The Philippines has the chance to strengthen both its climate resilience and economic competitiveness by aligning trade and environmental policies and seizing new export opportunities in the fast-growing global green economy, according to a new report by the International Trade Centre (ITC).
Released in July 2025 and developed in coordination with the Department of Trade and Industry’s (DTI) Bureau of International Trade Relations, the study—Climate Change and Trade in the Philippines: Strategic Actions for Building Resilience—was presented at a forum in Makati on September 18.
The report stressed that the Philippines must lay down the policy foundations for a climate-resilient economy that balances growth with sustainability. It underscored that trade can be used not only to adapt to unavoidable climate impacts but also to prepare for future climate risks.
Green Competitiveness as a Growth Driver
“By focusing on green competitiveness and aligning its export strategies with global sustainability trends, the Philippines can strengthen its position in the growing green market globally,” the paper noted.
The report pointed to environmental goods and services (EGS)—products and solutions that prevent, minimize, or correct environmental damage—as a promising export niche. For example, the Asian Development Bank estimates that the country’s solar photovoltaic (PV) industry alone could expand by US$175 million within seven years, serving both domestic demand and exports.
Opportunities in the circular economy are also significant. These include product design and innovation, extended producer responsibility, and solutions in waste management, renewable energy, textiles, tourism, and food. The study specifically cited the potential for the Philippine clothing industry to adapt to emerging EU circular economy standards on product reparability, durability, and recyclability.
The Philippines’ abundant natural resources further strengthen this outlook. Expanding renewable energy—geothermal, solar, and wind—could enable entire industrial parks to run on clean power, lowering the carbon footprint of exports. Such an approach could also attract high-value investments in industries like semiconductors, where global brands are increasingly under pressure to adopt sustainable practices.
Policy Levers to Enhance Resilience
The ITC report also highlighted the importance of trade policies that facilitate technology transfer and international cooperation. Lowering tariffs, harmonizing standards, and easing regulatory barriers could improve access to climate-related goods and services.
Forging trade agreements with Japan and ASEAN peers was recommended to encourage investment and collaboration in renewable energy and green technologies. The report also stressed the need to build the capacity of producers to meet new buyer requirements, such as renewable energy adoption, energy efficiency, and sustainable agriculture practices.
DTI’s Promotion of Green Economic Development Program, which helps MSMEs adopt climate-smart and eco-friendly strategies through the green value chain approach, was cited as a model initiative to boost competitiveness.
Building a Competitive and Sustainable Export Future
The report further emphasized the importance of building negotiating capacity for trade agreements, many of which now include environmental provisions. Linking such agreements to supply-capacity building—such as providing technical assistance for exporters to meet stricter standards—would ensure continued market access while enhancing sustainability.
By embracing these reforms, the Philippines can transform global climate challenges into an opportunity: securing resilience, expanding exports, and positioning itself as a competitive player in the global green economy.