TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First: Regular Session
SENATE
S.B. No. 366
25 JUL 10 P2 :07
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RtCEIVEDSV;
Introduced by Senator WIN GATCHALIAN
AN ACT PROVIDING FOR A NATIONAL ENERGY POLICY AND FRAMEWORK 
FOR A CLEAN AND JUST ENERGY TRANSITION IN THE COUNTRY, AND 
APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
In 2017, the Philippines ratified the Paris Climate Change Agreement which aims to 
hold "the increase in the global average temperature to well below 2°C above pre-industrial 
levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial 
levels, recognizing that this would significantly reduce the risks and impacts of climate 
change."1
In 2021, the Philippines submitted its Nationally Determined Contribution (NDC) to the 
United Nations Framework Convention on Climate Change (UNFCCC). Through the 
NDC, the Philippines commits to a projected greenhouse gas (GFIG) emissions 
reduction and avoidance of 75% for 2020 to 2030, of which 2.71% is unconditional 
and 72.29% is conditional.2
Despite the submission of the NDC, including an implementation plan, there is no clear 
energy transition framework to support the country's NDC and the complementary
1 Article 2(l)(a) of Paris Agreement (2015). United Nations. Available at 
https://unfccc.int/sites/default/files/english_paris_agreement.pdf. Accessed on 7 January 2021.
2 Implementation Plan for the Republic of the Philippines Nationally Determined Contribution (NDC) 2020 - 2030. Available at 
https.7/climate.gov.ph/public/ckfinder/userfiles/files/Knowledge/The%20Philippines'%20NDC%20Implementation%20Plan%20
-%20072024.pdf. Accessed on 29 June 2025.


policies laid out in Republic Act No. 7638, Republic Act No. 9136 and Republic Act No. 
9513.
This measure thus seeks to establish a framework for introducing and institutionalizing 
fundamental policies on energy transition, which includes promotion of clean energy 
sources, decrease in the utilization of fossil-based sources of energy, and the 
delineation of responsibilities among various government agencies in the transport 
and power sectors. The Climate Change Commission is tasked with leading the 
implementation of this bill through the creation and implementation of an Energy 
Transition Plan, with assistance of various government agencies such as the 
Department of Energy, Department of Transportation, Department of Environment 
and Natural Resources, Department of Finance, Department of Trade and Industry, 
Department of Agriculture, Department of Labor and Employment, and Energy 
Regulatory Commission. Through this bill, it is hoped that the country will be able to 
comply with its commitments under the Paris Agreement while ensuring that the 
transition shall be fair and inclusive.
Given the foregoing, the immediate passage of this measure is
lATCHAI


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S.B. No. 366
‘■i'"4.oi tT.)?
25 JUL 10 P2 -07
RECEIVED 8^;,
Introduced by Senator Sherwin Gatchalian
AN ACT PROVIDING FOR A NATIONAL ENERGY POLICY AND FRAMEWORK 
FOR A CLEAN AND JUST ENERGY TRANSITION IN THE COUNTRY, AND 
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Energy Transition
Act".
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
adopt a clean, just, and comprehensive energy transition framework which shall:
a. Enable the country to meet its international obligations to lower greenhouse 
gas emissions by reducing usage of fossil-based systems of energy 
production and consumption;
b. Provide protection to the environment by accelerating the exploration, 
development, and utilization of clean energy sources to include, among 
others, biomass, solar, wind, geothermal, ocean energy, hydropower, green 
hydrogen, and biofuels;
c. Ensure energy security in the country as it transitions into clean energy;
d. Warrant energy equity in the country during the energy transition; and


