PH leads ASEAN efforts to expand carbon trading, climate financing

The Philippines is leading efforts to develop and harmonize carbon markets across Southeast Asia to attract private investments for climate action and support the region’s transition to a low-carbon economy.

The initiative forms part of the country’s priorities as chair of the Association of Southeast Asian Nations (ASEAN) in 2026, the Department of Finance (DOF) said, according to a Philippine News Agency (PNA) report on Friday.

“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 that generate greenhouse gas emissions to purchase credits from projects that reduce or remove emissions, encouraging investments in cleaner technologies and environmental protection.

According to the DOF, its Climate Finance Policy Group co-hosted the ASEAN Carbon Markets Development and Harmonization Forum 2026 with the Securities and Exchange Commission (SEC), in partnership with the Asian Development Bank (ADB) under the ASEAN Climate Finance Policy Platform.

The forum supports the Philippines’ priority economic deliverable on “Sustainable and Resilient ASEAN Capital Markets,” aligned with the ASEAN Capital Markets Forum Action Plan for 2026 to 2030.

It provides a platform for ASEAN member states to discuss policy frameworks, cross-border carbon credit trading, and the alignment of national carbon registries and monitoring systems.

The Philippines also explored a possible ADB-supported ASEAN Carbon Market Implementation and Interoperability Study to help member states advance carbon market development, strengthen cooperation, and mobilize private capital for climate action.

The DOF added that the country’s Carbon Market Policy Framework, established under Executive Order No. 127, series of 2026, is expected to strengthen its participation in regional and international carbon markets and open new opportunities for green investments.