CEED Just Transition in the Philippines - Think. Do. Change

LIST OF FIGURES LIST OF TABLES

ABBREVIATIONS AND ACRONYMS

FOREWORD: NO JUST TRANSITION WITHOUT JUST TRANSFORMATION

INTRODUCTION: THE ORDER OF THE DAY - BEGIN THE JUST TRANSITION

EXECUTIVE SUMMARY

1 | WHAT IS JUST TRANSITION? DefiningJustTransition HistoryandDevelopment AConceptfromtheGround ATransitiontoaNewSystem BestPractices AddressingDisplacement AddressingExploitedandExtractedResources ProminentThemesofaJustTransitionFramework

2 | WHAT IS THE PHILIPPINES’ DEVELOPMENT AGENDA AND ENERGY LANDSCAPE? Philippine Development Agenda APhilippineDevelopmentandEnergySituationer PhilippineDevelopmentAgenda AmbisyonNatin2040 PhilippineDevelopmentPlan2017-2022 EnergyLandscape EnergyGenerationandConsumption InaccessibleandUnaffordable UnsustainableandCarbon-intensive ThePhilippineEnergyPlan2017-2040

3 | IS THE PHILIPPINES IN JUST TRANSITION? ADiscussionofTransitionPoliciesinthePhilippines RenewableEnergyLaw,AmongtheFirstinAsia ClimateChangeAct,ForgettingtheLaborForce TyphoonHaiyan,theImperativetoRespondtoClimateChange NationalEnergyPolicyReview,aTwo-YearReview

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CONTENTS

2728292933

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55556164707374

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GreenJobsAct,MainstreamingtheLatterHalfoftheJustTransition ILOPartnership,PilotApplicationofJustTransitionGuidelines GreenEconomyModels,RehabilitationActivitiesasGreenJobs PUVModernizationProgram,aBlatantlyUnjustTransition EuroIIOrder,aResultofDisjointedPolicy-Making

4 | WHO ARE THE AFFECTED WORKERS IN KEY TRANSITIONING SECTORS? ASurveyoftheAffectedWorkersinthePowerandTransportSectors OverviewofLaborinthePhilippines TheUpstreamCoalIndustry TheDownstreamCoalIndustry TheSolarPVIndustry ThePUJIndustry

5 | HOW DO AFFECTED WORKERS UNDERSTAND AND APPRECIATE JUST TRANSITION? KeyFindingsfromInterviews,Surveys,andRoundtableDiscussions Workers’GroupsandTradeUnions FormerCoalMiningandCoalPowerPlantWorkers Coal-affectedCommunity TransportGroupLeaders

6 | TRANSITION TO WHAT? TRANSITION TO WHOM? Conclusions TransitiontoWhat? TransitionforWhom?

7 | A JUST TRANSITION FRAMEWORK IN THE PHILIPPINES Recommendations AJustTransitionFramework ASwiftandJustTransitionAwayfromFossilFuels AUnitedCallforJustTransition

8 | ANNEXES Annex1|SemiaraCoalMiningSiteCaseStudy Annex2|CalacaCoal-FiredPowerPlantCaseStudy Annex3|CalataganSolarFarmCaseStudy Annex4|PUVModernizationProgramCaseStudy Annex5|OutcomeoftheWorker’sGroupsRoundTableDiscussion Annex6|OutcomeoftheTransportGroupsRoundTableDiscussion

WORKS CITED

Figure1.TotalPrimaryEnergySupplyByFuel,2016

Figure2.TotalFinalEnergyConsumptionbySector,2016

Figure3.PowerInstalledCapacityMix,2017

Figure4.PowerGrossGenerationMix,2017

Figure5.2017TransportConsumptionMix,2017

Figure6.AverageElectricityPrices

Figure7.RetailpricesinMetroManilabeginning11September2018

Figure8.TotalPrimaryEnergySupplybySource,2016

Figure9.TotalPrimaryEnergySupplybyFuel,BAUv.CES(2000-2040)

Figure10.TransportEnergyDemandbyFuelinMTOE,2000-2040

Figure11.GHGEmissionbyFuel,BAUv.CES(2016-2040)

Figure12.REInstalledCapacityinMW,2008v.2017

Figure12.REInstalledCapacityinMW,2008v.2017

Figure13.NetImportedCoalinMTOEin%shareintheTPES,2008v.2016

Figure14.GHGEmissionbyFuel,BAUScenariov.CES,2016-2040

Figure15.RegisteredVehiclesinthePhilippines,2017

Figure16.Percentagedistributionofemploymentforminingandquarryingestablishmentswith

totalemploymentof20andoverbyindustrysubclass,2015

Figure17.DistributionofEmploymentforAllElectricity,Gas,SteamandAirConditioning

Figure18.GlobalCoalPowerCapacity–

Retiring,Operating,UnderConstruction,andProposed,2010-2017

Figure19.TotalEmploymentofElectricPowerGeneration,HardCoalMining,SolarPV,SmallHydro,andWind

Power

Figure20.Constructionjobsfrom2008-2016

Figure21.DirectjobsacrossthesolarPVvaluechain,2018

Figure22.PercentDistributionofTransportandStorageEstablishmentsfor

AllEmploymentSizesbyIndustryGroup,2015

Table1.GHGInventoryfortheEnergySectorbyFuel,2016

Table2.GHGInventoryfortheEnergySectorbySector,2016

Table3.Averageemployment(jobspermegawattofaveragecapacity)overlifeoffacility

Table4.JobsinSelectValueChainandSub-sectors

JUST TRANSITION IN THE PHILIPPINES1

LIST OF FIGURES

LIST OF TABLES

ASPBI

BAU

BLES

CCC

CES

DENR

DOE

DOLE

DOTr

GHG

GTC

INDC

LCCAP

LGU

MtCO2e

MTOE

NCCAP

NDC

PDP

PEP

PSA

PUV

RE

REMB

RTD

TFEC

TPES

UNFCCC

Annual Survey of Philippine Business and Industry

Business-as-Usual

Bureau of Labor and Employment Statistics

Climate Change Commission

Clean Energy Scenario

Department of Environment and Natural Resources

Department of Energy

Department of Labor and Employment

Department of Transportation

Greenhouse Gases

Green Thumb Coalition

Intended Nationally Determined Contributions

Local Climate Change Action Plan

Local Government Unit

Metric Tonnes of Carbon Dioxide Equivalent

Million Tonnes of Oil Equivalent

National Climate Change Action Plan

Nationally Determined Contributions

Philippine Development Plan

Philippine Energy Plan

Power Supply Agreement

Public Utility Vehicle

Renewable Energy

Renewable Energy Management Bureau

Round Table Discussion

Total Final Energy Consumption

Total Primary Energy Supply

United Nations Framework Convention on Climate Change

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ABBREVIATIONS AND ACRONYMS

No just transition without just transformation

WecommendtheCenterforEnergy,Ecology,andDevelopment(CEED)forcomingoutwithJustTransitioninthePhilippines,atimelystudyforthreereasons.First,thestudyisareminderthatthegovernmentisnotdeliveringonitscommitmenttohelpreduceglobalcarbonemissionsbymakingthestrategicshifttowardslessrelianceonfossilfuel.Why,forinstance,aremoreandmorecoalplantsbeingbuiltinsteadofbeingphasedout?

Second,undertheGreenJobsActof2016andotherrelatedlawsontheenvironment,thePhilippinesissupposedtobefullyimplementinga“JustTransition”programinsupportofvariousclimatechange“mitigation”and“adaptation”programsandmeasures.Inrelationtothis,DOLE,withthehelpoftheILO,ispreparingalonglistofaspirationaldo-ablesundertheILO-DOLEtransitionprogram,whichindicatesthemillionsof“greenjobs”thatcanbecreatedineachsectoroftheeconomy.Andyet,thereisnomentionintheprogramthatthepresent2017-2022PhilippineDevelopmentPlanisnotexactlygreen.ThePlanisanchoredonaso-called“Ambisyon2040”,whichenvisionsadevelopedPhilippinesby2040,whenhungerandpovertywillbecomehistoryandeveryfamilywillbeabletoenjoyahighstandardoflivingandwillbeabletobuyafamilycar.Imaginetheseriousenvironmentalimpactofsuchamiddle-classcar-crazeddevelopmentscenario.Wheredoesjusttransitioncomein?

Andthird,thereisverylittleunderstandinginthePhilippinesofwhatjusttransitionmeans—averyimportantconceptifthecountryhastomaketheshifttoagreensocietalandeconomicarrangement.

So,wethankCEEDforeducatingusonthehistoryandsubstanceoftheterm“justtransition”.Theword“just”isnottherefornothing.Itisintegralintheeffortofthetradeunionstoensurethatafteradisastersuchaswarsorenvironmentaldevastations,thetransitioningprocessisfairandjusttoall.


FOREWORD

Inshort,transitiontoabetterlife,toajob-fulleconomyandtoalow-carbonandclimate-resilienteconomyrequiresjust,fair,andinclusive“transitioning”programs.Howindeedcanwenudgeorforcethejeepneydriversandoperatorstoabandontheiragingvehiclesinordertopromotecleanerairif,inthetransition,theonlychoicethatisgiventothesedriversandoperatorsisforthemtobuytheexpensivee-vehiclescostingP1.6millioneach?Thisisunjusttransition.Howcanwehelpfarmerstogoorganicfarmingiftheyarenotgiventheskillsneededtogoorganicand,moreimportantly,thepowertomakedecisionsonwhatfarmcultureshouldbedevelopedbecausetheydonotownthelands?

Verily,justtransitionrequiresprogramsforjusttransformationineachsectoroftheeconomy.Thismeanstransitionprogramsaremeaninglesswithoutsocial,economicreforms.Nojusttransitionwithoutjusttransformation.This,inbrief,iswhattheCEEDstudyisallabout.

Readon!

Dr. Rene E. OfreneoDirector of Center for Labor Justice

UniversityofthePhilippines,SchoolofLaborandInternationalRelations

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Thechanginggloballandscapedemandsthatwechangeourrelationshipwiththeworldandwitheachother.Theglobalclimatecrisis,inparticular,putsaspotlightontheneedforaJustTransitiontowardsaneconomyandsocietywhichrespondstothischangingworld.

Afterdecadesofresearch,majorityofclimatescientistsacrosstheworldarenowhighlyconfidentthatourplanetisprogressivelywarming.ThiswarmingisduetothemassiveamountofGreenhouseGases(GHG)emittedtotheatmospherebyhumanactivities,withthefossilfuelindustryasthemaindriver.Discussionsofthepoliticsandeconomicsbehindthepersistentdominanceofcarbon-intensiveindustriesamidsttheworseningeffectsofclimatechangeinevitablyfollowedsoonthereafter.

NaomiKleininherbook,This Changes Everything: Capitalism versus the Climate,accuratelycapturesthis.Sheexplainsthat“[o]ureconomicsystemandourplanetarysystemarenowatwar.Or,moreaccurately,oureconomyisatwarwithmanyformsoflifeonearth,includinghumanlife.Whattheclimateneedstoavoidcollapseisacontractioninhumanity’suseofresources;whatoureconomicmodeldemandstoavoidcollapseisunfetteredexpansion.Onlyoneofthesesetsofrulescanbechanged,andit’snotthelawsofnature.”

Thisparadigmalsoleadstothephenomenonofconcentratedgrowth.Resourcesaresiphonedfromruralandindigenouscommunitiesinordertobeimportedandprocessedelsewhere,whilehostcommunitiessufferfromtheremnantsoftheirextractedenvironment.Revenuegeneratedfromprofit-sharingschemeswiththenationalgovernmentaremoreoftenthannotlosttocorruption,orleftoutofreachoflocalcommunities.Thus,rehabilitationandrestorationeffortsinhostcommunitiesaredismalatbest,andnon-existentatworst.Insteadofthefulfillmentofthepromiseof“development”previouslypeddledtotheaffectedcommunities,developmentisrealizedelsewhere.

Thiseconomicmodelof“unfetteredexpansion”pertainstotheprevailingdevelopmentparadigmwhichhasnoregardforecologicallimits.Itpresumesthatourresourcesareinfinite,andsotheextractionoftheseresourcescanbeinfiniteaswell.Thisdisregardforlimitsextendstohumanbeings,orhumancapital,astheirwages,welfare,andsurroundingsareexhaustedformaximumprofit.

“Our economic system and our planetary system are now

at war. Or, more accurately, our economy is at war with

many forms of life on earth, including human life.”

-Naomi Klein

JUST TRANSITION IN THE PHILIPPINES14 JUST TRANSITION IN THE PHILIPPINES5

INTRODUCTION

Amongtheindustrieswhichreflecttherealityoflimitlessextractionandconcentratedgrowthisthefossilfuel-dominatedenergysector.Thus,startingatrulyjusttransitionfromtheenergysectorhassignificantandprofoundeffectsonanylevel,whethernationallyorglobally.Itcanbesaidthattheorderofthedayisbeginningthetransitiontoa“lowcarboneconomyandsociety.”

Globally,the2015ParisClimateAgreementhasputforththe“decarbonization”policy.Nationally,thispolicyisreflectedbythePhilippines’IntendedNationallyDeterminedContributions(INDC)followingitsratificationoftheParisAgreement.Thiscommitmentisalsocitedinthecountry’sDevelopmentPlanandEnergyPlan.ExistinglawssuchastheRenewableEnergyLaw,theGreenJobsAct,andtheCleanAirActalsoappeartobeconsistentwiththispolicy.

However,itremainstobeseenwhetherthecountry’sdecarbonizationpolicyincludesandprioritizesaJustTransitionagenda—anagendathatrecognizesthedemandsandneedsofworkerswhowillbedisplacedanddirectlyaffectedbythetransition—ormerelyscratchesthesurfaceofjusttransition. TheCenterforEnergy,Ecology,andDevelopmentoffersthispapertodopreciselythat:toelucidatetheconceptofaJustTransitionthroughahistoricaldiscussionofitsdevelopment,togrounditwiththerealityofclimatechangeandthedrivetodecarbonize,andfinally,tomeasurethePhilippinegovernment’sprioritizationofJustTransitionforsectorswhowillbemostaffectedbytheseinitiatives.

ItisourhopethatthispapergivesjusttransitioncampaignersinthePhilippinesandacrosstheglobethenecessarytoolstoapproachpressingissuesconcerningtheharmonizationandprioritizationoftheagendaoflaborandaffectedsectorsinthemovetowardsamoresustainable,moreecologicallyjusteconomyanddevelopmentframework.Weacknowledgethosewhohavehelpeduskeepourpaperasgroundedandasclosetorealityaspossible,especiallyasregardstheurgentdemandsandrecommendationsweshallbepresenting.

Weextendmuchgratitudetothosewhohelpedusinthisendeavor,fromourinternationalpartners,tolocalworkersgroupsandpeople’sorganizations,aswellasindividualswhoofferedtheirtime,effort,andwillingnesstohelpinthisinitiative.WehopeforoureffortsinthispaperwillyieldaJustTransitioncampaignwhichwillnotonlybefortheworkersandforaffectedpeoples,butoftheworkersandofaffectedpeoplesaswell.

Insolidarity,Gerry Arances

Executive DirectorCenterforEnergy,Ecology,andDevelopment(CEED)

156

WHAT IS JUST TRANSITION?

TheconceptofJustTransitionwasfirstintroducedafterWorldWarII,whentheongoingtransitionfromawartimetoapeacetimeeconomybroughtaboutthreatsofmassunemploymenttomillionsofveteransandmembersofthewartimelaborforce.Aunionleaderproposedthatjusttransitionbenefitsgrantedtoveteransbesimilarlygiventoatomicworkerswhowillalsobedisplacedbythegovernment’sdisarmamentpolicy.

Intheearly1990s,afternumerousstudiesconfirmedfossilfuelsasamajorcauseofglobalwarming,JustTransitionasaconceptre-emerged.JustTransitionwasonceagainproposedtoassistfossilfuelworkerswhowillbedisplacedbyenvironmentalprotectionpolicies.Today,againstthebackdropofaclimateincrisisandabetterunderstandingofitssocial,political,andeconomicdimensions,

IS THE PHILIPPINES IN JUST TRANSITION? Despitethefactthatitsdevelopmentagendaandenergylandscapelagsintheglobalracetotransition,thePhilippinesisinfactoneofthefirstcountriesinAsiatoadoptafirmanddecisivepolicyontheimperativeoftransitioningtocleanerandrenewableenergythroughtheenactmentoftheRenewableEnergyLaw(RELaw)in2008.ThePhilippineshassinceadoptedotherpolicieswhichrepresentsfacetsofaJustTransition.

aJustTransitionisatransitionawayfromthecurrenteconomicsystemthatfostersunequalandunfetteredgrowth—aboundlessextractionofnaturalandhumanresourcestowardsaconcentrateddistributionofwealththatbenefitsthefew.Itisatransitiontowardsalow-carboneconomyandsocietythatrecognizesecologicallimitsandpromotesadevelopmentpaththatisinclusiveofallpeoplefromdifferentgroupsandsector.

AJustTransitionisprimarilyforthepeoplewhoareatthefrontlineofthetransition—workersintransitioningorretiringsectors,whofacetheriskofunemployment,displacement,andeconomicdislocation,andclimate-vulnerablecommunities.Itisalsoforallmembersofsocietywhowilltransitiontogetherwiththerestoftheglobaleconomy.

Figure 1. The Philippine Energy Plan 2016-2040

TOTAL PRIMARY ENERGY SUPPLY, BY FUEL TYPE, CES (2000-2040) GHG EMISSION, BY FUEL, CLEAN ENERGY (2016 -2040)MTOE

CoalCoal

Natural GasNatural Gas

Oil-basedOil

Geothermal

Hydro Biomass Biofuels Wind/Solar Other Tech

ACTUAL CLEAN ENERGY SCENARIO200.0

175.0

150.0

125.0

100.0

75.0

50.0

25.0

2000 2004 2008 2012 2016 2020 2024 2028 2032 2036 2040

Source: DOE, PEP 2017-2040, p.34

Source: DOE, PEP 2017-2040, p.33.

MMT

2016 2020 2024 2028 2032 2036 2040

500

400

300

200

100

0

CLEAN ENERGY SCENARIO

1MichaelBueza,INNUMBERS:3yearsafterSuperTyphoonYolanda,Rappler,7November2016.https://www.rappler.com/newsbreak/iq/151549-in-numbers-3-years-after-super-typhoon-yolanda-haiyan.2ClimateChangeCommission,CommissionResolutionNo.2016-001,18May2016.3InternationalLaborOrganization,PilotApplicationofPolicyGuidelinesonJustTransitiontowardsEnvironmentallySustainableEconomiesandSocietiesforAllinthePhilippines(JustTransition).https://www.ilo.org/manila/projects/WCMS_522318/lang--en/index.htm.


EXECUTIVE SUMMARY

4Herearethekeyfindingsfromroundtablediscussions(RTDs),keyinformantinterviews,andsurveyswithworkers’groupsandtradeunions,andaffectedworkersfromthreeidentifiedkeytransitioningsectors.

PHILIPPINE TRANSITION POLICIES

December 2008 Enactment of the Renewable

Energy Law

October 2009 Enactment of the Climate

Change Act

December 2015 Adoption of the Paris

Agreement, and Submission of INDC

November 2013 Devastation of Typhoon

Haiyan

The Philippines is one of the first

countries in Asia to adopt a firm

and decisive policy on the imper-

ative of transitioning to cleaner

and renewable energy through the

enactment of the Renewable Energy

Law in 2008.

Another pioneering law, the

Climate Change Act declared as

policy the promotion of climate

justice, the need to stabilize GHG

concentrations in the atmosphere,

to build national and local climate

resilience, and to maximize the

benefits of climate change.

Reeling from the devastation of Typhoon Haiyan, the Philippines was

moved to take a more pronounced role in the global climate talks. It became a rallying voice for

urgent climate action and climate justice in the annual

Conference of Parties to the UNFCCC.

The Philippines was devasted by Typhoon Haiyan, one of the strongest cyclones in recorded history. Typhoon

Haiyan caused US$3.86 billion in damages, with over 6,300 killed, 1,062 missing, 28,688 injured, 3,424,593 fam-

ilies affected, and 16,078,181 people affected 1.

HOW DO AFFECTED WORKERS UNDERSTAND AND APPRECIATE JUST TRANSITION POLICIES? 4

Workers’ Groups and Trade Unions

Bukluran ng Manggagawang Pilipino (BMP), SOSYALISTA, and Trade Union Congress of the Philippines (TUCP)

Climate and labor issues as systemic issues

•ThereishighrecognitionofthegravityoftheissuesofclimatechangeandlaborrightsviolationsinthePhilippines.

•Majorityraisedthatthecurrentexploitativeeconomicsystemasthemaindriveroftheseissues.Thisdriveforunfetteredandconcentratedgrowthdisregardsthelimitsofbothenvironmentalandhumanresources.

Former Coal Workers and Coal-Affected Community Semirara Coal Mining Site in Semirara, Antique—the largest coal producer in the Philippines. Caluya, Antique is a coal-affected community located near the Semirara Coal Mining Site. Calaca Coal Plant in Calaca, Batangas—the oldest operating coal plant in the Philippines. Underpaid, light work•Theworkprovidedisusuallyroutinaryandlightworkthatrequireslittletonoskill,suchassweepingthepremises.•Workersareregularlypaid,althoughbelowtheminimumwage.Usuallyminimumwageforoneworkerisdividedbetweenthreeworkers,whoalternateinperformingthework.•Thiswageisstillmorethantheaverageincomeearnedbyresidentsfromagriculturalactivities.

Overlooked environmental concerns•Majorityoftheworkersintheminingsiteandcoalplantoverlookenvironmentalconcernsandhazardsintheircommunitiesbecauseoftheemploymentcreatedbythecoalprojects.Lack of awareness of climate change • Theoppositionismainlyduetotheadverseimpactstothecommunity’senvironmentandhealth,andnotduetoissuesofclimatechangeandtheroleoffossilfuelsasamaindriverofclimatechange,duetolackofawareness.

Figure 2. Total Employment in Key Transitioning Industries-Upstream

Coal Industry, Downstream Coal Industry, Solar PV, Small Hydro, and

Wind Power

2,915

Upstream Coal

Industry

Solar PVIndustry

Downstream Coal

Industry

Small HydroIndustry

Wind Industry

34,0009,533 33,00014,000

Sources: PSA (for Upstream and Downstream Coal Industry) and IRENA (for Solar PV, Small Hydro, and Wind Power)

TOTAL AFFECTED WORKERS:

93,448

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June 2016 – December 2017 Initiation of the ILO application of Just Transition Guidelines

in the Philippines

June 2017 Initiation of the PUV

Modernization Program

April 2016 – Enactment of the Green Jobs Act March 2017

Issuance of Guidelines for Green Economy Models

The Philippines partnered with the International Labor Organization to enable the Philippine Government,

workers’ organizations, and employers’ organizations to

leverage the process of structural change towards a sustainable, low carbon, climate-resilient economy

to create decent jobs on a significant scale and in a sustained

and inclusive manner. 3

The Department of Transportation’s started implementation of a PUV Modernization Program, which required all PUVs to use either electric or Euro IV-compliant

vehicles, among other features. President Rodrigo Duterte

mandated that the modernization start with the PUJ Industry and be

completed by January 2018.

The Green Jobs Act is the first law that affirmed labor as a primary

social economic force in ensuring the transition into a green

economy. However, it only focused on assisting people in “green

jobs”, neglecting the workers who are being displaced in

transitioning or retiring sectors.

The creation of Green Economy

Models is the Department of

Environment and Natural

Resources’ application of the Just

Transition concept by ensuring

that workers displaced from

closed or suspended mines are

able to immediately transition to

green jobs that are specifically

meant to rehabilitate abandoned

and degraded mining sites.

Solar Farm Employees

Calatagan Solar Farm in Calatagan, Batangas—the largest solar farm in the Philippines.

Transport Group Leaders

AllianceofConcernedTransportOrganizations(ACTO),AllianceofDriversandOperatorsofthePhilippines-GenuineOrganization(STOPandGO),PagkakaisangSamahanngmgaTsuperatOpereytorNationwide(PISTON),FederationofJeepneyOperatorsandDriversAssociatoin(FEJODAP),LigangTransportasyonatmgaOperatorsaPilipinas(LTOP),PasangMasda,andNotoJeepneyModernizationCoalition.

