Liguasan Marsh is the largest intact wetland in the Philippines, a key area for both resident and migratory birds, and a source of livelihood for the thousands of families who live there.
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Eco-Business
Energy crunch reignites drilling plans in Philippines’ largest intact wetland
Abatify Summary
Nature & Climate Perspective
**Drilling operations in Liguasan Marsh pose a catastrophic threat to one of Southeast Asia's most critical intact carbon sinks and biodiversity corridors. **
- Fossil fuel extraction within this wetland directly undermines the LULUCF (Land Use, Land-Use Change, and Forestry) integrity of the Philippines' carbon inventory by risking the conversion of high-density peatlands.
- The disruption of migratory bird flight paths and resident species habitats compromises ecosystem-level resilience, reducing the marsh's capacity for natural carbon sequestration and flood mitigation.
- Hydrological interference required for drilling rigs threatens to drain peat-heavy areas, potentially transforming a significant methane sink into a net emission source.
Market & Policy Outlook
**The prioritization of extractive energy security over ecosystem preservation creates a fundamental conflict with Article 6. 4 transition pathways and corporate SBTi alignment.**
- Proposed drilling contradicts ICVCM Core Carbon Principles (CCPs), specifically the 'No Net Harm' safeguard, making any future nature-based credits from the region high-risk for institutional investors.
- The shift toward fossil fuel exploration in protected wetlands signals a potential regulatory pivot that could devalue regional Blue Carbon and wetland restoration projects by increasing the risk of 'reversals'.
- Financial institutions backing these projects may face heightened Scope 3 exposure and friction with ESG-linked lending criteria, particularly regarding long-term climate transition risk disclosure.
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