TA 3921 PHI: Cleaner Production for the Philippines— A Special Study

Assessment of Environmentally Responsible Procurement Opportunities in

the Philippines

FINAL REPORT

August 2004

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FOREWORD

The Asian Development Bank (ADB) adheres to the principle that economic development and environmental protection are equally important pursuits in reducing poverty in the Asia-Pacific region. ADB’s commitment to environmental protection is reflected in the Bank’s requirement for environmental assessment of its development projects. Recently, ADB updated both its Environmental Policy and Environmental Assessment Guidelines to broaden their scope and enhance their effectiveness by incorporating environmentally responsible procurement (ERP).

Procurement practices can be thought of as the source or gateway, through which materials and services must pass prior to use and management. ADB lending generates about $5 billion worth of procurement per year, which could have considerable environmental, social, and economic impacts from the procurement associated activities. Recognizing this fact, ADB has been reviewing its procurement policies and practices with an aim to incorporate ERP in ADB operations, including facilitating ERP in developing member countries, and has conducted an initial study on strengthening ERP in ADB operations. A user’s guidelines on environmental responsive procurement is being drafted.

By incorporating ERP in its operations, ADB encourages borrowers and executing agencies to ensure, whenever possible, that the goods and services procured under ADB-financed projects have been produced in a responsible manner in terms of resource efficiency, waste minimization, and environmental consideration. The adoption of ERP also encourages industry sector to improve manufacturing processes and produce environmental friendly goods and services, which will eventually expand their business opportunities and competitiveness in a globalized economy.

For this purpose, a prudent review of ERP related laws, regulations and practices

in ADB’s member countries is necessary to provide guidance in the development and design of future ADB projects. The Report on the Assessment of Environmentally Responsible Procurement Opportunities in the Philippines was funded under the technical assistance (TA) of promoting cleaner production for the Philippines as one of the TA’s special studies, which is aimed to identify cleaner production opportunities, such as ERP, in the country. The report examined market conditions, institutional capacities, environmental priorities, and other factors that may promote or constrain the application of ERP in the Philippines, which provides comprehensive reference materials to ADB in the development of its ERP guidelines. We also hope that this report will be useful to both ADB and the business world in understanding ERP-related policies and regulations in the Philippines and will create environmental friendly business opportunities for the Filipino industry.

Shamshad Akhtar Director General Southeast Asia Department

Patrick Giraud Director, Infrastructure Division Southeast Asia Department

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ABBREVIATIONS ACGIH-TLV - American Conference of Government Industrial Hygienist

Threshold Limit Values ACEL - Association of Carrier and Equipment Lessors BFAD - Bureau of Food and Drugs BPS - Bureau of Product Standards CAS - Chemical Abstract Service CCO - Chemical Control Orders CFCs - chlorofluorocarbons C&GFI - Clean and Green Foundation, Incorporated CACP - Citizens’ Alliance for Consumers’ Protection CFLs - compact fluorescent lamps COCAP - Concerned Citizens for Pollution dB - decibels DAO - Department Administrative Order DA - Department of Agriculture DBM - Department of Budget and Management DOE - Department of Energy DENR - Department of Environment and Natural Resources DOH - Department of Health DILG - Department of Interior and Local Government DOLE - Department of Labor and Employment DPWH - Department of Public Works and Highways DOST - Department of Science and Technology DTI - Department of Trade and Industry DOCT - Department of Transportation and Communication EUMB - Energy Utilization Management Bureau EMB - Environmental Management Bureau EO - Executive Order FPA - Fertilizer and Pesticide Authority GCP - Green Choice Philippines GPPB - Government Procurement Policy Board ICC - Import Commodity Clearance IFBWW - International Federation of Building and Wood Workers ISO - International Organization for Standardization IUPAC - International Union of Pure and Applied Chemistry JICA - Japan International Cooperation Agency LACC - Labor Advisory and Consultative Council LGUs - Local Government Units MOA - Memorandum of Agreement MSW - municipal solid waste NEDA - National Economic and Development Authority NSWC - National Solid Waste Management Commission NSB - National Standards Body NGOs - non-government organization OSH - occupational safety and health OSHS - Occupational Safety and Health Standards OECD - Organization for Economic Co-operation and Development ODS - ozone depleting substances

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PBE - Philippine Business for the Environment PCA - Philippine Constructors Association PICCS - Philippine Inventory Of Chemicals And Chemical Substances PNS - Philippines' National Standards PNRI - Philippine Nuclear Research Institute PCB - Polychlorinated Biphenyls PMPIN - Pre-Manufacturing and Pre-Importation Notification PD - Presidential Decree PCL - Priority Chemicals List PRIME - Private Sector Participation in Managing the Environment RA - Republic Act SME - small and medium enterprises TC - Technical Committee TWG - Technical Working Group TLV - threshold limit values TUCP - Trade Union Congress of the Philippines TSD - treatment, storage, disposal UNDP - United Nations Development Programme

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TABLE OF CONTENTS

I. REVIEW OF ENVIORNMENTAL LAWS AND REGULATIONS IN THE PHILIPPINES... 1

A. Toxic and Hazardous Substances ...................................................................... 1

B. Waste Management .............................................................................................. 5

C. Occupational Safety and Health Standards ....................................................... 7

II. TRADE POLICIES AND PRODUCT REGULATIONS IN THE PHILIPPINES................. 12 III. OPPORTUNITIES FOR THE PROMOTION OF ECO-LABELING IN THE PHILIPPINES14 IV. ASSESSMENT OF ECO-LABELING PROGRAM IN THE PHILIPPINES...................... 16

A. Legal Structure ................................................................................................... 16

B. Organizational Structure.................................................................................... 17

C. Product Selection ............................................................................................... 18

D. Criteria Development ......................................................................................... 19

E. License Application............................................................................................ 20

F. Financial Capability ............................................................................................ 20

G. Technical Capability........................................................................................... 21

H. Information Dissemination ................................................................................ 21 V. CONCLUSIONS AND RECOMMENDATIONS............................................................... 21 Annexes Annex 1 Examples of Revised Classification of Hazardous Wastes ............................. 24 ANNEX 2 Priority Chemical List ......................................................................................... 27 ANNEX 3 Recyclable Materials Containing Hazardous Substances that may be

Imported, Subject to Limiting Conditions ......................................................... 28 ANNEX 4 Threshold Limit Values for Regulated Substances ......................................... 29 ANNEX 5 Threshold Limit Values for Human Carcinogens ............................................. 30 ANNEX 6 Threshold Limit Values for Mineral Dusts ........................................................ 31 ANNEX 7 Minimum Lighting Levels in Foot Candles for Various Areas of Operation .. 32

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I. REVIEW OF ENVIRONMENTAL LAWS AND REGULATIONS IN THE PHILIPPINES

A. Toxic and Hazardous Substances

Republic Act 6969, also known as Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990, was enacted to regulate toxic substances and hazardous wastes, and nuclear wastes. The Department of Environment and Natural Resources (DENR) regulates toxic substances and hazardous wastes while Philippine Nuclear Research Institute (PNRI) regulates nuclear wastes.

DENR Administrative Order (DAO) No. 29, Series of 1992, provides the Implementing

Rules and Regulations (IRR) of Republic Act (RA) 6969. It regulates the importation, manufacture, processing, handling, storage, transportation, sale, distribution, use and disposal of all unregulated chemical substances and mixtures in the Philippines. Similarly, it regulates the entry, even in transit, storage and disposal of hazardous wastes into the country.

DENR DAO 28, Series of 1994, provides interim guidelines for the importation of

recyclable materials containing hazardous substances as defined under RA 6969. Importation of such materials shall be allowed only upon securing prior approval from the Secretary of the DENR or his duly authorized representative.

The DENR has issued chemical control orders (CCOs) to control the use and dispersion

into the environment of certain toxic substances (see discussions on CCO). The CCO applies to the importation, manufacture, processing, use and distribution of the hazardous substances.

The Philippines is a party to the Basel Convention on the Control of Transboundary

Movements of Hazardous Wastes and their Disposal. Among its provision, the Convention permits the export of waste only if the exporting country lacks adequate facilities for proper disposal, or if the wastes are to be used as raw material in recycling or recovery operations.