Instances of contractualization

•EmployeesoftheOperationsandMaintenanceDepartment,areregularemployees,paidsatisfactorywagesandgrantedbenefits.

•Meanwhile,employeesfromtheGroundSupportDepartment,whoperformroutinarymaintenanceofthemachinesintheSolarFarm,arecontractualworkers.

Recognition of the imperative to modernize, criticism on the Unjust Transition

•Mostgroupsunderstoodtheproblemofclimatechangeandrecognizedtheroleofthetransportsectorinthetransition.

•However,allofthetransportgroupsarguedthatthePUVModernizationProgramisanUnjustTransition.

The need for a transition fund

•NewPUJmodelswillcostapproximatelyPhp1.6millioneach—anexpensivecost,especiallyconsideringthatsomeoperatorsarestillpayingforloansontheirPUJunits.

•ThesemodelsarenotyetaccessibleandavailableinthePhilippines.

Just Transition

•AlthoughtheyrecognizethatemploymentinaSolarPVCompanyismoreecologicallysoundthaninafossilfuelcompany,thedecisiontoworkforthecompanywaslargelybasedonwages,benefits,andtenure.

•ThereislowawarenessonJustTransitionandcurrenttransitionpolicies,andtheroleoftheSolarPVIndustryinthetransition.

•TheDOTr’ssuggestedPhp80,000.00subsidyperPUJunitisameaslysum.

•Groupsclaimedthatthereisahighpossibilityofafarehike(Php8.00-Php20.00/Php23.00).TheDOTr,however,deniedtheseclaims,buthavereleasednoformalstudyontheProgram’simpactsonfares.

Lack of a Just Transition Agenda for PUJs

•AlthoughmostofthegroupshaveengagedgovernmentondifferentlevelsonthePUVModernizationProgram,theyhavenotformulatedasharedJustTransitionAgendaforthePUJIndustry.

•ThereisstillneedtoraiseawarenessonhowJustTransitioncanbeusedasaFrameworktopushfortheiragenda.

May 2016 National Energy Policy

Review

The CCC issued a resolution towards the development of a

clear policy on Coal-Fired Power Plants in pursuit of a low-carbon

development pathway for the Philippines 2. This Resolution

initiated the National Energy Policy Review through a “whole of nation

approach”.


A Swift and Just Transition Away from Fossil Fuels

UsingthisJustTransitionFramework,thefollowingpoliciesarerecommended:

A United Call for Just Transition

TheintegrationoftheJustTransitionFrameworkinthePhilippinesrequiresofthepeopleacomprehensiveandunitedcallforagenuineJustTransition.InordertoarriveatagenuineJustTransition,theaffectedworkersandgroupsthataretheforefrontofthetransitionmustgaindeeperandmorecomprehensiveunderstandingofwhatmakesaJustTransitionbasedontheirrealitiesontheground.Fromthisunderstanding,affectedworkersandgroupscanformulateandpushfortheirownJustTransitionAgenda.

A.Declarationofafirmpolicyagainstfossilfuels—nonewfossilfuelprojectswillbeapproved,andallexistingfossilfueluseinalleconomicsectorswillbephasedoutby2050;

B.Formulationofacomprehensiveplanfortheretirementofthefossilfuelindustries,inaccordancewiththecommitmenttomaintaintheaverageglobaltemperaturebelow1.5degreesfrompre-industriallevels;

C.Adoptionofpoliciesagainstotherharmfulenergyprojects,suchasnuclear,mega-dams,waste-to-energyincinerations,andagrofuels;

D.FullimplementationofRenewableEnergypolicymechanismstoexpeditethedevelopmentexpansionofcleanandaffordablerenewableenergy;

E.AdoptionoftheproposedJustTransitionFramework,ensuringthat: a.Affectedworkersintransitioningsectorsareidentified;

b.Alternativejobsandlivelihoodswithlivingwagesaremadeavailablefordisplacedworkersandcommunities;

c.Economicdiversificationispromotedforcommunitieshostingfossilfuelprojects;and

d.Allmembersofsocietyaregranteduniversalandequitableaccesstoenergyforbasicneedsandthefulfillmentofrights.

A JUST TRANSITION FRAMEWORK IN THE PHILIPPINES

AJustTransitionFrameworkisofferedasakeystartingpointforaffectedworkersandcommunities,movements,andotherinstitutionsthataimtoadvanceatrulyJustTransitioninthePhilippines.

A Just Transition Framework in the Philippines:

1.Addressesimmediatedisplacementissuesofworkers,communities,andothersectorsatthefrontlineofthetransitionby: a.Placingaffectedgroupsatthecenterofthe transitionprocess,and b.Employingademocraticapproachto implementingthetransitiontoalow-carbon economyandsociety;

2.Promotesatransformativeenergysystemby: a.Increasingaccessandaffordability, b.Recognizingecologicallimits,and c.Aligningwithpeople’sinterestsand developmentalneeds;and

3.Promotesanlow-carboneconomyandsocietyfoundedonecologicalandsocialjustice,which: a.Pavesadevelopmentpathwaycentered ontheneedsofthepeopleandguided byecologicalintegrity,and

b.Promoteshand-in-handahighqualityof lifeandlivelihoodamongcommunitiesand arespectforthelimitsanddignityof theecology.

10


HISTORY AND DEVELOPMENT

TheconceptofJustTransitionhasalwaysbeenrootedintheinterestofworkers.TheconceptwasfirstintroducedafterWorldWarII,whentherewasanongoingtransitionfromawartimetoapeacetimeeconomy.Althoughitwasawelcomedevelopment,thetransitionbroughtaboutthreatsofmassunemploymentandeconomicdislocationofmillionsofveteransandmembersofthewartimelaborforce.Oil,Chemical,andAtomicWorkersUnionleaderTonyMazzocchiproposedthattransitionbenefitsgrantedtoWorldWarIIveteransbesimilarlygiventoatomicworkerswhowillalsobedisenfranchisedbythegovernment’songoingdisarmamentpolicy.Thus,creatingtheconceptofJustTransition–providingfinancialsupportandopportunityforhighereducationfordisplacedworkers,whoaretransitioningtogetherwiththeeconomy.1

Intheearly1990s,afternumerousstudiesconfirmedfossilfuelsasamajorcauseofglobalwarming,JustTransitionasaconceptre-emerged.Thistime,inthecontextofawarmingplanet,justtransitionwasaproposedprogramforfossilfuelworkerswhowillbedisplacedbynewenvironmentalprotectionpolicies.AtthecoreoftheprogramisagovernmentfundassistancewhichsoughttoprovidebenefitsandpaytodisplacedfossilfuelindustryworkersastheytransitionawayfromthebiggestGHGemittingindustry.2

Asclimatescientistsgainconsensusonthemajorroleofanthropogenicactivitiesindrivingclimatechange,andtheimpactsofclimatechangeworsenandbecomemoreevident,thecallforJustTransitionhasalsogrownstrongerandwidertoincludenotonlyatransitionawayfromfossilfuelindustriesbutfromacarbon-intensiveeconomyandsocietyasawholetoalow-carboneconomyandsociety.

Althoughnowcenteredontheevolvingissueofclimatechange,JustTransitioncontinuestoberootedintheinterestoflaborgroups.3Withthesupportofagrowingnumberofgovernmentsandnon-governmentalorganizations,theJustTransitionlanguagewasmostrecentlyadoptedintotheParisAgreement,particularlyitspreamble,whichreads:

“Takingintoaccounttheimperativesofajusttransitionoftheworkforceandthecreationof decentworkandqualityjobsinaccordancewithnationallydefineddevelopmentpriorities.”4

OutsidetheUNFCCCprocess,therewasanearliermilestonewhenthe2012Rio+20outcomedocument,“TheFutureWeWant”recognizedtheneedtoensureworkersareprotectedonthepathtobuildingmoresustainablesocieties: “Werecognisetheimportanceofajusttransitionincludingprogrammestohelpworkersadjustto changinglabormarketconditions.”

Ayearlater,atthe2013InternationalLabourConference,memberstatesoftheInternationalLaborOrganization(ILO)—theUnitedNationsagencyforemploymentandothersocialpolicies—discussedforthefirsttimeJustTransition,climatechange,anditslinkagestotheworldofwork.ThisdiscussionresultedinthepublicationoftheReportentitled,“Sustainabledevelopment,decentwork,andgreenjobs,”andinthelaunchoftheprocesstodevelopJustTransitionguidelines.

1 Labor Network for Sustainability, Just Transition: Just What Is It?, p. 6. http://www.labor4sustainability.org/files/Just_Transition_Just_What_Is_It.pdf.2 Id., p.7.3 Ibid. 4 Ibid.

WHAT IS JUST TRANSITION Defining Just Transition1 |


1 | WHAT IS JUST TRANSITION

10

In2015,amonthbeforetheParisAgreement,the“GuidelinesforaJustTransitiontowardsenvironmentallysustainableeconomiesandsocietiesforall”wasunanimouslyadopted,aligningforthefirsttimetheissueinboththeUNFCCCandtheILO.5

TheGuidelinesrecognizedthefollowingmajoropportunitiesthattheglobaltransitioncouldprovideforthebenefitoftheworldofwork:6

1.Netgainsintotalemploymentintheformofanincreasednumberofavailabledecentjobsandinvestmentsintoenvironmentallysustainableproductionandconsumptionandmanagementofnaturalresources;2.Improvementsinjobqualityandincomesonalargerscalefrommoreproductiveprocesses,aswellasgreenerproductsandservicesinsectorslikeagriculture,construction,recycling,andtourism;and3.Socialinclusionthroughimprovedaccesstoaffordable,environmentallysustainableenergyandpaymentsforenvironmentalservices,forinstance,whichareofparticularrelevancetowomenandresidentsinruralareas.

TheGuidelinesalsorecognizedthebasicraisond’etreoftheconceptofJustTransition,whichistheneedtoaddressthegeneralthreatofjoblossesandunemploymentthatanyplantowardsaneconomictransitionposesuponworkers.Itrecognizedthefollowingmajorchallengesthattheglobaltransitioncouldposefortheworldofwork:7

1.Economicrestructuring,resultinginthedisplacementofworkersandpossiblejoblossesandjobcreationattributabletothegreeningofenterprisesandworkplaces;2.Theneedforenterprises,workplaces,andcommunitiestoadapttoclimatechangetoavoidlossofassetsandlivelihoodsandinvoluntarymitigation;and3.Adverseeffectsontheincomesofpoorhouseholdsfromhigherenergyandcommodityprices.

Farfrombeingbindinginpilotcountries,however,theGuidelinesaremeanttoprovidenon-bindingpracticalorientationtoGovernmentsandits“socialpartners”,whichisdefinedbytheILOasworkers’organizationsandemployers’organizations.8

Currently,nobindinginternationalsetofstandardsforJustTransitionhasbeenadoptedyet.9

A Concept from the GroundWhilestatesandinternationallaborunionsareattheforefrontofexpoundingontheconceptofJustTransitionintheinternationalpolicy-makingarena,people’sorganizationsalongwithlabororganizationsandothergrassrootsorganizationsarealsoworkingtodefinewhatJustTransitionmeansforthem,basedontheirrealitiesontheground.

InthecaseoftheregionofNorthAmerica,whereJustTransitionwasfirstcoinedasaconcept,labororganizations,environmentalorganizations,andclimatejusticeactiviststhatareworkingwithlocalcommunitiesstandwitnesstotheevolutionandnegotiationofthescopeandmeaningofJustTransitionamongdifferentconcernedsectors.10

AnumberoflabororganizationsinNorthAmericareportworkersandcommunities’aversiontotalksoftransition,ingeneral—citingnegativeattitudetowardstheshifttoacleanenergysystembecauseitsymbolizesthelossofemploymentfromthefossilfuelindustry,mostlythecoalindustry.11Additionally,JustTransitionisalsoviewednegativelyduetoitsfailuretocreatesufficientjobswithinacleanenergysystemthatwillcaptureandsecureallworkersdisplacedbyanobsoletefossilfuelindustry.12

5 International Trade Union Confederation, Just Transition: Where are We Now and What’s Next?, 2017, p. 16. http://www.l20argentina.org/pdf/ituc_climate_justice_frontline_briefing_2017.pdf.6 International Labor Organization, Guidelines for a Just Transition towards environmentally sustainable economies and societies for all, p.5. http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/documents/publication/wcms_432859.pdf.7 Id. p. 5.8 International Labor Organization, Social Partners. http://www.ilo.org/pardev/partnerships/employers-workers-organizations/lang--en/index.htm.9 International Trade Union Confederation. Just Transition: Where are We Now and What’s Next?, p. 17.10 Labor for Network and Sustainability. Just Transition: Just What Is It?, p. 10.11 Id., p. 10.12 Ibid.

12


TheseissueshaveledanumberofNorthAmericanorganizationstoinitiatedialogueswithcommunitiesandworkersastowhatJustTransitioncouldmeanforthem.Fromtheexperiencesoflow-incomecommunities,communitiesofcolor,otherminoritygroups,andorganizedlaborgroups,itwasreflectedthatJustTransitionshouldalsointegratetherelevantissuesofrace,oflow-income,andotherrealitiesspecifictoacommunity.13Ingroupsoforganizedlabor,forexample,aconversationonJustTransitioninvolvesjobs,wages,andgrievances;forminoritygroups,itshouldincludeissuesofraceandlow-incomecommunities.14

A Transition to a New System

Variousmovementsonthegroundrecognizethatclimatechangeisnotonlyanenvironmentalissuebutratheranintersectingcrisesinpolitical,economic,andenvironmentalsystems.Necessarily,solutionsthatarelimitedtoshiftingfromanoutdatedandcarbon-intensivetechnologytocleanandrenewabletechnologyareblatantlyinadequate.Fromthispremise,JustTransitionthenisunderstoodandusednotonlytoshifttechnologies,butasatoolthatcanchangethecurrentsystem.16

TheCongressofSouthAfricanTradeUnionsaccuratelydefinedthecurrentsystemas—[a]systemthatconstantlyseekstoexpandproductionbythecheapestmeanspossible.Thismeansthatitdependsontheexploitationofworkersaroundtheworldaswellasthedepletionofthenaturalresourcebaseoftheplanet.Whatisproducedisveryoftennotreallyneededbypeoplebutbecomesdesirablethroughadvertisingandmarketing.Itisalsoasystemthatcreatesmassivewaste–eitherintheformofproductionthatexceedsdemand,orintheformofgoodsthatareboughtbutthrownaway.17

InconsonancewiththismorecomprehensiveconceptofJustTransition,CEEDinitspolicypaperentitled“SwitchingOnTransformativeEnergy”discussesthetransformativepoweroftheenergysector,asakeytransitioningsectorinthePhilippines,inchangingthecurrentprofit-orientedandexploitativesystem,andtofosterapeople-centereddevelopment.

Best Practices

Atpresent,thefactthatthereareveryfewsectorsandeconomiesthathavefullytransitionedtowardsalow-carbonsystem,therearealsoveryfewbestpracticesinJustTransitionwithinthecontextofclimateaction.18Bestpracticesarethosethathaveledtoameasurableandlong-termsolutiontoaddressdisplacementandtosimultaneouslyeffectmeasurable,systemicshifttowardscleanenergy.Nevertheless,therehavebeennotableJustTransitionsworthdiscussing.

Addressing displacement

In2016,inlightofthetransitionawayfromfossilfuelstocleanersourcesofenergy,theBlueGreenAlliance,anallianceamongAmerica’slargestlaborunionsandmostinfluentialenvironmentalorganizations,successfullylobbiedforanationalpoliticalagendaonjusttransitioncalledPower+Plan.

13 Id., pp. 12-14.14 Ibid.15 Id., pp. 16-17.16 Id., p. 14.17 Congress of South African Trade Unions, A just transition to a low-carbon and climate resilient economy, p.18. 18 International Trade Union Confederation. Just Transition: Where are We Now and What’s Next?, p. 10.

1 | WHAT IS JUST TRANSITION

14

Power+Planisastrategyforacleanenergytransitionthataddresseddisplacementbyincludingprogramsforstakeholdersinthetransition.Thestrategy,formulatedwithaneconomicdevelopmentapproach,possessedkeybudgetelementsforworkerandcommunityprotection,suchas:(a)programsforjobtraining,jobcreation,andeconomicdiversification,(b)programsforeconomicdiversification,developmentprograms,andclean-upprojectsathazardousabandonedminesthatboostemploymentandbusinessopportunities,and(c)benefitsforretireesfromthecoalindustry,suchashealthcareandpension.19

InNewYork,PUSHBuffalo,alocalmembership-basedcommunityorganization,initiatedaprojectwhichmakesaffordablehousingarealityandpromotes“developmentwithoutdisplacement”.PUSHpurchasesvacanthomesandrenovatesthembyincorporatingdense-packcelluloseinsulation,on-demandhotwaterheaters,radiantfloorheating,andsolarandgeo-thermalpower.PUSHBuffaloalsolobbiedfornewcommunitynet-meteringpoliciesthatenablelow-incomecommunitiestocooperativelyownandmanagecleanenergyassets.Thesesustainablehouses,asolutionthoughtofbycommunitymembersthemselves,areanattemptatintegratingrenewableenergyandenergyefficiencyintohousing.20

Addressing exploited and extracted resources

BlackMesa,Arizonaishometolargecoalminesthatsupplycoaltocoal-firedpowerplants.Ironically,thousandsoffamiliesfromtheBlackMesadonothaveaccesstoelectricityandwater.TheBlackMesaJustTransitionInitiative,isacommunity-ledprojectaimingtoestablisharenewable,community-controlledenergythroughsolartechnology.Itisanattemptataholisticapproachtoenergydevelopment,creationanddistributionofbenefits,jobtraining,andtrainingonenvironmentalimpact.21

Fromthesolarfacilitiesthatitwillbuild,theprojectenvisionsa‘greeneconomy’thatpursuesprofitthatiscenteredon“theprotectionandpreservationoflands,waters,air,culture,andthewelfareofthefuturegenera-tion.”Exemplifiedinitspilotprojectsisadevelopmentpaththathonorsandintegrates“sacred,ecologicalrelationships”and“traditionalpractices”intoeconomicgrowth.22

Prominent Themes of a Just Transition Framework

JustTransitionisanevolvingconcept,whosemeaningandrelevancediffersamongcommunities,organizations,movements,andinstitutions,andacrossdifferentcontextsandperiods.Thus,oneofthebiggestchallengestoJustTransitionisdevelopingitintoausefulframeworkinone’scontext.

Intheclimate-vulnerablePhilippines,JustTransitionshouldretainitstwomostprominentthemes:1) It is primarily concerned with addressing issues of mass unemployment, displacement, and economic dislocation; and (2) it is a systemic framework for the shift towards a low-carbon society.

Thispaperadoptsthesethemestoexaminethecountry’sdevelopment,energy,andclimatepolicies,tolocateaJustTransitionFrameworkinthesepolicies,tosurfacetheexperience,understanding,andappreciationofaffectedworkersinkeytransitioningsectors,andtorecommendpoliciesthatwouldfurtherdevelopJustTransitioninthePhilippines.

19 Ibid.20 Ibid.21 Ibid.22 Ibid.


Intheeraofurgentglobalclimateaction,numerouscountrieshavebeguntheirtransition,andcanalreadybesaidtohavealow-carboneconomyandsocietytosomeextent.Germanyproducedenoughrenewableenergyinthefirsthalfof2018topowerallofitshouseholdsforanentireyear.23PortugalgeneratedenoughrenewableenergytopoweritswholecountrythisMarch2018.24Swedenwillreachits2030renewableenergytargetthisyear.25 LondonCitywillrunon100%renewableenergythismonth.26

AsforthePhilippines,examiningitsdevelopmentagendaandenergylandscapewillprovideacontextoftheextenttowhichithasorhasnottransitionedtolow-carboneconomyandsociety.

PHILIPPINE DEVELOPMENT AGENDA

Ambisyon Natin 2040 (Vision 2040)

ThePhilippineDevelopmentPlan2017-2022(PDP2017-2022)wasformulatedbasedonAmbisyonNatin2040.AmbisyonNatin2040isthecollectivelong-termvisionofFilipinosoverthenext25years.Anationalsurveyofcloseto10,000citizensandfocusgroupdiscussionofmorethan300citizensconductedbytheNationalEconomicDevelopmentAuthority(NEDA)revealedthatamajorityofFilipinosaspiresforastronglyrooted,comfortable,andsecurelife.FilipinosaspireforaPhilippineswithapredominantlyprosperousmiddleclasssociety,wherenooneispoorby2040.27Inordertoachievethisvision,Filipinoshaveenumeratedthefollowingmilestones:loweringthepovertyrate,stimulatinganinclusiveeconomicgrowth,andcreatingsignificantlymoregainfulemploymentinsidethecountry,amongothers.28

In2016,thiscollectivevisionwasadoptedasaguidefordevelopmentplanning,layingdownfourareasforstrategicpolicies,programs,andprojects:a)buildingaprosperous,predominantlymiddleclasssocietywherenooneispoor;b)promotingalongandhealthylife;c)becomingsmarterandmoreinnovative;andd)buildingahigh-trustsociety.29Bythefollowingyear,NEDAreleasedPDP2017-2022,toserveastheblueprintfortheachievementoftheFilipinos’collectivevision.

Philippine Development Plan 2017-2022

MuchoftheeconomicblueprintencompassedinthePDPretainsaneoliberaleconomicframework.DescribedbyDr.ReneOfreneoasa“neoliberalandextractiveframeofdevelopment,”thePDPfailstoputtheprotectionoftheenvironmentatthecenterofthecountry’sdevelopmentpathwayamidstuncheckedenvironmentaldegradationandgrowingclimatechangerisksfacedbythecountry.30

23 Chris Baynes, Germany produces enough renewable energy in six months to power country’s households for an entire year, 2 July 2018. https://www.independent.co.uk/environment/renewable-energy-germany-six-months-year-solar-power-wind-farms-a8427356.html. 24 Michael Coren, Portugal generated enough renewable energy to power the whole country in March, 5 April 2018. https://qz.com/1245048/portugal-generated-enough-renewable-energy-to-power-the-whole-country-in-march/. 25 Alex Gray, Sweden to reach its 2030 renewable energy target this year, 5 July 2018, https://www.weforum.org/agenda/2018/07/sweden-to-reach-its-2030-renewable-energy-target-this-year. 26 Brian Spaen, The City of London will soon run on 100% renewable energy, 22 June 2018. https://www.weforum.org/agenda/2018/06/lon-dons-historic-square-mile-district-will-run-on-100-renewable-energy. 27 National Economic Development Authority, Vision 2040 (2017).28 Ibid.29 Office of the President, Executive Order No. 05, Series of 2016, Approving And Adopting The Twenty-Five-Year Long Term Vision Entitled Ambisyon Natin 2040 As Guide For Development Planning (2016). 30 Ofreneo, Rene. “Towards an Inclusive, Sustainable and Green Philippine Economy.” Institutions and Economies. April 2015.

WHAT IS THE PHILIPPINES' DEVELOPMENT AGENDA AND ENERGY LANDSCAPE? A Philippine Development and Energy Situationer 2 |

Source: DOE, PEP 2017-2040, Volume 1, page 9

31 In its policy paper entitled “Switching On Transformative Energy”, CEED discusses in detail the Philippine Energy Landscape. Key highlights of the discussion are shared here.

2 | WHAT IS THE PHILIPPINES' DEVELOPMENT AGENDAAND ENERGY LANDSCAPE?

Itfailedtoplaceclimatemitigationandadaptationstrategiesandotherimportantecologicalissuesatthecenterofdevelopmentplanning.Programssuchasmaking‘green’keyeconomicsectorsandrenewingurbanandruralpoorcommunitiesmostaffectedbyclimaterealitieshavenotbeenreflectedaspartofthePlan.Althoughitstatesthatitwillpursuethedevelopmentofrenewableenergyprojects,itstilltakesaneutralstanceagainstfuturefossilfuelenergyprojects.Ithasvagueactionplansformanagingtheminingindustry—anindustrywhichhaslongcausedmassiveenvironmentaldestructionandclimate-vulnerabilitytofrontlinecommunities.

TheGreenThumbCoalition(GTC),awidenetworkofenvironmentalgroupstowhichCEEDisoneoftheconvenors,echoedthisanalysis.AccordingtoGTC,thePDPadoptsabusiness-centeredparadigmofdevelopment,whenitshouldbeadoptingapeople-centereddevelopment.Itfailstoveerawayfromneoliberalpoliciessuchastradeliberalizationingoods,complementedbyliberalizationofservicesandprivatization,andextractivepoliciessuchasthewidespread“loggingandminingactivities.

