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 from the European Chamber of Commerce of the Philippines and the EU-ASEAN Business Council pointed to permitting delays, inconsistent regulations, and skills shortages as major barriers to scaling 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.”

Duarte said investors remain interested in the Philippines, particularly in renewable energy, but projects often slow down because of complicated permitting systems and inconsistent implementation across agencies and local government units.

“The permitting 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 allowed full foreign ownership in the sector, many projects remain 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 that 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 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.”

He emphasized the need for stronger collaboration between TESDA, technical schools, and the private sector, particularly for upskilling workers and supporting MSMEs adopting new technologies.

“There are several MOUs signed between European companies and TESDA that are still on paper,” Duarte said. “They need to come into the execution part.”

Humphrey also warned that many education systems in the region are not keeping pace with the speed of technological change.

“A lot of the jobs that exist today will not exist in 10 years’ time,” he said.

In response, Department of Trade and Industry Assistant Secretary Kris Ablan acknowledged that overlapping rules and fragmented processes remain a challenge, particularly in sectors involving multiple government agencies.

“We really have to adopt a whole-of-government, whole-of-nation approach,” Ablan told DAILY TRIBUNE in a separate interview.

He said agencies such as the DTI, Department of Energy, TESDA, and Department of Education must align policies and coordinate more closely to reduce bottlenecks and conflicting requirements.

“Sometimes we have our own rules and sometimes they clash,” Ablan said. “[We] have to adjust our policies to lessen the bottlenecks and all of the delays.”

Ablan added that the government is also pushing to conclude the EU-Philippines Free Trade Agreement, which he said could help accelerate investments and improve trade processes.

“We’re hoping to close our EU-Philippines FTA soon,” he said. “Hopefully this year, and then it gets signed by next year.”

On workforce readiness, Ablan said the government is working on strengthening the Philippine Skills Framework and Philippine Qualifications Framework to align local certifications with international standards.

“We need to reunite that and agree on what our certification is going to be, so that once a worker meets that certification, they become immediately employable anywhere,” he said.

Ablan said TESDA, DepEd, and DTI must work together to ensure training programs match industry demand, particularly in sustainability and technical sectors.

“DTI has to work with TESDA to inform TESDA what the market is demanding, and then TESDA will conduct the trainings,” he said.

He added that the government has also been conducting sustainability-focused training programs for MSMEs through the Philippine Trade Training Center.

“For example, we conduct trainings for MSMEs to embrace sustainability practices… converting to solar energy, proper solid waste management, those things,” Ablan said.

Despite the challenges, business leaders said the current energy crisis and geopolitical tensions also present an opportunity for the Philippines and ASEAN to accelerate sustainability efforts and diversify energy sources.

“The crisis can be seen as an opportunity,” Duarte said. “It can accelerate execution.”