic electricity production.

Gennaker will add nearly 1 GW of renewable capacity in the Baltic Sea and provide power to the German grid. That can help reduce the need for fossil fuel generation when wind conditions allow.

The project will also support Germany’s industrial base. It will involve European manufacturers, marine contractors, and others in the offshore wind supply chain. The EIB expects the project to create economic value in Mecklenburg-Western Pomerania, where Gennaker is being developed.

Europe’s Offshore Wind Investment Is Accelerating

Gennaker is part of a broader recovery in European offshore wind investment. Europe had 40.9 GW of offshore wind capacity by the end of June 2026, after adding 2.3 GW in the first half of the year.

Governments also awarded 8.4 GW of offshore wind capacity through auctions during the period. Germany led additions with 3.4 GW.

Investment is picking up as well. Europe raised €9 billion for new wind projects in H1 2026, including about €0.6 billion for offshore wind. In 2025, six large offshore projects reached final investment decisions, representing 5.6 GW and €22 billion of investment.

The longer-term opportunity is much larger. Nine North Sea countries signed a 2026 Investment Pact targeting 15 GW of new offshore wind each year from 2031 to 2040, with industry estimating up to €1 trillion in related economic activity.

However, investment still faces challenges. Grid capacity, permitting, supply chain constraints, and higher project costs remain major barriers. That makes successful financings such as Gennaker important signals that Europe’s offshore wind market can still attract large-scale capital.

Offshore Wind Has a Direct Climate Benefit

Wind power produces electricity without the direct CO2 emissions associated with coal and natural gas generation. Replacing fossil fuel generation with renewable electricity can therefore lower power sector emissions, depending on the generation it displaces.

However, Gennaker should not be described as a carbon credit project. The wind farm will generate renewable electricity rather than voluntary carbon credits. Its climate value comes from replacing carbon-heavy electricity. It also supplies low-carbon power to the grid and contracted customers.

This distinction is important as demand for renewable energy grows alongside carbon markets.

Companies such as Amazon are increasingly using long-term PPAs to secure renewable electricity for their operations and support their emissions goals. However, a renewable energy PPA is not the same as a carbon credit purchase.

BlackRock Expands Its Renewable Infrastructure Footprint

The project also fits into a larger trend in infrastructure investment. BlackRock completed its acquisition of GIP in October 2024, creating a much larger infrastructure investment platform. At completion, the combined platform had about $170 billion in assets under management and more than 300 active investments.

GIP invests across energy, transport, digital infrastructure, and other sectors. Offshore wind matches that strategy. Projects need a lot of upfront money, but they can bring in steady income from power sales over time.

Gennaker’s financing structure shows how public and private capital can work together. Commercial banks provide most of the debt, while the EIB supports the project as a major European climate and infrastructure investment.

A Nearly 1 GW Bet on Germany’s Clean Power Future

Gennaker is moving from development to construction. For Germany, the project adds a significant amount of new offshore wind capacity as the country works toward its 30 GW target for 2030.

Skyborn, backed by BlackRock, shows how to finance big renewable projects. They combine institutional capital, bank debt, equity, and long-term power contracts.

Gennaker points out an important fact for the energy transition: to decarbonize electricity, we need billions of dollars for infrastructure first. Only then will the emissions benefits reach the grid. Projects like Gennaker will become increasingly important to Germany’s effort to expand clean power while reducing its reliance on fossil fuels.

• READ MORE: Blackstone Bets €2B on Eurowind as Europe’s Renewable Energy Boom Meets AI-Driven Power Surge
  

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The U.S. is backing an effort to rebuild its tungsten supply chain as China maintains a dominant position in the global market.

The U.S. Department of War, aka the Pentagon, has committed up to $450 million to The Elmet Group (NASDAQ: ELMT), a U.S.-owned tungsten and advanced materials company. About $150 million of that government-backed investment has been designated for a transaction involving Blue Moon Metals’ (TSXV: MOON; NASDAQ: BMM) Springer Tungsten Complex in Nevada.

Blue Moon, Elmet, and Australia-listed EQ Resources (ASX: EQR) have agreed to a US$150 million investment in the Springer project, with another US$25 million set aside by Elmet and EQ Resources for additional requirements, if needed, to restart the project’s ammonium paratungstate (APT) plant.

The deal comes as Washington tries to reduce exposure to China-dominated critical-mineral supply chains. Tungsten is particularly important because the U.S. has not mined the metal commercially since 2015, while domestic consumption remains heavily dependent on imports.

Department of War Backs Domestic Tungsten Capacity

Pentagon announced the $450 million investment in Elmet on September 14. The funding will take the form of redeemable preferred equity and is being provided through the department’s Industrial Base Analysis and Sustainment program.

