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 ]

2. Agency/sectoral level initiatives

At present, the planning services of agencies/departments are the strategic units for policy decision-making in the respective economic/social sectors. The recent Executive Order 291, dated 12 January 1996, aimed at improving the EIA system in the Philippines, has encouraged the establishment of Environmental Units (EUs) in all implementing government agencies, including government-owned and controlled corporations (GOCCs) and government financial institutions. Meanwhile, agencies with mandates that include the introduction of physical plants and infrastructure are required to create their own EUs. The envisaged functions of those EUs are: (a) EUs of national government agencies and GOCCs will assist in the preparation of EIS, ensure that their respective agencies/GOCCs meet the procedural requirements of the EIS system, facilitate the securing of the environmental clearance certificates (ECCs) of their respective projects and, upon securing ECCs, will ensure compliance by the project with the ECC conditions; and (b) EUs of the government financial institutions will ensure that loans or related funding applications from government and private institutions comply with the EIS system.

Agencies which have complied with Executive Order 291 have stated that their own recognition of the environmental effects of their development projects as well as concern for environmental protection were their primary reasons for creating EUs. Further, the existence of an EU is believed to strengthen the institutional capacity of an agency in the use of EIA as an effective tool for sectoral development planning that is environmentally sustainable.

The recent completion of the Philippine Agenda 21 (1997a) for sustainable development is expected to formalize the systematic integration of environmental/sustainable development considerations into the national Development Plans. Among other things, the Philippine Agenda 21 is meant to provide the main framework for reorienting planning in the country towards sustainable development.

The various agency initiatives at integrating environment and socio-economic development policies are detailed below.1

(a)Environmental Management Bureau

EMB, a staff bureau of the Department of Environment and Natural Resources, is mandated with formulating policies, programmes, guidelines, standards, rules and regulations for environmental management and pollution control. Thus it serves as the Pollution Adjudication Board.

EMB also administers EIAs which require all government agencies and private sector to come up with EIS for environmentally critical projects as well as projects that are located in an environmentally critical area. ECCs have to be issued by the Department of Environment and Natural Resources for every undertaking that has been identified as not having a negative impact on the environment. In addition, EMB undertakes capability building and environmental education programmes.

(b)Department of Agriculture

In response to the commitments made by the government during UNCED to promote sustainable agriculture, the Department of Agriculture has adopted an ecological approach to crop cultivation. In 1993, the Department of Agriculture has fully implemented integrated pest management (IPM) which is now termed Kasaganaan ng Sakahan at Kalikasan or KASAKALIKASAN (meaning agricultural and environmental abundance). IPM has adopted the use of biological methods in combating pests as an alternative to the application of chemicals. The Department is also promoting soil conservation techniques such as contour farming and alley cropping, and water conservation-related projects such as small water impounding projects.

(c)Department of Energy

In order to meet the challenge of continuous energy production and utilization to meet the needs of the country while protecting the environment, the Department of Energy has adopted a three-pronged approach to address the possible environmental implications of the long-term energy plans: (a) the creation of an environmental unit to monitor compliance of the sector with environmental regulations, while at the same time addressing environmental problems; (b) the development of a comprehensive regional environmental profile database; and (c) the integration of environmental concerns into macro energy planning and the formulation of environmental policies for the energy sector.

(d)Board of Investments of the Department of Trade and Industry

The Board of Investments (BOI), which promotes investments in the country, incorporates environmental considerations such as some provisions for environmental management in its annual Investment Priorities Plan. Since 1995, BOI has required firms with environmentally-critical projects to submit ECCs before starting commercial operation. Furthermore, BOI grants tax exemptions and incentives in the following cases: (a) tax exemptions for firms that locate outside Metro Manila; (b) tax exemptions for firms that import brand new equipment and install wastewater treatment systems; and (c) incentives for firms that utilize pollution control equipment (whether locally manufactured or imported).

(e)Commission on Population

The Commission on Population integrates environmental concerns in its mandate as reflected in the five-year Philippine Population Management Programme which is aimed at balancing population, resources and the environment in order to achieve human and ecological security. The programme has adopted the population, resources and environment framework which is based on the goal of attaining of sustainable development and improving the quality of life at the macro and micro levels, respectively.

(f)Department of Health

The Department of Health, through its Environmental Health Unit, formulates policies, plans, programmes, standards and techniques related to environmental health and sanitation.

(g)National Water Resources Board

The conservation and management of the environment and natural resources are embraced by the Philippine Water Code. It is stated in the Code that in the appropriation of water, an entity must first secure the water rights, and that granting or denying an application is based on the possible adverse effects of the planned utilization of water. In addition, the Code also provides for the revocation of a permit for the following violations: pollution; causing a public nuisance; and acts detrimental to public health and safety. The Code likewise advocates the conservation and protection of water bodies and watersheds. In addition, the National Water Resources Board policy is to require ECCs with water applications for industrial use and applications for permits to drill.

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