This research seeks to analyze the economic and poverty effects of the Philippine government’s ratification of the Kyoto protocol. Since the country is currently implementing the fourth phase of its trade reform program (TRP), and is in the process of drafting a greenhouse gas national action plan (GHG-NAP), this study through an economy-wide model attempts to assess the linkage between tariff reduction, carbon emissions, and poverty. This is important as projections indicate that future economic activity will largely be dependent on fossil fuels. The proposed methodology is to conduct policy simulations using a computable general equilibrium (CGE) micro-simulation model to analyze the economic and poverty effects of restraining carbon emissions during the ongoing trade liberalization process.