The government says the investment will expand domestic tungsten capacity and strengthen the industrial base supporting U.S. defense programs. Elmet currently supplies materials and components for more than 100 Department of War programs, including the F-35, Patriot PAC-3, Trident D5, Next Generation Interceptor, PrSM and Virginia- and Columbia-class submarines.

A Bigger Role for Elmet

The government also says the investment will help establish North America’s only independent APT facility, addressing a major processing gap in the U.S. tungsten supply chain. China currently accounts for an estimated 85% of global tungsten supply, according to the Department of War.

Separately, Elmet said one of its subsidiaries secured a contract worth about $2 billion from the Defense Logistics Agency to help rebuild the National Defense Stockpile. The agreement includes a guaranteed funded commitment of $150 million and covers tungsten ores, concentrates and sodium tungstate.

The two announcements give Elmet a central role in Washington’s effort to rebuild domestic tungsten capacity, from raw material supply to processing and manufacturing.

U.S. Still Depends on Tungsten Imports

The supply-chain challenge is significant.

The latest U.S. Geological Survey data show that the U.S. has had no commercial tungsten mine production since 2015. Estimated 2025 imports reached:

• 1,700 tonnes of tungsten contained in ores and concentrates
• 10,000 tonnes in other tungsten forms
• More than 50% net import reliance for apparent consumption

USGS also estimates that China represented 26% of U.S. tungsten import sources between 2021 and 2024, followed by Germany at 14%, Bolivia at 8% and Vietnam at 8%.

The figures show why Washington is focusing on more than simply reopening a mine. The U.S. needs additional capacity across mining, processing and manufacturing if it wants to reduce exposure to overseas supply disruptions.

The supply risk has become more urgent since China introduced export controls on selected tungsten products in February 2025. USGS reported that prices climbed sharply during 2025. The average Rotterdam price for 65% tungsten concentrate increased from $252 per metric ton in 2024 to an estimated $380 in 2025.

USGS also ranks tungsten among the minerals with a high potential economic impact from supply disruption. Its 2025 assessment estimated a probability-weighted reduction of about $544 million in U.S. GDP under the modeled disruption scenario.

• READ MORE: U.S. Tungsten Revival: Rising Demand, Tight Supply, and Top Stocks to Watch in 2025 

Springer Could Restart U.S. Tungsten Mining

Against that backdrop, the Springer project offers a potential domestic source.

                                                The Springer Mine

Located near Imlay, Nevada, Springer historically ranked among the largest tungsten mines in the United States. The project includes open-pit and underground mining operations, a 1,200-ton-per-day mill and an APT plant designed for potential production of up to 4,000 tonnes per year.

• Blue Moon expects the Springer mine and mill to return to production in the fourth quarter of 2027. The APT plant is expected to restart in the second half of 2028.

The project already has access to water, electricity, natural gas, and tailings capacity. It is also located a few miles from Interstate 80 and the Union Pacific rail line. Blue Moon acquired additional water rights and land in September to provide access to the rail line, with the potential for a future loading facility.

Resource Estimate Needs Further Verification

Blue Moon reports a historical mineral resource of 10.7 million tonnes grading 0.45% WO₃. However, the company clearly states that this is a historical estimate from prior operators and has not been verified as a current NI 43-101 resource. Further drilling is planned to update the estimate.

That distinction is important for investors because the historical resource should not be treated as a current compliant resource.

Elmet Will Control the APT Plant

The transaction is designed to connect Springer mining with downstream tungsten processing.

Elmet will provide about $150 million across the Springer-related transactions. This includes a $50 million tungsten prepayment facility for Blue Moon and a $75 million capital contribution to the joint venture that will own and operate the APT plant. Elmet will also subscribe for $25 million of new Blue Moon equity.

The APT joint venture is expected to have the following ownership:

• Elmet: 70%
• Blue Moon: 20%
• EQ Resources: 10%

Phase-one APT capacity is targeted at 4,000 tonnes per year, with infrastructure planned to support blue tungsten oxide capacity and an additional leaching line. Elmet will operate the facility.

The structure gives Springer a pathway from mined tungsten concentrate to a processed product that can feed downstream U.S. manufacturing.

EQ Resources Adds Australian and Spanish Supply

EQ Resources brings an allied supply component to the project.

The Australian company operates the Mt Carbine tungsten project in Queensland and Barruecopardo in Spain. Under the agreement, EQ will take a 10% interest in the APT joint venture and enter into an offtake agreement covering 4,000 tonnes of tungsten trioxide contained in its concentrate over eight years after the APT plant begins operating.

During the first five years, EQ could use up to 25% of the APT plant’s input capacity, capped at 1,000 tonnes of production capacity per year. Springer would receive up to 75% of the input volume during that period, with additional material potentially sourced through other agreements supported by Elmet and the Department of War.