Thus,puttingthecountry’sbroader,macroeconomicdevelopmentpoliciessidebysidewithitstransitionpoliciessurfacesacognitivedissonanceintermsofthecountry’slong-termeconomicvision.TheJustTransitiontowardsalow-carboneconomyandsocietyareatariskofbeingpreemptedbythecountry’sPDP.

Overall,whilethePDPprovidesforstrategiestoensureecologicalintegrity,andacleanandhealthyenvironment,theplanasawholedoesnotadoptatransitiontowardsalow-carboneconomyandsociety.

ENERGY LANDSCAPE

Energy Generation and Consumption 31

16

Figure 1. Total Primary Energy Supply By Fuel, 2016

RE | 37.0%

Oil Based | 34.9 %

Coal | 22.0%

Oil Based | 34.9%

Natural Gas | 6.1 %

Renewable Energy 37%

Fossil Fuels 63%

Intermsofenergyconsumption,thePowerSectorandtheTransportSectorarethetwosectorswiththehighestconsumption.Basedon2016data,theTotalFinalEnergyConsumption(TFEC)ofthePowerSectoris6.4MTOE,andoftheTransportSectoris12.3MTOE.ThePowerSectorisnotdepictedasaseparatesectorinFigure2becausetheDepartmentofEnergy(DOE)doesnotconsideritasaformaleconomicsector.Itissubsumedinalltheothersectorsaselectricityconsumption.

EnergygenerationinthePhilippinesatpresentisheavily-dominatedbyfossilfuelsat63%.Despitehavingaconsiderableselectionofenergysources,thecountryhasmaintainedoil-basedfuelasitsmainsourceofenergy,withashareof22%intheenergymix.Oil-basedisfollowedbycoalat22%,andnaturalgasat6.1%.Renewableenergysourceslagsignifi-cantlyat37%.


33.1 MTOE

12.3

7.4

9

3.90.5

TRANSPORT INDUSTRYRESIDENTIAL COMMERCIAL AFF

Fossil Fuel | 68.85%

Renewable Energy | 31.15%

Source MW Share in the Power Mix

Coal 8,049 35.4144667

Natrual Gas 3,447 15.1663147

Oil-based 4,153 18.2726153

Renewable Energy 7,079 31.1466033 31.1466033

100

68.8533967

22,728


Coal | 35.41%

Oil-based | 18.27 %

Natural | 15.16 %

ThePowerMixisalsodominatedbyfossilfuelsbutwithalargershareat75.43%,whileonly24.57%isgeneratedfromrenewableenergy.

Figure 2. Total Final Energy Consumption by Sector, 2016

Figure 3. Power Installed Capacity Mix, 2017

Source: DOE, PEP 2017-2040, Volume 1, page 1.

Figure 5. 2017 Transport Consumption Mix


18

TheTransportSectorhasbarelyanymixofenergysourcessinceitisheavilydependentonoil-basedfuel.Petroleumproductscomprise96.4%ofthetransportsector’senergyconsumption,andelectricityonly0.1%.MasstransportinPhilippineroadsconsistmostlyofjeepneys,buses,taxies,AsianUtilityVehicles,andmotorizedtricycles.Thesevehiclesrunprimarilyongasolineanddiesel.

Figure 4. Power Gross Generation Mix

Renewable Energy | 24.37%



Coal | 49.64 %

Natural Gas | 21.77 %

Oil-based | 4.01%

Source GWh Share in the Power Mix

Coal 46,847 49.6418353

Natrual Gas 20,547 21.7728092

Oil-based 3,787 4.01292784

Renewable Energy 23,189 24.5724277 24.5724277

100

75.4275723

94,370

Source: DOE, 2017 Power Statistics.


Figure 5. 2017 Transport Consumption Mix

Petroleum Products | 96.4%

Electricity | 0.1%

Fuel Oil | 1.8%LPG | 0.1%Avgas | 0.04%

CME | 1.0% Diesel | 50%

Natural Gas | 0%

Jet | 5.2%

Ethanol | 2.5%

Gasoline 39.9%

Total Demand 12.3 MTOE


Inaccessible and unaffordable

A2013reportfromthePhilippineInstituteforDevelopmentStudies(PIDS)saysthat16millionFilipinosremainwithoutaccesstoelectricity.32 Whileurbanelectrificationisat94%,ruralelectrificationremainsat73%.33 PIDSstudymeasuredthepopulationonapervillageconnectionlevelandnotonahouseholdlevel.Amorerecent2015unpublishedreportofDepartmentofSocialWelfareandDevelopment(DSWD),measuringthepopulationonahouseholdlevel,showedthatmorethan50%ofFilipinosarewithoutaccesstoelectricity.34 In2017,InternationalRenewableEnergyArena(IRENA)publishedastudyonthePhilippines,statingthat4.2millionhouseholdsdonothaveelectricity.35

Duetoinaccessibilityofelectricity,householdsrelyonburningwoodandcharcoalfortheirdailycookingneeds,andonkeroseneforlightingneeds.AccordingtothePhilippineStatisticsAuthority’s(PSA)2015CensusofPopulationandHousing,woodisthemostcommonlyusedfuelforcookingby44.1%ofthetotalhouseholds,or8.9millionhouseholds.

Insomeinstances,inaccessibilityofelectricitymaybeduetounaffordability.Inasurveyofelectricitypricesof80countriesallovertheworldconductedbyGlobalEnergyPrices,thePhilippinesranked30thmostexpensiveelectricityprice.InadifferentsurveyconductedinAsia,theelectricitypriceintheGreaterManilaAreaisrankedasthethirdhighestelectricityrateinAsia.36

Thereisalsoasurginginflationforfuelcostsfortransportation.AsofSeptember2018,thePhilippineaveragegasolinepricehasreacheditshighestcostinfouryears.37Meanwhile,thePhilippineaveragedieselpricehasreacheditshighestcostinsixyears.38

Figure 6. Average Electricity Prices

Global Philippines Greater Manila Area

Sources: Global Energy Prices, Prices around the world, and Meralco 09-2018 Rate Schedule

PhP 8.11PhP 10.17 PhP 10.07

32 Philippine Institute for Development Studies (PIDS), Energy Market Integration and Energy Poverty in ASEAN, Table 1. p. 3.33 International Energy Agency. 2012: Cited in PIDS. “Energy Market Integration and Energy Poverty in ASEAN.” 201334 DSWD. Electric Connection per Household Connectivity. 2015.35 International Renewable Energy Arena (IRENA), Accelerating Renewable Mini-grid Deployment, 10. 2017.36 Danessa Rivera, Meralco rates still 3rd highest in Asia, Philstar, 8 August 2018, https://www.philstar.com/business/2018/08/08/1840542/meralco-rates-still-3rd-highest-asia-iec.37 TradingEconomics, Philippines Gasoline Prices, https://tradingeconomics.com/philippines/gasoline-prices.38 Knoema, Philippines – Pump price for diesel fuel, https://knoema.com/atlas/Philippines/Diesel-price.


20

OneofthereasonsfortheinflatingcostsofelectricityandpetroleuminthePhilippinesisthefactthatmajorityofourfossilfuelsupplyareimported.Thismeansthatthesepricesaredependentfossilfuelinflation,U.S.dollarinflation,andexchange-ratevolatility.Figure8showsthat49%ofourcoalsupplyisimported,and91%ofouroilsupplyisimported.

Figure 8. Total Primary Energy Supply by Source, 2016


Figure 7. Retail prices in Metro Manila beginning 11 September 2018

Sources: DOE, Oil Monitor as of 11 September 2018

ProductsP/liter

Price Range Common Price

Gasoline (Ron91) 51.65 - 59.87 57.15

Gasoline (Ron97) 53.35 - 64.45 60.40

Diesel PLUS 46.40 - 53.20 49.35

Gasoline (Ron95) 52.65 - 61.70 58.85

Diesel 42.26 - 48.69 46.60

Kerosene 48.32 - 58.50 48.32

LPG P/11-kg cylinders 620.00 - 840.00

Indigenous Energy | 55.3%

Net ImportedOil | 33.5%

Net Imported Coal | 10.8%Net Imported Biofuels | 0.3%

Wind / Solar | 0.3 %

Biofuels | 0.6%

Biomass | 14.1%

Hydro | 3.8%

Geothermal | 17.9%

Natural Gas | 6.1%

Coal | 11.1%

Oil | 1.3%

Net Imported Coal | 10.8%


Table 2. GHG Inventory for the Energy Sector by Sector, 2016

39 DOE, PEP 2017-2040, Volume 1, p. 15.40 DOE, PEP 2017-2040, Volume 1, p.14.41 Asian Development Bank, “Country Operations Business Plan: Philippines, 2014–2016” (2017).

Source: PEP 2017-2040, Volume 1, p.14.

SectorCO2 Emission (MtCO2e)

Non CO2 Emission (MtCO2e)

Total GHG Emission(MtCO2e)

Power Generation

Power Generation

50.7

46.5

0.1

47.1

50.9

46.4

Industry

Industry

Energy

Energy

15

13.7

0.6

0.6

0

13.1

0

0.9

15

13.7

0.6

0.6

Transport

Transport

34.4

31.5

0

31.9

34.7

31.6

Other

Other

Total

Total

8.4

7.7

109.2

100

0

7

0.1

100

8.5

7.7

109.8

100

Althoughthetransportsectoristhesectorwiththebiggestenergyconsumption,andthehighestpercentageoffossilfuelshare,thepowergenerationsectoremittedthemostGHGin2016at50.9MtCO2e.Thetransportsectorfollowedat34.7MtCO2e 40.Thislevelofemissionsisprojectedtoonlyincreasewithtransportsectorenergyconsumptioncontinuingtogrowatanaverageannualrateof3.2%.41

Unsustainable and Carbon-intensive

In2016,theEnergySector’sGHGemissionstotaledto109.8metrictonnesofcarbondioxideequivalent(MtCO2e).Table1showstheGHGinventoryforeachfossilfuelin2016.39

Table 1. 2016 GHG Inventory for the Energy Sector by Fuel

Source: PEP 2017-2040, Volume 1, p.15.

Sector

% Distribution

CO2 Emission (MtCO2e)

Non CO2 Emission (MtCO2e)

Total GHG Emission(MtCO2e)

Oil 51.4

47.1 47.151.8

0.3 51.7

Natural Gas 7.6

7 71.3

0 7.7

Natural Gas

Coal 50.1

45.9 45.946.9

0.3 50.4

Total 109.2

100 100100

0.6 109.8

Total

OilCoal

% Distribution


22

42 Germanwatch, Global Climate Risk Index, 2017.

ThePhilippinePowerSectorisalsoclimatevulnerable.Sincethepowersectorismostlycentralizedandlargescale—fromgeneration,transmission,distribution,andsupplyofelectricity—itisinfrastructurallymorevulnerabletoclimatechange.Largetransmission,distribution,andsupplylines,whicharenotreadilydetachable,aremorepronetotoppling,cutting,ordisconnectioncausedbysevereandfrequentstorms.ThisisespeciallyimportantinthecaseofthePhilippines,whichhasbeenconsistentlyrankedwithinthetoptenmostvulnerablecountriestoclimatechangebythe2017GlobalClimateRiskIndexofGermanwatch.42

The Philippine Energy Plan 2017-2040

TheDepartmentofEnergy(DOE)recentlyreleasedthePhilippineEnergyPlan(PEP)2017-2040,whichincludedaBusiness-As-UsualScenario(BAU)andaCleanEnergyScenario(CES).SimilartothePDP,thePEPbarelyincorporatesatransitiontoalow-carbonenergysector.

UnderthePEP,by2040,whetherinaBAUScenariooraCES,oil-basedfuelwillstilldominatetheTotalPrimaryEnergySupply,followedcloselybycoal.TheanticipatedincreaseinRE’ssupplywillclearlynotovertakefossilfuelsasthedominantsourceofenergy.

Figure 9. Total Primary Energy Supply by Fuel, BAU v. CES (2000-2040)

FIGURE 32. TOTAL PRIMARY ENERGY SUPPLY, BY FUEL TYPE, CES VS BAU (2000-2040)

MTOE

2000 2004 2008 2012 2016 2020 2024 2028 2032 2036 2040

Coal Natural Gas Oil-based Geothermal HydroBiomass Biofuels

Wind/Solar Other Tech

200.0

175.0

150.0

125.0

100.0

75.0

50.0

25.0

ACTUAL ACTUALBUSINESS AS USUAL SCENARIO CLEAN ENERGY SCENARIO200.0

175.0

150.0

125.0

100.0

75.0

50.0

25.0

2000 2004 2008 2012 2016 2020 2024 2028 2032 2036 2040



Figure 11. GHG Emission by Fuel, BAU v. CES (2016-2040)

FIGURE 30. GHG EMISSION, BY FUEL, CLEAN ENERGY VS BAU (2016 -2040)

MMT

2016 2020 2024 2028 2032 2036 2040 2016 2020 2024 2028 2032 2036 2040

Coal Oil Natural Gas

500

400

300

200

100

0

500

400

300

200

100

0

BUSINESS AS USUAL SCENARIO CLEAN ENERGY SCENARIO


ThesameistruefortheTransportSector,withaprojectedenergydemandsuppliedbypetroleumproductsatmorethan90%.

Thus,expectedly,theEnergySector’sGHGemissionswillincreasefrom109.8MtCO2ein2016to345.5MtCO2eby2040,evenundertheCES.

Figure 10. Transport Energy Demand by Fuel in MTOE, 2000-2040

FIGURE 25: TRANSPORT ENERGY DEMAND, BY FUEL (2000-2040) IN MTOE

MTOE

2000 2004 2008 2012 2016 2020 2024 2028 2032 2036 2040

40

35

30

25

20

15

10

5

ACTUAL PROJECTION

Source: DOE, PEP 2017-2040, Volume 1, p.27.

Geothermal

Jet Fuel

DieselFuel Oil

Petroleum Products

Biodiesel

Ethanol

Natural GasElectricity

24

Despitethefactthatitsdevelopmentagendaandenergylandscapelagsintheglobalracetotransition,thePhilippinesisinfactoneofthefirstcountriesinAsiatoadoptafirmanddecisivepolicyontheimperativeoftransitioningtocleanerandrenewableenergythroughtheenactmentoftheRenewableEnergyLaw(RELaw)in200843.ThePhilippineshassinceadoptedotherpolicieswhichrepresenteddifferentaspectsofnotonlyatransitionbutaJustTransition.Theeffectiveimplementationofthesepolicieshoweverisadifferentmatteraltogether.

Renewable Energy Law, Among the First in Asia

Ittook18yearsfortheRELawtobefinallypassedin2008.Eventhen,itwasstillaheadofitstime,beingonethefirstRELawsinAsia.

ThePhilippineRELawdeclaredaspolicytheaccelerationoftheexploration,development,andutilizationofREsourcesinthecountry,inordertoachieveenergyindependence.TheREPolicyFrameworkthenwasdubbedas“100in10”—sincetheDOEaimedtodoublethethen-4,450megawatts(MW)REcapacityin2002to9,418MWoralmost10MWby2013.44Italsoaimedtoreducecoalimportsby20%intenyears.45

Inordertoachievetheseoutcomes,REdevelopersweregrantedfiscalandnon-fiscalincentivessuchasanincometaxholidayofsevenyearsforREdevelopers,duty-freeimportationsofandspecialrealtytaxratesonREmachinery,equipmentandmaterials,amongothers.46 ElectricityconsumersandthelocalgovernmentincommunitieshostingREgenerationfacilitiesarealsograntedincentivesintheformofsubsidyfortheirelectricityconsumption,providedthattheirmonthlyconsumptiondoesnotexceed100kWheverymonth.47

Policymechanismswerealsoenactedalthoughbelatedlyimplemented.AmongthenotablemechanismsaretheFeed-InTariff(FIT)System,48whichmandateselectricpowerindustryparticipantstosourceRE-derivedelectricityataguaranteedfixedprice(“theFITrate”)applicablefor20years;theNet-MeteringProgram,whereinend-usersareallowedtoexportexcesselectricitygeneratedfromtheirownREgenerationfacilities;49andtheGreenEnergyOptionProgram(GEOP),whichisaprogramwhichprovidesend-userstheoptiontochooseREresourcesastheirsourcesofenergy.50

Adecadeafteritsenactment,the“100in10”51andcoalimportsreduction52havenotbeenmet.REcapacityisonlyat7,079MWandcoalimportsincreasedby28.6%whenmeasuredintermsofMTOE,anddecreasedbyonly2%whenmeasuredintermsofitspercentageshareintheTPES.53

43 Republic Act No. 9513, An Act Promoting the Development, Utilization, and Commercialization of Renewable Energy Resources and for Other Purposes, [Renewable Energy Law], 2008.44 Senator Loren Legarda, Keynote Speech, Convergence for 100% Reneweble Energy in the Philippines Symposium.45 Ibid.46 Id., Sec. 15.47 Id., Sec. 31.48 Id., Sec. 7. See also Department of Energy, Department Circular No. 2013-05-0009, available at https://www.doe.gov.ph/sites/default/files/pdf/issuances/dc_2013-05-0009.pdf (last accessed 18 October 2017).49 50 RENEWABLE ENERGY ACT OF 2008, Sec. 9.51 See also Figure 3.52 See also Figure 8.53 DOE, Energy Mix 2008-2009. https://www.doe.gov.ph/sites/default/files/pdf/energy_statistics/energy_mix.pdf.

IS THE PHILIPPINES IN JUST TRANSITION? A Discussion of Transition Policies in the Philippines3 |

Figure 10. Transport Energy Demand by Fuel in MTOE, 2000-2040

FIGURE 25: TRANSPORT ENERGY DEMAND, BY FUEL (2000-2040) IN MTOE

Source: DOE, PEP 2017-2040, Volume 1, p.27.


Figure 12. RE Installed Capacity in MW, 2008 v. 2017

Figure 13. Net Imported Coal in MTOE in % share in the TPES, 2008 v. 2016

2008

2008 2016 2008 2016

4,450

4.47

5.7511%

10.80%

2017

7,079

Source: DOE

Source: DOE

Climate Change Act, Forgetting the Labor Force

Ayearlater,thePhilippineenactedanotherpioneerlawentitledtheClimateChangeAct54.ThroughthisAct,thePhilippinesdeclaredaspolicythepromotionofclimatejustice,theneedtostabilizegreenhousegasconcentrationsintheatmosphere,tobuildnationalandlocalresiliencetoclimate-induceddisasters,andtoenjoinallsectorsofsocietytopreventandreducetheadverseimpactsofclimatechangeand,atthesametime,maximizethebenefitsofclimatechange.

ItcreatedtheClimateChangeCommission(CCC),whosemaintaskistomainstreamclimatechangeinallnationalandlocalprogramsandplans.TheCCCisalsotaskedtoformulateaNationalClimateChangeActionPlan(NCCAP),whichwillisthebasisforallLocalClimateChangeActionPlans(LCCAP)oflocalgovernmentunits(LGUs).Theseplansservetoassesstheimpactsofclimatechange,toidentifyvulnerablecommunitiesandareas,assessandmanagerisksandvulnerabilities,identifyGHGmitigationpotentials,andprovideadaptationmeasures.

AlthoughtheClimateChangeActspecificallyseekstoprovideaframeworkforthecountry’stransitiontoalow-carboneconomyandsociety,itmakesnomentionatallofthelaborforcethreatenedwithunemployment,displacement,oreconomicdislocation.TheplansmandatedoftheCCCandLGUsdonotrequiremeasurestosupportdisplacedworkersandtoprovideforeducationortrainingfornewskills.

InSection15,whichdiscussestheRoleofGovernmentAgenciesinensuringtheeffectiveimplementationofaframeworkstrategyonclimatechange,theDepartmentofLaborandEmployment(DOLE)wasnotevenincludedtooverseetheestablishmentofajusttransitionfundandotherprogramsfordisplacedworkers.Thisotherwiseremarkablelawonclimatechangeseemedtohaveforgottenabouttheimportanceofincludingthelaborforceinthetransition.

54 Republic Act No. 9729, An Act Mainstreaming Climate Change into Government Policy Formulations, Establishing the Framework Strategy and Program on Climate Change, Creating for this purpose the Climate Change Commission, and for Other Purposes, [Climate Change Act] 2009.

Typhoon Haiyan, the Imperative to Respond to Climate Change

In2013,thePhilippineswasdevastedbyTyphoonHaiyan,oneofthestrongestcyclonesinrecordedhistory.TyphoonHaiyancausedUS$3.86billionindamages,withover6,300killed,1,062missing,28,688injured,3,424,593familiesaffected,and16,078,181peopleaffected55.

Reelingfromdevastation,thePhilippineswasmovedtotakeamorepronouncedroleintheglobalclimatetalks.ThePhilippinesbecameanimperativerallyingvoiceforurgentclimateactionandclimatejusticeintheannualConferenceofPartiestotheUNFCCC.Inthe2015ConferenceofParties(COP),itwasamongtheleadproponentsforthemoreambitiousgoalof1.5oCelsiusabovepre-industriallevels,whichwasultimatelyincorporatedintotheParisAgreement.

In2015,thePhilippines,togetherwithotherStateParties,finallyadoptedtheParisAgreement,thefirsteveruniversal,legallybindingglobalclimatedeal.In2017,thePhilippinesfinallyratifiedtheParisAgreement,incorporatingisaspartofthelawoftheland.InitsPreamble,theParisAgreementalsotookintoaccounttheimperativesofajusttransitionoftheworkforceandthecreationofdecentworkandqualityjobsinaccordancewithnationallydefineddevelopmentpriorities56.Thus,byratifyingtheParisAgreement,thePhilippinesalsoincorporatedtherecognitionoftheimperativesofaJustTransition.

Theclimate-vulnerablePhilippinesmadetheambitiousgestureofcommittingtoreduce70%ofitsGHGemissionsfromBusiness-as-Usual(BAU)levelsby2030asitsIntendedNationallyDeterminedContribution(INDC).Inotherwords,thePhilippinescommittedtotransitiontoalowcarbonsociety,acommitmentithadalreadymadeinearlierdeclaredpoliciesandenactedlaws.

However,itbearsstressingthatthePhilippines’INDCisconditional,whichmeansthatthecommitmentsaredependentupontheextentoffinancialresources,includingtechnologydevelopment&transfer,andcapacitybuilding,thatwillbemadeavailabletothePhilippines57.Moreover,theINDClacksconcreteanddetailedplansintermsofitsmeansofimplementation.Consequently,thePhilippineEnergyPlan2017-2040(PEP)failedtooutlineaJustTransitionplanthatwouldrestructuretheenergylandscapeinaccordancewiththisnewcommitment.

UnderthePEP,by2040,whetherinaBAUScenariooraCleanEnergyScenario(CES),oil-basedfuelwillstilldominatetheTotalPrimaryEnergySupply,followedcloselybycoal.Thecountry’sGHGemissionswillonlydecreaseby12.95%comparedtoitsBAUlevelsby2040,whichisnegligiblecomparedtothe70%reductioncommitment.InaBAUscenario,GHGemissionwillbe396.9MtCo2eby2040.Meanwhile,inaCES,GHGemissionwilldropto345.5MtCo2eonlyby2040.

55 Michael Bueza, IN NUMBERS: 3 years after Super Typhoon Yolanda, Rappler, 7 November 2016. https://www.rappler.com/newsbreak/iq/151549-in-numbers-3-years-after-super-typhoon-yolanda-haiyan. 56 United Nations Framework Convention on Climate Change, The Paris Agreement, 57 Republic of the Philippines, Intended Nationally Determined Contributions (October 2015). http://www4.unfccc.int/submissions/INDC/Published%20Documents/Philippines/1/Philippines%20-%20Final%20INDC%20submission.pdf.

3 | IS THE PHILIPPINES IN JUST TRANSITION?

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National Energy Policy Review

FollowingtheadoptionoftheParisAgreementandthesubmissionofINDC,theCCCissuedaresolutiontowardsthedevelopmentofaclearpolicyonCoal-FiredPowerPlantsinpursuitofalow-carbondevelopmentpathwayforthePhilippines.58

ThisResolutioninitiatedtheNationalEnergyPolicyReviewthrougha“wholeofnationapproach”.ThemainobjectiveofthereviewistoharmonizethepoliciesoftheDENRandDOEonnewandexistingcoal-firedpowerplantsinaccordancewiththenewlow-carbondevelopmentpathway.