Another international agreement ratified by the Philippines is the Montreal Protocol,

which stipulates the gradual phase-out of the production and usage of ozone depleting substances (ODS). The ODS chlorofluorocarbons (CFCs) and carbon tetrachloride are phased out in 2000 and methyl chloroform, by 2005. At present, most of Philippine manufacturing industries have complied with the Montreal Protocol and are using non-ODS in their processes.

Aside from the DENR and its attached agencies, the following government offices are tasked with the implementation of regulations related to toxic substances and hazardous wastes:

• Bureau of Food and Drugs (BFAD). BFAD administers the regulations for foods, drugs and cosmetics not covered by RA 6969.

• Fertilizer and Pesticide Authority (FPA) regulates the use of all types of agricultural

chemicals in the Philippines not covered by RA 6969.

• Philippine Nuclear Research Institute (PNRI), an agency under the Department of Science and Technology, regulates the use of nuclear fuel and the likes. It also implements the nuclear waste provisions of RA 6969.

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Hazardous wastes are wastes (solids, sledges, liquids, and containerized gases), which by reason of their chemical activity, are toxic, explosive, corrosive or reactive, cause danger or will likely to cause danger whether alone or when coming into contact with other materials. The DENR classifies hazardous wastes in the country according to type and sub-category. Annex 1 presents examples of the various types, sub-category, classification number, and standard for registration.

DAO 29, however, exempts the following types of wastes from the requirements of its implementing rules and regulations as identified in Table 1 of DAO 29.

• Garbage from domestic premises and households • Industrial and commercial wastewaters, which are disposed of on-site through the

sewage system.

• Industrial and commercial solid wastes that do not contain prescribed hazardous wastes as identified in Table 1 of DAO 29.

• Materials from building demolition except asbestos.

• Septic tank effluent and associated sullage wastewaters.

• An untreated spoils from mining, quarrying and excavation works but not materials in the

nature of tailings, commercially treated materials, and mine facility consumable. The following are effective environmental guidelines for regulated substances: 1. Philippine Inventory Of Chemicals And Chemical Substances (PICCS)

RA 6969 and DAO 29 mandate the DENR Secretary or his duly authorized representative to keep, update, compile and maintain an inventory of chemical substances that are stored, imported exported, used, processed, manufactured, or transported. The inventory shall contain information that the Secretary or his duly authorized representative considers relevant to the protection of health and the environment. The Philippine Inventory of Chemicals and Chemical Substances (PICCS) contain such information.

If the chemicals are not included in the Priority Chemicals List (PCL) and are not subject

to Chemical Control Orders (CCO), manufacturers and importers need not notify and secure clearance from the DENR before they manufacture or import these chemicals.

The PICCS contains the following information:

• Chemical name and the Chemical Abstract Service (CAS) number, a unique identifying

number assigned to a particular chemical or chemical substance. • CAS Registry Index names that are assigned to chemicals in accordance with

International Union of Pure and Applied Chemistry (IUPAC) nomenclature. • Common name of the chemical or chemical substance, only if different from CAS

Registry Index name.

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Likewise, the DENR exempts the following substances from inclusion in the PICCS: • Non-chemical substances • Naturally occurring substances • Mixtures • Radioactive substances, pesticides, drugs, foodstuffs and cosmetics that are regulated

by other laws in the Philippines. • By-products

2. Priority Chemical List (PCL)

The Priority Chemical List (PCL), on the other hand, is a list of existing and new chemicals that the DENR has determined to potentially pose unreasonable risk to public health, workplace and the environment. DENR requires all manufacturers, distributors, users, importers of chemicals included in the PCL to submit biannual reports. Annex 2 presents the chemicals in the PCL. 3. Chemical Control Order (CCO)

The DENR may issue a Chemical Control Order that prohibits, limits, or regulates the use, manufacture, import, transport, processing, storage, possession and sale of those priority chemicals that it has determined to be regulated, phase-out, or banned because of the serious risks they pose to public health, workplace, and environment. At any one time, the DENR may impose a regulation, a phase-out plan, or a ban on a chemical or chemical substance when it determines that such action is necessary. At present, the following chemicals are subject to CCO as shown in Table 1.

Table 1. Status Of Chemical Orders for Regulated Substances

Regulated Substances Regulating Law Ozone depleted substances DAO 2004-08 Polychlorinated Biphenyls (PCB) DAO 2004-01 Asbestos DAO 2000-02 Mercury DAO 97-38 Cyanide DAO 97-39

Source: Environmental Management Bureau, DENR

The DENR may further apply a number of requirements to all the chemicals that are covered by CCOs. The specific requirements are dependent on the nature of the chemical covered by CCO and the type of controls that will be introduced. These may include the following:

• Registration with the DENR and obtaining import clearance. • Limitations in industrial use:

Gradual phase-out of import and manufacturing Gradual substitution of the chemical in manufacturing process Providing exemptions for certain uses and premises

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• Submission of an annual report by all manufacturers, importers, and industrial users of chemical to the DENR, including the following information:

General information about the premise or facility Production and management information Number and category of employees exposed and their exposure duration Wastes generated Labeling requirements Storage, treatment and disposal requirements Self-inspection Reporting and record keeping requirements

4. Pre-Manufacturing And Pre-Importation Notification (PMPIN)

The DENR requires all manufacturers and importers of a new chemical not included in PICCS to submit a pre-manufacture and pre-importation notification. The purpose is to screen harmful substances before they enter Philippine’s commerce. One main objective of this policy is to ensure that new chemicals that would pose an unreasonable risk to human health and the environment are not manufactured or imported into the country or they are placed under control and restrictions to limit potential releases. 5. Import of Recyclable Materials Containing Hazardous Substances

Consistent with provisions of the Basel Convention on the Transboundary Movement of Hazardous Wastes and their Disposal, the Philippine government does not allow importation of hazardous waste. However, the DENR allows the importation of recyclable materials containing hazardous substances as prescribed by the guidelines under DAO 28:

(i) Any person who wishes to import into the Philippines materials containing hazardous substances as defined under RA 6969 must obtain prior written approval from the DENR.

(ii) The importer must first register with the DENR and apply for an importation

Clearance for each shipment. The Environmental Management Bureau (EMB) shall inspect the recycling/ receiving facility to determine whether the application has the capability to recycle the imported material in an environmentally acceptable manner.

(iii) The DENR reserves the right to require the testing and sampling of the imported

recyclable materials through its EMB laboratory or any of its duly recognized laboratories. The testing and sampling will be at the expense of the importer.

A recyclable material is defined as any material, which is reused, following its original

use, for any purpose of commercial, industrial, agricultural or economic value. Annex 3 presents a list of recyclable materials containing hazardous substances that may be imported subject to the corresponding limiting conditions.

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B. Waste Management 1. Solid Waste

Solid waste refers to all discarded household, commercial waste, non-hazardous institutional and industrial waste, street sweepings, construction debris, agricultural waste, and other non-hazardous/non-toxic solid waste.

Republic Act 9003, also known as the Solid Waste Management Act of 2000, provides for a systematic, comprehensive and ecological solid waste management program in the Philippines. The Act sets the guidelines and targets for solid waste avoidance and volume reduction through source reduction and waste minimization measures, treatment and disposal in appropriate and environmentally sound solid waste management facilities in accordance with ecologically sustainable development principles.

The National Solid Waste Management Commission (NSWC), as established under the Act, oversees the implementation of solid waste management plans and policies. Among the functions it undertakes are the: (i) preparation of the national solid waste management framework; (ii) review and monitoring of local solid waste management plans; (iii) adoption of a program to provide technical and other capability building assistance and support to local government units in the development and implementation of source reduction programs; and (iv) development and implementation of programs to assist local government units in the identification of markets for materials that are diverted from disposal facilities through re-use, recycling, and composting, and other environment-friendly methods.

The province, city or municipality, through its local solid waste management boards, prepares its respective 10-year solid waste management plans consistent with the national solid waste management framework. The said plan considers the re-use, recycling and composting of wastes generated in their respective jurisdictions. The plan places primary emphasis on implementation of all feasible re-use, recycling, and composting programs while identifying the amount of landfill and transformation capacity that will be needed for solid waste which cannot be re-used, recycled, or composted.

A draft national solid waste management framework has been prepared by the Commission, in which national public consultations are expected to be undertaken within the next months. The Commission targets the 4th quarter of this year to have the framework finalized.

