(Photo from DOF)
MANILA, Philippines – The Philippines, through the Department of Finance (DOF), is spearheading efforts to develop and harmonize carbon markets across Southeast Asia to attract private investments in climate action and accelerate the region’s transition toward a low-carbon economy.
In a statement Friday, November 13, the DOF said the initiative aims to strengthen regional cooperation in carbon trading while supporting the Association of Southeast Asian Nations (ASEAN) in building climate-resilient and sustainable economies.
“Carbon markets are a vital instrument for ASEAN prosperity. By creating a market for trading carbon credits, we can attract investments for climate action. They unlock private capital to reduce emissions. They also channel investments into renewable energy and nature-based solutions,” Finance Secretary Frederick Go said during a recent forum.
Carbon markets allow companies to purchase carbon credits generated by projects that reduce or remove greenhouse gas emissions. The system provides financial incentives for investments in renewable energy, environmental protection and other emission-reduction initiatives.
Under the Philippines’ ASEAN 2026 Chairship, the DOF Climate Finance Policy Group, together with the Securities and Exchange Commission (SEC) and Asian Development Bank (ADB), organized the ASEAN Carbon Markets Development and Harmonization Forum 2026.
The event was held under the ASEAN Climate Finance Policy Platform and formed part of the country’s Priority Economic Deliverable on Sustainable and Resilient ASEAN Capital Markets.
The initiative aligns with the ASEAN Capital Markets Forum Action Plan 2026–2030, which seeks to strengthen sustainable financing and regional capital market integration.
The forum provided ASEAN member states with an opportunity to discuss carbon market regulations, cross-border carbon credit trading and the alignment of national carbon registries and monitoring systems.
Participants also explored ways to improve cooperation among member states to facilitate carbon credit transactions and encourage greater private sector participation in climate-related investments.
During the discussions, the Philippines raised the possibility of conducting an ADB-supported ASEAN Carbon Market Implementation and Interoperability Study.
The proposed study would examine how ASEAN countries could strengthen the compatibility of their carbon market systems, improve coordination and mobilize additional private capital for climate action.
Go said the regional initiative complements the Philippines’ Sustainable Finance Framework, Philippine Climate Finance Strategy and updated Nationally Determined Contributions, which outline the country’s climate commitments.
The DOF also highlighted the Carbon Market Policy Framework established under Executive Order No. 127, series of 2026.
The framework is intended to strengthen the Philippines’ participation in regional and international carbon markets and create opportunities for investments in environmentally sustainable projects.
Through these initiatives, the government aims to position the Philippines as an active participant in regional carbon trading while encouraging investments that support emissions reduction, renewable energy development and long-term climate resilience.