CivilSocietyOrganizations,especiallythoseinvolvedintheanti-coalmovementandinthepromotionofcleanandaffordablerenewableenergy,haveheavilyparticipatedintheReviewprocess.OverayearandahalfsincetheinitiationoftheReview,aclearpolicyagainstthepromotionofmorecoal-firedpowerplantshasyettobede-clared.

Green Jobs Act, Mainstreaming the Latter Half of the Just Transition Framework

TheGreenJobsActwaspassedintolawinthesecondquarterof2016.ItincorporatedaspectsoftheJustTransitionFrameworkintoexistingenergyandclimatepolitiesbyaffirminglaborasaprimarysocialeconomicforceinpromotingsustainabledevelopment,andensuringthetransitionintoagreeneconomy.59

58 Climate Change Commission, Commission Resolution No. 2016-001, 18 May 2016.59 Republic Act No. 10771, An Act Promoting the Creation of Green Jobs, Granting Incentives and Appropriating Funds Therefor, [Green Jobs Act] (2016), sec. 2.

Figure 14. GHG Emission by Fuel, BAU Scenario v. CES, 2016-2040

FIGURE 30. GHG EMISSION, BY FUEL, CLEAN ENERGY VS BAU (2016 -2040)

2016 2020 2024 2028 2032 2036 2040 2016 2020 2024 2028 2032 2036 2040

Coal Oil Natural Gas

500

400

300

200

100

0

BUSINESS AS USUAL SCENARIO CLEAN ENERGY SCENARIO



TheGreenJobsActfirstandforemostidentified“greenjobs”orthejobsdirectlycreatedbylow-carbonindustries,andindirectlycreatedbyalow-carboneconomyandsociety.Greenjobsare“employmentthatcontributestopreservingorrestoringthequalityoftheenvironment,beitintheagriculture,industryorservicessector.Spe-cifically,butnotexclusively,thisincludejobsthathelptoprotectecosystemsandbiodiversity,reduceenergy,materialsandwaterconsumptionthroughhighefficiencystrategies,decarbonizetheeconomy,andminimizeoraltogetheravoidgenerationofallformsofwasteandpollution.Greenjobsaredecentjobsthatareproductive,respecttherightsofworkers,deliverafairincome,providesecurityintheworkplaceandsocialprotectionforfamilies,andpromotesocialdialogue.”60

UndertheAct,theStateismandatedtoidentifyneededskills,todeveloptrainingprograms,andtotrainandcertifyworkersforjobsinlow-carbonindustries.Inrecognitionoftheparticipationoflow-carbonbusinessenterprisesinthecreationofjobs,theyarealsograntedincentivessuchasaspecialdeductionfromtaxableincomeequivalentto50%ofthetotalexpensesforskillstrainingandresearchdevelopmentexpenseswhichisoverandabovetheallowableordinaryandnecessarybusinessdeductions;andtaxanddutyfreeimportationofcapitalequipment,directlyandexclusivelyusedinthepromotionofgreenjobs.61

Othergovernmentagencieswerealsoassignedtaskstowardsthemainstreamingofthecreationofgreenjobsingovernmentprogramsandplans,thecreationofmoregreenjobs,andthepromotionoftherightsofworkers.62

However,itseemsthattheGreenJobsactonlyfocusesonthelatterhalfoftheJustTransitionFramework—thatis,theidentification,creation,andpromotionofgreenjobsinthelow-carboneconomyandsociety.Itdoesnothowevertakeintoaccountthefirsthalfoftheframework,whichistoidentifyandsupporttheworkersthatareaffectedandwillbeaffectedbythistransition.

Nogovernmentagencywasrequiredtoestablishadatabaseofworkersintransitioningsectorsandindustries.Noinformationandeducationcampaignswillbeheldtoinformworkersoftheneedforatransitionandthemeanstomakethistransitionjustforthem.Noplansorprogramswereformulatedtoensurethatdisplacedworkersareimmediatelysupported.Nofundwasestablishedwhichdisplacedworkerscanaccessforsupportduringtheirtransition.Atmost,theActonlymandatestheskillstrainingingreenjobs.

ILO Partnership, Pilot Application of Just Transition Guidelines

InsupportoftheGreenJobsAct,thePhilippinegovernmentalsoimmediatelyenteredintoapartnershipwiththeILOforthepilotapplicationofthelatter’sJustTransitionGuidelinesfrommid-2016toendof2017.ThepartnershipaimedtoenablethePhilippineGovernment,workers’organizations,andemployers’organizationsto“leveragetheprocessofstructuralchangetowardsasustainable,lowcarbon,climate-resilienteconomytocreatedecentjobsonasignificantscaleandinasustainedandinclusivemanner.”63Twospecificoutcomeswereexpected:

60 Green Jobs Act, sec. 4(c).61 Id., sec. 5.62 Id., sec. 6.63 International Labor Organization, Pilot Application of Policy Guidelines on Just Transition towards Environmentally Sustainable Economies and Societies for All in the Philippines (Just Transition). https://www.ilo.org/manila/projects/WCMS_522318/lang--en/index.htm.

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1. ForthePhilippineGovernment,workers’organizations,andemployers’organizationstocreateanenablingenvironmentforsustainableenterprisestoprosperandcreatedecentworkopportunitiesthroughexanteassessmentsoftheemploymentandsocio-economicimpactsofenvironmentalpoliciestoinformpolicychoicesatmacroandsectorallevels;and

2. ForthePhilippineGovernment,workers’organizations,andemployers’organizationstobuildinterventionmodelsforintegratedandeffectivejusttransitionmeasuresattheindustry,enterpriseandlocallevels,wheresocialpartners,nationalandlocalauthoritiesandotherstakeholderswillplaykeyroles.

InitsPolicyBriefentitled“ImplementingTheJustTransitionGuidelinesinAsiaandthePacific–LessonsfromthePhilippines”64,ILOreportedthatitachieveditsexpectedoutcomesandnotedchallengesfacedspecificallyinpolicy-makingandbusinesses.Forpolicy-making,bringingtheconceptofclimatechange,itsrelatedimpactsandactions,tothelocalcommunitylevelwasoneofthebiggestchallenges.Forbusinesses,issuesofaccessibilityoftechnologyandexpertiseandthehighcostsofcapitalinvestmentsareamongthemajorchallenges.

AmongitsrecommendationsistheprioritizationoftheintegrationofJustTransitioninexistingpoliciesandthelocalizationoftheframeworkandguidelinesinLGUsandcivilsocietyorganizations.

Green Economy Models, Rehabilitation Activities as Green JobsBuildingontheGreenJobsAct,theDepartmentofEnvironmentandNaturalResources(DENR)undertheleadershipofthen-SecretaryGinaLopezissuedGuidelinestooperationalizeJustTransitioninthePhilippinesthroughaningeniousprogramcalledGreenEconomyModels(GEMs).

UnderDepartmentAdministrativeOrder(DAO)No.2017-08,agreeneconomyisdefinedasaneconomythatis“low-carbonandresource-efficient,andresultsinthegenerationofgreenjobsandinimprovedhumanwell-beingandsocialequity,whilesignificantlyreducingenvironmentalrisksandecologicalscarcities”65.AlthoughnotdefinedintheDAO,GEMsareessentiallycommunityenterprisesestablishedspecificallyto:(1)createlocalgreenjobs,and(2)developandrehabilitatedegradedforest,mining,andcoastalareas.Thecommunityenterpriseswerecomprisedoflocalhouseholds,andsupportedbyaCommunity’sManagementServiceCenter.

Duringherbriefterm,SecretaryLopezbecameacontroversialfigureforconductinganauditofallexistingminesinthecountry,resultinginthesuspensionandclosureofatleast26mines.ThecreationofGEMsisaningeniousmeansofensuringthatworkersdisplacedfromclosedorsuspendedminesareabletoimmediatelytransitiontogreenjobsthatarespecificallymeanttorehabilitatethedegradedenvironmentleftbythedestructiveandirresponsibleminingindustry.

Ifproperlyandeffectivelyimplemented,GEMswouldshowcasebestpracticesofJustTransitioninthePhilippines.AlthoughtheDAOisstillineffect,therehasbeennoreportsorupdatesonitsimplementationsinceSecretaryLopezlefttheDENR.

PUV Modernization Program, a Blatantly Unjust TransitionThemostrecentandperhapsthemostcontroversialpolicydevelopmentonJustTransitioninthePhilippinesisthePublicUtilityVehicle(PUV)ModernizationProgram.TheProgramwasinitiatedon19June2017undertheDepartmentofTransportation(DOTr)DepartmentOrderNo.2017-011withsubject“OmnibusGuidelinesonthePlanningandIdentificationofPublicRoadTransportationServicesandFranchiseIssuance”.66

64 International Labor Organization, Policy Brief No. 1: Implementing The Just Transition Guidelines in Asia and the Pacific – Lessons from the Philippines, 14 March 2018. https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/documents/publication/wcms_620874.pdf. 65 Department of Environment and Natural Resources, DAO No. 2017-08, Guidelines in Operationalizing the Transition of the DENR’s Pro-grams and Projects into Green Economy Models (GEM), 15 March 2017, sec 2.1.66 Philippine Department of Transportation. “Multi-Stakeholder Consultation Forum for the Nationally Determined Contribution Sectoral Targets: Transport Sector”. 18 July 2017.


ThemodernizationofpublictransportserviceswasspecificallymandatedinSection5.2ofDO2017-011,whichreads:

“5. REQUIREMENTS FOR OPERATORSxxx

5.2 Modernization of Public Transport Services

Tomodernizeexistingtransportservices,brandnewandenvironmentally-friendlyunitsshallbe promotedandbegivenpriorityintheallocationofCPCsanddeployment,basedonroutecategories.

Relativethereto,thefollowingrequirementsshallbeadopted: 5.2.1 Environmentally-friendlyunitsarevehiclesthatuse an electric drive and/or a combustion engine that compile with Euro IV or better emission standards as prescribed by the DENRto reducegreenhousegasemissions,toxicfumes,particulatematter,andotherformsofairpollution;

5.2.2 The [Land Transportation Franchise and Regulatory Board (LTFRB)] shall issue a Memorandum Circular toprovide for a modernization program for all PUVs,establishingtheage limitofeachclassificationbasedontheyearoftheoldestmajorcomponent(i.e.chassisand engine/motor)ofthevehicleandnottheinitialyearofregistrationortheeyearofimportation;and

5.2.3 Refurbishedand/orrebuiltvehiclesshallpassthetypeapprovalsystemtestandissueda CertificateofCompliancewithEmissionStandards(CCES)asaconditiontoinitialregistrationbythe LTOandtotheroadworthinesstestoftheLTO-MotorVehicleInspectionSystemforrenewalof registration.Refurbishedand/orrebuiltPUBs,evenwithnewenginesormotors,shallnotbeallowedto substituteforphased-outunits.”(Emphasissupplied)

AlthoughDO2017-011mandatesallPUVstomodernizeandfortheLTFRBtopromulgateMemorandumCircularstogovernsuchmodernization,thegovernmenthasbeenpersistentinthemodernizationofthepublicutilityjeepneysonly.Infact,upontheissuanceofDO2017-011onJune2017,PresidentRodrigoDutertecalledonallPUJstomodernizeby1January2018orinlessthansixmonthsorelseleavethepublictransportsector.67

PUJscompriseanegligiblepercentageofroad-basedtransportinthePhilippines.AccordingtotheDOE,outof9,251,560registeredvehicles68,jeepneyvehiclescompriseonly209,085or2.26%69.Nevertheless,theadministrationchosetoinitiatethePUVModernizationProgramonPUJsduetothesevehiclesbrandofbeingamongthetopairpollutersinthePhilippines.PUJsemithugeamountsofblackcarbonorsoot70whichstudieshaveclaimedtobethe“secondmostimportanthuman-madeagentofclimatechange71.”A2013reportbytheCCCshowedthatpublicutilityvehicles,mostlyPUJs,produce22,000metrictonsofsootemissionsperyear,72 whichcauseaWorldBank-estimated5,000annualprematuredeaths(or12%ofalldeathsintheregionofMetroManila),duetorespiratoryandcardiovasculardiseasesfromexposuretoairpollution.”73

67 Allan Nawal, Gabriel Cardinoza, Jovic Yee, and Tonette Orejas, “Duterte to jeepney drivers: Modernize or else…”, Inquirer, 18 October 2017. https://newsinfo.inquirer.net/938800/duterte-to-jeepney-drivers-modernize-or-else. 68 Garcia, Arnel Mathew G. Department of Energy. “Alternative Fuels Vehicle and Technology.” 07 September 2017. https://www.doe.gov.ph/sites/default/files/pdf/announcements/e-power_05_03_alternative_fuels_vehicle_and_technology.pdf69 Computation made by the author.70 Esplanada, Jerry. “Diesel-powered motor vehicles blamed for most of PH’s air pollution”. Inquirer.Net. 5 February 2013. http://newsinfo.inquirer.net/353117/diesel-powered-motor-vehicles-blamed-for-most-of-phs-air-pollution. 71 Press Association. “Black carbon causes twice as much global warming than previously thought”. The Guardian UK. 15 January 2013. https://www.theguardian.com/environment/2013/jan/15/black-carbon-twice-global-warming. 72 Esplanada, Jerry. “Diesel-powered motor vehicles blamed for most of PH’s air pollution”. Inquirer.Net. 5 February 2013. http://newsinfo.inquirer.net/353117/diesel-powered-motor-vehicles-blamed-for-most-of-phs-air-pollution. 73 Ibid.

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74 Philippine Department of Transportation. “Omnibus Guidelines on the Planning and Identification of Public Road Transportation Services and Franchise Issu-ance”. Department Order 2017-011.75 Ibid.

Sources: DOTr and DOE.

Figure 15. Registered Vehicles in the Philippines, 2017

Other Vehicles | 87.74%

Public Utility Jeepneys | 2.26%

TheDOTr,however,maintainsthatthePUVModernizationProgrambenefitsbothjeepneydriversandcommuters.Atpresent,jeepneydrivers’incomesarecontingentuponthenumberofpassengerstheyhaveduringtheday,thelengthoftheroutestheytake,andtheirdailyfuelexpenses.Theyarenotconsideredregularemployeesoftheiroperatorsandthus,receivenobasicbenefits.

UndertheProgram,jeepneydriverswillbeconsideredasregularemployees,andwillbepaidafixedsalaryandbenefitswithnocompensationlinkedtoridership74.Meanwhile,commuterswillbenefitfromincreasedroadsafetybecausePUVdriversaremandatedtoundergothecontinuingdrivers’educationthroughtheDriver’sAcademy.

AsregardsthespecificationsofPUJunits,inadditiontousingeitherelectricityorEuroIVcompliantfuel,theProgramalsomandatesfeaturesthatensurereliability,safety,accessibility,environmentallysoundness,andcomfort,asfollows:75 “2.1.1.Reliability.Publictransportmustbepredictableintermsoftraveltime,waitingtime,and schedule.(xxx)

2.1.2.Safety.AllPUVsmustbeequippedwithfireextinguishers.SpeedLimitersshallbeinstalled pursuanttoRA10916ortheRoadSpeedLimiterActof2016anditsIRR.ForselectedPUVs,CCTVs shallbeinstalledtomonitoractivityinandaroundthevehicle,anddetertrafficviolationsand criminalactivities.GlobalNavigationSatelliteSystem(GNSS)(e.g.GPS)receiversshallbeinstalled onPUVstoenablerecordingofvehiclelocationandspeedandsharingofreal-timePUVinformationforthe convenienceofcommutersandoperators.(xxx)

2.1.3.Accessibility.Publictransportmustbeavailableineverycommunity,withaccessibilityforall segmentsofsociety,includingseniorcitizensandpersonswithdisabilities.(xxx)

2.1.4.Environmentalsoundness.Publictransportvehicleswithcombustionenginesmusthavelow emissions,asprovenbycompliancewithEUROIVemissionstandardsorbetter(e.g.EUROV, EUROVI),asprescribedbytheDENR(DepartmentofEnvironmentandNaturalResources).Otherpreferred publictransportvehiclesarethoseusingelectricdrivesand/orrunningonalternativefuels,suchas electricandsolar.

2.1.5.Comfort.Thevehicleisfittedwithcomfortableseatswherepassengersareabletorelax,rest,and beproductiveduringthejourney,throughtheprovisionofWiFiaccess.(xxx)”


76 Freddie Velez, Gov appeals to banks to aid PUV modernization program, 5 February 2018. https://news.mb.com.ph/2018/02/05/gov-appeals-to-banks-to-aid-puv-modernization-pro-gram/. 77 Corrales, Nestor. “Strike won’t stop jeepney modernization plan — Malacanan”. Inquirer. 16 October 2017. http://newsinfo.inquirer.net/938241/breaking-news-malacanang-jeepney-jeep-ney-modernization-public-utility-vehicle-modernization-program-puvmp-ernesto-abella-piston-puv.78 Rey, Aika. “DOTr hits Piston ‘propaganda’ on modernization program”. 16 October 2017. https://www.rappler.com/nation/185406-dotr-piston-propaganda-puv-modernization-pro-gram-transport-strike.79 Rey, Aika. “Junk current viersion of PUV modernization program – Piston”. 16 October 2017. https://www.rappler.com/move-ph/185460-philippines-transport-strike-october-2017-pis-ton-junk-puv-modernization. 80 Rey, Aika. “DOTr hits Piston ‘propaganda’ on modernization program”. 16 October 2017. https://www.rappler.com/nation/185406-dotr-piston-propaganda-puv-modernization-pro-gram-transport-strike. 81 Ibid.82 IBON Foundation. “Corporate Capture in Jeepney Modernization”. IBON Foundation. 17 October 2017. http://ibon.org/2017/10/corporate-capture-in-jeepney-modernization/.

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PresentPUJunitscurrentlypossessnoneofthesefeatures.Inordertocomply,thepresentPUJunits—anopen-window,19-seatervehiclewherepassengersboardandalightthroughtherearside—willhavetobecompletelyoverhauledorreplaced.ThiswillnecessarilyspelloutdrasticcostsforPUJoperators.

ThePUVModernizationProgramalsolimitedallnewordevelopmentalroutestooperatorswithaminimumfleetsizeof15units:

“2.4 New or Developmental Routesxxx

Fornewordevelopmentalroutes,aminimumfleetsizeoffifteen(15)unitsforanytypeofPUVforsix (6)monthsshallbeimposed,subjecttoreviewbytheLTFRB.xxx”

Currently,small-timeoperatorsownonaverageamaximumofonly4PUJunits.Thisnewfleetrequirementmeansthatsmall-timePUJoperatorscannolongerapplyforfranchiseinnewordevelopmentalroutesunlesstheyaddatleast11morePUJunitstotheirfleet.Thus,thishasbeenheavilycriticizedforbeingbiasedinfavoroflargePUJoperators,whocanaffordatleast15PUJunits.

Inresponse,theDOTrhassuggestedthatoperatorscormcooperativesinordertomeetthefleetrequirement.However,noprogramshavebeeninitiatedtoassistortrainsmall-timeandusuallysingleoperatorsinformingcooperativesorcorporationswithotheroperators.

Finally,theProgramdoesnotprovideforaJustTransitionFundtoassistPUJdriversandoperatorsinthesupposedswift6-monthtransitionDOTrSecretaryArthurTugadeclaimsthattheDOTrhascomeupwithaformulatofinancetheProgramdubbedasthe“5-6-7-80,000.”76Heexplainedthatthenumber5pertainstoequity,6totheinterestrate,7tothepaymenttermof7years,and80,000astheamountofsubsidythatwillbeprovidedbythegovernmentforeachPUJunit.NoPUJdriveroroperatorhasconfirmedtohavereceivedfinancialsupportorsubsidyinaccordancewiththe“5-6-7-80,000”program.

Inconsiderationoftheshort6-monthtransitionperiodprovided,thestringentfeaturesonthePUJunitsthatarenotreadilyavailableinthecountry,andtheincreasedrequirementonPUJunitsperfleet,thePUVModernizationProgramisablatantlyunjusttransitionprogram,beingimplementedattheexpenseofPUJdriversandoperators.

Itcameasnosurprisewheninthemonthsthatfollowed,thePUVModernizationProgramwasmetwithoppositionfromjeepneytransportgroups,withsomeresultingintoaseriesoftransportstrikes.77 Resoundedinthevariousstatementsoftheoppositionare: 1.Thelackofconsultationwithkeystakeholders(jeepneydriversandoperators,primarily)bythe implementinggovernmentagencies78andtheabruptplanforimplementation; 2.Theprogrambeingaschemetophaseoutallexistingjeepneyunits—whetherornottheytrulyare safeandenvironmentallysoundunit;79

3.TheProgrambeinganti-poor80duetotheunaffordablecostsofthenewunitsandthelackofsufficient andaccessiblegovernmentsubsidyprogramstoassistthemajorityoftheaffectedmembersofthe jeepneysectorwhoaresmall-timeoperators;81and 4.TheProgramleadingtocorporatecaptureofthejeepneytransportsector,sincethestandardssetby theprogram—includingnew,mandatedjeepneyfeaturesandskewedincentivesfortransport cooperativeswithlargerfleetsizes—arethosethatusual,small-timeoperatorswouldstruggleto complywith.82


Euro II Order, a Result of Disjointed Policy-Making

WhiletheDOTrisfacingheavybacklashonthePUVModernizationProgram,whichamongothersmandatedPUJunitstobeEuro-IVcompliantortobeelectric-based,theDOEissuedDepartmentOrder(DO)No.2018-08-0012,whichrequiredoilcompaniestosellEuro2-compliantdieseltoconsumers.83

TheDepartmentOrderwasissuedafterconsecutiveincreasesinpetroleumprices.Inordertoaddressrisingfuelcosts,theDOEthoughtitagoodpolicytomandatetheoilindustrytosellEuro2-compliantdiesel,acheaperbuttentimesdirtierfuelthanEuro4-compliantdiesel.

DONo2018-08-0012shouldbereadasaresultofadisjointedpolicy-makingprocessonJustTransitioningovernment.WhileCongresshaslongdeclaredaspolicythepromotionandutilizationofREsources,andtheimperativetotransitiontoalow-carboneconomyandsociety,theDOEinsistsinretainingpolicies,wherefossilfuelscanremainasdominantsourceofenergy.Since91%ofouroilsupplyisimported,84 ourpetroleumproductswouldbedependentonfossilfuelinflation,U.S.dollarinflation,andexchange-ratevolatilityandwouldexpectedlybecomemoreexpensiveasstatestransitiontocleanerfuels.

Thus,whenfuelcostsrose,theDOEissuedapolicythattakesthetransportsectorastepbackinitstransition,andcontravenesthemodernizationpoliciesalreadybeingpursuedbytheDOTr.

83 Department of Energy, Department Order No. 2018-08-0012, Directing the Philippine Downstream Oil Industry to Offer Euro-II Compliant Diesel as a Fuel Option for the Transport and Industry Sector, 10 August 2018.84 See Figure 8.

w

Support activities for other mining and quarrying | 3.5%

1034

Despitethefossilfuelsbusinessesdominatingtheenergysector,andtheGreenJobsActrequiringtheDOLEandthePhilippineStatisticsAuthority(PSA)tomakeadatabaseongreenjobs,therearelimitedemploymentdataonworkersaffectedbythetransition.Whilethereexistsanannualsurveyestimatingthenumberofemploymentinbusinessandindustry,thesedataareonlyfocusedontheformalsectorandonlyaccountforregularemployees.Nevertheless,allavailabledataareprovidedinthisdiscussion.

ThischapterfocusesonthreekeytransitioningindustriesinthePhilippines:theUpstreamandDownstreamCoalIndustryandtheSolarPVIndustryfromthePowerSector;andthePUJIndustryfromtheTransportSector.

Overview of Labor in the PhilippinesInthePhilippines’labormarket,contractualizationandunderemploymentareamongthemajorissues.43.5%ofFilipinorank-and-fileemployees,despiteperformingessentialtasksforacompany,arehiredpercontractforadurationbelowsixmonthsandpaidlowsalarieswithoutbenefitsandinsurance.

