Project overview

The Verde Island Passage (VIP) is one of the world's most important marine biodiversity corridors. Located between Batangas and Mindoro in the Philippines, it spans around 1.14 million hectares of coral reef, mangrove and seagrass habitats and is home to more than 1,700 marine species, including 60% of the world's shore fish species and more than 300 coral species. The passage supports fisheries, ecotourism, coastal protection, while also serving as a major commercial shipping channel and an area of strategic importance for industry and energy. Millions of people depend on the health of this ecosystem for livelihoods, food security and local economic activity.

A Memorandum of Understanding between the Philippine Department of Environment and Natural Resources, the Department of Energy and major private sector groups - including Aboitiz Equity Ventures, San Miguel Corporation and Metro Pacific Investments - creates a framework for aligning public and private action around the protection of the VIP. The case sits alongside broader Philippine efforts to strengthen blue carbon governance, including the Philippines National Blue Carbon Action Partnership and its national roadmap.

Approach

The partnership responds to a clear governance challenge: many public, private and local actors are already active in the Verde Island Passage, but their efforts need to be harmonized around a shared strategy. The agreement seeks to advance a whole-of-government and whole-of-society approach to conservation, biodiversity protection and responsible economic development in the corridor.

Under the MOU, the participating companies and government agencies commit to support conservation and stewardship of the VIP's marine and coastal resources. Priorities include strengthening marine science and research capacity, supporting biodiversity research and development programmes, advancing habitat restoration and sustainable resource use, and aligning low-carbon transition objectives with environmental protection. The initiative also creates space for a technical working structure that can define roles, coordinate implementation and translate high-level commitments into concrete action.

A central element of the model is the recognition that conservation and economic activity are interdependent. Mangroves, seagrasses and coral reefs provide natural protection, nursery grounds for fisheries and biodiversity value that underpin local livelihoods and tourism. Protecting these ecosystems is therefore not only an environmental objective, but a way to safeguard the economic base of communities and businesses operating in and around the passage.

The case also points to the importance of evidence and local knowledge. Calls for stronger marine scientific research, a more comprehensive understanding of ocean-based natural capital, and the inclusion of fisherfolk and seafarer knowledge can help ensure that protection strategies are grounded in both science and lived experience. In this sense, the VIP partnership is not only a conservation agreement, but a coordination mechanism for investment, research, community engagement and policy alignment.

Business and economic value

The Verde Island Passage illustrates how corporate capital can support a more regenerative ocean economy when it is aligned with public policy, ecological priorities and community benefit. For companies, mangrove-positive and biodiversity-positive action can support climate, nature and SDG strategies while strengthening resilience, reducing operational and reputational risk, and creating opportunities for credible nature-related investment. For government, private sector participation can expand the resources available for research, restoration and long-term stewardship.

The economic value of the initiative lies in protecting the natural systems that sustain fisheries, tourism, coastal resilience and local livelihoods. By helping protect mangroves and other coastal ecosystems, companies can contribute to the stability of sectors on which local communities depend. Reinvesting economic gains into conservation and community welfare can create a more durable cycle of financial support for the region.

For ACT Ocean, the case offers a practical example of how public-private collaboration can mobilize corporate resources for ecosystem protection in a biodiversity hotspot. It shows how conservation, low-carbon transition planning and private investment can be brought into the same framework, creating a model that may be relevant for other coastal regions where biodiversity value, economic activity and community dependence are closely connected.

References

1. Investing in Mangroves: The Corporate Playbook - World Economic Forum

2. Loyzaga urges multisectoral effort on Verde Island Passage - Philippine Daily Inquirer

3. Metro Pacific Investments Corporation joins forces in environmental MOU to safeguard the Verde Island Passage - MPIC