SUPPORTING THE PHILIPPINES FOR THE CARBON PRICING DEVELOPMENT (PHASE 2- ACTIVITY 2: ASSESSMENT OF LEGAL AND INSTITUTIONAL REQUIREMENTS)Since 2019; the World Bank has supported the Government of the Philippines in the design and implementation of carbon pricing instruments (CPIs) through successive technical assistance programs. Building on this foundation and Phase 1 “Rapid Response” activities in early 2025; the Department of Finance (DOF) and the interagency Technical Working Group (TWG) are advancing the design of a Voluntary Cap-and-Trade (V-CAT) mechanism; with a potential pathway to a future Mandatory Emissions Trading Scheme (M-ETS).Under the PHRD-funded program; Phase 2 “Detailed Design” (July–December 2025) focuses on strengthening the legal and institutional framework; MRV and registry readiness; and developing a roadmap for implementation. The current activity (Activity 2) will specifically provide legal and institutional assessments to guide DOF and the TWG in finalizing the V-CAT design and preparing for its transition to the M-ETS.