PHILIPPINES POVERTY ENVIRONMENT INITIATIVE

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1 PHILIPPINES POVERTY ENVIRONMENT INITIATIVE Environment and Natural Resources and Benefits for Poverty Reduction and Environmental Sustainability The Philippines is a country in Southeast Asia composed of 7,107 islands, rich in natural and environmental resources. Forests, fisheries, arable land, minerals and renewable energy sources like wind, solar, water and geothermal are abundant PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) 1

2 Philippines is a lower middle income country w/ an estimated population of 94 million HDR ranked it 97 th out of 169 countries, w/ an HDI of In 2011, Philippines ranked 112 th out of 187 countries in human development. GDP grew 7.3% in 2010; slid to 3.7% in 2011 and in the first quarter of 2012 recovered at 6.4% and accelerated by 7.1% in third quarter of HOWEVER There are wide disparities in INCOME and QUALITY OF LIFE across regions and sectors. Poverty in the Philippines is a rural phenomenon. 75% of all poor families in the Philippines live in rural areas mainly dependent on ENR for their subsistence. IPs make up about 15 % of the population and As of 2009, 26.5% of the total population or an occupy an estimated 17 % of total equivalent of 25 million poor Filipinos live below land area. poverty line, including 10 million women. To achieve the first MDG to halve poverty by 2015, the Philippines has to reduce poverty by 1.65% every year beginning PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) Environmental degradation in the Philippines is hugely damaging to poor people s livelihoods, as well as to the economy as a whole. Philippines suffers from severe deforestation, declining fish production and overflowing solid waste In urban areas, the poor suffer more from exposure to air and water pollution. PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) (PPEI) 2

3 Philippines also continues to suffer from environmental hazards such as floods, typhoons, and climate change, which affect poor groups disproportionately. PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) (PPEI) [t]he degraded state of the country s environment and natural resources is felt most intensely by the poor, especially the rural communities given that they depend on these resources for their primary source of living. On the other hand, poverty frequently aggravates environmental stress as the marginalized population presses upon limited resources, such as unregulated activities and upland cultivation. - PDP assessment of the State of the Environment and Natural Resources PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) (PPEI) 3

4 Mining in Particular Philippines being the fifth most mineralized country in the world PDP identifies the mining sector as one of the ten (10)high-growth potential industries HOWEVER, Contributed relatively little to GDP and employmentgeneration over the years Revenue sharing: under the current legal framework, the government gets only 2% excise tax as share in a mineral production sharing agreement Institutional safeguards: need for proper regulation of mining activities and protection of the environment, and the IPs and those host communities PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) (PPEI) The Continuing Key Challenge reverse the persistent poverty situation by turning the country s environment and natural resources into capital for poverty reduction and sustainable management of environment and natural resources. PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) (PPEI) 4

5 The Philippines Poverty-Environment Initiative Main goal of supporting the Philippine government, civil society and the business sector to utilize revenues and benefits from sustainable environment and natural resources management for poverty reduction through improved capacity and enabling conditions at national and local levels. Positive linkages ENVIRONMENT POVERTY REDUCTION Promote the poverty-environment linkage in national plans, sectoral strategies, local governance, economic decision making and sub-national planning through rational utilization of natural resources, environmental protection, social equity measures, and poverty alleviation actions towards an inclusive green growth. PHILIPPINES POVERTY ENVIRONMENT INITIATIVE (PPEI) The PPEI Phase 1 ( ): Establishing the Baseline and Initializing Reforms OUTPUT1 Opportunities for Central government agencies and LGUs identified for improve ENR revenues & benefits OUTPUT 2 LGU capacity enhanced to improve benefit sharing from sustainable ENR management OUTPUT 3 Enabling conditions at national level established to promote the identified opportunities for sustainable ENR management PHILIPPINES POVERTY ENVIRONMENT INITIATIVE (PPEI) 5

