For decades, the narrative of climate-vulnerable nations at the United Nations Conference of Parties (COP) has been consistent, justified, and heartbreaking: Filipinos are the victims of a crisis we did not create, and they need aid to survive.
But at COP30 in Belém, inside the Asean Pavilion, the Philippines flipped the script.
Amidst the noise of global climate diplomacy, a unified Philippine delegation delivered a message that resonated not with charity, but with capital. It did not go to Brazil to present a charity case. It went to present a sophisticated, legally defensible business proposition.
The message to global capital markets was singular: The Philippines is open for business, and it is building the architecture to make nature bankable.
For too long, resilience in Southeast Asia has been defined by the “gray playbook”— a reliance on concrete seawalls and rigid drainage systems. While necessary, this approach is proving financially unsustainable and catastrophically inadequate against the new climate normal.
As Rep. Jose Manuel “Joeman” Alba, Chair of the House Committee on Sustainable Development Goals, stated during the panel : “The hard truth is this: Our old approach is failing. It costs billions to build, it is a depreciating asset, and it works against nature.”
To replace this obsolete model, the Philippines is constructing a comprehensive legal ecosystem designed to de-risk investment on nature. It is building a three-pillar architecture: creating the Demand, the Asset, and the Market.
Through the proposed Green Infrastructure Bill, the country is manufacturing demand by mandating a “Green-First Options Analysis” for public infrastructure. Simultaneously, the Carbon Rights Bill creates the asset by defining carbon rights as a distinct property right, solving the tenurial uncertainty that has long spooked investors. Finally, the Low Carbon Economy Investment Bill establishes the market through a “cap-and-invest” system, creating a domestic buyer pool for these credits.
From left to right: Benjamin Villacorte, Partner, SGV & Co.; ASec. Noralene M. Uy, Assistant Secretary, DENR; Representative Anna Victoria Veloso-Tuazon, Deputy Majority Leader; Representative Jose Manuel F. Alba, Chair of the House Committee on Sustainable Development; Representative Aniela Tolentino, Chair of the House Committee on Climate Change; Representative Rufus Rodriguez, from the 2nd District of Cagayan de Oro; Bonar Laureto, Principal, SGV & Co.
However, policy at the national level means nothing without implementation on the ground. This is where the theoretical meets the visceral reality of climate risk.
For instance, the province of Cagayan de Oro, a bustling economic hub, was devastated by Typhoon Sendong in 2011 — a tragedy that cost over 1,200 lives and billions in economic losses.
Rep. Rufus Rodriguez, representing the 2nd District of Cagayan de Oro, said that the root cause wasn’t just rain; it was a failure of natural defenses caused by a jurisdictional gap.
He argued that the province’s local economy is centered at the mouth of a massive river basin. But the watershed which is the natural infrastructure that is supposed to protect locals is not in their jurisdiction.
“The river basin originates upstream in the Kitanglad Mountain Range and traverses the province of Bukidnon. This creates a fundamental, transboundary disconnect. What happens upstream, happens to us downstream. When forests are cut, when the land’s ability to act as a sponge is gone, that water does not walk. It runs straight into the economic centers of my district,” he said.
“Our district’s local economy is centered at the mouth of a massive river basin. But the watershed that holds our fate— the natural infrastructure that is supposed to protect us — is not in our jurisdiction,” Rodriguez explained.
“The river basin originates upstream in the Kitanglad Mountain Range and traverses the province of Bukidnon. This creates a fundamental, transboundary disconnect. What happens upstream, happens to us downstream. When forests are cut, when the land’s ability to act as a sponge is gone, that water does not walk. It runs. Straight into the economic centers of my district,” he added.
To solve this, Cagayan de Oro established a local Payment for Ecosystem Services (PES) mechanism. It is not a tax; it is a collective insurance premium paid by downstream businesses into a private-sector-led trust fund to restore the upstream watershed.
A major barrier to nature finance in Southeast Asia has been land availability and conflicting tenure. Rep. Aniela Tolentino, Chair of the Committee on Climate Change, highlighted how the Philippines is unlocking its vast “blue carbon” inventory through the Integrated Coastal Management (ICM) Bill.
“At the heart of ICM is the ridge-to-reef approach — understanding that our mountains, rivers, and seas are one connected system,” Tolentino noted. “By managing the entire watershed, we ensure that conservation and development are balanced — from the ridge where rivers begin, all the way to the reefs where life flourishes.”
Crucially, this bill mandates the reversion of abandoned and underutilised fishponds back to public land, legally unlocking thousands of hectares for mangrove restoration.
The final piece of the puzzle is financial engineering. Nature projects often face a “valley of death” — high upfront costs with slow returns.
Bonar Laureto of SGV & Co. (EY Philippines) showcased how the new legal framework allows for “revenue stacking” by combining the volatile proceeds from carbon credits, the slow-burn income from sustainable agroforestry, and the consistent anchor cash flow from local PES mechanisms, a speculative nature project can be transformed into an investment-grade asset.
Tailwinds for the Philippines COP30 outcomes in Belém validate the Philippines’ strategy with key developments:
- A Win for Adaptation Finance: The “Mutirão decision” prioritises grant-based resources over loans and commits to tripling adaptation finance by 2035. This strengthens the case for funding resilient projects like the Cagayan de Oro model.
- A “Green Light” for Carbon Markets: The mandate to halt deforestation by 2030 and operationalise Article 6 validates the business case for Mindanao’s NbS projects. This signals the government to accelerate carbon market operations under clearer international rules.
The Philippines is doing the hard work. It is fixing the policy, clarifying the assets, and structuring the market. It is providing a stable, cohesive signal amidst a noisy global landscape.
As Rep. Anna Victoria Veloso-Tuazon emphasised in her closing remarks, this comprehensive legal architecture serves as the bedrock of investor confidence.
The Philippines is not just a participant in the new climate economy; we are building the architecture for it. We are not just seeking aid; we are presenting a business case. And it is not just a developing nation vulnerable to climate change; we are can be an implementation partner with the world.
To the providers of global capital: The policies are in place. The local champions are ready. The red carpet is out. The Philippines is no longer just asking for help; we are offering a partnership in the most viable business of the century—investing in the planet that keeps us in business.
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