EQ is also testing its ore-sorting technology at the Springer mill. Initial results were positive, although additional testing is still required before installation is confirmed.

Building a U.S.-Aligned Tungsten Chain

The Springer deal represents one part of a broader effort to rebuild U.S. tungsten supply.

The Department of War’s $450 million commitment to Elmet, the separate potential $2 billion DLA stockpile contract, and the Springer investment all address different parts of the same vulnerability: the U.S. has significant tungsten demand but no active commercial tungsten mine.

For Blue Moon, the transaction provides funding and strategic partners to advance Springer. For Elmet, it expands control over tungsten processing and downstream manufacturing. For EQ Resources, it creates another route into the U.S. market for tungsten from allied jurisdictions.

The broader market backdrop is also becoming more supportive for new Western supply. Global tungsten mine production reached an estimated 85,000 tonnes in 2025, according to USGS, while China remained the world’s leading producer, importer and consumer of tungsten concentrates.

Springer will not eliminate U.S. import dependence on its own. But if Blue Moon meets its development targets, the project could become an important domestic source of tungsten concentrate and APT.

The bigger investment story is the attempt to rebuild the entire supply chain, from Nevada mining to North American processing and U.S. defense manufacturing, at a time when China continues to dominate the global tungsten market.

• FURTHER READING: Trump-Linked Kazakhstan Tungsten Mega Deal Could Break China’s Grip on Critical Minerals

The post Pentagon Backs Nevada’s Springer Project to Boost US Tungsten Supply appeared first on Carbon Credits.

The Philippines is moving to turn its forests into a larger source of climate finance as it takes on a tougher emissions target. The country has a 2026–2030 roadmap for the voluntary forest carbon market. It is creating the registry, monitoring systems, and policies to draw in private investment for forests.

The move comes just days after the Philippines submitted its updated 2026 Nationally Determined Contribution (NDC) to the UN climate process.

The new NDC keeps the country’s 75% emissions reduction and avoidance target, but changes the structure. The target now covers 2025–2035 and includes forestry and other land use (FOLU).

Of the 75% target, 7% is unconditional, while 68% depends on international support. That makes forest carbon more than a conservation opportunity. It could become one tool for helping the Philippines secure investment needed to deliver its broader climate targets.

Philippines Puts Forests at the Center of Its Climate Strategy

The Philippines’ new NDC gives forests a much larger role in its emissions pathway. The 2026 NDC covers energy, transport, industrial processes, agriculture, waste, and forestry and other land use.

Updated government modelling shows the FOLU sector has been a net carbon sink since 2020. The NDC estimates that FOLU policies could reduce cumulative emissions by about 2.3 billion tonnes of CO₂e between 2025 and 2035 compared with the business-as-usual pathway.

With all identified policies and measures, the country is projected to become a net sink over the 2025–2035 period. That makes protecting and expanding the forest carbon sink important to the country’s overall climate strategy.

The NDC commits the Philippines to fully use this sink. This will happen through forest protection, reforestation, and sustainable land management.

DENR Forest Management Bureau Assistant Director Ray Thomas Kabigting remarked:

“FMB is ready to converse with the business sector in a more scaled-up way wherein we’re talking about financing, we can already understand balance sheets, and we can produce policies that are actually aligned with business concepts and business science rather than just pure forestry science.”

A Five-Year Roadmap for Forest Carbon

The Department of Environment and Natural Resources (DENR) formally adopted its Roadmap to Readiness in the Voluntary Forest Carbon Market 2026–2030 through Administrative Order No. 2026-02.

The roadmap identifies four priorities:

1. Policy and regulatory frameworks,
2. Data, monitoring, reporting, and verification,
3. Institutional capacity, and
4. Sustainable financing and market development.

The goal is to make the Philippines more attractive for high-quality forest carbon projects while creating safeguards around carbon ownership, benefit sharing, and environmental integrity.

The roadmap also calls for a DENR Forest Carbon Credit Database that will track forest carbon projects and credits. It is designed to connect with a broader national carbon registry being developed under the country’s Article 6 framework. This infrastructure matters because buyers increasingly want evidence that credits are real, additional, and not counted twice.

7.23 Million Hectares Give the Philippines a Major Carbon Asset

The economic opportunity is significant. The DENR roadmap estimates that the Philippines has about 7.23 million hectares of remaining forest, equal to roughly 24% of the country’s land area.

The document estimates that around one-third is closed-canopy forest and two-thirds is open forest. These forests provide more than carbon storage. They also protect watersheds, reduce soil erosion, support biodiversity, and provide livelihoods for local communities.

