Integrating Environmental Considerations into the Economic Decision-Making Process
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Volume IEast and Southeast AsiaPhilippines Index
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I. NATIONAL INSTITUTIONAL ARRANGEMENTS FOR INTEGRATING ENVIRONMENTAL CONCERNS INTO THE POLICY DECISION PROCESS

[ I-A | I-B | I-C ]

B. National structure for the integration of environmental concerns into economic policy decisions

[ B | B-1 | B-2 | B-3 ]

1. National-level initiatives

(a)Philippine Council for Sustainable Development

Chaired by NEDA, PCSD is considered as a formal channel for integrating environmental considerations into economic policy-making and for advancing environmental protection in overall economic development planning. It also serves as a forum for addressing and discussing environmentally sustainable development issues.

The primary mandate of PCSD is to establish guidelines and mechanisms for formulating and implementing the sustainable development principles embodied in the Earth Summit Declaration, and incorporating them into the Development Plans of the Philippines. The powers and functions of PCSD are stipulated in Executive Order 15 which mandated the creation of the Council. It has, at present, four committees corresponding to the four major sections of Agenda 21: the Committee on Social and Economic Dimensions (CSED); the Committee on the Conservation and Management of Resources for Development; the Committee on Strengthening the Role of Major Groups; and the Committee on Means of Implementation. The four Committees have the following general functions:

  • To create a critical mass of advocates for sustainable development within the government and the non-government sector;
  • To actively participate in policy research, analysis and advocacy for sustainable development.
To the extent that government institutions or agencies are members of PCSD, the integration of environmental and sustainable development concerns in their respective sectoral development plans and policies is facilitated/ensured. The organizational structure of PCSD, which allows representation from the government, civil society, and the business and labour sectors, effectively provides the operational mechanism for sectoral integration and the systematic incorporation of environmental considerations in decision-making.

(b) Investment Coordination Committee

At the investment programming level, the Investment Coordination Committee (ICC), which is an interagency body under the responsibility of the NEDA Board, plays a key role in reviewing/screening major capital projects with respect to technical, financial, economic, social and institutional development standards, as well as in the context of sectoral plans and geographical strategies, to ensure the optimal utilization of scarce resources.

ICC comprises three levels: (a) the ICC Cabinet Committee (ICC-CC); (b) the ICC Technical Board (ICC-TB); and (c) the ICC Secretariat. ICC-CC comprises seven members: the Secretaries of Finance, Socio-Economic Planning, Budget and Management, Trade and Industry, Agriculture, the Executive Secretary and the Governor of the Central Bank. Its task is to recommend decisions to the NEDA Board concerning approval on specific projects/programs submitted for ICC clearance. It also recommends to the NEDA Board an annual implementation programme for major capital projects through the Medium-Term Public Investment Programme. ICC-TB, which comprises senior representatives from national government agencies (including the Office of the President and the Government Corporate Monitoring and Coordinating Committee) provides support to ICC-CC. It deliberates on the economic, social, financial, technical and institutional aspects of projects, including policy issues as evaluated by the ICC Secretariat, and submits appropriate recommendations to ICC-CC for decisions. The ICC Secretariat, which is served by NEDA, provides technical support staff to ICC-TB and ICC-CC. In coordination with the ICC member agencies concerned, the ICC Secretariat undertakes the evaluation of all projects submitted to ICC and recommends appropriate action for consideration by ICC.

Environmental evaluation of proposed projects is undertaken at the technical evaluation stage of the ICC review process. At present, the ICC environmental evaluation involves: (a) checking the environmental soundness of proposed technologies; (b) ensuring the preparation of an Environmental Impact Statement (EIS) or the issuance of an environmental clearance certificate (ECC) for the proposed undertaking; and (c) identifying environmentally-related benefits and costs that have to be quantified by the proponents. Currently, the environmental soundness of major capital and other projects requiring ICC approval is processed and assessed through the EIS system that is administered by the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources. The issuance of an ECC is among the standard requirements of ICC for the full approval of proposed development projects.

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