Researchestimatesthat63%ofallemployedFilipinosarehiredunderpoorqualityofwork,with6.6millionofthembeingemployedasnon-regularworkers.Thenumberofunderemploymentinthecountryrosebyasig-nificant843,000from6.9millioninJanuary2015to7.7millionon2016.Thesamestudyattributestheriseintheincidenceoflackofopportunitiesforworktoneoliberaleconomicpoliciesthathavestuntedthegrowthofanationalindustryandagriculture,andwheretheprimacyofprofithasledtolaborflexibilizationandcontractual-ization.

The Upstream Coal IndustrySincealmosthalfofourcoalsupplyisimported,theupstreamcoalindustryemploysaminimalnumberofemployees.The2015ASPBIshowsthatonly5.2%ofthe134establishmentsintheMiningandQuarrySectorarefromthehardcoalminingindustry,employing9.3%or2,915workersofthe31,351totalemploymentintheSector.

85 IBON Foundation. “New admin can improve job quality for millions, end contractualization–IBON”. 15 March 2015. http://ibon.org/2016/07/new-admin-can-improve-job-quality-for-mil-

lions-end-contractualization-ibon/.86 IBON Foundation. “Next admin should address deepening jobs crisis–IBON”. 15 March 2016. http://ibon.org/2016/03/next-admin-should-address-deepening-jobs-crisis-ibon/.87 Ibid.88 Ibid.89 Ibid.90 See Figure 8.91 Philippine Statistics, Authority, 2015 Annual Survey of Philippine Business and Industry (ASPBI) - Mining and Quarrying Sector with Total Employment of 20 and Over : Preliminary Results.

https://psa.gov.ph/content/2015-annual-survey-philippine-business-and-industry-aspbi-mining-and-quarrying-sector-total.

WHO ARE THE AFFECTED WORKERS IN KEYTRANSITIONING SECTORS? A Survey of the Affected Workers in the Power and Transport Sectors.4 |

Figure 16. Percentage distribution of employment for mining and quarrying establishments with total employment of 20 and over by industry subclass, 2015

Source: PSA, 2015 Annual Survey of Philippine

Business and Industry (ASPBI) - Mining and Quarrying Sector

with Total Employment of 20 and Over: Preliminary Results

Total Employment = 31,351

Mining of non-ferrous metal ores except precious metals

| 72.7%

Mining of hard coal | 9.3%

Quarrying of stone, sand and clay | 9.3%

Mining and quarrying | 1.6%

All other industries | 3.7%


The Downstream Coal Industry

The2015AnnualSurveyofPhilippineBusinessandIndustry(ASPBI)reportedthatoutofatotalof261Electricity,Gas,SteamandAirConditioningSupplyEstablishments,thetotalpaidregularemploymentgeneratedis46,650.

Attheindustrylevel,distributionofelectricityreportedthehighestnumberofworkerswith32,488(69.6%)ofthetotalpaidregularemployees.Electricpowergenerationfollowednextwith9,553(20.5%)andtransmissionofelectricitycameasthethirdtopemployerwith4,629(9.9%).

Thedownstreamcoalindustry,comprisingonlyaportionofelectricpowergeneration,thereforeemployslessthanthen9,553workers(20.5%)oftheElectricity,Gas,Steam,andAirConditioningSupplyEstablishments

Intermsofcompensation,thetotalcompensationpaidbytheestablishmentswhichconsistsofgrosssalariesandwages,separationandretirement/terminalpay,gratuities,employers’contributiontoSSS/GSIS,andotherbenefitsamountedtoPhp34.6billionin2015,oranaverageannualcompensationofPhp742,696peremployee.93

Attheindustrylevel,electricpowergenerationpaidthehighestaverageannualcompensationatPhp1.2million,followedbythetransmissionsectorwithPhp0.8million,whiledistributionofelectricitypaidPhp0.6million.Thisaveragewashoweverderivedfromallemployeesofvaryingranksandofvaryingestablishmentswithinthepowersector.Furtherresearchisneededtoascertaintheaveragewageofacoalplantworker.

Ifwearetofollowglobaltrends,thedownstreamcoalindustryshouldexpecttoemployfewerworkersinthecomingdecades.CarbonBriefreportsthatalthoughglobalcoalpowercapacityisstillrising,thepipelineofnewplantsisshrinkingfast.94 Thenumberofcoalplantsproposedandunderconstructionhavehalvedsince2015.Meanwhile,theretirementofexistingplantshasaccelerated,reachingacumulativeof197GWfrom2010to2017.

Figure 17. Distribution of Employment for All Electricity, Gas, Steam and Air Conditioning Supply Establishments by Industry Sub-Class: Philippines, 2015

33,000

30,000

27,000

24,000

21,000

18,000

15,000

9,000

6,000

3,000

0

Source: Philippine Statistics Authority, 2015 Annual Survey of Philippine Business and Industry (ASPBI) - Electricity, Gas, Steam and Air Conditioning Supply All Establishments: Final Results

32,488

Employment

Industry Sub-ClassDistribution of Electricity Electric Power Generation Transmission of Electricity

9,533

4,629

Total Employment46,650

92 Philippine Statistics Authority, 2015 Annual Survey of Philippine Business and Industry (ASPBI) - Electricity, Gas, Steam and Air Condition-ing Supply All Establishments : Final Results. https://psa.gov.ph/content/2015-annual-survey-philippine-business-and-industry-aspbi-electric-ity-gas-steam-and-air-0. 93 Ibid.94 Carbon Brief, Mapped: The world’s coal power plants, 5 June 2018. https://www.carbonbrief.org/mapped-worlds-coal-power-plants.

4 | WHO ARE THE AFFECTED WORKERS IN KEYTRANSITIONING SECTORS?

36

The Solar PV Industry

InIRENA’sAnnualRenewableEnergyJobsReportin2018,thePhilippinesisreportedtobealeaderinSolarPVIndustryemployment.ThePhilippines’SolarIndustryemploysmorethan34,000people,whichissignificantlymorethantheemploymentfromtheupstreamanddownstreamcoalindustriescombined.Inaddition,thePhilip-pineshasabout33,000jobsinsmallhydro,andmorethan14,000inwindpower.95

TheILOalsooffersdataontheaverageemploymentpermegawattofaveragecapacityoftheSolarPVIndustryandtheDownstreamCoalIndustryinthePhilippines.Accordingtoitsdata,theSolarPVIndustry,andotherRenewableEnergyIndustries,createsmorejobspermegawattformanufacturing,construction,installation,andoperatingandmaintenance,fuelprocessingchains.Table4showsthattheSolarPVIndustryinfactemploys27timesmoreworkersthanthedownstreamcoalindustryformanufacturing,construction,andinstallation.96

Figure 18. Global Coal Power Capacity –Retiring, Operating, Under Construction, and Proposed, 2010-2017

Figure 19. Total Employment of Electric Power Generation, Hard Coal Mining, Solar PV, Small Hydro, and Wind Power

Source: Carbon Brief, Mapped: The World’s Coal Power Plants

Sources: PSA and IRENA.

95 IRENA, Annual Renewable Energy Jobs Report in 2018 (2018), p. 21.96 Id.

3,500

3,000

2,500

2,000

1,500

1,000

500

0

40,000

30,000

20,000

10,000

0Electric Power

GenerationSolar PVHard Coal Mining Small Hydro Wind

Cumulative Retirements

Operating

Construction

Proposed

2010 2011 2012 2013 2014 2015 2016 2017


ThejobsthatareaccountedforintheSolarPVIndustryaredividedinthefollowingvaluechain:(a)processingofrawmaterials,(b)manufactureofcellsandmodules,(c)installationandplantconstruction,(d)operationandmaintenance,and(e)decommissioning.Notably,skillsneededacrosstheseareasofemploymentvary,withengineeringandtechnicalknowledge,alongwithconstructionskillsbeingthemostrecurring.98Intheinstallationandplantconstructionalone,whichincludesprojectdevelopment,atleast16differenttypesofhighskilledandmediumskilledemployeesarenecessary.99

DatafromtheRenewableEnergySectorfrom2008-2016showthatconstructionjobs,orlowskilledemployment,grewfrom90to23,376jobswhilefull-timeoperationandmaintenancejobs,ormediumtohighskilledemployment,grewfrom11to593jobs.Thedifferingratesofjobgrowthmayprobablyduetothehigherlevelofeducationrequiredofthelatterkindofemployment.97

Table 3. Average employment (jobs per megawatt of average capacity) over life of facility

Figure 20. Construction jobs from 2008-2016

Source: ILO, 2017.

Source: DOE, REMB

Average employment (jobs per megawatt of average capacity) over life of facility

Manufacturing, construction,installation

Solar Photovoltaic

Wind Power

Biomass

Coal Fired

Natural Gas Fired

200820092010201120122013201420152016Total:

429382931

1421361782

1696

90733939718717

2211793105592337648947

1188

1138685

3678586593

2242

5.76 - 6.21

0.43 - 2.51

0.40

0.27

0.25

1.20 - 4.80

0.27

0.38 - 2.44

0.74

0.70

6.96 - 11.01

0.70 - 2.78

0.78 - 2.84

1.01

0.95

Operating & maintenance / fuel processing

Total

Year Capacity Addition (MW) Construction Jobs Full Time O&M Jobs

97 DOE, Renewable Energy Jobs Presentation, p. 11. 98 International Renewable Energy Agency, Renewabl Energy and Jobs: Annual Review 2018.99 International Labor Organization, Climate Change Consciousness Week.


38

Figure 21. Direct jobs across the solar PV value chain, 2018

Table 4. Jobs in Select Value Chain and Sub-sectors

Source: IRENA, Renewable Energy Jobs

Source: ILO, 2017

PROCESSING OF RAW MATERIALS

PROJECT DEVELOPMENT ( SOLAR ENERGY )

CROSS-CUTTING / ENABLING ACTIVITIES

( ALL SUB-SECTORS )

INSTALLATION PLANT

/ CONSTRUCTION

MANUFACTURE OF CELL AND MODULES

OPERATION & MAINTENANCE DECOMMISIONING

* Engineers

* Technician

* Engineers

* Technician

* Project development analyst

* Wholesalers

* Solar PV system designers & installers * Construction workers

* Meteorologist

* Technician

* Maintenance staff

* Construction workers

* Material recyclers

* Project Designers (Engineers) (H) * Architects (H) (small projects)* Atmospheric Scientists and Meteorol-ogists (H)* Resource Assessment Specialists and Site Evaluators (H) * Environmental Consultant (H) * Lawyers (H) * Debt Financier Representatives (H) * Developers / Facilitators (H,M)

* Policy Makers and Government Office Workers (H,M)* Trade Association and Professional Society Staff (H,M,L) * Educators & Trainers (H) * Management (H,M,L) * Administration (H,M,L) * Administration (H,M,L) * Publishers and Science Writers (H,M)

* Land Development Advisor (H) * Land Use Negotiator (H) * Lobbyist (H) * Mediator (H) * Environmental and Social NGO Repre-sentatives (H,M) * Public Relations Officer (H)* Procurement Professionals (H,M) * Resource Assessment Specialists (H)

* Insurer Representatives (H,M) * IT Professionals (H,M) * Human Resources Professional (H) * Other Financial Professionals (Accountants, Auditors and Financers) (H) * Health and Safety consultants (H,M) * Sales and Marketing Specialists (H,M) * Clients (H,M,L)


ConsideringthatthereisonlyonesolarmanufacturingcompanyinthePhilippines,jobscreatedbytheSolarIndustryarepredominantlyundertheconstructionandinstallation,andoperationandmaintenancechains.

AlthoughtheSolarPVindustryhasahugeemploymentpotential,itshouldalsobenotedthatmostofthesejobsareforconstructionandinstallation.Thesefieldsofworkhavepersistentlybeenmiredwithissuesofconstrac-tualizationinthePhilippines.Thus,itstillneedstobeascertainedwhetherSolarPVjobsinthePhilippinesareinfactregular,secure,andasteadyandreliablesourceofincome.

The PUJ IndustryInthePUJIndustry,thekeystakeholdersarethejeepneydrivers,jeepneyoperators,andthecommuters.In2015,employmentfortheTransportationandStorageSectorreachedatotalof180,547accordingtoASPBI.100Paidemployeesconstituted178,881or99.1%andtheremaining1,660or0.9%wereworkingownersandunpaidwork-ers.101ThePUJIndustryfellunderthe“AllOtherIndustries”categorywhichprovidedthehighestemploymentat75,600or41.87%oftotalemploymentintheSector.

TheBureauofLaborandEmploymentStatistics(BLES)reportsthatinbothbuslinesandotherlandtransport,roadtransportsupervisorsearnamonthlysalaryofPhp11,205.00andPhp15,794.00respectively.Thisgroup,wasreportedasthehighestearninggroupinthesesubsectorsin2012.TheaveragewageratesofemployeesinthesetwoindustrieswasreportedtobePhp10,666.00andPhp9,341.00.

Figure 22. Percent Distribution of Transport and Storage Establishments for All Employment Sizes by Industry Group, 2015

100 PSA, 2015 Annual Survey of Philippine Business and Industry (ASPBI) - Transportation and Storage Sector For All Establishments: Final Results. https://psa.gov.ph/content/2015-annual-survey-philippine-business-and-industry-aspbi-transportation-and-storage-0. 101 Ibid.102 “Industry Career Guide for the Transport and Logistics Sector.” Department of Labor and Employment (DOLE). 2012

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0.0

Freight truck operation

19.1

Cargo handling, auxilary activity

to water transport

14.3

Inter-urban bus line

operation

18.7

Messenger service

12.9

Freight forwarding

services

18.0

Logistics services

11.0

Local bus lineoperation

10.9

All Other Industries

75.6

Source: PSA, Transportation and Storage: Final Results, 2015.


40

Mostdriversinlandtransport,particularlyjeepneydrivers,accordingtotheDepartmentofLaborandEmployment,arenotconsideredfull-timeemployees.Jeepneydriversdonotearnonafixedsalarybasis,butratherdependona“boundarysystem.”Underthisscheme,adriverisassignedavehicleandwillonlyearnhispayafterhehasrecoveredforhisoperatorthe“boundary”payment,whichaccountsfortheoperator’sexpensesandprofit.Assuch,theincomeandearningsofjeepney,tricycle,AUV,andtaxidriversultimatelydependontheboundaryratethenumberofworkhourssetbytheoperator,thepriceofmaintenanceandfuel,andthenumberofvehiclesontheroad.

Jeepneyoperatorsarethosewhoownafleetofjeepneyunitsandrentthemtodriversonadailybasis.Theyearnthroughthedailyboundaryfeespaidtothembydriversattheendofeachday.Mostoperatorsofjeepneysaresmall-timeoperators,whoownanaverageofonlyasingleunittofourunitsofjeepneys.103Thereexistoperatorswithlargerfleets,butmostarecomprisedofoverseasworkersandretireeswhoaremerelysmall-timeoperators.104Intermsofcapital,mostjeepneyoperatorsonlypossessanaverageofPhp200,000.00toPhp400,000.00.105

Thetotalofjeepneydriversnationwideis650,000drivers.Meanwhilepubliccommuterswhoregularlyavailofservicesbythejeepneytransporttotal9,000,000peoplenationwide.106AccordingtorecentfiguresbytheDepartmentofTransport,107publicutilityjeepneysarenumberedat209,124unitsnationwide.Intermsoftotalregisteredvehicles,whichtotalsto9,251,560registeredvehicles,108jeepneyvehiclescompriseonly2.26%109oftheentireroad-basedtransportsector.Despitebeingrelativelyfewinnumberandhavingsmallerimpactonroadtraffic,alargerportionofthepopulationusePUJsthanprivatecarsfordailycommutes.

103 Yee, Jovic and Vince F. Nonato. “Jeepney drivers uged to form cooperatives”. Inquirer. 20 October 2017. http://newsinfo.inquirer.net/939381/jeepney-drivers-urged-to-form-cooperatives. 104 Crispin B. Beltran Resource Center. “Hindi Business and Public Transport.” 21 November 2017. http://www.crispinbeltran.com/2017/11/hindi-business-ang-public-transport/105 Ibid.106 Ibid.107 Philippine Department of Transportation, “Multi-Stakeholder Consultation Forum for the Nationally Determined Contribution (NDC) Sec-toral Targets.” 18 July 2017. 108 Garcia, Arnel Mathew G. Department of Energy. “Alternative Fuels Vehicle and Technology.” 07 September 2017. https://www.doe.gov.ph/sites/default/files/pdf/announcements/e-power_05_03_alternative_fuels_vehicle_and_technology.pdf 109 Computation made by the author.


TowardsdevelopingaJustTransitionFrameworkinthePhilippines,CEEDengagedworkers’groupsandtradeunions,andaffectedworkersfromthreeidentifiedkeytransitioningsectors—UpstreamandDownstreamCoalIndustry,SolarPVIndustry,andPUJIndustry.Toinitiatetheprocess,roundtablediscussions(RTDs),keyinformantinterviews,andsurveyswereconducted,whereinCEEDshareditspreliminaryfindingsinthispaperandtheworkerssharedtheirunderstandingandappreciationofJustTransitionbasedontheirrealitiesontheground.

Workers’ Groups and Trade UnionsProfile of the groupsRepresentativesfromthefollowinggroupsparticipatedintheRTD:

1.BukluranngManggagawangPilipino(BMP)—BMPtranslatestoSolidarityofFilipinoWorkersin english.Itisapoliticalorganizationofmilitant,democraticandsocialistworkersandunions;2.SOSYALISTA—alaborgroupcomposedofsocialistworkers;and3.TradeUnionCongressofthePhilippines(TUCP)—thebiggestconfederationoflaborfederationsinthePhilippines.

Key pointsClimate and labor issues as systemic issues

BMPandSOSYALISTArecognizedthegravityoftwoissuesfacedbythePhilippines:climatechangeandtheviolationoflaborrights.TheyconcurredwithCEED’sanalysisthatthecurrentexploitativeeconomicsystemisthemaindriverofthecurrentcrisesinourclimateandlabor.Thedriveforunfetteredandconcentratedgrowthdisregardsthelimitsofbothenvironmentalandhumanresources.

HOW DO AFFECTED WORKERS UNDERSTAND AND APPRECIATE JUST TRANSITION? Key Findings from Interviews, Surveys, and Roundtable Discussions5 |

Pictured: A seaweed farmer describes the destruction of seaweed caused by water pollution from nearby coal mining. Seaweeds, which usually are able to keep themselves afloat on sea surface by the nets that suspend them, now fall deep into sea waters due to weakness caused by water pollution.

5 | HOW DO AFFECTED WORKERS UNDERSTAND AND APPRECIATE JUST TRANSITION?

42

Overall,theRTDreflectedanawarenessandstrongconcurrenceofleadersfromtheparticipatinggroupsofthecompellingecologicalandlaborissuespresentinthecountrytoday,alongwiththethesisthatitisthesystemofcapitalismthatdrivesbothoftheseissues.

Alternative systemWhilerecognizingthepointsmadebyBMPandSOSYALISTAandCEED’sanalysisthatclimatechangeisasystemicissue,TUCPraisedconcernsasregardstheproposedalternativestoacapitalistsystem.TUCPnotedthattheimportanceofrecognizingAmbisyonNatin2040astheeconomicaspirationsofFilipinos.Thus,thiseconomicaspirationhastobeharmonizedwiththepropereconomicsystemanddevelopmentpath,withoutalsocompromisingecologicalintegrityandhumanrights.

Former Coal Mining and Coal Power Plant Workers

Profile of the Coal Mining Site and the Coal Power Plant, and the InformantsKeyinformantinterviewswereconductedwithtwoformerworkersfromeachofthefollowingsiteandplant:

1. Semirara Coal Mining Site in Semirara, Antique, operated by Semirara Mining and Power Corporation (SMPC), a wholly-owned subsidiary of D.M. Consunji, Inc. (DMCI) Holdings, Inc.

SMPCisthelargestcoalproducerinthePhilippines,providingmorethan90%ofthelocalcoal.Itpossessesexclusiverightstoexplore,extractanddevelopthecoalresourcesinSemiraraIsland,Caluya,Antique.Itisalsotheonlypowerproducerinthecountryownsandminesitsownfuelsource.

BeforeDMCIHoldings,Inc.tookmajorcontroloverSMPC,thecompanywasknownasSemiraraCoalCorporation(SCC).SCCwasincorporatedinFebruary26,1980.Whenissuesofunproductivityandinefficiencyarose,alongwithfallingcoalpricesandthePhilippinepesodevaluation,DMCIHoldings,Inc.acquirediton1997.

DMCIHoldings,Inc.’sacquisitionofSCClargelyaffectedformerworkersandaffectedneighboringCaluya`communities.PreviouslyasSCC,approximately1000employees,wereworkingfortheMiningSite.Today,asSMPC,thereareover4,000employeesorupto6,000,ifresidentfamiliesarealsotakenintoaccount,accordingtotheestimateofthetwokeyinformants.

ThekeyinformantsareformeremployeesofSMPC,whoexperiencedthechangeinownershipoftheMiningCompany.TheyarenolongeringoodtermswithSMPCanditsworkers,thus,immersioninthehostcommunityproveddifficult.Theyarealongtheaverageageof60-70yearsold.

2. Calaca Coal Plant in Calaca, Batangas, operated by Sem-Calaca Power Corporation (Sem-Calaca), a whol-ly-owned subsidiary of SMPC.

Startingcommercialoperationsince1984,theCalacaCoalPlantistheoldestoperatingcoalplantinthePhilippines.Currently,theCoalPlantgenerates900MWofelectricityfromfourofitsonlineunits:Unit1(300MW),Unit2(300MW),Unit3(150MW),andUnit4(150MW).

Thefirsttwounits,Units1and2,hadoriginallybeenownedandmanagedbythePhilippineGovernmentthroughtheNationalPowerCorporation(NPC)since1984(Unit1)and1995(Unit2).Aftersufferingequipmentdeteriora-tionandbankruptcy,theNPCsoldtheCalacaCoalPlanttoSem-Calaca.

Units3and4arepartofSem-Calaca’sfirstphaseofcoalplantexpansion.Theystartedoperationsonlyin2015.For2018,Sem-Calaca,inpartnershipwithMeralcoPowerGenerationCorporation(MGen),haveteamedupwithJapanMarubeniCorporationtobuildtwomore350MWunits.

ThekeyinformantsareformeremployeesofSem-Calaca,whoalsoexperiencedthetransitioninownershipoftheCoalPlant.Theyarealongtheaverageageof60-70yearsold.

Pictured: The Sem-Calaca Coal-Fired Power Plant, the oldest coal-fired power plant in the Philippines.


TheSemiraraCoalMiningSiteandCalacaCoalPlantprovidesroutinaryandlightworkthatrequirelittletonoskill,butprovidesaregularstreamofincome.Forinstance,thereareemployeesthataretaskedtosweepareaswithinthesiteonoccasion.

Forthiskindofwork,employeesareregularlypaid,althoughbelowtheminimumwage.Usuallyminimumwageforoneemployeeisdividedbetweenthreeworkers,whoalternateinperformingoccasionalroutinaryworklikesweeping.Althoughthewagemaybelowcomparedtowagesreceivedinurbanareas,thedividedminimumwageisconsideredtostillbemoreincomethenresidents’incomefromagriculturalactivities,likefishingandfarming.

Thus,employmentofferedbytheSemiraraMiningSiteandCalacaCoalPlantareconsideredattractivealternativetotheresidents’usuallivelihoodwhichrequiremoretoilandaredependentonyields.Eventhoughneighboringmunicipalitiesalsoofferemploymentinformalsectors,localresidentspreferworkingfortheSiteorPlant.

“We have told DMCI employees of how much coal damages their health and their environment. They said, ‘It doesn’t matter if we die, as long as we have jobs.”-A former coal mine worker in Semirara, Antique

Key points

Transfer of ownershipTheacquisitionoftheMiningCompanyandCoalPowerGenerationCompanybyDMCIHolding,Inc.generallyledtopoorerworkingconditions.Thisledthekeyinformantstoseekemploymentelsewhere.

Employment v. health and environmentSMPCandSem-Calacaarehugeemployersintheneighboringlocalitieswheretheyareoperating.KeyinformantsclaimedthatmajorityoftheirformercolleaguesandpresentworkersinthesiteandplantoverlookenvironmentalconcernsandhazardsintheircommunitiesbecauseoftheemploymentcreatedbySMPCandSem-Calaca.

