Manila – The Philippines is deepening its strategic alignment with the United States, focusing on securing supply chains for critical minerals and bolstering regional adaptation to climate change, as it assumes the chairmanship of the Association of Southeast Asian Nations (ASEAN). A series of recent agreements and policy initiatives signal a concerted effort to leverage its position and navigate complex geopolitical currents, particularly concerning China’s influence in the region.
On , President Ferdinand R. Marcos Jr. Reaffirmed the enduring strength of the Philippines-United States alliance, commemorating 80 years of diplomatic relations. This came shortly after the Philippines formally recognized the chairship and signed a deal with the US to develop a stable supply chain for critical minerals like nickel and copper – essential components for green technologies such as electric vehicle batteries and solar turbines.
The partnership falls under the industry-led Critical Minerals International Alliance, with the stated aim of transitioning the Philippines from a raw material exporter to a nation capable of processing its own minerals. Noralene Uy, assistant secretary for policy, planning, international affairs and climate change of the Department of Environment and Natural Resources (DENR), emphasized the importance of this shift, stating the intention to advocate for similar developments across ASEAN member states to prevent exploitation of the region’s resources.
The Philippines is currently the world’s second-largest producer of nickel, after Indonesia, but primarily exports the ore in its raw form. This new agreement with the US represents a push to add value domestically and secure a more resilient supply chain, particularly in light of growing global demand for these materials.
Beyond critical minerals, the Philippines, as ASEAN chair, is prioritizing adaptation infrastructure and biodiversity protection in the face of climate change. Uy highlighted the need to ensure that the buildout of renewable energy infrastructure, such as offshore wind farms, does not come at the expense of marine ecosystems. The DENR has issued Administrative Order number 2024-02, establishing interim guidelines for offshore wind projects under the Philippine environmental impact assessment system, adopting a precautionary and science-based approach.
These guidelines mandate rigorous site selection, comprehensive baseline studies, and robust mitigation measures throughout the project lifecycle. They address potential impacts such as underwater noise, vessel traffic, and disruption of marine habitats, requiring proponents to avoid sensitive areas or schedule activities outside critical breeding and migration periods.
The Philippines is also actively working to develop an ASEAN critical minerals strategy, focusing on policy coherence, investment readiness, and alignment with environmental, social, and climate objectives. This strategy aims to establish a common definition of critical minerals and identify priority minerals for regional and global value chains. A key component of this effort is the ongoing negotiation of the Philippines-Singapore implementation agreement on carbon markets under Article 6 of the Paris Agreement, with hopes for signing during the Asean Climate Week in Manila this April.
The Asean Climate Week, a week-long event, will also serve as a platform for the Philippines to announce its updated nationally determined contribution (NDC) to the Paris Agreement. While the submission has been delayed, officials state the intention is to present a credible and achievable plan aligned with national policies and capabilities.
the Philippines is championing the Asean Blue Economy Framework, with a particular focus on addressing marine debris. The DENR is updating the regional action plan on marine litter and promoting sustainable consumption and production practices. This aligns with Singapore’s priorities as chair of the Asean working group on climate change, particularly regarding carbon credits and the blue economy.
Uy acknowledged the challenges of navigating diverse priorities and capacities within ASEAN, noting that some member states are less familiar with concepts like loss and damage. However, she emphasized the Philippines’ advantage as chair, stemming from its leadership in disaster risk reduction and adaptation, and its experience in developing relevant infrastructure and governance structures.
The Philippines is also seeking to leverage its position to advocate for a stronger regional voice in international climate negotiations, proposing the formation of an ASEAN negotiating bloc to amplify collective concerns, such as mitigation, adaptation finance, and loss and damage. The country is currently hosting meetings of the board of the fund for responding to loss and damage, aiming to submit a proposal under the Barbados Implementation Modality by .
The broader geopolitical context is marked by increasing competition between the US and China for influence in the Indo-Pacific region. The US is seeking to diversify supply chains for critical minerals away from China, and countries like the Philippines and Indonesia stand to benefit from this shift. However, this also raises concerns about potential tensions and the need for careful diplomacy to avoid exacerbating existing regional rivalries. The recent reports of US plans to deploy more missile launchers to the Philippines despite Chinese opposition underscores the increasing strategic importance of the archipelago.
As ASEAN chair, the Philippines faces the challenge of balancing these competing interests and fostering regional cooperation on climate change and economic development. Its success will depend on its ability to navigate complex geopolitical dynamics and build consensus among diverse member states.