6 Our continuing initiatives The PPEI Phase 2 ( ): Scaling-up and Institutionalizing the Gains OUTPUT1 Timely release of environment and natural resource revenues to LGUs OUTPUT 2 Improved utilization of NR revenues for social services delivery, poverty reduction and environmental sustainability through mainstreaming P-E linkages in the planning and budgeting system of LGUs OUTPUT 3 Developed national and local government capacities on linking P-E concerns in governance OUTPUT 4 Transparent collection of natural resource revenue applied through the introduction of the Extractive Industries Transparency Initiative (EITI) OUTPUT 5 Improved regulatory framework for small-scale mining for an optimized contribution to sustainable development PHILIPPINES POVERTY ENVIRONMENT INITIATIVE (PPEI) Province of Benguet City of Toledo, Cebu PPEI PILOT LGUs Municipality of Aroroy, Masbate Brgy. Taganito/ Municipality of Claver PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) 6

7 PPEI aims to reach all the LGUs hosting Extractive Industries. PPEI also works with other NGAs, CSOs, Private Sectors/Businesses, Academe and community stakeholders. PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) Turning the Country s Environment and Natural Resource Revenues and Benefits as Capital for Poverty Reduction and Environmental Sustainability PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) 7

8 Requirements of Environmental Protection and Community Development in Mining Operations Executive Order 79 SECTION 2. SECTION 3. SECTION 7. SECTION 8. SECTION 9. SECTION 11. SECTION 12. SECTION 13. SECTION 14. SECTION 15. Full Enforcement of Environmental Standards in Mining. Review of the Performance of Existing Mining Operations and Cleansing of Non Moving Mining Rights Holders. Disposition of Abandoned Ores and Valuable Metals in Mine Wastes and Mill Tailings. Value-Adding Activities and the Development of Downstream Industries for the Mineral Sector. Constituting the Climate Change Adaptation and Mitigation and Economic Development Cabinet Clusters as the Mining Industry Coordinating Council (MICC). Measures to Improve Small-Scale Mining Activities. Consistency of Local Ordinances with the Constitution and National Laws/ LGU Cooperation. Creating a One-stop Shop for all Mining Applications and Procedures. Improving Transparency in the Industry by Joining the Extractive Industries Transparency Initiative (EITI). Creation of a Centralized Database for the Mining Industry. PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) Requirements( ) Cont d. Philippines Mining Act of 1995 (RA 7942) - Certificate of Environmental Management and Community Relation Record - Environment Work Program - Environmental Compliance Certificate - Environmental Protection and Enhancement Program - Memorandum of Agreement preceded by the Free Prior - Informed Consent of the Indigenous Peoples PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) 8

9 Share of LGUs on revenues from natural resources Philippines Constitution Local governments shall be entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas, in the manner provided by law, including sharing the same with the inhabitants by way of direct benefits. Local Government Code of 1991 Local government units shall, in addition to the internal revenue allotment, have a share of 40% of the gross collection derived by the national government from the preceding fiscal year from mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges, including related surcharges, interests, or fines, and from its share in any co-production, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction. PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) Utilization of LGUs shares in the natural resource revenues Royalties and excise tax from mineral and mineral products (LGC 1991 Title 2,Chap 2) Proceeds from the share shall be appropriated to finance local government and livelihood projects Income from energy sources (LGC 1991, Section 294) At least 80 % of the proceeds derived from the development and utilization of hydrothermal, geothermal and other sources of energy shall be applied solely to lower the cost of electricity in the LGU where such source of energy is located PHILIPPINES DECENTRALIZATION POVERTY ENVIRONMENT AND LOCAL GOVERNMENT INITIATIVE (PPEI) 9

10 In order to attain the vision of the country of a sustainable development, ENR-related activities, especially those extractive industries should be operated in harmony with the national and local environment, especially with the rural communities, poor people, IPs and other community stakeholders so that they become the permanent beneficiaries and not the victims of natural resource extraction and development. - Sec. Jesse Robredo 25 July 2012, PPEI s Knowledge Sharing & MOA Signing Event Maraming Salamat po! PPEI knowledge products & publications are available at: 10