As of this writing, a separate Department Administrative Order (DAO) for the construction and demolition wastes is likewise being prepared and in the process of finalization.

Consistent with RA 9003, Presidential Decree (PD) 825 provides for penalties on the improper waste disposal. It requires that all garbage, filth and waste should be placed in proper receptacles. Supervision over proper disposal of garbage has been devolved to the Local Government Units (LGUs) under the 1991 Local Government Code.

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2. Hazardous Wastes

a. Hazardous Waste Storage And Labeling

Proper storage and labeling of hazardous wastes are important factors to consider in the management of these wastes. Improper storage and labeling of these wastes can often lead to accidents and contamination of the environment. Thus, the DENR requires that all vessels, containers, and tanks for the storage of hazardous waste shall be clearly labeled. This labeling shall compromise the following particulars:

• Class of hazardous waste • Sub-category of hazardous waste • Waste number • Name and address of the waste generator • Maximum capacity or volume

b. Waste Treatment And Disposal Premises

Only those companies or premises permitted by the DENR shall accept, store, treat,

recycle, reprocess, or dispose of hazardous wastes. The DENR has categorized treatment and disposal facilities according to activities performed by said premises. Table 2 shows this categorization.

Table 2. Categories and Description of Hazardous Waste Treatment and Disposal Premises

Category Description A Premises that conduct on-site disposal of hazardous wastes generated or

produced at the premises through industrial or commercial processes and activities other than disposal via sewer.

B Commercial or industrial hazardous waste incinerators C Landfills, dumps, or tips that accept hazardous waste for disposal D Premises that recycle or reprocess hazardous waste which were not

generated or produced at that premise. E Premise that immobilize, encapsulate, polymerize or treat hazardous

wastes, which were not generated or produced at the premise. F Premise that store hazardous wastes, which were not generated or

produced at that premise for periods exceeding 30 days. Source: Table 3, Section 30, DAO 29

Operators of prospective treatment and disposal premises shall apply for the issuance or any amendment of their permit by DENR. The application shall be accompanied by the payment of prescribed fees and plans, specifications, and other information about the premises and a summary as may be required by the DENR. The DENR shall maintain a register of waste treaters.

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c. Hazardous Waste Manifest

DAO 29 requires that all handlers of hazardous wastes prepare a manifest that can track the movement of their hazardous wastes from the point of generation to the point of ultimate treatment, storage, disposal (TSD). The manifest serves as a “cradle to grave” hazardous waste tracking system. This is done by requiring each handler of the hazardous waste to sign and acknowledge the manifest. A copy of the manifest is retained by each premises. Once the hazardous waste reaches the TSD premises, the owner/ operator of the TSD must submit a copy of the manifest cycle. The generator must also submit a copy of the manifest signed by the transporter to the DENR.

Rule XXVIII Section 1 of the Implementing Rules and Regulations (IRR) of the Republic Act 8749 (Clean Air Act) prohibits incineration of municipal, bio-medical and hazardous wastes, pursuant to Section 20 of the Act. C. Occupational Safety And Health Standards

Occupational accidents and diseases are examples of the most serious forms of economic wastes. Loss of production, compensation costs and disruptions of production schedules are economic burdens to the business community. Protection against sickness, disease and injury from employment are among the aims of occupational safety and health standards. Occupational Safety and Health Standards (OSHS) are designed for the physical protection of workers against dangerous occupational hazards.

Presidential Decree (PD) No. 442 or the Labor Code of the Philippines was enacted to protect workers in the workplace from risks resulting from factors adverse to health.

Following Article 162 of PD 442, the Occupational Safety and Health Standards was promulgated in 1978. It has been revised in 1982 and 1989. This body of standards provides the following information:

• Rule 1000 (General Provision) – general terms of occupational health and safety; methods of investigation and review; and scope of the standards.

• Rule 1060 (Premises of Establishment) – requirement of signs for fire, emergency and

safety instructions; facilities for handicapped employees and personal facilities in buildings. Space requirements of workrooms; walkway surfaces; floor/ wall opening; stairs; bedroom; window openings; fixed ladders; overhead walks; runways; and platforms are specified. Requirements of yards, gate and parking space are also set.

• Rule 1070 (Occupational Health and Environmental Control) – standards on the physical

environment (noise levels, airborne contaminants, illumination levels, ventilation, temperature and humidity, levels of carcinogen) are set. Compliance with these standards requires the services of industrial hygienists.

• Rule 1080 (Personal Protective Equipment and Devices) – requirement for employees

to provide workers personal protective equipment in case the work environment is hazardous and cannot be controlled by engineering or administrative methods.

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Standards as to the type and specifications of the personal protective equipment for particular areas of the body are specified.

• Rule 1090 (Hazardous Materials) – requirement for employees to undertake specific

precautions in handling hazardous materials, provision of material safety information, including emergency instructions in case of exposure or poisoning.

The PD 856 or the 1976 Code on Sanitation of the Philippines was issued on December

23, 1975 to direct public health services towards the protection and promotion of the health of our people. Section 4 of PD 856 empowers the Secretary of the Department of Health (DOH) to promulgate rules and regulations for the proper implementation and enforcement of the provision of the Code.

DOH Administrative Order No. 3 series 1991 or the Rules and Regulations Implementing Chapter VII (Industrial Hygiene) of PD 856 provides for the following:

• Rule 2 – sanitary requirements for operating an industrial establishment

• Rule 3 – responsibilities of employer, employees and health and safety committee

• Rule 4 – environmental requirements which include control of physical, chemical, biological hazards and ergonomics for protection of workers

• Rule 5 – use of personal protective equipment

The following government agencies are tasked with the implementation of regulations

related to occupational safety and health: (i) The Department of Labor and Employment (DOLE) administers and enforces

occupational safety and health laws in all work places. However, the following are not covered:

• Establishments engaged in land, sea and air transportation, except their garages, dry

docks, port hangers, maintenance and repair shops • Activities of lessee regarding safety of mining installations, surface or underground

within the mining claim or lease, including mine safety, mineral conservation and problem of pollution in establishments or workplaces falling under “mining industry” as classified by the National Economic and Development Authority (NEDA) are not covered by the occupational safety and health standards.

The Secretary of DOLE may authorize LGUs to enforce occupational safety standards

within their jurisdictions. (ii) The Department of Transportation and Communication (DOTC) and the DENR,

respectively, administer and enforce standards in the establishments not covered by the DOLE.

(iii) The Department of Health (DOH) issues sanitary permits upon compliance with the

prescribed sanitary and occupational health and sanitary requirements. The sanitary

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permit shall be in accordance with the threshold limit values (TLV) for hazardous as adopted by the DOH from the American Conference of Government Industrial Hygienist-Threshold Limit Values (ACGIH-TLV).

The DOH DAO 3 provides a list of maximum concentration of atmospheric contaminants

as a guide in appraising health hazards and in evaluating control measures. These provisions concern the protection of the health of workers and are applicable to all industrial establishments.

Rule 1070 of the occupational safety and health standards (OSHS) establishes TLV for toxic and carcinogen substances and physical agents that may be present in the atmosphere of the work environment. TLV refers to airborne concentration of substances and represents conditions under which it is believed that nearly all workers may be repeatedly exposed daily without adverse effect.

The DOLE OSHS list over 400 TLV of chemicals and chemical substances. Annex4 shows the TLVs of some chemicals. DOH DAO 3 lists TLV for regulated substances. Annexes 5 and 6 present substances recognized to have carcinogenic potentials and TVL for mineral dusts, respectively.

There are two sets of TLVs. The TLVs issued by the DOLE are applied to industrial or manufacturing firms and agricultural companies. The TLVs issued by the DOH apply to medical establishments like hospitals and medical centers. In some cases, the TLV values of DOH are most stringent than those for DOLE to account for the exposure of the medical personnel to higher concentrations of the regulated hazardous substances.

a. Permissible Noise Exposure

The threshold limit values refer to the level of sound under which it is believed that nearly all workers may be repeatedly exposed without adverse effect on their ability to hear and understand normal speech.

Figure 1 specifies permissible noise exposure. The values in this table apply to total time of exposure per working day. The values apply to continuous exposure or to a series of short-term exposures but do not apply to impact or impulsive types of noise. If the variation in noise levels involves maximum intervals of one second or less, it shall be considered as continuous. If the intervals is over one second, it shall be considered impulsive or impact noise.

