Background and Rationale
- Climate change poses significant risks to vulnerable countries like the Philippines due to fragile ecosystems and exposure to natural disasters such as El Niño and La Niña.
- The UNFCCC and Kyoto Protocol create mechanisms to reduce greenhouse gas emissions, notably through the CDM, which enables developing countries to implement projects reducing emissions in exchange for carbon credits purchased by developed countries.
- Participation in the CDM can generate benefits including attracting foreign investments, creating jobs, supporting environmentally friendly projects, facilitating technology transfer, and earning income from carbon market transactions.
- The Marrakesh Accord requires participating countries to establish a National Authority to oversee CDM activities and project approvals.
Powers and Functions of the National Authority for CDM (Section 1)
- Formulate and develop national CDM policy.
- Develop criteria, indicators, standards, systems, procedures, and evaluation tools for reviewing CDM projects.
- Assess and approve CDM projects for submission to the UNFCCC and Kyoto Protocol.
- Monitor the implementation of approved CDM projects.
- Perform other functions related to the advancement and development of the CDM.
Creation and Role of Technical Evaluation Committees (Section 2)
- The National Authority may establish Technical Evaluation Committees to support efficient and effective implementation of its duties.
- The Department of Energy shall lead the evaluation of energy-related projects.
- All government departments, agencies, and instrumentalities are mandated to support the National Authority in its functions.
Rulemaking and Interim Procedures (Section 3)
- The National Authority has 120 days from issuance of the Executive Order to promulgate rules and regulations necessary to perform its functions.
- Existing procedures for CDM project approval remain effective until new rules are issued.
Repealing Clause (Section 4)
- All existing orders, rules, regulations, or parts thereof inconsistent with this Executive Order are repealed, amended, or modified accordingly.
Effectivity (Section 5)
- The Executive Order takes effect immediately upon issuance.
- The order becomes fully effective upon the filing of the new rules and regulations with the University of the Philippines Law Center.