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e. Afford protection to labor and investments while the country shifts from
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fossil-based systems of energy production and consumption to clean energy
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sources.
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Sec. 3. Scope. - This Act shall establish a framework for introducing and
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institutionalizing fundamental policies on energy transition, including the promotion of
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clean energy sources, decrease in the utilization of fossil-based sources of energy, and
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the delineation of responsibilities among various government agencies in the energy
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sector.
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Sec. 4. Definition of Terms. - As used in this Act, the following terms shall be
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defined as:
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a. "Carbon offset" refers to a certification attesting to a reduction in
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greenhouse gas (GHG) by a voluntary carbon market 
provider. It can be
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used for voluntary carbon reduction commitments 
or for compliance with
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cap-and-trade programs, if applicable;
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b. "Carbon tax" refers to the tax charged on the total amount of reckonable
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GHG emissions of a taxable facility;
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c. "Clean Energy Sources" refers to technologies, such as electric vehicles and
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fuel cells, and energy sources, such as renewable energy, that when utilized
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emits minimal or no GHG;
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d. "Climate Risk" refers to both physical and transition risk arising from climate
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change;
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e. "Emissions Threshold" refers to the maximum amount of GHG that various
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sources can emit without being subjected to the carbon tax as determined
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by Climate Change Commission pursuant to Section 7 of this Act;
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f. "Energy Sector" refers to the sector engaged in exploration and production,
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refining and marketing, storage and transportation, and utilization of energy
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sources such as fossil fuels and renewable energy, whichever is applicable;
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g. "Energy Transition" refers to the global energy sector's shift from fossil-based
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systems of energy production and consumption to clean energy sources;


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h. "Just Transition" refers to globally recognized principles that should guide
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the transition to environmentally sustainable economies and societies;
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i. "Net zero emissions" refers to the state of the atmosphere where the GHG
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emitted are balanced by its removal;
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j. "Physical risk" refers to potential loss or damage to tangible assets arising
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from climate change or other weather-related conditions such as floods,
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typhoons, droughts, earthquakes, extreme weather variability, and rising
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sea levels;
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k. "Reckonable emissions" refers to GHG emissions of a taxable facility in
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circumstances specified by the schedule to be prepared by the Climate
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Change Commission pursuant to Section 7 of this Act;
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I. "Renewable Energy" refers to energy resources that do not have an upper
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limit on the total quantity to be used include, among others, biomass, solar,
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wind, geothermal, ocean energy, and hydropower pursuant to the provision
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of Republic Act No. 9513;
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m. "Taxable facility" refers to a juridical person that emits GHG above the
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emissions threshold;
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n. "Transition risk" refers to the potential economic adjustment cost resulting
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from policy, legal, technology, and market changes to meet climate change
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mitigation and adaptation requirements;
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0. "Voluntary Carbon Market (VCM)" refers to a digital platform where natural
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or juridical persons can buy and sell carbon offsets;
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p. "VCM consumers" refers to natural or juridical persons who buy carbon
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offsets in the VCM; and
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q. "VCM providers" refers to natural or juridical persons who sell carbon offsets
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in the VCM.
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Sec. 5. National Targets - The country, through the national government
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agencies specified in this Act, shall:
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a. Implement a moratorium on the following:
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i. Establishment of new fossil fuel power plants upon the effectivity of
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this Act;


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jj. Sale of new internal combustion engine vehicles within the timeframe
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to be determined by the Energy Transition Plan;
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b. Implement a phase out of the following:
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i. Existing fossil fuel power plants within the timeframe to be
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determined by the Energy Transition Plan;
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ii. Existing internal combustion engine vehicles within the timeframe to
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be determined by the Energy Transition Plan;
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c. Increase the share of clean energy sources in the energy mix of the country
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while taking into account the moratorium of new fossil fuel power plants
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and phase out of existing fossil fuel power plants;
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d. Reduce GHG emissions in accordance with the country's National
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Determined Contribution (NDC) and achieve net zero emissions in the
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energy sector by 2050;
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Sec. 6. Energy Transition Plan -There shall be an Energy Transition Plan (ETP)
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which shall provide for a comprehensive framework in the exploration, development,
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utilization, and distribution of energy sources as well as resilience and upgrading of
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existing energy infrastructure in support of the country's shift from fossil-based
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systems of energy production and consumption to clean energy sources guided by the
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principle of just transition as defined under Section 12 of this Act. The ETP shall be
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prepared by the Climate Change Commission (CCC), in coordination with the technical
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working group created under Section 7 of his Act.
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The ETP shall:
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a. Include the following:
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i. 
The national targets under Section 5 of this Act,
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The annual targeted reduction in GHG emissions for the energy
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sector,
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iii. Mechanisms to determine compliance with the targets by the energy
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sector which shall be the monitored by the CCC, and
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iv. Programs to be implemented by the Department of Energy,
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Department of Transportation, Department of Trade and Industry,
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Department of Environment and Natural Resources, and Department