When there are two or more periods of noise exposure of different levels in a given day, the total noise exposure levels shall be considered as the daily noise exposure. The permissible levels found in Figure 1 shall not be exceeded for the corresponding number of hours per day allowed. Exposures to impulsive or impact noise shall not exceed 115 decibels (dB) peak sound levels (ceiling value).

b. Illumination Levels

All places where persons work or passed through, or may have to work or passed

through in emergencies, shall be provided during time of use with adequate lighting, natural and/ or artificial, suitable for the operation and the special type of work performed. The minimum lighting levels in foot-candle for various areas of operation are shown in Annex 7.

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Figure 1. Permissible Noise Exposure

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(i) Farming, Fishing, Hunting, Logging, and Related Occupations

• fishermen (deep sea and offshore) • divers of (sponge, pearl and shell) • logging (as cutter, sawyer, stripper, cable installer, feller) • charcoal burner (big scale)

(ii) Mining, Quarrying and Related Occupations

• operators of (drilling and blasting machines, stone crushing equipment, conveyor, compressor, steam boiler, air receiver, gas cylinder, acetylene generator

• firing (with fuse, electricity) • stone splitter • underground workers

(iii) Transport, Communication and Navigational Occupations • firemen • drivers or operators of bulldozer, crane, pile driving equipment, trailer, road roller,

tractor lifting appliances, scaffold winch, hoist, excavator, loading machine, trucks, buses, jeepneys and taxis

• tilers and greasers of heavy machineries • traffic controller and dispatchers

(iv) Craftsman, Production, Process and Related Occupations • spinners and winders (textile) • fiber and plastic preparers • bleacher, dyer and finisher of textiles using chemicals • tool maker, machinist, plumber, welder, flame cutter and plater • installer and repairer of telephone and telegraph • electrical and electronic fitter • linemen and cable jointer • sawyer and woodworking machine setter and operator • furnace and oven workers in brick making • furnace man and kilnman in the manufacture of glass and ceramics • brewer and wine maker • distiller of alcoholic beverages • tanner • blacksmith, hammersmiths, forgeman • slaughtering and killing large cattle (carabao, cow, horses) • extraction of lard and oil

(v) Service, Sports and Related Work

• fire-fighters and guards • ship sterwards • airline hostesses • bartenders • bus conductors and conductresses • masseurs and masseuses • taxi-dancers • entertainers (stripteasers, burlesque, dancers, bomba)

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• female bath house attendants • female escorts for men • janitors in bawdy houses

e. Safety in the Construction Industry

Just recently, a Technical Working Group on Construction Safety and Health has been

created for the purpose of formulating a Department Order as an effective mechanism to strengthen the administration, enforcement and monitoring of all occupational safety and health (OSH) laws, policies, standards, rules and regulations on construction industry.

The Technical Working Group is composed of representatives from the following agencies:

• Department of Labor and Employment • Construction Industry Authority of the Philippines • Philippine Constructors Association (PCA) • Association of Carrier and Equipment Lessors (ACEL) • Trade Union Congress of the Philippines (TUCP) • Labor Advisory and Consultative Council (LACC) • International Federation of Building and Wood Workers (IFBWW-Philippine

Affiliates Council) • Department of Public Works and Highways (DPWH) • Department of Interior and Local Government (DILG)

II. TRADE POLICIES AND PRODUCT REGULATIONS IN THE PHILIPPINES

Globalization, for Philippine industries, has two extreme implications – it could either expand or capture the respective market. But apart from being efficient, the relatively high production costs due to high costs of inputs like electricity and labor, as well as the escalating taxes and weakening of the peso, can put a local industry in a disadvantaged position. In addition, there are several countries already imposing environmental regulations that serve as barriers to trade.

Similarly, the influx of cheaper imported products at the local market imposes a threat to

the local industries. Therefore, they tend to respond by either producing low-quality products or increasing production efficiency. The first option poses risks to the consuming public (by lowering safety standards) and to the environment (by shortening the product’s lifespan thus, generating more post-consumer waste). The latter, on the other hand, is more favorable as it also minimizes waste in the process.

Free market is intended to promote competition thereby making products accessible and

affordable, but the government is also bound to protect the public against unreasonable risks of injury associated with consumer products. Therefore, the government enacted the Consumer Protection Act in April 1992 under Republic Act 4196. The law is enforced by the Department of Health (DOH), with respect to food, drugs, cosmetics, devices and substances; the Department of Agriculture (DA), with respect to products related to agriculture; and the Department of Trade and Industry (DTI), with respect to the rest of consumer products.

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For products that fall under the DTI jurisdiction, the Bureau of Product Standards (BPS) serves as the Philippines' National Standards (PNS) body established by Republic Act No. 4109 and Executive Order No. 133. The BPS formulates, promulgates, and publishes standards, which define the desired quality, safety and performance specification of products, methods of sampling and test, and codes of practice, especially for those products under the mandatory priority list.1

The BPS issues a license to a local manufacturer to use the PS Quality and/ or Safety

Mark after its products have been determined, through audits, as meeting the requirements of the applicable PNS. Foreign companies may also apply for PS certification through a BPS recognized counterpart National Standards Body (NSB) or an inspection and/or certification body. BPS implements a maintenance scheme for its PS Quality and/or Safety Mark Licenses by carrying out regular surveillance audits and market monitoring activities.

Importers of products covered by mandatory PNS are issued the Import Commodity

Clearance (ICC) after their import shipments have been evaluated by BPS as meeting the requirements of the applicable Philippine standard. Import shipments are subjected to sampling and testing by BPS, including those that have been certified abroad as meeting the requirements of foreign or international standards. In addition to satisfactory test results of import shipments, the BPS conducts random checks at market outlets to make sure that imported shipments consistently meet the requirements of the applicable Philippine standard.

Consistent with BPS standards, the Department of Energy (DOE) is implementing

Philippine Appliance Energy Standards and Labeling program applicable to various household appliances like: room air conditioners (up to 36,000 kJ/h), window- and split-types; refrigerators with capacities of 142 to 227 liters (5 to 8 cu. Ft.); electromagnetic fluorescent lamp ballast; and compact fluorescent lamps (CFLs)2.

The DOE labeling program is intended to eliminate the least efficient household

appliances and lighting system in the local market, and reduce monthly electricity bill to end-user / consumers. It protects the consuming public from misleading claims and mislabeling, while it encourages manufacturers to improve product efficiency to make their products competitive in the local and in the world markets. The program is also intended to reduce greenhouse gas emission to mitigate global warming and other pollutants from power generation.

Through the labeling scheme, the consumers are provided with information to compare

energy efficiency of competing products, in which energy performance ratings are based on standard test procedure.

Yet, even with the BPS’ PS Mark and DOE’s Product Energy Label in operation, a

national eco-labeling program called “Green Choice Philippines” (GCP) was launched in 2001. The enactment of Republic Act No. 9003 provided a legal basis for the program, in which Article 4 of Section 27 clearly the DTI to “formulate and implement a coding system for packaging materials and products to facilitate waste recycling and reuse.”

1 The BPS maintains a complete and updated list of products under mandatory product certification, including the applicable standards corresponding to each product. 2 List of DOE certified household appliance producers available at: http://www.doe.gov.ph/servlet/page?_pageid=715,717,719&_dad=portal30&_schema=PORTAL30

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On 05 December 2002, the program adopted product criteria for two (2) pilot products namely: synthetic laundry detergents (GCP-0001), and tissue paper products (GCP-0002). In 2003, product criteria for zinc-carbon and zinc alkaline manganese dioxide batteries (GCP-0003), polyethelene and polypropylene plastic packaging (GCP-0004), and automotive engine oil (GCP-0005) are also implemented. At present, criteria for polystyrene packaging, service provider for recycling municipal solid waste (MSW) and bus operators are being developed.