Pictured: A member of a fisherfolk organization speaking out on the adverse effects of decades-old coal mining in Semirara Island.


44

Profile of the coal-affected community, and the respondents

A surveywasconductedwith17residentsofCaluya,Antique,acoal-affectedcommunitylocatedneartheSemiraraCoalMiningSite.Therespondentswerehandeduniformquestionnaires,whichinquiredmainlyaboutthefollowing: 1. Respondents’perceivedeffectsofthecoaloperationtotheirenvironmentandhealth;2. Respondents’awarenessoftheroleofthefossilfuelindustryasamaindriverofclimatechange;3. Philippines’commitmenttoreduceitsGHGemissions;4. Conceptofcleanandaffordablerenewableenergy;5. ImperativeforaJustTransition;and6. Philippines’existingtransitionpolicies,suchastheRenewableEnergyLawandGreenJobsAct.

Oppositions from local residents

Similarwiththeexperienceofothercommunitieshostingaminingsiteoracoalplant,thelocalcommunitiesinthiscaseareexperiencingadverseimpactsintheirfishyieldandharvest.Thedisruptionoftheirlivelihoodshasledanumberoffisherfolksandfarmerstoopposeanyfurthercoaloperationintheirresidences.ThekeyinformantsthemselvesareactiveinthelocalcampaigninAntiquetoopposeSMPC’scoaloperations.

Theseoppositionshowevercausetensionsbetweencommunitymembers—thosewhoopposethecoaloperationsandthosewhoareemployedbySMPCandSem-Calaca.Thegroupsopposingthecoaloperationsareusuallymembersoftheimmediatecommunityhostingtheoperations.ThoseworkersemployedbySMPCandSem-Calacaaremoreoftenthannotfromneighboringcommunities,sincetheydonotdirectlyexperiencetheadverseimpactsofthecoaloperations.

Coal-Affected Community


Profile of the solar farm and the respondents

Asurveywasconductedwith11respondents,whoareworkingattheCalataganSolarFarminCalatagan, Batangas owned by Solar Philippines.

TheCalataganSolarFarmisthelargestsolarfarminthePhilippines.Thesolarfarmcomprisesover200,000solarpanelsplacedona160-hectareproperty,withatotalsolarpowercapacityof80MWatpresent.Theconstructionofthefarmwascompletedin2016andbecamefullyfunctionalinthesameyear.

TheFarmcurrentlyhas31employees,workingundereitherofthetwomaindepartments:OperationsandMaintenance,andGroundSupport.Allofthe11respondents,onefemaleandtenmaleswithagesrangingfrom25-40yearsold,arepartoftheOperationsandMaintenanceDepartment.NoemployeesfromtheGroundSupportSystemwereincludedasrespondentsbecausetheformalproceedingrequiredbySolarPhilippines’HumanResourceswasnotcompletedintimefortheone-dayvisit.

Majorityareagedbetween40-65yearsold,withonlyahandfulbeingagedbetween25-35yearsold.AlloftherespondentsheavilyopposedcoalmininginSemirara.Mostoftheirlivelihoodarefromfarmingseaweedsandcoconutsandfromfishing,whichhavebeenaffectedbythenearbycoalminingoperations.

Key findingsFocus on immediate environmental and health concernsRespondentsoppositiontothecoalminingoperationsaremainlyduetoitsadverseimpactstotheirenvironmentandhealth.Themainobjectiveofthegroupistodriveawaythecoalprojectsfromtheirareas.

Lack of awareness of climate change and just transitionRespondentsarenotasawareoftheissuesofclimatechangeandtheroleoffossilfuelsasamaindriverofclimatechange.Consequently,theyarealsounawareofthecountry’sglobalcommitmenttoreduceitsGHGemissionsandonthepresenteffortstojusttransitionintoalow-carboneconomyandsociety.

Solar Farm Workers

Pictured: The Calatagan Solar Farm, the largest solar farm in the Philippines.


46

Therespondentswerehandeduniformquestionnaires,whichinquiredmainlyaboutthefollowing:1. LaborconditionswithintheSolarFarm;and2. Perceptionsontheecologicalandlaborconditiondifferencesbetweenthecoalindustryandthesolar

industry.

Key findingsGood working conditionsRespondents,whoaremembersoftheOperationsandMaintenanceDepartment,reportedgoodworkingconditionswithinthesolarcompany.Theyarepaidsatisfactorywagesandgrantedbenefits.

Instances of contractualizationEmployeesfromthetwodifferentdepartmentsexperiencedifferentlaborconditions.RespondentswhoworkedfortheOperationsandMaintenanceDepartmentarereportedlyregularemployees.Meanwhile,thosefromtheGroundSupportDepartmentarecontractualworkers.WorkersintheGroundSupportDepartmenthaslessformalskillsandperformedroutinarymaintenanceofthemachinesintheSolarFarm.

Recognition of green jobsRespondentsrecognizedthatemploymentwithintheRenewableEnergySector,comparedtotheFossilFuelIndustry,ismoreecologicallysound.However,respondentsclaimthattheirdecisiontoworkfortheSolarFarmwaslargelybasedonwages,benefits,andtenurethanontheenvironmentalbenefitsoftheSector.

Just TransitionRespondentsexpressedlittleawarenessoftheimperativeforajusttransitiontolow-carboneconomyandsociety,andtheroleoftherenewableenergysectorinthistransition.Despiteperforminggreenjobs,Respondentshavelittleawarenessonthecurrenttransitionpoliciesandprogramsofthegovernment,includingtheGreenJobsAct.TheyalsohavelittletonoinvolvementinthediscourseonJustTransition.

Transport Group Leaders

Pictured: Jeepney transport operator presents demands and challenges facing jeepney drivers in the PUV modernization program during the roundtable discussion and workshop hosted by CEED. (Quezon City, Metro Manila)


Roundtablediscussions,oneofwhichwasfacilitatedinpartnershipwiththeofficeofSenatorJVEjercito,werealsoconductedwithACTO,STOPandGO,andthefollowinggroups:

1. PagkakaisangSamahanngmgaTsuperatOpereytorNationwide(PISTON)2. FederationofJeepneyOperatorsandDriversAssociatoin(FEJODAP),3. LigangTransportasyonatmgaOperatorsaPilipinas(LTOP),4. PasangMasda,and5. NotoJeepneyModernizationCoalition.

DuringtheinterviewsandRTDs,theinformantsandrespondentswereinquiredmainlyaboutthefollowing:1. PUVModernizationProgram;and2. Philippines’transitionpoliciestowardsalow-carboneconomyandsociety;

Profile of the transport groups, and key informants and participants

KeyinformantinterviewswereconductedwiththeleadersofthefollowingJeepneyOperatorsandDriversAssociations(JODA):

1. Alliance of Concerned Transport Organizations (ACTO)—atransportcoalitioncomposedofmembersfromthePUVandPUJindustries.Itcurrentlylists450,000unitsasapartofitscoalition,with30,000oftheseunitsbeingjeepneys;and

2. Alliance of Drivers and Operators of the Philippines - Genuine Organization (STOP and GO)—STOPandGOisatransportcoalitioncomposedmostlyofdriversandoperatorsinthePUVandPUJindustries.Ithas131transportgroups(rangingfromthePUVs,PUJs,andtricylces)asmembers.

Pictured: CEED presenting initial findings on Just Transition during the Roundtable Discussion with transport groups and senators. (Pasay City, Metro Manila)


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Key findingsRecognition of the imperative to modernizeAmidstrisingcontroversysurroundingtheimplementationofthePUVModernizationProgram,mostofthetransportgroupsrecognizedtheimperativetomodernizethePUJindustry.ACTOevenexpressedconditionalsupportfortheProgram.Mostofthetransportgroupsexpressedanunderstandingandappreciationoftheproblemofclimatechangeandtheroleofthetransportsectorinthetransitiontoalow-carboneconomyandsociety.

Questioning the unjust means to modernizeHowever,mostgroupsraisedconcernsastothefairnessofthetermsofthemodernization,whichwouldcausethemtoincurexorbitantcosts,totransitioninashortandimpossibleperiodofsixmonths,andtoacquirePUJmodelsthatarenotevenavailableinthePhilippinesyet.Insimplerterms,thetransportgroupsrecognizedtheimperativetotransition,butarguedthatthetransitionisunjust.

The need for a transition fundSTOPandGOexpressedstrongoppositiontotheProgramtothepointofstagingtransportstrikesinseveralinstances.TheyclaimthatthenewPUJmodelswillcostapproximatelyPhp1.6millioneach.Unfortunately,someoperators’PUJunitswerepaidthroughaloan.Ontheirpart,theyarestillpayingfortheunitsthattheywouldnowhavetoabandontopurchasethenewPUJmodels.Ontopofthis,theimpositionoftheminimumfleetrequirementalsomandatesoperatorstopurchasemoreunits.

TheDOTr’ssuggestionswerealsonotwelcomedbythegroups.TheDOTrsuggestedthattheoperatorsshouldcooperatewitheachotherinpoolingfundsandresourcestocomplywiththefleetrequirementandunitfeatures.DOTralsoproposedtosubsidizeatleastPhp80,000perunitperoperator.

However,somesmall-timeoperatorsexpressedreservationwithformingcooperativeswithotheroperators,asitmeanttransferringownership,throughregistrationchange,oftheirhard-earnedjeepneyunitstoasinglepersonorentity.Asregardsthesubsidy,transportgroupsclaimsthatthisisbarelyenoughtodampentheweightofthenewmodels’price.

Lack of accessible and available modernized jeepneysIssuesregardingtheaccessibilityandavailabilityofthenewPUJmodelswerealsoraised.Accordingtothegroups,EuroIV-compliantenginesarecurrentlynotavailableoraccessibleinthePhilippinemarket.MostoftheinformantsandparticipantscouldnotcomeupwithanexactfigurefortheEuroIV-compliantengines,makingitharderforthemtocooperatewiththetransition.OthergroupsraisedthattheywillinfactbetravellingtoChinatocanvassforanyavailablenewPUJmodels.

High possibility of fare hikeDuetothecostlytransition,transportgroupsclaimedthatthereisahighpossibilityofafarehikefromtheminimumPhp8.00toaroundPhp20.00orevenPhp23.00.TheDOTr,however,deniedtheseclaims,buthavereleasednoformalstudyontheProgram’simpactsonfares.


Impossible transition periodThespeedofthetransitionperiodisamongthehighlycriticizedaspectoftheProgram.WhiletheProgramwasonlylaunchedonJune2017,PresidentDuterteorderedfullimplementationoftheProgrambyJanuary2018.Thus,PUJoperatorsanddriverswereonlygivensixmonthstotransition.Notably,thesixmonth-periodhadlongpassedandtheProgramhasyettobefullyimplemented. Lack of consensus on a Just Transition Framework for PUJsFinally,despitethePUVModernizationProgrambeingaprimeopportunityforthetransportgroupstopromotetheirownJustTransitionAgenda,itseemsthatthetransportgroupshavenotformulatedasharedagenda.Theleadersofthetransportgroupshaveengagedgovernmentindifferentlevels,theyhavenotunitedtowardsadvocatingforaJustTransitionFrameworkforthePUVModernizationProgram.TheinterviewsandRTDsalsorevealedthatthereisstillaneedtoraiseawarenessonthesystemicproblemofclimatechange,andtheimperativeforaJustTransition.

Lack of accessible and available modernized jeepneysIssuesregardingtheaccessibilityandavailabilityofthenewPUJmodelswerealsoraised.Accordingtothegroups,EuroIV-compliantenginesarecurrentlynotavailableoraccessibleinthePhilippinemarket.MostoftheinformantsandparticipantscouldnotcomeupwithanexactfigurefortheEuroIV-compliantengines,makingitharderforthemtocooperatewiththetransition.OthergroupsraisedthattheywillinfactbetravellingtoChinatocanvassforanyavailablenewPUJmodels.

High possibility of fare hikeDuetothecostlytransition,transportgroupsclaimedthatthereisahighpossibilityofafarehikefromtheminimumPhp8.00toaroundPhp20.00orevenPhp23.00.TheDOTr,however,deniedtheseclaims,buthavereleasednoformalstudyontheProgram’simpactsonfares.

Pictured: Representatives from seven different national jeepney drivers and operators coalitions attend and participate in the Roundtable Discussion on Just Transition and the PUV Modernization Program. (Pasay City, Metro Manila)

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Pictured: Coal stockpile in the Semirara Coal Mining Site. (Semirara, Antique)

TRANSITION TO WHAT? TRANSITION FOR WHOM? Conclusions6 |

ThePhilippineshasbegunitstransitiontoalow-carboneconomyandsocietyasaresponsetotheclimateimperative.Ithasadoptedtransitionpoliciesthatarehoweverincomprehensiveandattimesdissonant.ThesepoliciesrevealtheimportanceofdevelopingafirmanddecisiveJustTransitionFramework.ThisFramework,inturn,canonlybedevelopedifitisclearwherethecountry’stransitionisheaded,andforwhomthetransitionisbeingpursued.

Transition to What? A Just Transition is a transition away from the current economic system that fosters unequal and unfettered growth—a concentrated distribution of wealth that benefits few individuals and entities while extracting wealth and resources from a majority of the human population and the environment.

ThecurrentPhilippineeconomicsysteminbasedonneoliberalandextractivepolicies.Neoliberalpolicieshavepromotedtradeliberalizationandprivatization,usuallyofbasicgoodsandutilities.Theyhaveenabledthederegulationofcarbon-intensiveindustries,andhaveminimizedenvironmentalsafeguardsandmeasurestoprotecthumanrights.Theyhaveallowedprofitmotivesandmarketforcestogovernoverpublicinterest.Con-sequently,theyhavestifledthedistributionofeconomicgainstothepoorersegmentofthepopulation,andhaswidenedthegapbetweentherichandthepoor.

Meanwhile,extractivepoliciesdisregardthatecologicalandhumanresourcesarefinite,andshouldnotbeextractedandexploitedwithoutlimits.Thesepolicieshaveenableddestructiveandirresponsibleindustriestodestroytheenvironmentwithoutcomplyingwithmitigationandrehabilitationplans,andwithoutbeingheldaccountable.

Thisisthesameeconomicsystemthathascausedtheclimatecrisis.Underneoliberalandextractivepolicies,carbon-intensiveindustrieswereallowedtoemithugeamountsofGHGandtodriveclimatechange.

A Just Transition is primarily for the people who are at the frontline of the transition—workers in transitioning or retiring sectors, who face the risk of unemployment, displacement, and economic dislocation, and cli-mate-vulnerable communities. It is also for all members of society who will transition together with the rest of the global economy. Atransitionthatdoesnotconsidertheinterestsoftheaffectedpeopleremainsjustthat—atransition.Whileatransitionthatensuresthatallmembersofsociety,especiallyworkersfromtransitioningorretiringsectors,areenabledandempoweredtojointhenewlow-carboneconomyandsocietyisaJustTransition.


Unfortunately,ourPhilippineDevelopmentPlan,togetherwiththePhilippineEnergyPlan,maintainthesepoliciesasthebackboneforthecountry’sdevelopmentforthenexttwodecades.

A Just Transition is a transition towards a low-carbon economy and society that recognizes ecological limits and promotes a development path that is inclusive of all people from different groups and sector.

Inthefaceofcompellingclimaterealities,thePhilippinesrecognizesthatthetransitionisasolutiontoasystemicproblem.Thetransitionisnotonlytowardsalternativetechnologies,suchasrenewableenergytechnologies.Rather,itisatransitiontowardsalow-carboneconomyandsociety,thatwilladdresstheclimatecrisisatitsroots.

ThePhilippineshasrespondedtotheclimateimperativewithtransitionpolicies.IthaspioneeredtheRenewableEnergyLawinAsia.ItimmediatelyadoptedtheParisClimateAgreement,andsubmitteditsambitiousINDC.IthasenactedtheGreenJobsAct,whichprioritizestheissueoflaborinatransitioningsociety.AndithastakentheinitiativetomodernizeitsPUJIndustry.

However,thePhilippinepolicy-makershaveyettocometoaconsensusonitsvisionofalow-carboneconomyandsociety.Inrecentmonths,differentgovernmentagencieshavebeenmakingpoliciesindissonancewithaJustTransitionFramework,suchasthePDP,PEP,andEuro-IIDepartmentOrder.Therefore,itisimportantforthePhilippinestoharmonizeitsJustTransitionpoliciestowardsalow-carboneconomyandsociety,thatisenvironmentallysustainableandpeople-centered.

Transition for Whom?

Pictured: A fisherfolk from Semirara, Antique.

InthecaseoftheGreenJobsAct,thetransitionwaslimitedtothepeoplewhoareenteringthe“greeneconomy”bytakinggreenjobs.Itdoesnothoweverprioritizeworkersthathavebeendisplacedandwillbedisplacedfromtransitioningorretiringindustries.

TheGreenEconomyModelasaconceptfullyintegratesaJustTransitionFramework.Itwillcreateanopportunityforemploymentinlocalcommunitiesthathavehostedretiringminingoperations.Thesameworkersemployedbytheminingcompanymaybeemployedinthenewgreenjobsthatservetorehabilitatetheminingsitedestroyedanddegradedbytheminingoperations.However,whethertheGEMcapturesJustTransitionFrameworkremainstobeseeninactualimplementation.

AsforthePUVModernizationProgram,theswiftandunsubsidizedtransitionthreatenedgravedisplacementconcernsamongjeepneyoperatorsanddriversalike.Ironically,mostoftheseaffectedworkersrecognizetheneedtotransition,andexpresstheirwillingnesstotransition.TheProgram,however,havefailedtoadoptaJustTransitionFrameworktoenableandsupporttheaffectedworkers.

TheSolarPVIndustryprovestobeakeytransitioningsectorfordisplacedworkers.Creatingthousandsofjobsfromlow,medium,tohighskilledlabor,theIndustrycanemploythousandsofworkerstransitioningfromcarbon-intensiveindustries.However,theIndustryshouldbesuretoguardagainstunfairlaborpracticesandcontractualization.

WithitsenactmentoftheGreenJobsActanditspartnershipwiththeILO,thePhilippineshastakeninitiativestoensurethatinterestsofworkersingreenjobsareprioritized.ThePhilippinesshouldnowtakethefurtherstepofensuringthatallmembersofsocietyareempoweredtojointheJustTransition.

6 | TRANSITION TO WHAT? TRANSITION FOR WHOM?

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BuildingonthecurrentPhilippinedevelopmentagendaandenergylandscape,theanalysisoftransitionpoliciesthusfar,andthekeyfindingsfromtheinterviews,surveys,androundtablediscussionswithaffectedworkersfromkeytransitioningsectors,aJustTransitionFrameworkspecifictothecontextofthePhilippinesisproposed.PolicyrecommendationstowardsthepromotionandintegrationoftheproposedJustTransitionFramework,whichincorporateskeyagendapointsraisedbyaffectedworkers,arealsooffered.

A Just Transition FrameworkA JustTransitionFrameworkinthePhilippines:

1.Addressesimmediatedisplacementissuesofworkers,communities,andothersectors atthefrontlineofthetransitionby: a.Placingaffectedgroupsatthecenterofthetransitionprocess,and b.Employingademocraticapproachtoimplementingthetransitiontoalow-carbon economyandsociety; 2.Promotesatransformativeenergysystemby: a.Increasingaccessandaffordability, b.Recognizingecologicallimits,and c.Aligningwithpeople’sinterestsanddevelopmentalneeds;and 3.Promotesanlow-carboneconomyandsocietyfoundedonecologicalandsocialjustice,which: a.Pavesadevelopmentpathwaycenteredontheneedsofthepeopleandguidedby ecologicalintegrity,and b.Promoteshand-in-handahighqualityoflifeandlivelihoodamongcommunitiesanda respectforthelimitsanddignityoftheecology.

BasedonthisJustTransitionFramework,thefollowingpoliciesarerecommended.A Swift and Just Transition Away from Fossil Fuels A.Declarationofafirmpolicyagainstfossilfuels—nonewfossilfuelprojectswillbeapproved,and allexistingfossilfueluseinalleconomicsectorswillbephasedoutby2050; B.Formulationofacomprehensiveplanfortheretirementofthefossilfuelindustries,inaccordance withthecommitmenttomaintaintheaverageglobaltemperaturebelow1.5degreesfrom pre-industriallevels; C.Adoptionofpoliciesagainstotherharmfulenergyprojects,suchasnuclear,mega-dams, waste-to-energyincinerations,andagrofuels; D.FullimplementationofRenewableEnergypolicymechanismstoexpeditethedevelopment expansionofcleanandaffordablerenewableenergy; E.AdoptionoftheproposedJustTransitionFramework,ensuringthat: a.Affectedworkersintransitioningsectorsareidentified; b.Alternativejobsandlivelihoodswithlivingwagesaremadeavailablefordisplaced workersandcommunities; c.Economicdiversificationispromotedforcommunitieshostingfossilfuelprojects;and d.AJustTransitionFundisestablishedtosupporttransitioningworkers;and e.Allmembersofsocietyaregranteduniversalandequitableaccesstoenergyfor basicneedsandthefulfillmentofrights.

A JUST TRANSITION FRAMEWORK IN THE PHILIPPINES Recommendations7 |

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A United Call for Just Transition

TheintegrationoftheJustTransitionFrameworkinthePhilippinesrequiresofthepeopleacomprehensiveandunitedcallforagenuineJustTransition.InordertoarriveatagenuineJustTransition,theaffectedworkersandgroupsthataretheforefrontofthetransitionmustgaindeeperandmorecomprehensiveunderstandingofwhatmakesaJustTransitionbasedontheirrealitiesontheground.Fromthisunderstanding,affectedworkersandgroupscanformulateandpushfortheirownJustTransitionAgenda.

Thetransitionhasonlybegun.Muchworkliesahead.ThispaperoffersaJustTransitionFrameworkasakeystartingpointforaffectedworkersandcommunities,movements,andotherinstitutionsthataimtoadvanceatrulyJustTransitioninthePhilippines.


ANNEX 1 | Semiara Coal Mining Site Case Study Profile

SMPCisthelargestcoalproducerinthePhilippines,providingmorethan90%ofthelocalcoal.Itpossessesexclusiverightstoexplore,extractanddevelopthecoalresourcesinSemiraraIsland,Caluya,Antique.Itisalsotheonlypowerproducerinthecountryownsandminesitsownfuelsource.

BeforeDMCIHoldings,Inc.tookmajorcontroloverSMPC,thecompanywasknownasSemiraraCoalCorporation(SCC).SCCwasincorporatedinFebruary26,1980.Whenissuesofunproductivityandinefficiencyarose,alongwithfallingcoalpricesandthePhilippinepesodevaluation,DMCIHoldings,Inc.acquirediton1997.

DMCIHoldings,Inc.’sacquisitionofSCClargelyaffectedformerworkersandaffectedneighboringCaluyacommunities.PreviouslyasSCC,approximately1000employees,wereworkingfortheMiningSite.Today,asSMPC,thereareover4,000employeesorupto6,000,ifresidentfamiliesarealsotakenintoaccount,accordingtotheestimateofthetwokeyinformants.

ThekeyinformantsareformeremployeesofSMPC,whoexperiencedthechangeinownershipoftheMiningCompany.TheyarenolongeringoodtermswithSMPCanditsworkers,thus,immersioninthehostcommunityproveddifficult.Theyarealongtheaverageageof60-70yearsold.

Data NarrationWorker Profiles

Residence, Physical Distance from Work SiteRespondents’residedinareasthattookonaveragealmostanhouroftraveltoreachtheirplaceofworkatthecoalminingsite.

Length of EmploymentRespondents’lengthsofemploymentunderSCCwere17yearsand18years,respectively.

PositionsRespondentAworkedasadraftsmanunderSCC,whiletheRespondentBasthedesignateddriverofmaterialsfromtheCompany’sControlDepartment.

Regularization and OrganizationBothrespondentshadbeenregularemployeesofSCC,withoneofthemhavingbeenregularizedafter3monthsofemployment.

WhenaskedwhetherSCCallowedfortheorganizationofitsemployees,bothrespondentsansweredyes,andindicatedthesamelaboruniontowhichtheybelonged(Siklo).TheRespondentBclaimedtobeactiveinthesaidunion,whiletheRespondentAclaimedtobeinactiveduetobeingconfinedmostlyintheoffice.

