For the Philippines, this trend aligns with the government’s push to revive and upscale the local coffee industry, particularly in Mindanao and upland farming communities, where sustainability certification could unlock premium markets both domestically and regionally.

The cocoa sector also presents strong momentum. Luna said the Asia-Pacific cocoa market is the fastest-growing globally, expanding at a compound annual growth rate of 9.62 percent through 2030. The Philippines, which has identified cacao as a priority crop under its agribusiness modernization strategy, stands to benefit from this regional demand upswing.

Palm oil markets, while still dominated by Indonesia and Malaysia, are also recording meaningful gains in emerging Asian economies from low baselines—an experience that offers lessons for the Philippines as it balances sustainability, food security and land-use concerns.

“Cotton-producing countries in Asia are also consuming more sustainable cotton,” Luna added, pointing to broader regional acceptance of sustainability standards.

Untapped potential in domestic consumption

Luna highlighted how major Asian economies consume most of their agricultural output domestically. China absorbs 88 percent of its tea production, while India consumes more than 80 percent of its own supply.

“This consumption pattern indicates substantial untapped potential to increase VSS-certified tea consumption, as even modest percentage increases would translate to substantial absolute volumes given the scale of domestic markets,” she said.

For the Philippines, this insight underscores the opportunity to grow local demand for certified, sustainably produced food, particularly as Filipino consumers become more conscious of food safety, climate resilience and ethical sourcing.

Barriers remain—but policy and industry action matter

Despite promising developments, Luna warned that major challenges remain in expanding certified consumption across emerging markets.

Price sensitivity is a key constraint, as certified products often command price premiums of 10 percent to 30 percent—levels many middle-income consumers struggle to afford. The absence of regulatory incentives or mandatory sustainability requirements in most emerging economies also means growth relies heavily on voluntary corporate commitments and consumer purchasing power.

These challenges, however, also point to policy opportunities for the Philippines, where targeted incentives, public-private partnerships and stronger sustainability frameworks could help local farmers and agribusiness firms scale up certification and competitiveness.

Sustainability standards shaping future trade

Published by the International Trade Centre (ITC) in collaboration with the Research Institute of Organic Agriculture and IISD, The State of Sustainable Markets 2025 underscored the growing role of sustainability standards in global trade.

“Sustainability standards provide a framework for companies to ensure that their operations are environmentally friendly and socially responsible,” the report said, adding that these standards help businesses prepare for future regulations, harmonize trade practices and drive innovation.

The annual report tracks 13 major sustainability standards covering bananas, cocoa, coffee, cotton, oil palm, soybeans, sugarcane, tea and forestry products. The 2025 edition incorporates 2023 data and confirms that market growth resumed after an unusual dip in 2020.

For the Philippines, the findings reinforce the case for positioning sustainable agriculture not just as an environmental goal, but as a strategic agribusiness and export advantage in a rapidly evolving Asia-Pacific market.

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.