Philippines, Singapore strengthen ties through carbon markets

On Thursday, 2 October 2025, the Makati Business Club (MBC), in partnership with the Philippines–Singapore Business Council (PSBC), hosted a high-level forum on carbon credits and cross-border cooperation. The event, titled “High-Level Forum on Carbon Credits: Strengthening Philippine-Singapore Collaboration for Climate Action,” gathered leading Filipino and Singaporean figures from both the private and public sectors to discuss the current state of their collaboration on renewable energy and their shared targets under the 2015 Paris Agreement.

Carbon credits are tradable certificates representing the removal, reduction, or avoidance of one metric ton of carbon dioxide or equivalent greenhouse gases from the atmosphere. By using carbon credits, companies have a financial incentive to cut back on emissions. International cooperation on carbon markets is encouraged under Article 6 of the Paris Agreement, which aims to limit global temperature rise to 1.5 °C.

In August 2024, the Philippines and Singapore signed a memorandum of understanding (MOU) formalizing their joint commitment to the bilateral exchange of adjusted carbon credits and laying the groundwork for potential projects that promote sustainable development.

Opening remarks were delivered by MBC Executive Director Rafael Ongpin, PSBC Chairman Jaime Zobel de Ayala, DENR Undersecretary Analiza Teh, and Singapore’s Minister for Sustainability and the Environment Grace Fu, all of whom emphasized the objectives of the 2024 MOU as well as the broader goals of the Paris Agreement.

The first panel featured representatives from both governments, who discussed the legislative and regulatory frameworks needed to develop a Philippine carbon market aligned with international standards. Fam Wee Wei of Singapore’s Ministry of Trade and Industry described her country as “sector agnostic” in identifying potential industries for the carbon market, while stressing the need for high-integrity carbon credits. She also noted opportunities for nature- or technology-based collaborations in tackling carbon emissions.

Bukidnon 1st District Representative Jose Manuel Alba spoke about ongoing legislation on low-carbon development. “Considering our situation in the Philippines, we know that an additional tax is inflationary, and really burdensome to the Filipino people. So that is one thing we cannot pursue,” he said. Alba assured attendees that lawmakers are fine-tuning measures to avoid overburdening citizens, while still advancing environmental sustainability. He added that deliberations are actively ongoing within the House Committee on Climate Change.

DOE Undersecretary Felix William Fuentebella highlighted his department’s role in the transition. He underscored that the DOE’s mission is to provide access to “affordable, quality, clean energy,” while noting that such progress requires time and collective effort.

The second panel brought together private-sector leaders to explore how businesses, investors, and civil society can promote market integrity, finance low-carbon transitions, and create sustainable opportunities. ACEN President Eric Francia discussed his company’s move away from fossil fuels, while Singapore Economic Development Board member Herman Loh spoke about possible grants to incentivize companies to adopt more carbon-friendly initiatives.

“Carbon markets that are high-quality and high-integrity are win-win,” said Singapore Ambassador Constance See in her closing remarks, reinforcing the panel’s points. “It can mobilize climate finance, drive innovation, and create real benefits for our people and planet.”

With the Philippines set to assume the ASEAN chairmanship in 2026, the country views its collaboration with Singapore on carbon markets and sustainable development as a central pillar of its agenda moving forward.