In the near future, GCP is expected to develop product criteria to the following priority

categories: • Paper / plastic packaging • Office supplies • Office paper products • Automotive batteries • Paint products • Cleaning agents • Cosmetics and personal hygiene products • Energy efficient lighting / electronic products • Energy efficient equipment • Energy efficient electronic appliances • Textile products • Organic vegetables • Livestock products • Hotels and restaurant services • Transport services

The development of different environmental and safety standards and regulations is

perceived by the industries as trade restrictions thereby triggering environmental innovations3. Some local companies, most of them are subsidiaries of multinational companies, responded proactively and implemented reforms targeted at going beyond compliance with local standards. The International Organization for Standardization (ISO) certification is seen as a tool not only to improve their environmental performance, but also to expand their markets. As of March 2003, there are about 121 ISO 14001 certified companies in the country. III. OPPORTUNITIES FOR THE PROMOTION OF ECO-LABELING IN THE PHILIPPINES

The success of any labeling program is anchored on the understanding and appreciation of the tangible and intangible benefits that the economy in general and the industry in particular can derive from it. It is therefore essential to examine the structure of the economy and assess the opportunities in which the program can operate.

3 Environmental innovations may be viewed at different levels like, product design and development level, production level, management level, supply chain level, or advertising and marketing level.

15

Based on a survey conducted by DTI through the Private Sector Participation in Managing the Environment (PRIME) Project in year 2000, 79% of the respondents expressed serious concerns on the current state of environment. The same survey revealed that 55% are willing to buy green products4 sometimes even if they cost more while 37% would always prefer environmentally friendly products.

Similarly, the potential of incorporating eco-labeling program in the government

procurement system is promising. The government sector, in all levels, can be considered as a major consumer of goods and services. Green procurement5, with the use of the eco-labels, can also be integrated into the day-to-day activities of the government agencies. Measures such as purchasing environmentally friendly office products and supplies, paper products, and alternative fuels are examples of initiatives to advance such scheme.

The government actions, decisions and policies are also powerful agents to introduce

change and use that leverage to bring socially desirable goals in the community. In some Organization for Economic Co-operation and Development (OECD) member countries, for instance, government procurement choices have facilitated the development of markets for environmentally preferable products (e.g., recycled paper in Germany, re-refined oil in the US).6

The enactment of Republic Act 9184 in January 2003 provides for a centralized

government procurement system under the Government Procurement Policy Board (GPPB), for transparency and accountability purposes. The law covers all purchases of infrastructure projects, goods and consulting services to be made by the national government, its departments, bureaus, offices and agencies, including state universities and colleges, government-owned and/or –controlled corporations, government financial institutions and local government units, regardless of sources of funds (whether local or foreign).7

The centralized procurement system in the government is perceived by the Clean and

Green Foundation, Inc. (C&GFI), the administrator of Green Choice Philippines, as a good opportunity for promoting the eco-labeling program by incorporating environmental criteria in the bid evaluations. For this reason, an Executive Order (EO) was drafted by C&GFI establishing a green procurement program for all departments and executive branches of the government, which the President approved on 29 March 2004.8

4 As discussed all throughout this paper, “green product” is defined as any product for which environmental criteria has been used in the product design and development and/or production processes, or in which environmental arguments have been used in marketing. 5 For the purposes of the foregoing discussions, “green procurement” is defined as the purchase of any product or service for which environmental criteria and/or environmental arguments in marketing have been considered in the procurement decision. 6 Organisation for Economic Co-operation and Development. (1996). OECD Programme on Sustainable Consumption and Production: Workshop on Improving the Environmental Performance of Government. In de Jesus-Garcia, Daisy. 2000. Assessment of Cleaner Production Opportunities in Municipal Management. International Institute for Industrial Environment Economics. IIIEE Master’s Theses 2000:09. Lund, Sweden. 7 Republic Act No. 9184, An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for Other Purposes. 2002. 8 Executive Order No. 301 entitled “ Establishing a Green Procurement Program for All Departments, Bureaus, Offices and Agencies of the Executive Branch of Government” was signed by President Gloria Macapagal-Arroyo on 29 March 2004.

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As the program’s lead agency, the DTI also shows its commitment to implement green procurement in its operations by adopting its own “green procurement policy”.9

In summary, the supply and demand for “green” products on the macro level are

influenced by legislations and/or government policies, customer requirements, and competitors. Laws such as RA 9003 promoting the use of eco-labels, creates a market for eco-labeled products. Likewise, institutionalizing green procurement in the government sector could use that leverage to influence the market for environmentally preferred products.

At the local market, “green” consumers set bias on eco-labeled products, pushing the

manufacturers to go green, especially when green products of the same product categories are made available and affordable under an open market economy. As most multinational companies are starting to green their supply chain consistent with their policies, local producers will be left with no other option but to introduce environmental innovations as well in order to maintain their market share.

At the global market, Philippine exports are facing great challenges as they compete

amidst relatively high production costs and trade restrictions due to environmental regulations in other countries. It appears that the approach to penetrate the global market is to secure an eco-label, an ISO certification, or both.

The adoption of green procurement policy, whether in the government, in an institution,

or in personal consumption, eco-labeling becomes a formal consideration in the procurement process, as it easily identifies which products and/or services are environmentally preferable. However, without a green procurement policy, eco-labeling program will have difficulties in influencing the market, as well as introducing reforms in the environmental conditions.

VI. ASSESSMENT OF ECO-LABELING PROGRAM IN THE PHILIPPINES A. Legal Structure

Green Choice Philippines gained its legal ground on Republic Act No. 9003, or the “Solid Waste Management Act.” Mandated by the law, DTI acts as the lead agency to formulate and implement a “coding system for packaging materials and products to facilitate waste recycling and reuse.”

Some sectors, however, question the legality of the eco-labeling program itself. They argue that the appropriate legal interpretation of the effective section (Article 27) provides for the implementation of a coding system for packages (materials and products) only. Thus, the law should not be used as basis for a mandatory eco-labeling program.

However, the program has been accepted and recognized in the business sector. It was

formally launched on 10 March 2003, with the DTI-BPS and DENR-EMB as co-chairs. The composition of the Green Choice Board, its policy-making body, has been chosen from the government, industry, academe, consumer groups and environmental organizations.

9 The DTI Secretary and BOI Vice-Chairman and Managing Head Gregory L. Domingo signed a DTI Memorandum “Pursuant to Office Order No. 04, the Board of Investments is hereby encouraged to adopt the ‘Green Procurement Policy’.”

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Green Choice also gained recognition from the international community, with support from UNDP and JICA assisting in the establishment of the program systems, training of personnel, development of product criteria, program’s launch and implementation. Eventually, it starts to represent the Philippines in the international environmental conventions and participates in the harmonization of standards around the globe, including Technical Committee (TC) 207.

From the legal perspective, Green Choice Philippines (GCP) is the sole recognized eco-

labeling program in the country that is based on the international standard ISO 14020 and ISO 14024 or Type 1 Eco-labeling10. The application, however, is voluntary since the manufacturers have the choice of whether or not to apply for the eco-label. The eco-labels are meant to distinguish between products within a product group, and identify those that are deemed environmentally preferable to others. The labels are intended to indicate the overall environmental quality of a product, in order to encourage consumers to purchase it. B. Organizational Structure

Green Choice Philippines is a government-supported, third party certification program. Its organizational structure includes a multi-sectoral Technical Committee, Product-Specific Technical Working Groups, and the GCP Administrator (Figure 1). The GCP Board is composed of the following:

• Bureau of Product Standards, DTI (Chairman) - government • Environmental Management Bureau, DENR (Co-chair) - government • Energy Utilization Management Bureau (EUMB), DOE - government • Department of Science and Technology (DOST) - government • National Solid Waste Management Commission (NSWMC) - government • National Consumer Affairs Council – non-government organization (NGO) • Citizens’ Alliance for Consumers’ Protection (CACP) - NGO • Philippine Business for the Environment (PBE) - NGO • Productivity Development Center, Development Academy of the Philippines (DAP)

- semi-government • Concerned Citizens for Pollution (COCAP) - NGO • Clean and Green Foundation, Inc. (C&GFI) - NGO

While the government agencies (DTI-BPS and DENR-EMB) co-chair the program, an

NGO, Clean and Green Foundation Inc., was designated administrator of the program through a Memorandum of Agreement (MOA) signed by the members of the Eco-labeling Board on 07 March 2001 for the program to be more cost-effective and minimize bureaucracies. As the Program Secretariat/Administrator, C&GFI is responsible for catalyzing product evaluation, eco-labeling approvals, as well as conducting marketing and promotional efforts.

