The country is well-positioned to shape the carbon market for the region because it is endowed with natural wealth crucial for renewable energy.

The market is a system designed to reduce greenhouse gas (GHG) emissions by putting a price on carbon, essentially turning carbon emissions into a tradable commodity.

Governments or international bodies set a cap on the total amount of greenhouse gases that can be emitted by companies, industries, or even countries.

Emissions less than the cap can be traded as unused credits in emission permits, while those that emit more than allowed must buy extra licenses.

Aboitiz Group strengthened its role as a leading advocate for environmental stewardship and carbon market development through its participation in the 3rd Malaysia Carbon Market Forum (MCMF 2025), a flagship regional event organized by the Bursa Carbon Exchange.

Ginggay Hontiveros-Malvar, AEV’s chief reputation and sustainability officer and president of Aboitiz Foundation, spoke at a high-level panel discussion on advancing collaboration for the ASEAN Common Carbon Framework (ACCF), underscoring the importance of cooperation in developing an inclusive and credible carbon market in the Philippines.

“The Philippines is well-positioned to contribute to and help shape regional carbon markets, especially in nature-based credits,” Hontiveros-Malvar said. “Through active collaboration between the public and private sectors, we are working to establish a high-integrity framework that supports both environmental goals and community development.”

EO for market governance

She shared key policy milestones driving the development of the country’s carbon market, including a proposed executive order that would designate a lead agency for carbon market governance, and the Low-Carbon Investment Economy Bill currently pending in Congress, which aims to institutionalize a national regulatory framework for carbon trading.

Another significant step forward is the forthcoming Department Administrative Order (DAO) from the Department of Environment and Natural Resources (DENR) on forest carbon projects. This draft policy is being shaped through close collaboration with the Carbon Coalition and NBS Industry Group, an alliance of Philippine companies — including the Aboitiz Group — advocating for nature-based solutions, carbon market readiness, and sustainable business practices.

“The draft DAO is an example of how government, industry, and civil society can work together to create science-based, transparent rules that will guide how carbon credits are generated, traded, and verified,” Hontiveros-Malvar said. “These pilots must be informed by stakeholder dialogue to ensure trust, inclusivity, and practical implementation.”

Members of the CarbonPH Coalition, led by Aboitiz Equity Ventures chief reputation and sustainability officer Ginggay Hontiveros-Malvar, met with DENR Secretary Raphael Lotilla to discuss policy developments on forest carbon projects and the operationalization of the Philippines’ carbon market framework.

Carbon trading system needed

She also highlighted the growing momentum among stakeholders in building the institutional foundations for carbon trading — such as the establishment of a national carbon registry, a monitoring, reporting, and verification (MRV) system, and pilot programs in the energy, forestry, and blue carbon sectors that will inform future market design.

Hontiveros-Malvar said the Philippines’ chairmanship of ASEAN in 2026 presents a strategic opportunity to deepen regional collaboration and strengthen voluntary carbon markets (VCMs) across Southeast Asia. She noted that scaling VCMs can help build readiness ahead of compliance systems, unlock natural capital, and mobilize climate finance for high-integrity projects.

Aboitiz Group’s participation in the forum underscores the private sector’s crucial role in shaping Southeast Asia’s carbon future.

Through leadership, innovation, and partnership, the group continues to champion the integration of policy, technology, and sustainability — advancing both climate action and inclusive development across the region.