ANNEXES8 |

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Accordingtooneoftherespondents,theirlaborunionSikloenjoyedacertainlevelofbargainingpowerwithSCC,unlikethecurrentlaborunionatSMPCthatheatteststobeinfluencedandcontrolledlargelybyexecutivesatDMCIHoldings,Inc.

Employment History, Possessed Skills, Succeeding Employment Opportunities Outside of Coal CompanyBothrespondentsclaimedthatnotmuchformalworkopportunitiespresentedthemselvesintheCaluyaMunicipality,apartfromtheonesofferedbythenSCCandSMPC.

TheRespondentBindicatedthatskillslikedrivingandknowledgeoftheinternalmechanicsofthevehiclesheusedtodrivewerecrucialinperforminghisjob.RespondentApossessedskillsindraftinghouseplans.

Whenaskedwhetherotherfamilyand/orfriendshadbeenemployedthenunderSCC,bothrespondentsclaimedthatmostoftheiracquaintancesinthemunicipalityhavebeenemployedunderSCCuntilitwascontrolledbyDMCIHoldings,Inc.

Now,longaftertheiremploymentunderSCC,onerespondentisnowengagedinfishingandsellingcoconutsasasourceofincome,whiletheotherearnsbybeingaself-employedtricycledriveroraninformalworkerintheconstructionindustryandtheoccasionalsurveyingjobs.

Labor Conditions in the Coal Industry

Amount of Salary and Salary SufficiencyBothrespondentsearnedPhp300.00duringtheirstayinthe1980satSCC.WhenaskedwhethertheirSCCsalaryhadbeenenoughtosupportthemselvesandtheirfamilythen,bothrespondentsclaimedthattheirsalarywassufficient.However,thethen-driverrespondentclaimedthatheusedtodoanumberofovertimeworkinordertoearnextraincomeforoccasional,additionalexpenses.

Hours of Work Bothrespondentsprovidedthestandard8hoursofworkperdaytothecompany,withtheRespondentBclaimingthatheputsinadditionalovertimeworkhoursof2shiftsinordertoearnmore.

Work BenefitsApartfromthestandardgovernment-mandatedbenefitsforemployees,bothrespondentsenjoyedthefollowingbenefitsunderSCC:(a)homeleave,where,foreverythreemonths,workersareallowedsevenpaiddaysmeantfortravelingbackhome,and(b)sickleavethatworkerscanencashifnotused.Accordingtobothoftherespondents,therewerealsoannualmedicalcheckupsconductedbySCC.

Work Safety MeasuresBothrespondentsclaimedthatSCChadmandatedthewearingofsafetyequipment,suchasskullguards,safetyshoes,anddustmasks,foritsworkerswithintheperimetersoftheworksite.

Health Concerns Related to the JobRespondentBhadexperiencedminoreyedamageduetothecoalduststhathewasregularlyexposedto.ThehealthexpenseshadbeenshoulderedbySCC.

RespondentAclaimedtohavenohealth-relatedconcerninthedurationofhisemployment.

110 SMPC acquired SCC in 1997

Permission of Labor Organization within the CompanyAsindicatedabove,SCChadallowedfortheformingofaworkers’organizationwithinthecompanyandoftenseriouslytreatedasamediumforitsworkerstobargain.

Job ContentmentBothrespondentsrecalledfeelingcontentmentwiththeiroccupation,duetothelackofotherformalworkopportunitieswithintheirmunicipality.

Worker-Desired Improvements and ChangesWhenaskedastowhattheywouldhaveimprovedorchangedinSCCtofurtherbettertheirexperienceasemployees,oneoftherespondentsstatedthatastrongerbargainingpowerallowedfortheirformerlaborunion—wherethecompanyconcededtotheentiretyandnotjusttothepartialdemandsoftheworkersviatheunion—wouldhaveimprovedhissatisfactionwiththejob.TheRespondentAhadexpressedhisdesireformoreoppor-tunitiesforearningbonuspaysforsupportstafflikehimself,anamountequaltothatwhichisreceivedbytheoperationsdepartment,whichearnshigherbonuspaysandmorebonusopportunities.

Outlook on the Renewable Energy (RE) Industry v. the Coal Industry

Knowledge of Prospective or Hiring Renewable Energy (RE) CompaniesInboththetimewheretheyhadstillbeenworkingunderSCCandinthepresenttime,bothoftherespondentsclaimednoknowledgeofanyprospectiveorhiringrenewableenergycompanies.

Willingness to Work at RE IndustryWhenaskedwhethertheywouldhavebeenwillingtotransferfromtheirjobsunderSCCtoanotherofferedbyanREcompany,bothrespondentsexpresseduncertainty,especiallysincetheirlaborconditionsunderSCCweresufficientlysatisfactorytothemandtheyhadnotbeenawareofthedrasticenvironmentalandhealtheffectsofthecoalindustrythen.

Outlook on the Difference between Employment under RE Industry and Coal IndustryRespondentAexaminedthedifferenceinemploymentbetweenthetwoindustriesintermsofsalaryfiguresfortheirrespectiveemployees,predictingthatpaywouldbehigherinthecoalindustry,especiallyintheoperationsdepartment.

RespondentBexaminedthetwoindustries’differenceinemploymentintermsoftheirhealtheffectsandsafety,predictingthatitwouldbemuchsaferforworkerstobeemployedundertheREindustry.

Outlook on the Effect of the RE Industry to Jobs within the Coal IndustryRespondentApredictedthattherenewableindustryposesathreatofdisplacingcurrentcoalindustryworkers.

Meanwhile,RespondentBreiteratinghispreviousanswer,claimedthatworkersemployedunderthecoalindustrywouldfindaworkenvironmentthatismoresuitedforthebettermentoftheirhealthundertheREindustry.How-ever,hesharedhowcurrentworkersemployedundertheSMPCcoalcompanyhaveexpressedtheirwillingnesstosacrificehealthinexchangeforhavingajobandaformalsourceofincome.


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8 | ANNEXES

Energy and Environment Situationer

Access to Electricity at HomeBothrespondentshaveaccesstoelectricityathome.

Monthly Electricity Bill and Affordability of ElectricityBothrespondents’monthlyelectricitybillsrangefromPhp400.00toPhp420.00.Theiropinionsontheaffordabilityoftheirmonthlyelectricitybilldiverge,withoneclaimingthatitisaffordable,andtheotherclaimingthatitisnot.

Electricity Source: Conventional (Fossil Fuel) vs. Renewable EnergyBothrespondents’electricityissourcedfromenergygeneratedbyadieselpowerplantanddistributedbytheAntiqueElectricCooperative(ANTECO),anelectriccooperativeregisteredundertheNationalElectrificationAdministration(NEA).

Perceived Effects of Coal Site on HealthBothrespondentsclaimthattheynoticethedetrimentalhealtheffectsthatcoalinflictsonthem.Thesehealtheffectsareprimarilydiseasesofthelungandtheskin.

Perceived Effects of Coal Site on EnvironmentBothrespondentsalsoclaimtonoticethedetrimentaleffectsthatcoalinflictsontheenvironmentintheircommunity.Oneoftherespondentsclaimedthatprimaryoftheseeffectsistheextremeheatandrainfall.Theotherclaimedthatprimaryoftheseeffectsisthedestruction

Comparison of Amount of Coal Plants to RE PlantsBothrespondentspositivelystatedthattherearemoreexistingcoalplantsexistinginthecountrythanrenewableenergyplantsorfarms.

Awareness of Concept of ‘Carbon Emissions’Oneoftherespondentswasnotawareoftheconceptofcarbonemission,whiletheotherclaimstobeawareofit.

Awareness of Coal’s Contribution to Carbon EmissionsConsequently,theyarealsodividedintheirawarenessofcoal’scontributiontocarbonemissions,withonebeingawareandtheothernotbeingaware.

Awareness of Philippines’ High Electricity RateOneoftherespondentswasnotawarethatthePhilippineshasoneofthehighestelectricityratesinAsia,whiletheotherclaimstobeawareofit.

Awareness of Concept of ‘Renewable Energy’Bothrespondentsclaimtobeawareoftheconceptofrenewableenergy,citingitasanenergysourcethatdoesnotcauseharmupontheenvironment.

Comparison of Coal and Other Fossil Fuels as Energy Source v. Renewables-Sourced EnergyOnerespondentclaimedthatthetwodiffer,withrenewableenergybeingcheaperthancoal,theprimaryfossilfuelsourceofenergy.Meanwhile,theotherrespondentclaimedthatcoalisnotonlymoreexpensivethanrenewablesasanenergysource,butitisalsodirtier.

Outlook on Prices Between Coal and Other Fossil Fuel-Sourced Energy v. Renewables-Sourced EnergyOneoftherespondentspositivelyclaimedthatrenewableenergyischeaperthancoal.Meanwhile,theotherrespondentdidnotgiveananswerastowhichheperceivestobecheaper.

Willingness to Pay Higher Monthly Electricity Bill if Sourced from REBothrespondentsclaimedthattheywerewillingtopayhighermonthlyelectricitybillsiftheelectricityissourcedfromRE.

Willingness to Transition to RE Once Cheaper than CoalBothrespondentspositivelyclaimedthattheywerewillingtotransitiontowardsRE-sourcedelectricityifREischeaperthancoal-sourcedenergy.

Whether or Not the Country Should Transition from CoalBothrespondentsclaimedthatthecountryshouldtransitionfromcoal.

Awareness of Transition Policies from Coal

Outlook on Energy Source Currently being Prioritized by GovernmentBothrespondentsclaimedthatbetweenfossilfuelsourcedenergyandrenewablessourcedenergy,thePhilippinegovernmentiscurrentlyprioritizingfossilfuelsourcedenergy,withbothindicatinghigherprofitsinfossilfuelsasthegovernment’sreasonforchoosingpreferringfossilfuels.

General knowledge or awareness on the existence of a national plan to transition away from coalOnlyoneofthetworespondentsappearedtobeawareofthenationalplantotransitionawayfromcoalandtheprimarydriverofsuchattemptattransition:whichistomitigateclimatechangeeffects.

Awareness of Concept of ‘Just Transition’Neitheroftherespondentsclaimedtobeawareoftheconceptof‘justtransition.’

Paris Climate AgreementOnlyoneoftherespondentsclaimedtobeawareoftheParisClimateAgreement.

Philippines’ Nationally Determined ContributionOnlyoneoftherespondentsclaimedtobeawareofthePhilippineNDC,indicatingthatitisaresultofthecountry’sparticipationintheCOP(ConferenceoftheParties)21.

Renewable Energy Act of 2008 or RA 9513NeitheroftheparticipantsclaimedtobeawareoftheRenewableEnergyActof2008.

Philippine Green Jobs Act of 2016 or RA 10771NeitheroftheparticipantsclaimedtobeawareofthePhilippineGreenJobsActof2016.

Local government dialogue regarding the transitionBothrespondentsclaimthatnolocalgovernmentunithasconductedadialogueregardingthenationalplantotransition.

Outlook on Possible Benefits of Energy Transition to Local CommunityOneoftherespondentscitedcleanerairandwaterasapossiblebenefitofthetransition,whiletheotherrespondentcitedthereductionofillnesses.


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8 | ANNEXES

Outlook on Possible Threats of Energy Transition to Local CommunityBothrespondentsclaimedthatthetransitionpositsnothreattotheirlocalcommunity.

Perceived Role in Community’s Shift to REOneoftherespondentsseeshimselfcontributingtothetransitiontoREbyinitiatingadialoguehimselfwiththelocalgovernmentasregardstheeffectsofcoal-sourcedpowertothecommunity’senvironment.

TheotherrespondentseeshimselfcontributingtothetransitiontoREthroughcooperatingwithotherREadvocates.

Awareness of Concept of “Energy Democracy”Bothrespondentsclaimtobeawareoftheconceptofenergy‘democracy’.

Openness to Community-Owned and Operated RE Facilities as Alternative to Current Energy StructureThetworespondentsaredividedintheiranswer,withoneagreeingthatcommunity-ownedandoperatedREfacilitiescouldserveasgoodalternativestothecurrentenergystructureonplaceinthecountry,whiletheotherdisagreeingtothesame.

ANNEX 2 | Calaca Coal-Fired Power Plant Case Study

Profile Startingcommercialoperationsince1984,theCalacaCoalPlantistheoldestoperatingcoalplantinthePhilippines.Currently,theCoalPlantgenerates900MWofelectricityfromfourofitsonlineunits:Unit1(300MW),Unit2(300MW),Unit3(150MW),andUnit4(150MW).

Thefirsttwounits,Units1and2,hadoriginallybeenownedandmanagedbythePhilippineGovernmentthroughtheNationalPowerCorporation(NPC)since1984(Unit1)and1995(Unit2).Aftersufferingequipmentdeteriorationandbankruptcy,theNPCsoldtheCalacaCoalPlanttoSem-Calaca.

Units3and4arepartofSem-Calaca’sfirstphaseofcoalplantexpansion.Theystartedoperationsonlyin2015.For2018,Sem-Calaca,inpartnershipwithMeralcoPowerGenerationCorporation(MGen),haveteamedupwithJapanMarubeniCorporationtobuildtwomore350MWunits.

ThekeyinformantsareformeremployeesofSem-Calaca,whoalsoexperiencedthetransitioninownershipoftheCoalPlant.Theyarealongtheaverageageof60-70yearsold.

Data NarrationWorker Profiles

PositionThetworespondentsofthestudyareformerworkersofthethenNationalPowerCorporation(NPC)-runUnit1coalplant.Oneofthemhaddisclosedhisformeroccupationattheplantasanengineer,hiredbyNPCthroughdirecthiring.BothrespondentsclaimedtohavebeenorganizedworkersunderthemanagementofNPC.

Regularization and OrganizationBothrespondentsclaimedtohavebeenorganizedworkersunderthemanagementofNPC.However,cometheassumptionofmanagementbyDMCI,bothclaimedthatworkerorganizationwasheavilydiscouragedwithinthecorporation.

Employment History and Possessed SkillsOnerespondentpossessedtheexactuniversitydegreefitfortheoccupationhehadunderNPCandDMCI,whiletheotherhadmaneuveredthroughvariouspositionsthroughouthisoccupationunderNPCandDMCI.

Network of Family and Friends Employed Under the Same IndustryAccordingtobothrespondents,asignificantnumberoftheirfamilyandfriendsarevettedtobeemployedunderthecoalcorporation,bothduringitsmanagementbyNPCandbyDMCI.InthetownofCalaca,bothrespondentshaveclaimedthatthecorporationisamajorsourceofemploymentfortheresidents.However,despitethis,bothhavelamentedthatthecorporationdoesnothireenoughresidentsfromthetown,eitherduringtheadministrationofNPCorDMCI.

Labor Conditions in the Coal PlantHours of WorkUnderthemanagementofNPC,bothrespondentshaveclaimedthattheyhadworkedtheregular8hours,withadditionalhoursbeingvoluntary.UnderthemanagementofDMCI,bothrespondentshaveclaimedthatinsomeinstances—suchasthecompanybeingundermannedandduringemergenciesthatcompelextraattentiontowardstheplantsite—hourshadbeencompulsorilylongerandunpaid.Workersnotabletofulfillovertimeshiftsarepenalizedas‘abandoningone’spost’wheretheyarethensubsequentlyfiredfromthecompany.


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Work BenefitsWhilenominally,theNPCmanagementhadprovidedworkbenefitssuchashealthinsuranceandpension,thesubsequentbankruptcyoftheNPC-managedcorporationhadleadtoworkersnotbeingabletoclaimthebenefitsthatwereduethem.Meanwhile,bothrespondentsclaimedthatDMCIlackshazardpayforitsworkersaspartofworkingforthecompany.Also,DMCIprovideshealthinsurancethathaslittlecoverage.WhileNPCprovidesahealthinsurancethatcoversnotonlyemployeesbuttheirbeneficiaries,DMCIonlyprovideshealthinsurancethatcoversemployeesandnottheirbeneficiaries.

Work Safety MeasuresRespondentsclaimthatbothNPCandDMCIprovidethebasicsafetymeasuresandequipmentfortheirrespectiveworkers.However,intermsofsafetyprecautionunderthemanagementofDMCI,workers’safetytakeabackseatintimesofemergenciesliketyphoonsandothernaturaldisasters,asrespondentsclaimtohavebeencompelledtoprioritizeensuringtheplantagainstimpactsofinclementweatherbeforetakingsafetymeasuresforthemselves.

Health Concerns Related to the JobBothrespondentsclaimednohealth-relatedconcernfromtheiroccupation.

Permission of Labor Organization within the CompanyBothrespondentshaveclaimedthatlaborunionswereallowedduringthemanagementofNPCandwerethendisbandedcomethetimeofmanagementbyDMCI.

Job ContentmentOverall,bothrespondentshaveclaimedtohavebeencontentedwiththeirjobsduringthemanagementofNPCandhavethenbecomeseverelydiscontentedunderDMCImanagement,leadingthemtoleavetheirjobs.

Worker-Desired Improvements and ChangesBothrespondentshaveprovideddesiredimprovementsandchangesmerelyforDMCImanagement—whichincludedpaymentofovertimeservices.

Outlook on the Coal Industry v. the Renewable Energy (RE) Industry

Knowledge of Prospective or Hiring Renewable Energy Industry CompaniesBothrespondents,duringtheiroccupationatthecoalplantsite,claimedthatnoprospectsforemploymentundertherenewableenergyhadbeenavailableduringthetime.Inthepresenttime,however,asolarfarm(theCalataganSolarFarm)hasrecentlybeenbuiltintheneighboringtownofCalaca.

Willingness to Work at Renewable Energy IndustryBothrespondents,whileclaimingtobewillingtoworkwithinarenewableenergyindustryforreasonsofbetterprospectsfortheirhealthandforeasiertasksconsideringthedifferencebetweenREfarmsandcoalplantsites,havealsostressedthattheirchoiceofworkbetweenthetwoindustriesdependmosthighlyonthekindofmanagementoftheemployees,giventheirstarkexperiencesunderNPCandDMCI.

Outlook on the Difference between Employment under Coal Industry and RE Industry

Asclaimedbyrespondentsintheabovequestion,employmentundertheREindustrywouldbesignificantlybetterforemployeehealthduetothelackofpollutionthatitcauses.Thesolarindustry,inparticular,whichismostprominentintheprovinceofBatangas,provideslesscomplicatedtechnologicalprocessinitsoperationand,havingnomovingpartsunlikeincoalplants,wouldberelativelysafertooperate.

Outlook and Extent of Knowledge on Coal as Energy Source

Outlook on effects of coal industry on natural resourcesGivenCalacaresidents’continuingoutcryagainsttheestablishmentofthecoalplantsitewithintheirtown,bothrespondentssharedwhatresidentshaveclaimedtobetheprimarypollutioncausedbytheplant:airpollutionthroughcoaldusttravelinginthewind.

Awareness on concept of ‘carbon emission’Bothrespondentshavedisplayedarelativeawarenessoftheconceptof‘carbonemissions’,lumpingthemtogetherwiththebroaderconceptofairpollution.

Awareness on contribution of coal industry to carbon emissionsOnlyoneoftherespondentshadclaimedanexplicitawarenessofthelinkbetweenthecoalindustryandcarbonemissions.

Outlook and Extent of Knowledge on Renewable Energy as Energy Source

Awareness of concept of ‘renewable energy’Bothrespondentsclaimedtobeawareoftheconceptofrenewableenergy.

Comparison of renewable energy to fossil fuel energy sourcesOneoftherespondents,whilerecognizingthecleanerandsaferaspectofrenewableenergyasamainenergysource,expresseddoubtastoitsaccessibility(giventhecurrent,relativelyhigherpriceofREsource)anditsefficiencyandsufficiency(givenscantREsourcescurrentlyinstalledinthePhilippinesandthemuchneededdevelopmentofREtechnologyavailableinthePhilippines).

Whether or not Philippines should transition to renewable energyGiventheaboveconcernsstated,oneoftherespondentshasexpressedreservationinmakingREamainenergysourceforthePhilippines.


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ANNEX 3 | Calatagan Solar Farm Case Study

Profile Asurveywasconductedwith11respondents,whoareworkingattheCalatagan Solar Farm in Calatagan, Batangas owned by Solar Philippines.

TheCalataganSolarFarmisthelargestsolarfarmintheLuzonIsland.Thesolarfarmcomprisesover200,000solarpanelsplacedona160-hectareproperty,withatotalsolarpowercapacityof80MWatpresent.Theconstructionofthefarmwascompletedin2016andbecamefullyfunctionalinthesameyear.

TheFarmcurrentlyhas31employees,workingundereitherofthetwomaindepartments:OperationsandMaintenance,andGroundSupport.Allofthe11respondents,onefemaleandtenmaleswithagesrangingfrom25-40yearsold,arepartoftheOperationsandMaintenanceDepartment.NoemployeesfromtheGroundSupportSystemwereincludedasrespondentsbecausetheformalproceedingrequiredbySolarPhilippines’HumanResourceswasnotcompletedintimefortheone-dayvisit.

Therespondentswerehandeduniformquestionnaires,whichinquiredmainlyaboutthefollowing: 1.LaborconditionswithintheSolarFarm;and 2.Perceptionsontheecologicalandlaborconditiondifferencesbetween thecoalindustryandthesolarindustry.

Data Narration

Worker Profiles Residence, Physical Distance from Work SiteRespondentsresidewithintheprovinceofBatangas,althoughnotparticularlyinCalatagan.Theirresidencesaresituatedinareasthatareusuallyalmostanhour’sworthoftravelgoingtotheirplaceofworkatthesolarfarm.

Length of EmploymentThelengthofemploymentofeachrespondentvariesfrom7monthsto1andahalfyears.

PositionsRespondents’jobwiththesolarfarmrangedfrompositionsofSeniorOperationsEngineer,OperationsandMaintenanceEngineer,OperationsandMaintenanceTechnician,SeniorMaintenanceEngineer,SafetyOfficer,SiteNurse,andUtility/Messenger.

Regularization and OrganizationTheaboverespondents,beingmostlyregularizedemployees,arecurrentlynotorganizedornotpartofalaborunionwithinthecompany.Itwasnotedbytherespondents,however,thatthereisaunioncurrentlybeingformedfortheGroundSupportpersonnel.OnlytherespondentswhoholdsthepositionsofSiteNurseandUtility/Mes-sengerarenotregularandareprobationaryemployees.

Employment History and Possessed SkillsSkillspossessedbytheeightrespondentsemployedasOperationsandMaintenanceEngineersandOperationsandMaintenanceTechnicians,includeknowledgeinelectricalengineering,andgeneralknowledgeintechnicalitiesofelectricity.SixoftheOperationsandMaintenancedepartmentrespondentshavehadvariedpreviousoccupationsasabuildingengineer,servicemanagerinelectricalcompanies,electrician,forkliftoperator,workeratasolarenergy-centricnon-governmentalorganization,andoperationsengineeratvarioustelecommunicationcompanies.

TwooftherespondentsemployedasOperationsandMaintenanceEngineersandTechniciansarefreshgraduateswithnoprioremploymenthistory.

Skillspossessedbythethreerespondentsemployedassitenurse,utility/messenger,andsafetyofficerincludemedicalskillsfocusedonthepulmonaryareawhichhadbeenacquiredundertechnicaltraining,skillsgainedfrompersonalexperiencesofbeingawarehousemanandutilitystaff,andskillsacquiredfromCOSH(ConstructionOccupationalSafetyandHealth)/BOSH(BasicOccupationalSafetyandHealth)training,respectively.TheprioroccupationalexperiencesofthethreeaforementionedrespondentsrespectivelyincludejobsasaPulmonaryDepartmentstaffandmedicalsalesrepresentative,officestaffasutilityaswellasabodyguardandforkliftoperator,andengineeringstaff.

Network of Family and Friends Employed in the Same FieldFiveoftheelevenrespondentshaveclaimedtoknowoffamilyand/orfriendsthatarealsocurrentlyemployedininsolarfarms.Anaveragenumberof2.2familyand/orfriendsoftherespondentshavebeenstatedtoalsobeemployedinsolarfarms.

Labor Conditions in the Solar Farm

Amount of Salary and Salary SufficiencyExceptforthreerespondents,therestoftheintervieweeshavepreferrednottodisclosetheirsalaryfiguresandmarkedthemasconfidential.OneSeniorOperationsEngineerandtwoOperationsandMaintenanceEngineersmeanwhiledisclosedtheirsalaryfiguresasthefollowing,respectively:onethatrangesfromPHP50,000toPHP65,000permonth,PHP20,000andPHP20,400.