10 Different types of environmental labels exist which operate in different ways. Type 1 is a third party certification program and designed to apply to a small proportion of products in a product category, which are determined to have lessened adverse environmental impacts. Type II environmental labels are informative self-declaration environmental claims made by manufacturers, importers, distributors or retailers. Type III environmental labeling is quantified product information labeling based upon independent verification using pre-set indices. (OECD)

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Figure 1. Present Organizational Setup of Green Choice Philippines

From the above composition, it can be noted that representatives to the Board are taken

mostly from government’s environmental and research agencies, consumer groups, and environmental non-government organizations (NGOs). It seems to lack representatives from business, academe, trade unions (importers and exporters) and government procurement body (GPPB). Without proper representation, dissemination of information with respect to the importance and significance of the eco-labeling program to these sectors might be difficult, which in turn could result to low level of support from their end. As previously discussed, the success of an eco-labeling program depends on the acceptance and support of vital sectors such as these. C. Product Selection

Any project to prepare new criteria, or to revise, amend or withdraw existing criteria, can be made by request or proposal from government agencies, industries or trade associations, professional bodies, GCP Technical Committee, consumer organization, the academe, or any individual.

Category selection rests with the GCP Board approval. The selection of product categories must adhere to the provision of Section 6.3 of ISO 14024 Type I Environmental Labeling Guiding Principles and Procedures. Specifically, product categories must be chosen based on the following requisites:

• The volume of the particular product in the market place • The degree of environmental impact • The potential for environmental improvement • Nature and degree of industry interest • Implementation of current national and international policies, laws and agreements • Consumer’s need for information

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• Important product areas • Consideration for established product categories of other eco-labeling programs

and its equivalent for mutual recognition Upon GCP Board approval, the GCP Administrator (C&GFI) mobilizes the required pool

of experts and convenes the respective Technical Working Group (TWG) formed on a per product basis to develop the product criteria.

It would appear that proposal for product selection can be made by anyone, but it is up to the GCP Board to screen and prioritize these products. Note, however, that the Board composition is mainly from NGO and government institutions, of which the technical capability to evaluate the proposals may look inadequate. Also, for the requisites to be applied, sufficient database is needed. In cases of some products where such database is lacking, there is a tendency to disapprove the proposal. For instance, if there is insufficient information regarding the volume and/or environmental and health hazards from polystyrene packaging waste materials chances are, no eco-labeling scheme for this product will be developed. D. Criteria Development

The guidelines for developing product criteria are based on the provision of Section 6.4 of ISO 14024. In particular, draft product criteria is developed based on the following considerations:

• Adoption of existing product criteria of other eco-labeling programs or its equivalent as the benchmark criteria

• Adoption of scientific studies/researches on the significant environmental impact in the life cycle of the products

• Evaluation of pioneering environmental practices of an industry or institution concerning the products

• Consultation with the different organizations and experts such as industry practitioners, academic and research institutions, consumer groups, environmentalists, government agencies, scientists, policy makers and lobbying groups regarding the proposed product criteria

The GCP Technical Working Group (TWG) created by the GCP Board for each specific

product is responsible for the development of the corresponding criteria. It includes representatives from all interested parties including but not limited to concerned government agencies, consumer groups, industries, academe, research institutes, NGOs, and environmental organizations. The TWG then recommends for GCP Board approval the developed criteria, which will be used for the issuance / approval of license applications.

However, in the event of technological and environmental innovations, the GCP Board has the prerogative to withdraw license as new criteria needs to be developed. Criteria of other eco-labeling programs, on the other hand, are systematically reviewed and revised, while labels remain valid on a certain period (e.g., New Zealand’s NF Environment revises its criteria every 3 years, Japanese Eco Mark every 3-5 years, US Green Seal every 3 years, Germany’s Blue Angel every 3 years, Canada’s Environmental Choice every 3 years, etc.).

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The irregular and constant revision of GCP criteria could discourage industries from participating in the program, as it could result to additional costs. Application to other certification and labeling schemes of equal significance such as ISO 14000 (Environmental Management Systems), ISO 9000 (Quality Standards), local product labels like DOE’s Energy Mark, or BPS’ PS Mark may appear to be a more cost-efficient and cost-effective option from their end. E. License Application

A manufacturer who wishes to acquire a GCP label must subject his product for an initial evaluation, of which he must pay a fixed fee of PhP10,000. Such amount is used for hiring accredited auditors who will then perform the product initial evaluation.

Once the product passes the evaluation, the manufacturer pays the corresponding license fee. For new products, the amount charged is PhP20,000 while for the rest the following formula is applied:

License Fee = PhP20,000 + 1% of annual net sales of previous year A license fee ceiling, however, is fixed at PhP200,000 for each product, and for each

production location while discounts are applied for the eco-labeling of additional product or location.

A license is valid for three (3) years, of which an annual fee ranging between PhP10,000 to PhP75,000 depending on the net sales is applied. Compliance verification is undertaken every year, where the license holder is required to borne the costs of tests and verification. F. Financial Capability

Because Type 1 eco-labeling is voluntary in nature, governments usually subsidize the establishment and operations of the programs while collection of fees and other sources of payment are being generated to sustain its activities. Government subsidy remains until such time the program becomes self-reliant and sustainability is attained.

In the case of GCP, the program relies on funds provided by donor agencies and on funds set aside by its administrator (C&GFI) from its other projects (like, Piso sa Pasig, Orchidarium, etc.) In 2003, the program survived with assistance from the Japan International Cooperation Agency (JICA) during its first semester and another assistance from the United Nations Development Programme (UNDP) for the rest of the year. The UNDP assistance remains until now but it is expected that by close of year 2004, such support will cease.

Running an eco-labeling program entails huge costs, considering the technical and logistical responsibilities associated with it. During the development of product criteria, mobilization of representatives from industry, academe, and scientific sectors to provide technical expertise is essential as well as the infrastructure support required like test equipment and laboratories.

The GCP, being chaired by government agencies, is expected to receive financial support from DTI and DENR. However, with the limited budgetary allocation of these government agencies from the national government, the program has to compete with the rest of their programs in terms of departmental budget allocation. DTI and DENR financial supports

21

on GCP during the previous years show that the program is less prioritized, and reliance is placed on generating incomes from license application, external assistance from donor communities, and internal contribution from the program administrator. If funding sources of the program remains uncertain, there is a high possibility that the program will not succeed. G. Technical Capability

The GCP is relying heavily on the pool of experts being organized each time a product for criteria development has been selected. Such experts are composed of representatives from the concerned government agencies, consumer groups, industries, academe, research institutes, NGOs, and environmental organizations, of which their participation is limited on a per product basis. Invitation to participate in the undertaking is made by the C&GFI and honoraria are given to those who signify acceptance. Likewise, accredited environmental auditors and test laboratories are hired to conduct independent verifications. 2. One of the program’s bottlenecks is the non-acceptance of invitations from technical experts. If the expert finds the “professional fee” too low, the C&GFI has no option to either look for another expert of similar capability until such expert agrees to participate11. Therefore, the search for the capable and willing experts, as well as the extent of their participation, could delay the entire product criteria development and product evaluation processes. H. Information Dissemination.

The C&GFI is undertaking the GCP program promotional campaigns. Certification criteria for specific products are published in the Green Journal, the official publication of the program. It is should be noted, however, that the journal’s distribution is limited and is not available nationwide.

Interviews conducted during the preparation of this report indicate that there is a low awareness among Filipino consumers on the presence of a national eco-labeling program under GCP12, more so of the eco-labeling concept itself. While PRIME study shows high concern for the environment among Filipino consumers (see paragraph 15), it is not conclusive of whether the consumers understand eco-labeling as a tool in protecting the environment.

V. CONCLUSIONS AND RECOMMENDATIONS

The concepts of green procurement and eco-labeling are still in infancy stage, as far as

the Filipino consumers are concerned. Intensive awareness campaign must be pursued to have greater appreciation of the benefits that can be derived from these market-based environmental instruments. It is commendable for the government to take the lead in promoting green procurement in its operations but it must also encourage industries, by providing fiscal and non-fiscal incentives, to follow suit. Government should also tap local information agencies to provide support in this undertaking, not only for environmental considerations but for transparency and accountability purposes as well. Taxpayers should be kept well informed on the prudent disbursement of government funds, especially when it comes to procurement.