However, forest finance remains a major challenge. The roadmap says global investment in forests is about $2.2 billion per year. Still, the world needs over $450 billion annually to reach forest and climate goals.

Carbon finance can help bridge that gap. It creates revenue linked to clear forest protection and restoration efforts. The Philippines is thus trying to move from short-term conservation funding toward longer-term investment models.

• RELEVANT: Philippines Launches First Nature-Based Solutions Framework to Unlock Climate Finance and Restore Ecosystems

The Forest Carbon Market Is Still Small, but the Pipeline Is Growing

Despite the potential, the Philippine forest carbon market remains small. The DENR roadmap says there were no nationally issued carbon credits at the time of its stocktake. Existing credits had been issued through international standards.

The government identified two projects registered under Verra’s Verified Carbon Standard, with four additional projects in the pipeline. At least nine other forest carbon projects were also identified outside the Verra system.

Some projects are in Mindanao. Other opportunities are being looked into in areas with community forest agreements, ancestral domains, and other forest tenure arrangements.

The roadmap highlights 1.2 million hectares of classified forest land as key investment areas. These areas are prioritized for reforestation, agroforestry, and other forest-based development.

Another 1.5 million hectares are being assessed for possible release for future development. That could significantly expand the potential project pipeline. But land tenure, carbon rights, and benefit sharing remain important hurdles.

CarbonPH Pushes the ASEAN Opportunity

This is where the recent CarbonPH Coalition initiative becomes important. At a CarbonPH Coalition Education Series session, DENR officials shared their plans. They aim to strengthen forest carbon project registration. They will also establish carbon baselines and expand monitoring.

The DENR Forest Management Bureau is creating a registry to track projects and credits. They are also using satellite monitoring to enhance verification.

The Philippines is also seeking a stronger position in the ASEAN Common Carbon Framework (ACCF). The country is an observer right now, while the regional initiative is focused on building a stronger carbon market. It aims to improve supply integrity, boost demand, and ensure interoperability.

The United Nations Environment Programme (UNEP) says annual investment in nature-based solutions must nearly triple by 2030, reaching more than $542 billion a year. This funding will be critical to meet global climate, biodiversity, and land restoration goals.

At the same time, demand for high-quality nature-based carbon projects is growing. Forest protection (REDD), reforestation (ARR), and mangrove restoration remain major sources of nature-based carbon credits. Buyers are increasingly looking for projects backed by strong science, reliable monitoring, and clear benefits for local communities.

That could give Philippine forest projects access to a wider pool of regional buyers if standards and systems become more connected.

Regional competition is already growing. Malaysia has a government-supported carbon exchange. Indonesia and Thailand are also building their carbon market systems. For the Philippines, credible forest projects could become a way to compete on quality rather than simply price.

Carbon Finance Must Also Deliver for Communities

Scaling forest carbon will require more than satellites and registries. The DENR roadmap identifies benefit sharing as a major gap.

Developers must submit benefit-sharing plans. However, the roadmap notes that more guidance is needed on revenue distribution. That issue matters a lot. Many potential projects affect communities, forest tenure holders, and Indigenous Peoples.

The roadmap calls for stronger safeguards and recognition of Free, Prior and Informed Consent (FPIC) where projects affect ancestral lands and domains. The credibility of Philippine forest credits depends on two things:

• How much carbon they remove or avoid, and if local communities gain real benefits.  

The forest carbon roadmap fits directly into the Philippines’ broader climate finance challenge. The new NDC says implementation depends on access to accessible, predictable, and adequate international support. 

That means finance, technology, and capacity building are not secondary issues. They are central to delivering the country’s climate commitment. Carbon markets could become one part of that financing mix.

The new NDC also recognizes Article 6 mechanisms as tools for international cooperation and resource mobilization. Any international transfers, however, will require strong governance, monitoring, and safeguards against double counting.

Forest Carbon Could Link Climate Goals and Investment

The Philippines now has two pieces of a potentially important climate finance strategy. The 2026 NDC places the country’s forest sink directly inside its emissions pathway.

The CarbonPH Coalition is adding a private-sector platform to connect those developments with emerging ASEAN carbon markets. But the opportunity is still at an early stage.

The country needs clearer carbon rights, reliable monitoring, workable tenure rules and transparent benefit sharing before forest carbon can scale. It also needs international finance to help develop projects that may not be commercially viable on carbon revenue alone.

If those pieces come together, Philippine forests could play a larger role in both emissions reduction and climate finance.

The bigger test is whether the country can turn its millions of hectares of remaining forest and its expanding carbon market infrastructure into credible, investable climate assets while ensuring that communities and ecosystems share in the value.

• READ MORE: Toward a Climate-Resilient Philippines: Leveraging Technology and Carbon Finance for Reforestation

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