The Department of Trade and Industry (DTI) has underscored the growing use of trade policy as a tool to support climate action, emphasizing that well-designed trade measures can help drive low-carbon growth and protect industries amid global sustainability shifts.

DTI-Bureau of International Trade Relations Director Marie Sherylyn Aquia said trade plays a crucial role in the world’s response to climate change, especially as countries integrate environmental goals into their economic and trade frameworks.

“With effective climate policies, trade can promote the global adoption of low-carbon technologies, enhance resource efficiency, and support economic diversification and a just transition toward a low-carbon economy,” Aquia said during the Pre-COP30 Tripartite Consultation on the Just Transition.

Aquia noted that better coordination of climate-related, non-discriminatory taxes, such as carbon pricing and equivalent measures, could help reduce policy fragmentation and lower compliance costs for businesses.

She also cited the European Union’s Carbon Border Adjustment Mechanism (CBAM), a policy that seeks to prevent “carbon leakage,” or the shifting of emissions to other countries through relocation of production or increased imports of carbon-intensive goods. The EU’s CBAM will fully take effect in 2026, following a transitional phase from 2023 to 2025.

“CBAM provides a concrete, market-based reason for companies to utilize the Philippine Green Jobs Act (Republic Act 10771) to decarbonize their production and train their workforce,” she said.

To ensure a just transition, Aquia said the Philippines should pursue active labor market measures—such as retraining, certification programs, wage subsidies, and local economic diversification—to help workers adapt to new green industries.

Citing a joint International Trade Centre–DTI paper on Climate Change and Trade in the Philippines, she also emphasized the need for public-private cooperation to advocate for phase-in periods under CBAM and secure greater financial and technical support for developing economies.