11 Interview with C&GFI Program Manager June Alvarez on 22 March 2004. 12 Personal interviews to 40 Filipinos were conducted and only 2 signify awareness on the GCP program, as seen in the product’s package. Of the total respondents, about 85% admits non-familiarity with eco-labeling concept.

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For eco-labeling to succeed, high acceptance from both the producers and consumers should be promoted. Again, adequate information dissemination is of significance, in which the academe and media play important roles.

On the implementation of EO 301, it is expected that six months after its approval (that

is, by November 2004), government agencies should submit their respective green procurement programs. However, the lack of capacity within these agencies prohibits the formulation of the said programs. Also, the non-existence of eco-labeling criteria for the majority of the products and services makes it difficult for the government agencies to practically pursue green procurement.

At present, the C&GFI is coordinating with the Department of Budget and Management

(DBM) in the identification of the most commonly purchased goods and services among government agencies, in order to prioritize the development of eco-labeling criteria for those. Nevertheless, there is still a need for capacity-building in each government agency to broaden understanding of the program, as well as to ensure the sustainability of the same.

On the part of the producers, the procedures of license application should be reviewed and simplified, while costs should be kept at reasonable level. It should be noted that 90% of the industry is made up of small and medium enterprises (SMEs), which are more often owned and managed by family members, usually limited to confined activities (due to lack of resources and skilled manpower), adopts a simple management structure and few administrative activities, does not undertake high risk jobs, and usually involves in the sub-contracting market requiring short gestation periods. Thus, there is an apprehension among them on how an eco-labeling or certification could benefit their business. The belief that the associated costs (both time and resources) of being eco-labeled or certified could outweigh the potential benefits from the same, often prevents the SMEs from attempting eco-label- and/or certification-related efforts.

It is also important that trade unions, SME and other industry associations, government procurement agency (GPPB) to be represented in the GCP Board in order to promote high participation and support from these sectors.

The initiatives being taken by the government to implement and promote the country’s eco-labeling program signifies its good intention to pursue its goals and objectives. However, there is still a need for government to seriously implement the Solid Waste Act (RA 9003), particularly in establishing a system that will facilitate the implementation of environmental labeling in the country. Strategies and institutional frameworks must be developed and coordinated among stakeholders. Legal, technical, institutional and economic needs in pursuing the program should be properly identified and commitments from different sectors should be secured in developing its frameworks and strategies.

Infrastructure support such as availability of test laboratories, pool of technical experts, and technical equipment required in the product selection, product criteria development, and license processing should be strengthened for the program to be of equal standing with the eco-labels in other countries. This will simplify the harmonization of the country’s eco-label with the other countries and facilitate ease of trade.

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Finally, and most importantly, financial support from the government should be strengthened. The program is still in its infancy and massive government subsidy is required. Both DTI and DENR should include the program in their fiscal obligations. The idea of securing funds or sponsorships is limited and may induce potential conflict of interests, especially from the private sector, as this may provide venue for applicants to influence the program.

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Annex 1

Examples Of Revised Classification Of Hazardous Wastes Class Sub-Category HW No. Standard for Registration Plating Wastes

Complexed cyanide solutions and salts

A105

Determine total cyanide concentration by the firm’s knowledge of the process or by a published analytical procedure

Sulfuric

B201

Acid Wastes

Hydrochloric acid B202

Register all wastes that have a pH less than or equal to 2.0

Caustic Soda

C301

Alkali Wastes

Alkaline Cleaners C303

Register all wastes that have pH greater than or equal 2.0

Arsenic and its compounds

D402

Register all wastes with a total arsenic concentration greater than 5 ppm as determined by knowledge of the process or by a published analytical procedure

Lead Compounds

D406

Register all wastes with a total lead concentration greater than 5 ppm as determined by knowledge of the process or by a published analytical procedure

Inorganic Chemical Wastes

Mercury and mercury compounds

D407

Register all wastes with a total mercury concentration greater than 0.2 ppm as determined by knowledge of the process or by a published analytical procedure

Class Sub-Category HW No. Standard for Registration Reactive chemical wastes

Oxidizing Agents

D501

Register all wastes that are known to contain oxidizing/ reducing agents in concentration that cause the waste to exhibit any of the following properties: 1) it is normally unstable and readily

25

Reducing Agents

D502

1) it is normally unstable and readily undergoes violent change without detonating; 2) it reacts violently with water; 3) it forms potentially explosive mixtures with water; 4) it generates toxic gases or fumes in a quantity sufficient to present danger to human health

Aqueous-based

E601

Register all aqueous-based wastes that also meet one or more of the registration standards for other waste subcategories in this class. Note: such wastes will have more than one waste number

Paints, Resins, Lattices, Inks, Dyes, Adhesives, Organic Sludge

Inorganic Pigments

E605

Register all wastewater treatment sludge from the production of zinc yellow pigment

Closed cup flash point <61oC

F702

Register all solvent wastes that meet this registration standard

Chlorinated solvents and residues

Register all following spent halogenated solvents: methylene chloride, carbon tetrachloride, etc.

Organic Solvents

Non-halogenated

F704

Register the following non-halogenated solvents: acetone, methanol, toluene, isobutanol, etc.

Putrescible/Organic Wastes

Animal/abattoir Wastes

G801

Register all wastes from animal feed lots containing an average of 100 or more animals. Register all wastes from slaughter houses than slaughter an average of 500 or more animals per year. Register all wastes from poultry farms with an average of 5,000 or more fowls.

Class Sub-Category HW No. Standard for Registration Tannery Wastes

H901

Textile

Other Textile Wastes

H999

Registration is not required at this time unless the waste meets one or more of the other registration standards.

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Oil

Wastes Oil

I101

Register all wastes from establishments that generate, transport or treat more than 50 gallons of waste numbers.

Solidified and Polymerized Wastes

K301

Register all solidified and polymerized wastes that also meet one or more of the registration standards for other waste subcategories in this class. Note: such wastes will have more than one waste number.

Chemically-fixed Wastes

K302

Register all chemically-fixed wastes that also meet one or more of the registration standards for other waste subcategories of this class. Note: such wastes will have more than one waste number.

Immobilized Wastes

Encapsulated Wastes

K303

Register all encapsulated wastes that also meet one or more of the registration standards for other waste subcategories in this class. Note: such wastes will have more than one waste number.

Organic Chemicals

Petroleum Refining

M601

Register all dissolved air flotation (DFA) float from the petroleum refining industry.

Source: DENR Orientation Manual for the Implementing Rules and Regulations for Title III, DAO 29, of RA 6969.

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Annex 2

Priority Chemical List

1. 1,1,1 Trichloroethane 15. Ethylene Oxide 2. 1,2 Diphenylhydrazine 16. Halos 3. Arsenic Compounds 17. Hexachlorobenzene 4. Asbestos 18. Hexachloroethane 5. Benzene 19. Lead Compounds 6. Beryllium Compounds 20. Mercury Compounds 7. Cadmium Compounds 21. Mirex 8. Carbon Tetrachloride 22. Pentachlorophenol 9. Chlorofluorocarbons (CFC) 23. Phosgene 10. Chloroform 24. Polybrominated Biphenyls (PBB) 11. Chlorinated Ethers 25. Polychlorinated Biphenyls (PCB) 12. Chromium Compounds 26. Selenium 13. Cyanide Compounds 27. Tributylin 14. Ethylene Dibromide 28. Vinyl Chloride

Source: DAO 98-58

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Annex 3

Recyclable Materials Containing Hazardous Substances that may be Imported Subject to the Corresponding Limiting Conditions

Specific Item Limiting Conditions

Scrap Metals Scrap and waste containing precious metals and their alloys of gold, platinum and silver Metal sludges containing precious metals and all associated metals Ferrous waste and scrap for remelting:

• Cast irons • Stainless steel • Other alloys steel • Tinned iron or steel • Turnings, shavings, chips, milling

waste, fittings, and trimmings and stampings

• Scraping • Used iron and steel nails

Non-ferrous scraps and alloys Other metal bearing waste arising from melting, smelting and refining of metals of:

• Hard zinc smelter • Zinc containing drosses such as

galvanizing slab, slab zinc common dross, and hot tip galvanizing zinc dries

• Zincs skimmings • Slags from processing for further

refining

All materials should not contain radioactive materials such as cesium, cobalt, americium, strontium, lanthanide and others as determined by PNRI. The alloys or metals do not contain mercury and its compounds.

