This paper presents the prospective of carbon financing in the country through reforestation projects. The issue of climate change calls for immediate government response to mitigate its impacts on both human and environmental systems. One way of mitigating climate change and restoring forest ecosystem is through carbon financing.
Carbon financing can be realized in the country through reforestation efforts. Carbon finance is a market-based instrument where farmers can enhance their income from tree-farming and agroforestry. It is the revenue streams generated by projects from the sale of greenhouse gas emission reductions. However, there is limited information in the Philippines about the development and access to carbon finance for reforestation and afforestation projects.
Moreover, complicated transactions and the absence of clear trading schemes are some of the reasons why carbon financing/trading in the country has not drawn much attention among farmers. Addressing these issues would give farmers the opportunity to engage in carbon financing, providing them with socioeconomic benefits while regenerating forest resources.