Quezon city: The Philippines is strengthening its systems to enable a more credible and comparable greenhouse gas (GHG) reporting across industries. This follows the Department of Environment and Natural Resources (DENR), the Securities and Exchange Commission (SEC), and Japan's Ministry of the Environment (MOEJ) signing of a Letter of Intent (LOI) to advance cooperation on corporate GHG measurement and reporting.
According to Philippines News Agency, the partnership responds to a growing global demand for verifiable emissions data, as climate-related disclosures become central to investment decisions, sustainability reporting, and emerging carbon-related trade mechanisms. 'By collaborating on sustainability information disclosure systems, exchanging views to enhance the compatibility of these systems in accordance with the GHG Protocol will help reduce the burden on companies between Japan and the Philippines having deep economic ties,' Vice Minister of Environmental Affairs of the Ministry of the Environment of Japan Kentaro DOI said.
For the Philippines, the challenge is both environmental and economic: improving the quality of emissions data is essential for more accurate national inventories, stronger climate policy design, and maintaining the competitiveness of local industries in a tightening global landscape. The LOI formalizes cooperation in three areas: refinement of greenhouse gas calculation tools, capacity-building for the private sector through nationwide seminars, and development of a digital platform for emissions reporting.
The initiative builds on the Partnership to Strengthen Transparency for Co-Innovation (PaSTI), which began in 2020. Through this cooperation, the DENR developed a facility-level GHG calculation tool for the Waste and Industrial Processes and Product Use sectors, with technical support from Japan. The tool is intended to improve the quality of corporate reporting and strengthen data inputs for the national greenhouse gas inventory.
'Today's letter of intent, therefore, reflects our shared commitment to strengthening climate transparency and supporting institutions in companies as they navigate the transition toward more sustainable and accountable business practices,' Securities and Exchange Commission commissioner McJill Bryant Fernandez said. He noted that closer alignment between systems for reporting greenhouse gas emissions and sustainability disclosure requirements can help improve consistency in corporate reporting.
The partnership supports the transition toward a more structured greenhouse gas reporting environment as regulatory frameworks evolve. Better emissions data are expected to strengthen the national greenhouse gas inventory, improve measurement and verification of mitigation actions, and support more targeted climate interventions. It will also help prepare Philippine industries for emerging international requirements, including carbon-related trade measures and participation in global carbon markets.
The DENR is developing administrative measures to institutionalize the use of standardized tools for calculating greenhouse gas emissions within national reporting systems, alongside broader efforts to advance a more integrated climate governance framework. 'Together, we are transforming transparency into a foundation for global competitiveness, low-carbon development, and climate resilience,' Rebuelta-Teh said.
