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Singapore and Philippine leaders discuss cooperation on renewable energy, sustainability, and healthcare. (Photo: Ferdinand Marcos Jr.'s Facebook)
Singapore’s Prime Minister Lawrence Wong made his first official visit to the Philippines on June 4, meeting with President Ferdinand Marcos Jr. During the meeting, the two leaders pledged to advance the ASEAN Power Grid (APG) and jointly promote regional sustainable economic development by leveraging carbon markets to drive green investments.
Bilateral focus on green power, carbon credit collaboration
At a joint press conference following their meeting, President Marcos expressed gratitude for Singapore’s support following last year’s typhoon disasters and reiterated the countries’ commitment to climate adaptation efforts, though without elaborating on specific initiatives. The two nations also agreed to collaborate on establishing a carbon trading framework under Article 6.2 of the Paris Agreement.
Article 6.2 enables countries to achieve their Nationally Determined Contributions (NDCs) through bilateral or multilateral mechanisms that allow for the transfer of carbon reduction outcomes across borders.
Singapore has already signed carbon credit agreements with five countries, including Chile and Peru. Following the signing of a Memorandum of Understanding (MoU) with the Philippines in August 2024, both sides are now negotiating implementation details.
Prime Minister Wong noted that the carbon credit initiative would help drive commercialization, promote technology transfer, attract green investments, and create jobs. He emphasized that sustainability collaboration between Singapore and the Philippines is still in its early stages, but Singaporean businesses are showing strong interest—particularly in wind and solar energy projects in the Philippines.
Manila positions grid integration as key ASEAN agenda
Both leaders also affirmed their commitment to accelerating regional integration and realizing the ASEAN Power Grid. The Philippines is set to assume the ASEAN Chairmanship in 2026, following Malaysia, with Singapore taking the helm in 2027. Wong stated that Singapore would offer full support and seek even closer cooperation during this transition.
Philippine Energy Undersecretary Rowena Cristina Guevara recently highlighted the country’s offshore wind potential during a clean energy forum hosted by the Asian Development Bank (ADB), noting that the ASEAN Power Grid could enable electricity exports to neighboring countries. This underlines Manila’s intent to push the grid initiative further at the upcoming ASEAN summits.
According to the ADB, building out the 18 main transmission lines of the ASEAN Power Grid will require an estimated US$16 billion in investment.
Despite its potential, progress on the ASEAN Power Grid has been slow due to high upfront infrastructure costs and investment risks that deter financial institutions. However, The Straits Times reports that Singapore’s newly authorized Singapore Energy Interconnections (SGEI) may help overcome key bottlenecks. Following its role in brokering the Indonesia–Singapore subsea cable agreement, SGEI is expected to draw greater private-sector interest and accelerate broader development of the regional grid.
Source: The Straits Times(1), (2), The Manila Times, Phil Star
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