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of Agriculture, and other relevant agencies to reduce GHG emissions
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to reach the annual targets;
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b. Take into consideration, and integrate if applicable, various laws including
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Republic Act No. 9136, Republic Act No. 9513, Republic Act No. 
11285
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otherwise known as the Energy Efficiency and Conservation Act, Republic
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Act No. 11572 otherwise known as the Philippine Energy Research and
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Policy Institute Act, Republic Act No. 11646 otherwise known as the
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Microgrid Systems Act, and Republic Act No. 11697 otherwise known as the
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Electric Vehicle Industry Development Act;
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c. Be harmonized with the existing plans which shall include the National
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Determined Contribution, Philippine Energy Plan, National Transport Policy,
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Philippine Development Plan and Health and Pollution Action Plan; and
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d. Be updated and submitted to the Office of the President and Congress not
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later than the 15th of September of every year after approval by the Energy
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Transition Committee.
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Sec. 7. Role of Government Agencies - In addition to their current
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responsibilities and functions under the existing laws, the following government
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agencies shall exercise responsibilities and functions as enumerated hereunder:
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a. Climate Change Commission (CCC) - The CCC shall:
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Serve as the lead agency in the implementation of this Act,
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ii. 
Convene a technical working group (TWG), within thirty (30)
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calendar days from the effectivity of this Act, comprised of the
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following:
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1, Secretary of CCC as the Chairperson,
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2. Secretary of Department of Energy (DOE) as the Vice-
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Chairperson,
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3. Secretary of Department of Finance (DOF),
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4. Secretary of Department of Transportation (DOTR),
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5. Secretary of Department of Environment and Natural
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Resources (DENR),
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6. Secretary of Department of Trade and Industry (DTI),


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IV.
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7. Secretary of Department of Agriculture (DA),
8. Chairperson of the Energy Regulatory Commission 
(ERC), and
9. Chairperson of the Securities and Exchange Commission 
(SEC).
The members can appoint their permanent representatives to the 
TWG. The CCC shall serve as the TWG's secretariat. The TWG shall:
1. Evaluate and approve the ETP,
2. Monitor, review, and provide strategic direction in the 
implementation of the ETP and of this Act,
3. Coordinate with various national government agencies, 
government-owned and controlled corporations, local 
government units, and private stakeholders to ensure 
the timely implementation of the ETP,
4. Provide for a forum for feedback and recommendations 
on the implementation of the ETP, and
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Perform such other functions, as may be necessary, to 
attain the objectives of this Act,
Formulate the ETP, upon consultation with relevant public and 
private stakeholders.
Monitor, in coordination with the members of the TWG, the 
implementation of the ETP,
Create, upon consultation with the other members of the TWG, and 
other relevant public and private stakeholders, a schedule for 
reckonable GHG emissions within one (1) year from the effectivity 
of this Act;
Review and update annually the schedule for reckonable emissions; 
Determine the emissions thresholds of various sources for purposes 
of the determination of the imposition of a carbon tax pursuant to 
Section 8 of this Act,
Determine carbon offsets pursuant to Section 9 of this Act; and