Lead acid batteries All lead batteries must be free of liquid and extraneous materials.

Solid Plastic Materials Waste parings and scrap of plastics Polymerized or co-polymerized Resins or their condensation products of:

• Urea formaldehyde resins • Phenol formaldehyde resins • Melamina formaldehyde resins • Epoxy resins • Alkyd resins • Polyamides

No importation of heterogeneous and unsorted plastic materials shall be allowed. All plastics should have no traces of toxic materials like asbestos.

Electronic Assemblies And Scrap All electronic assemblies containing printed circuit boards Electronic components containing hazardous substances such as TVs, VCR, stereo, etc.

All residuals of recycled material, which contain hazardous substances without any acceptable disposal methods in the Philippines must be shipped back.

Source: DAO 28, series of 1994

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Annex 4

Threshold Limit Values (TLVs) For Regulated Substances

Occupational safety and

health standards Rules and regulations

implementing chapter VII (industrial hygiene)

Substances

ppm* mg/m3** ppm* mg/m3** 1,1,1 Trichloroethane 350 1,900 350 1,900 Arsenic and soluble compounds, as As

- 0.5

-

0.2

Asbestos - A1a Beryllium compound - 0.002 - 0.002,A2 Cadmium dusts and salts as Cd - 0.2 - 0.05 Carbon Tetrachloride 10 65 5,A2 30,A2 Chloroform 50 240 10,A2 50,A2 Chromium, soluble chromic, chromous salts as Cr

- 0.5

-

0.5

Occupational safety and health standards

Rules and regulations implementing chapter VII

(industrial hygiene)

Substances

ppm* mg/m3** ppm* mg/m3** Cyanide compounds - 5 - 5 Ethylene dibromide 25 190 A2 A2 Ethylene oxide 50 90 1,A2 2,A2 Hexachloroethane 10 100 Lead, inorganic dusts and fumes as Pb

-

0.15

-

0.15

Mercury, as Hg alkyl compounds

- 0.01 - 0.01

Pentachlorophenol - 0.5 - 0.5 Phosgene 0.1 0.1 0.1 0.4 Selenium compounds as Se - 0.2 - 0.2 cVinyl chloride 50 - 5,A1a 10,A1a Source: DOLE Occupational Safety and Health Standards and DOH DAO 3 * Parts of vapor or gas per million parts of air plus vapor by volume at 25oC and 760 mm Hg pressure ** Approximate milligrams of particulate per m3 of air c Ceiling value – an employee’s exposure to any material, the name which is proceeded by a “C”, shall at

no time exceed the threshold limit value A1a Confirmed Human Carcinogens – Substances, or substances associated with industrial processes,

recognized to have carcinogenic potential A2 Suspected Human Carcinogens – Chemical substances or materials associated with industrial

processes, which are suspect of inducing cancer, based on either limited epidemiological evidence or demonstration of carcinogenesis in one or more animal species by appropriate methods.

30

Annex 5

Threshold Limit Values for Human Carcinogens

Human carcinogens Threshold limit values Sources/Uses

C Arsenic trioxide 0.05 mm/m3

Used in the manufacture of glass and as an insecticide and rodenticide

C Asbestos all forms 2 fiber/cc, 5 µm in length

Used for insulation in cement products, friction materials and as a filler for plastics

C Chromite ore (processing chromite) as Cr

0.05 mg/m3

Used in chromium plating; for alloying with iron and nickel to form stainless steels and with nickel, titanium, niobium, cobalt, copper and other metals to form special purpose alloys

C Nickel sulfide (fumes and dusts) as Ni

1.0 mg/m3

As nickel, it is used in electroplating, manufacture of acid resisting and magnetic alloys and magnetic tapes, casting operations for machine parts, catalyst in hydrogenation of fats and oils, synthesis of acrylic esters, catalytic gasification of coal, paint pigments, ceramics and glass

CParticulate polycyclic aromatic hydrocarbons as benzene solubles

0.2 mg/m3

Indirectly, these are used technically as coal tar and petroleum. Other sources are carbon black, creosote, mineral oils, smoke and soot from various types of burning and exhaust gases of vehicles

Source: DOLE Occupational Safety and Health Standards C Ceiling value – An employee’s exposure to any material, shall at no time exceed the threshold limit

value given for that material

31

Annex 6

Threshold Limit Values For Mineral Dusts

Substance Occupational Sources mppcl* mg/m Silica, SiO2 (Crystalline)

Quartz (respirable)

250a a % SiO2 + 5

10 a % SiO2 + 2

Quartz (total dust)

30mg/m3 a % SiO2 + 2

Cristobalite

Use ½ the alue

calculated from count or mass formula for quartz

v

Amorphous, including natural diatomaceous earth

Occurs in crystalline (quartz, critobalite and amorphous forms); an essential constituent of common glass and refractory bricks and use in the ceramic industry

20

80mg/m a

% SiO2

Silica, SiO2 (Crystalline) Mica Used as electrical insulator 20 Soapstone Used in fabrication of smelting

furnaces for kraft paper mills, electrical switchboards, table tops, sinks and crayons

20

Talc (non-asbestos form) Pure grades are used as a fine white powder in cosmetics and toilet preparations. Industrial grades are used as extenders in paints and ceramic products, rubber industry, and dusting powders

20b

Graphite (natural) Used in foundry facings, steel making, lubricants, and refractories

15

Inert or Nuisance Particulates Respirable fraction Mining operations 15 Total Dust Generally formed by

disintegration processes, such as in mining and ore reduction operations

50

Source: DOLE Occupational Safety and Health Standards * Millions of particles per foot 3 of air (samples are obtained using an impinger and measured by light-field techniques) a The percentage of crystalline silica in the formula is the amount determined from airborne samples, except in those instances in which other methods have been shown to be applicable. b Containing 1% quartz; if 1% quartz, use quartz limit

32

Annex 7

Minimum Lighting Levels In Foot Candles For Various Areas Of Operation

Activity Lighting levels foot candles

Cutting cloth, sewing cloth, finish inspection, fine assembly, color grading, fine machining

200

Inspection and assembly, clay enameling and glazing, electric motor insulating, coil winding and testing, chipping, grinding, fine core making, machine shop bench work, transcribing handwriting, indexing references, accounting, pattern making, drafting Activities where discrimination of extremely fine detailed is involved, e.g. jewelry and watch manufacturing, grading and sorting tobacco products, make up and proof reading in printing plants, inspection of sewing of dark-colored cloth products

100

Welding; automotive frame assembly; chemical laboratory, foundry molding, metal poring, sorting, core making, rubber extrusion and tire making, punch press, shearing, stamping, spinning, wood working, izing, planning, rough sanding, medium quality machine and bench work, first aid station

50

Activity Lighting levels foot candles

Packing, barrel washing, turbine, clay molding and pressing; chemical furnace, tank, dryer, evaporator, extractor, cleaning and annealing furnace, plating, drop-forge shop, lunchroom, locker room, rest room, shower room Medium inspection, fine testing, flour grading, leather finishing and weaving cotton goods, office desk work with intermittent reading and writing for filing and mail sorting

30

Medium assembling, rough bench and machine work, rough inspection of testing of products, sewing light-colored textile or leather products, canning and preserving meat, meat packing, planing of lumber and veneering

20

General construction plants and shops, e.g. batching plants, screening plants, mechanical and electrical equipment room, carpenter shops, rigging lofts and active store rooms, barracks or living quarters, tunnels and shaft heading during drilling, mucking and scalding Activities where slight discrimination of detail is essential, e.g. production of semi-finished iron and steel products, rough assembling, grain milling. Also for engine and boiler rooms, elevators, crafting and boxing warehouses

10

Tunnels, shafts and general underground work areas, general construction areas concrete placement, excavation and waste areas, access ways, active storage areas, loading platforms, refueling and field maintenance area; indoors: warehouse, corridors, hallways and exit ways Activities where discrimination of details is not essential, e.g. handling coarse materials, coal or ashes, rough sorting or grinding of clay products. Also for passage ways, corridors, stairways, warehouses, store rooms for rough and bulky materials.

5

Yards, roadways and outside thoroughfares 2 Source: DOLE Occupational Safety and Health Standards