(First of two parts)

MACTAN, Cebu — European business leaders said the Philippines has made significant progress in sustainability policies and attracting green investments, but warned that weak execution, bureaucracy, and education gaps continue to slow projects on the ground.

In separate exclusive interviews with DAILY TRIBUNE on the sidelines of the ASEAN-EU Sustainability Summit 2026, executives of the European Chamber of Commerce of the Philippines and the EU-ASEAN Business Council pointed to permit delays, inconsistent regulations, and skills shortages as major barriers to upscaling investments in the country. 

“We have a very good relationship with the government when it comes to policies,” said Paulo Duarte,  president of the European Chamber of Commerce of the Philippines.

“Where we see areas for improvement is on the execution side,” he added.

Difficult to navigate

Duarte said investors remain interested in the Philippines, particularly with regard to renewable energy, but projects often slow down due to complex permit systems and inconsistent implementation across agencies and local government units.

“The permits takes a bit too long. It’s difficult to navigate the complexity of the permits,” he said.

He cited renewable energy as an example, noting that while the government allows full foreign ownership in the sector, many projects are delayed despite strong investor interest from European countries such as the Netherlands, Denmark, Switzerland and Germany.

“The regulation is there. The execution sometimes is not there,” Duarte said.

Chris Humphrey, executive director of the EU-ASEAN Business Council, echoed the concern, saying ASEAN and the European Union must move beyond policy statements and focus on implementation.

“We need action,” Humphrey said. “We’ve had a plethora of statements, blueprints, work plans over the years. We need to make sure they are translated into action on the ground.”

Humphrey added that governments need to work more closely with businesses and civil society when drafting regulations to ensure that policies are practical and enforceable.

“There’s no point in writing laws in isolation without talking to the private sector,” he said.

Both executives also identified education and workforce development as critical gaps, particularly as industries shift toward digital technologies, artificial intelligence, and sustainability-driven operations.

Duarte said the Philippines’ young population gives it a competitive advantage, but stressed that education and training systems must adapt faster.

“AI is coming in, these technologies are leveling the playing field,” he said. “You need education and training.” 

(To be continued)