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ix. Compile all the GHG emissions report of the various sectors 
identified in this Act and determine its compliance with the targets 
set out in the ETP;
b. Department of Energy (DOE) - The DOE shall:
i. Assist the CCC in the implementation of the ETP ,
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Formulate, implement, enforce, and monitor programs in the 
energy sector towards the implementation and accomplishment of 
the targets set out in the ETP, and ensure a just transition in the 
sector,
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Monitor and prepare an annual report on the GHG emissions of the 
energy sector in accordance with the targets set out in the ETP,
Hi. Submit annually the GHG emissions report of the energy sector to 
the CCC, and
iv. Ensure that the carbon tax is not passed on to end consumers of 
petroleum products sold at retail fuel outlets;
c. Department of Labor and Employment (DOLE) - The DOLE shall, in 
coordination with the DOE, ensure the protection of rights of the employees 
under the labor sector affected by the implementation of the ETP. It shall 
also undertake training programs, together with the Technical Education 
and Skills Development Authority, for affected employees by the 
implementation of the ETP to allow them to find gainful employment in 
other sectors;
d. Department of Finance (DOF) - The DOF, shall:
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Review regularly the effectivity of the carbon tax in reducing GHG 
emissions, and propose remedial legislation, if necessary,
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Determine, upon consultation with the CCC, other members of the 
TWG, and other relevant public and private stakeholders, the 
prioritization of programs for the implementation of the ETP to be 
funded through the Energy Transition Fund, and
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Provide for mechanisms to assist companies to access green 
financing;


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e. Department of Environment and Natural Resources (DENR) - The DENR 
shall, in coordination with the CCC and other concerned agencies, establish 
the guidelines for the determination of the amount of GHG emissions 
attributed to various sources;
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Department of Transportation (DOTr) - The DOTr shall:
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Assist the CCC in the implementation of the ETP in the transport 
sector,
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Formulate, implement, enforce, and monitor programs in the 
transport sector towards the implementation and accomplishment 
of the targets set out in the ETP while ensuring a just transition for 
public utility vehicles,
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Monitor and prepare an annual report on the GHG emissions of the 
transport sector in accordance with the targets set out in the ETP, 
and
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Submit annually the GHG emissions report of the transport sector 
to the CCC;
g. Department of Agriculture (DA) - The DA shall:
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Assist the CCC in the implementation of the ETP in the agriculture, 
fisheries, and forestry (AFF) sector,
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Formulate, implement, enforce, and monitor programs in the AFF 
sector towards the implementation and accomplishment of the 
targets set out in the ETP while ensuring a just transition for the 
sector,
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Monitor and prepare an annual report on the GHG emissions of the 
AFF sector in accordance with the targets set out in the ETP, and
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Submit annually the GHG emissions report of the AFF sector to the 
CCC;
h. Department of Trade and Industry - The DA shall:
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Assist the CCC in the implementation of the ETP in the industry 
sector,
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Formulate, implement, enforce, and monitor programs in the 
industry sector towards the implementation and accomplishment of


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the targets set out in the ETP while ensuring a just transition for 
the sector,
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Monitor and prepare an annual report on the GHG emissions of the 
industry sector in accordance with the targets set out in the ETP, 
and
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Submit annually the GHG emissions report of the industry sector to 
the CCC;
a. Energy Regulatory Commission (ERC) - The ERC shall ensure that carbon tax 
shall not be passed on to end consumers of fossil fuel power plants.
Sec. 8. Carbon Tax -A carbon tax shall be levied, assessed, and collected on 
a taxable facility amounting to the following:
a. Php 100 per ton of carbon dioxide equivalent (tC02e): three (3) years after the
effectivity of this Act, and
b. Php 250 per tC02e: five (5) years after the effectivity of this Act.
The amount levied shall accrue to the Energy Transition Fund under Section 15 of this 
Act. The carbon tax shall not be passed on to end consumers of fossil fuels and fossil 
fuel power plants.
Sec. 9. Voluntary Carbon Market (VCMs) - VCMs shall be allowed to be 
established and operate in the country. The CCC and the SEC shall, upon consultation 
with public and private stakeholders and taking into consideration internationally 
recognized best practices of VCMs, establish and implement streamlined and simplified 
guidelines and regulations for the establishment and operations of VCMs in the country 
within one (1) year from the effectivity of this Act. The DOE and SEC shall regularly 
review and update, if necessary, these guidelines and regulations.
Sec. 10. Mandatory Disclosure - The SEC shall make it mandatory for listed 
companies to disclose climate risks as the country shift from fossil fuels to clean energy 
sources.


