Phl, Singapore strengthen ties through carbon markets

The high-level forum on carbon credits and cross-border cooperation hosted by the Makati Business Club (MBC), in partnership with the Philippines–Singapore Business Council (PSBC) on Thursday, 2 October 2025 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 shared targets under the 2015 Paris Agreement.

Thursday’s event, titled “High-Level Forum on Carbon Credits: Strengthening Philippine-Singapore Collaboration for Climate Action,” was an offshoot of the memorandum of understanding (MoU) signed by the Philippines and Singapore on August 2024, formalizing their joint commitment to the bilateral exchange of adjusted carbon credits and laying the groundwork for potential projects that promote sustainable development.

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. 

Financial incentive

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.

Opening remarks during the forum 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.

Fine-tuning measures

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.

Department of Energy 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. 

Move away from fossil fuels

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.”