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Sec. 11. Just Transition - Under the principle of just transition, the TWG, in 
approving the ETP and its implementation, shall ensure a fair and inclusive energy 
transition by minimizing its negative impacts to communities that are reliant on fossil- 
based system of production and utilization. This shall include labor programs which 
includes conduct of training for employees that are under fossil-based system of 
production and utilization industries prior the implementation of this Act to ensure 
their continuous employment, if practicable, and to protect their rights and benefits in 
accordance with the existing labor laws and rules and regulations.
Sec. 12. Application of Incentives under RA 9513 or Renewable Energy Act of 
2008 and RA 11285 or the Energy Efficiency and Conservation Act - Projects for the 
implementation of the ETP under this Act shall be entitled to the incentives under RA 
9513 and RA 11285.
Sec. 13. Prohibited Acts -Ihe following acts are prohibited:
a. For natural or juridical entities:
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Failure to pay the carbon tax under Section 8 of this Act,
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Passing on the carbon tax to end-consumers,
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Failure to disclose climate risks under Section 10 of this Act,
IV. Violation of any provision of this Act, its implementing rules and 
regulations, and other issuances promulgated in accordance with 
this Act.
b. For government agencies: Failure to comply with their responsibilities and 
comply with the time frames under this Act.
Sec. 14. Fines and Penalties -Wthout prejudice to civil and criminal liability, 
the following administrative penalties shall be imposed upon the following for every 
prohibited act enumerated below:
a. Section 13(a):
i. First Offense: A fine ranging from Fifty thousand pesos 
(P50,000.00) to Five hundred thousand pesos (P500,000.00),
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ii. Second Offense: A fine ranging from Five hundred thousand pesos 
(P500,000.00) to One million pesos (PI,000,000.00) and revocation 
of permits.
b. Section 13(b):
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First offense: six (6) months suspension,
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Second offense: Dismissal from service.
Sec. 15. Energy Transition Fund- A Special Account in the General Fund (SAGF) 
for energy transition, which shall be maintained and managed by the Bureau of 
Treasury, shall be established to support the programs for energy transition and the 
implementation of the FTP. The SAGF for energy transition shall recognize and accept 
grants, contributions, and donations for energy transition, for the implementation of 
the FTP and its relevant programs.
Sec. 16. Appropriations - There is hereby appropriated out of the General 
Appropriations Act, the sum of Fifty Million Pesos (P50,000,000.00) for the initial 
Fnergy Transition Fund. Thereafter, such amounts necessary for the sustainable 
implementation of the FTP and its relevant programs shall be appropriated from the 
General Appropriations Act.
Sec. 17. Implementing Ruies and Reguiations - The CCC shall, in consultation 
with TWG and other public and private stakeholders, promulgate the Implementing 
Rules and Regulation of this Act within ninety (90) calendar days from its effectivity.
Sec. 18. Oversight Committee. - Upon the effectivity of this Act, the Joint 
Congressional Fnergy Commission established under Republic Act No. 9136 and 
renamed under Republic Act No. 11285, shali exercise oversight powers over the 
implementation of this Act.
Sec. 19. Repealing Clause. — All laws, presidential decrees, executive orders, 
and rules and regulations, or parts thereof, inconsistent with the provisions of this Act 
are hereby repealed or modified accordingly.
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Sec. 20. Separability Clause. - If, for any reason, any section or provision of 
this Act is held unconstitutional or invalid, the other sections or provisions hereof shall 
not be affected thereby.
Sec. 21. Effectivity Clause. - This Act shall take effect after its complete 
publication in at least two (2) national newspapers of general circulation.
Approved,
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