TheSeniorOperationsEngineerrespondedhaveclaimedhissalarytobeenoughtosupporthimselfandhisfamily,whilethetwoOperationsandMaintenanceEngineers(notablybothfreshgraduates)whoearnPHP20,000toPHP20,400permonthhaveclaimedtheirsalarytobeinsufficienttosupportthemselvesandtheirrespectivefamilies.

Sixoftheremainingeightrespondentswhohavenotdisclosedtheirsalaryfigureshavealsoclaimedtheirmonthlysalarytobeenoughtosupportthemselvesandtheirrespectivefamilies,withoneofthem(theutility/messengerrespondent)providingthequalificationthathissalaryisnotenoughtomakeroomforthehealthexpensesofoneofhischildren.

Twooftheremainingeightrespondentswhohavenotdisclosedtheirsalaryfiguresdidnotprovideanswerstothesufficiencyoftheirmonthlysalary.

Hours of WorkEightoftheelevenrespondentsprovideanaverageof48hoursofworkperweekundercompressedtime.Thistranslatesto9andahalfhoursofdailyworkfor5days.AlloftheseeightrespondentsareemployedasOperationsandMaintenanceEngineersandOperationsandMaintenanceTechnicians.

Thethreeremainingrespondentsemployedassitenurse,safetyofficer,andutility/messenger,worktheregular8hoursperworkday.

Work BenefitsAllrespondentshaveclaimedtohavetheregularworkbenefits,suchasgovernment-mandatedinsuranceprograms(SocialSecuritySystem—astate-run,socialinsuranceprograminthePhilippinestoworkersintheprivate,professional,andinformalsectors,Philhealth—socialhealthinsurance,PAG-IBIG—shelterfinancingforFilipinosemployedbylocalandforeign-basedemployers).

AllrespondentsalsoclaimtobeinsuredunderaprivatehealthmaintenanceorganizationchosenbySolarPhilippines.


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Work Safety MeasuresAllrespondentshavestatedthattheircompanyprovidessafetyequipmentandsafetymeasurestofollowwithintheworksite.Allaretaskedtowearsafetyvests,helmets,shoes,andgloveswithintheperimetersofthesolarfarm.Theyarealsoprovidedraincoatsandbootsforrainyweather,asthesolarfarmissituatedonafieldthesoilofwhichsoftenswhenraining.

Health Concerns Related to the JobAllrespondentshaveclaimedtohavezerohealthconcernsrelatingtotheirjob.

Permission of Labor Organization within the CompanyTworespondentsdidnotprovideananswertotheinquiryonwhetherthecompanyallowsfortheorganizationofitsworkers.

Fourrespondentshaveansweredthattheyareunawarewhetherthecompanyallowsfortheorganizationofitsworkers.

Fiverespondentshaveclaimedthatthecompanyallowsfortheorganizationofitsworkers.

Job ContentmentRespondentswereaskedtoratefrom1-10(1beingthehighestand10beingthelowest)theirsatisfactionwiththeircurrentjobsinthesolarfarm.

Ascoreof10wasgivenbyoneoftherespondents,belongingtotheOperationsandMaintenancedepartment.

Ascoreof9wasgivenby3respondents,oneSeniorOperationsEngineer,oneOperationsandMaintenanceEngineer,andoneOperationsandMaintenanceTechnician

Ascoreof8wasgivenby6respondents,threeofthemOperationsandMaintenanceEngineers,oneasitenurse,oneautility/messenger,andoneasafetyofficer.

Noscorewasgivenbyoneoftherespondents,aSeniorMaintenanceEngineer.

Worker-Desired Improvements and Changes3respondentsprovidedanswerstotheinquiryonthepossibleimprovementsthatthecompanycouldundertaketomaketheirexperiencewithworkbetter;theresthavenotprovidedanswers.

2ofthe3respondentsindicatedtheprovisionofsupportforoutsidetraining(thecompanyalreadyprovidesin-housetraining)asapossibleworkimprovement.TheyarebothfromtheOperationsandMaintenancedepartment.

1ofthe3respondentsindicatedthattheprovisionofextratimefordutyorovertimeasanopportunityforhimtoearnmoreisapossibleareaofworkimprovement.Thisrespondentworksasaprobationaryutility/messengeremployee.

Outlook on the Renewable Energy (RE) Industry v. the Coal Industry

Knowledge of Prospective or Hiring Coal Industry Companies2ofthe11respondentsknowofprospectiveand/orhiringcoalindustrycompanies.

9ofthe11respondentsdonotknoworarenotcertainofprospectiveand/orhiringcoalin

Willingness to Work at Coal Industry3ofthe11respondents,allofthembeingintheOperationsandMaintenanceDepartment,positivelystatedthattheyarewillingtoworkatthecoalindustrywithoutindicatingconditions.

3ofthe11respondents,allofthemengineersatthesamedepartment,havestatedthattheiranswerdependedonthefollowingconditions:theirfinancialconditionsandifthepositionandsalaryoffersfromthecoalindustryarehigherthantheircurrentsalaryfiguresandpositionsinthesolarfarm.

5ofthe11respondentshavepositivelystatedthattheyarenotwillingtoworkatthecoalindustry.

Outlook on the Difference between Employment under RE Industry and Coal Industry4ofthe11respondents,all4ofthembelongingtotheOperationsandMaintenancedepartment,claimedthatitissignificantlysafertoworkattherenewableenergyindustryandsignificantlyriskiertoworkatthecoalindustry.Thefirsthalfofthese4respondentshavepreviouslyexpressedwillingnesstoworkatthecoalindustry,whiletheotherhalfhaveexpressedthattheyarenotatallwillingtoworkatthecoalindustry.

3ofthe11respondents,all3ofthemalsobelongingtotheOperationsandMaintenancedepartmentandhaveexpressedwillingnesstoworkatthecoalindustry,claimedthatworkatthecoalindustryismorecomplicatedintermsofoperationsascomparedtosolarfarms.

1ofthe11respondents,workingasutility/messenger,claimedthatthereismoreairpollutioncausedbythecoalindustryascomparedtothesolarindustry.

3ofthe11respondents,oneworkingassafetyofficer,oneasasitenurse,andanotherbelongingtotheOperationsandMaintenancedepartment,havenotgivenanswerstotheinquiry.

Outlook and Extent of Knowledge on Coal as Energy Source

Outlook on effects of coal industry on natural resourcesAirpollutionwascitedasaprimaryeffectofthecoalindustryonnaturalresourcesby3respondentsfromtheOperationsandMaintenancedepartment.

Meanwhile,typicaleffectsthatmininghasonnaturalresources,wascitedby3respondentsfromtheOandMdepartment.Theseminingeffectswerenotexpoundedonbythesaidrespondents.

Ontheotherhand,depreciationofrawmaterialsourceswascitedby1respondent-utility/messengerand1respondent-safetyofficer.

Wastedisposalissueswascitedby1respondentfromtheOperationsandMaintenancedepartment.

2respondentsdidnotanswer.

Awareness on concept of ‘carbon emission’

5respondentsareawareoftheconceptof‘carbonemissions’,with4ofthembelongingtotheOperationsandMaintenancedepartment,and1ofthemasitenurse.Theiraccompanyingexplanationsfortheirunderstandingoftheconceptweregeneral,citingcarbonemissionsas‘harmfultotheenvironment.’

6respondentsarenotawareoftheconceptof‘carbonemissions’,with4ofthembelongingtotheOperationsandMaintenancedepartment,1ofthemasafetyofficerandanother1utility/messenger.


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Awareness on contribution of coal industry to carbon emissions7respondents,allofthemfromtheOperationsandMaintenancedepartmentclaimedtobeawareofthecontributionofthecoalindustrytocarbonemissions.

4respondents,ontheotherhand,claimedtobeunawareofsuchcontribution,with1ofthembelongingtotheOperationsandMaintenancedepartment,1asitenurse,1asafetyofficer,andanother1autility/messenger.


Awareness of concept of ‘renewable energy’7respondents,6fromtheOperationsandMaintenancedepartmentand1autility/messenger,claimedtobeawareoftheconceptofrenewableenergy.

4respondents,2fromtheOperationsandMaintenancedepartment,1asitenurseand1asafetyofficer,haveclaimedtobeunawareoftheconcept.

Comparison of renewable energy to fossil fuel energy sourcesRenewableenergyisdifferentiatedfromfossilfuelsourcedenergythroughthesourcesoftheenergytheygenerate,accordingto5respondents,4fromtheOperationsandMaintenancedepartmentand1autility/messenger.

Renewableenergyisdifferentiatedfromfossilfuelsourcedenergythroughtheemissionstheycauseandtheirgeneraleffectsontheenvironment,withfossilfuelsbeingmoreharmfulthanrenewables,accordingto2respondentsfromtheOperationsandMaintenancedepartment.

2respondentsclaimedtonotknowwhatprimarilydifferentiatesrenewableenergytofossilfuelsourcedenergy.

Whether or not Philippines should transition to renewable energy7respondents,allfromtheOperationsandMaintenancedepartment,claimedthatthePhilippinesshouldtransitiontorenewableenergy.

1respondent,autility/messenger,answeredthatthecountryshouldtransitionontheconditionthatpricesofferedbyrenewableenergyarecheaper.

2respondents,asitenurseandasafetyofficer,claimedthatthePhilippinesshouldnottransitiontorenewableenergy.

Noanswerwasgivenby1respondentfromOperationsandMaintenancedepartment.

Awareness of Transition Policies from Coal

Respondentswereaskedregardingtheirawarenessofanumberofkeyconceptsandagreementsconcerningthenationalgovernment’scommitmenttotransitionawayfromcoal.

Paris Climate Agreement ‘Yes’wasansweredby3respondents,allOperationsandMaintenancedepartmentengineers.All3of themexplainedthatitisanagreementmadebycountriestoaddressormitigateclimatechange.

‘A little’ wasansweredby1respondentSeniorMaintenanceEngineer.

‘No’ wasansweredby7respondents,4ofthemfromtheOperationsandMaintenancedepartment, 1ofthemasitenurse,1asafetyofficer,and1autility/messenger.

‘A little’ wasansweredby1respondentSeniorMaintenanceEngineer.

‘No’ wasansweredby7respondents,4ofthemfromtheOperationsandMaintenancedepartment, 1ofthemasitenurse,1asafetyofficer,and1autility/messenger.

Philippines’ Nationally Determined Contribution ‘Yes’wasansweredby1respondentSeniorMaintenanceEngineer.Heexplainedthatitcomprisesofa commitmenttoreducethecountry’scarbonemissions.

‘No’wasansweredby10respondents,7ofthemfromtheOperationsandMaintenancedepartment, andby1sitenurse,1safetyofficer,1utility/messenger.

Renewable Energy Act of 2008 or RA 9513 ‘Yes’wasansweredby4respondents,allofthemOperationsandMaintenanceengineers,2ofthese engineersbeingseniorengineers.2ofthemexplainedthattheActistopromoteuseofrenewable energy,while1ofthemexpoundedthattheActincentivizesbusinessinvestmentsinrenewable energy.1ofthemdidnotprovideanexplanationfortheiranswer.

‘A little’wasansweredby3respondents,1sitenurse,1safetyofficer,and1utility/messenger. Allofthe3didnotprovideadditionalexplanation.

‘No’wasansweredby4respondents,allfromtheOperationsandMaintenance

Philippine Green Jobs Act of 2016 or RA 10771 ‘Yes’wasansweredby3respondents,allofthemOperationsandMaintenanceengineers(1asenior). 2ofthemthattheActpromotesjobsthatcontributetotheprotectionoftheenvironment,while1 ofthemdidnotexplaintheiranswer.

‘A little’wasansweredby1respondentsafetyofficer.

‘No’ wasansweredby7respondents,1asitenurse,1utility/messenger,and5employeesfromthe OperationsandMaintenancedepartment.

General knowledge or awareness on the existence of a national plan to transition away from coal ‘Yes’wasansweredby2respondents,bothOperationsandMaintenanceengineers,1ofthem generallycitingtheexistenceofDepartmentofEnergyprograms(withoutenumeration)andanother 1citingRA9513ortheRenewableEnergyActasamanifestationofthenationalplanto transitionawayfromcoal.

‘No’ wasansweredby9respondents.

Local government dialogue regarding the transition Allrespondentswerenotawareofanylocalgovernmentdialogueconducted,asregardsthe aforementionedplantotransition.

‘Yes’wasansweredby1respondentSeniorOperationsEngineer.Hisanswer,however,citedtherecent municipalgovernment’splantopromotetheSolarPhilippines’solarfarmasatouristspot,amove thatdoesnotnecessarilycompriseofadialogueasregardsthenationalplanoftransitionaway fromcoal.

‘No’ wasansweredthe10remainingrespondents.


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ANNEX 4 | PUV Modernization Program Case Study

Profile Alliance of Concerned Transport Organizations (ACTO)isatransportcoalitioncomposedofmembersfromthePUVandPUJindustries.Itcurrentlylists450,000unitsasapartofitscoalition,with30,000oftheseunitsbeingjeepneys.

Alliance of Drivers and Operators of the Philippines - Genuine Organization (STOP and GO)isatransportcoalitioncomposedmostlyofdriversandoperatorsinthePUVandPUJindustries.Ithas131transportgroups(rangingfromthePUVs,PUJs,andtricylces)asmembers.

Data NarrationTheintervieweestotalnineindividuals,withthreeofthembeingdriver-operators/operatorsandtheothersixbeingdrivers.OperatorsofPhilippinejeepneysaretheregisteredownersoftheunitsbeingdrivenintheroads.Driversarethosethatrentthejeepneysonthedailysotheycouldbedrivenontheroad.Theusualset-upbetweenoperatorsanddriversmandatethatdriversareallowedtodrivethejeepneyunitsrentedtothembytheoperators.Thetotalfarepaidbythepassengerstothedriverforthedayserveasthedriver’sdailyincome.Subtractedfromthisincomearethedailyrentalfee(“boundary”fee)owedtotheoperatorandthefuelexpensesshoulderedbythedriver.Repairandmaintenanceexpensesareshoulderedbytheoperator.

Adriver-operatorisanoperatorwhichalsodrivesoneofthejeepneyunitsthatheorsheowns.

Transport Experience: Operators

Thethreeoperatorsallpaymaintenanceexpensesfortheirjeepneyunitsforevery1to3months.Oneoftheoperators,whohasacquiredherjeepneysonaloan,alsopaysadailymortgagefeetothelenderthathasloanedthecapitalbywhichsheboughtthejeepneyunits.Shepaysherdailymortgagefeethroughthedailyboundaryfeesgiventoherbyherdrivers.

Twooftheoperatorsaredriver-operators,whileoneismerelyanoperator.

Therespondentwhoismerelyanoperatorownsafleetofjeepneyscomprisedof4units,earningatotalofPHP4,000aday,withhisboundaryrateatPHP1,000perdayperunit.

Thetworespondentswhoaredriver-operatorsspend6and11hoursrespectivelyindrivingtheirjeepneyunitsontheroadandgrosslyearnanaverageofPHP450adayfromthepassengerfarecollected.Oneoftherespondents,whoownsherjeepneyunitsthroughaloan,hasexpressedthatherdailyincomefromdrivingandfromcollectingboundaryfeesfromherotherdriversisbarelyenoughtosustainherandherfamilythroughouttheirexpenses—whichincludetuitionfeesofchildrenalongwithhealthcarepayments.

Transport Experience: Drivers

TheaverageoftheboundaryfeespaidonthedailybyrespondentdriverstotalPHP675.TheirexpensesforfuelareontheaverageofPHP780.Theseexpenses,subtractedfromtheiraveragegrossincome,givethemanaveragenetincomeofPHP816thattheytakehomeeveryday.Ofthetwomainexpensesthattheyshoulderonthedaily,driverspointtothepriceoffuelasthatwhichmostaffectstheamountofincomethattheytakehome.

Thefuelusedmostbydriversisdiesel—frompetroleum,afossilfuel—whichhasanaveragepriceofPHP36.00perliter.Attheendofeachday,driversloadthejeepneyswithanaverageof21liters,enoughforafulltankoffuel,beforereturningthejeepneystotheoperators.

Thenumberofhoursspentbythedriversontheroadrangefrom8-10hoursperday,withonlyoneofthedriver-respondentsspending18hoursdailyondriving.Driver-operatorrespondentsspendlesshoursindriving,withtheirhoursrangingfrom6to11hoursperday.

Theroutestraveledbyalldriversrangefrom4kilometers(theminimumforjeepneys)to15kilometers.

Outlook on the Situation of the National Mass Transport

Onthequestionofthequalityofmobilitywithinmainroads,nearwhichthedriversoperate,alloftherespondentshaveclaimedpoormobilityduetopersistingmassive,heavytraffic.Askedofthereasonforsuchheavytraffic,amajorityoftherespondentshavepointedtotheunbridledincreaseofcarsontheroad,thegroupofprivatecarsvastlyoutnumberingpublictransportvehicles.

Onthequestionofthesafetyofthemainroadsandpassageways,mostrespondentshaveclaimedthatthepassagewaysarerelativelysafeduetofewaccidentincidences.


Withanexceptionofonerespondent,allrespondentshaveverylittletonoknowledgeoftheconceptofrenewableenergyasanenergysource,especiallyonitsdifferencefromfossilfuels.ThefewthatpossessedanideaofwhatrenewableenergyishavediscussedrenewableenergywithinthecontextofthePUVModernizationProgram.

DiscussionswithintransportgroupsoftheProgramandthevehicles(someofthemsolar-powered)thathavebeenvettedbytheGovernmenttoserveasnewtypesofpublicutilityvehicleshaveinformedrespondentsofthenotionofrenewableenergyasanenergysource.Fromthesediscussionsamongtheirpeers,respondentshaveformedanopinionthatrenewableenergy—especiallyasreplacementtodiesel—isnotasufficientenergysource.Theirreasonsastowhyrangefromissuesofthereliabilityofsolar-poweredandotherformsofelectricvehiclesintermsoflongandnumeroustravelstoissuesofresilienceandsturdinessofthesevehicles,especiallyinbumpyroadsandunpavedroads(foundusuallyinruralareas).

AskedwhetherthePhilippinesshouldshifttowardsrenewableenergyasthecountry’sleadingenergysource,mostrespondentsclaimedtonothaveformedanopiniononthematter,providedtheirlackofthoroughknowl-edgesurroundingrenewableenergy.

Outlook and Extent of Knowledge on Government Program on Transition Away from Coal

Anenttheirlackofawarenessoftheissuessurroundingtheconceptofrenewableenergy,respondentshavealsoclaimedthattheyareeitherunawareornotaffectedbyandnotconcernedwiththeissuesurroundingfossilfuelsandtheirimpactontheissueofglobalwarmingandontheenvironmentingeneral.

AlthoughmostrespondentsareoutspokenwithregardtothePUVModernizationProgramasapolicy,majorityoftherespondentshaveclaimedtobeunawareoftheclimatecontextsurroundingthePUVModernizationProgramandothergovernmentprogramsthatservetoaidinthefulfillmentofthecountry’sNationallyDeterminedContribution.


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Outlook on the PUV Modernization Program

AlloftherespondentshaveexpresseddisagreementwiththePUVModernizationPrograminitspresentformandimplementation.Componentsofthemodernizationpolicythatwerecriticizedbyrespondentsincludedthefollowing:

(a)ontheproposedsubsidybythegovernmenttofinanciallyassistinacquiringnewmodelsthatfitthenewstandardsforjeepneyvehicles(costingapproximatelyPHP1.6millionperunit),respondentshaveclaimedthatthesubsidy(PHP80,000)isbarelyenough,

(b)ontheemissionstandards(EuroIV)andtherespectiveenginefitfortheemissionstandards,respondentshaveclaimedthatnosuchavailabletechnologycurrentlyexistsorisaccessibleinthemarketandthattheyanticipateanequallyhighpriceforthetechnologyshoulditbecomeavailable.Respondentshavealsocriticizedtheneedforthenewenginetechnology,claimingthatthepresentengineinstalledinalljeepneyunitscouldberehabilitatedtofitemissionstandardsasprescribedinthemodernizationpolicy.

(c)onthefitnessofthenewmodels(solar-poweredandotherelectricvehicles)asnewpublicutilityvehicles,mostrespondentshaveclaimedthatthenewmodelsdonotprovefitfortheroadandtravelconditionsexperiencedbythepresentjeepneyunits.Issuesofresilienceofthenewtechnology,comparedtooldbutsturdyjeepneyunits,havebeenclaimedbyrespondentstobeapotentialfactortotheworseningofthePhilippinetrafficcondition.Respondentshaveclaimedthatnotonlydriversbutcommutersmightbeaffectedshouldsolar-poweredandotherelectricvehiclesfailtodeliverabetterorsimilardistancecapacityandspeedcapacitythatpresentjeepneyunitsdeliver.

However,despitetheircriticismsofthePUVModernizationProgram,respondentshaveclaimedopennesstotheneedtomodernizejeepneyunits,intermsofrehabilitatingbeatendownandoldmodelsthatdonotprovetoberoadworthyanymore.Theirreservationwithmodernizationisconcernedmostlywiththethreatofatotalphaseoutofthepresentjeepneyunitsforentirelynewtypesofvehicles.

ANNEX 5 | Outcome of the Worker's Groups Round Table Discussion

Profile

RepresentativesfromthefollowinggroupsparticipatedintheRTD:

1.Bukluran ng Manggagawang Pilipino (BMP)—BMPtranslatestoSolidarityofFilipinoWorkersinenglish.Itisapoliticalorganizationofmilitant,democraticandsocialistworkersandunions;

2.SOSYALISTA—alaborgroupcomposedofsocialistworkers;and

3.Trade Union Congress of the Philippines (TUCP)—thebiggestconfederationoflaborfederationsinthePhilippines.

Key findings

TheRoundTableDiscussionconductedwithworkers’groupsrevealedthatalthoughacollectiveworkers’agendaonJustTransitionisyettobeformulated,workersalreadyhaveaprofoundunderstandingofjusttransition.

Alltheworkers’groupsrecognizedthecontextinwhichJustTransitionisconsideredasanurgentnecessity.Theyraisedtwoimportantpointsintheirdiscussions.Firstisthatjusttransitionisaresponsetoourgeneration’sbiggestchallenge—climatechange.Ourcurrenteconomyandsocietydependsondirty,fossilfuels,whichbringsaboutclimatechange.JustTransitionmeansshiftingfromdirty,fossilfuelstoclean,renewableenergy.

SecondisthatJustTransitionisashiftfromaprofit-driven,growth-dependentsocietytoaneed-driven,anddevelopment-basedsociety.Itrecognizestheecologicallimitsoftheworldandthus,restructuresandreshapesoureconomyandsociety.Astowhatthateconomyandsocietyare,theyhaveyettodetermine.

However,despitethefactthatJustTransitionwillnecessarilycreatenew,greenjobs,theworkers’groupswerewaryofthefactthatitmayalsoleadtothedisplacementofworkers.Transitiontoagreeneconomymaynotnecessarilybejust,andinsteadoccurattheexpenseofworkers.

Thus,foranemergingconcept,JustTransitionisaphenomenonthatworkers’groupsarewell-informedof—fromitscontextandrationaletoitspressingissues.Moreimportantly,theyareawareofthecrucialroletheyplayinensuringthatanytransitiontoagreen,sustainableeconomywillbejust.ItseemsthattheirmainchallengenowistoshapetheirownagendaonJustTransition.


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8 | ANNEXES

ANNEX 6 | Outcome of the Transport Groups Round Table Discussion

Profile

Roundtablediscussions,oneofwhichwasfacilitatedinpartnershipwiththeofficeofSenatorJVEjercito,wereconductedwiththeparticipationof:1.AllianceofConcernedTransportOrganizations(ACTO),2.AllianceofDriversandOperatorsofthePhilippines-GenuineOrganization(STOPandGO),3.PagkakaisangSamahanngmgaTsuperatOpereytorNationwide(PISTON),4.FederationofJeepneyOperatorsandDriversAssociatoin(FEJODAP),5.LigangTransportasyonatmgaOperatorsaPilipinas(LTOP),6.PasangMasda,and7.NotoJeepneyModernizationCoalition.

Key findingsTheRoundtableDiscussiononJustTransitionconductedwithtransportgroupsrevealtransportleaders’awarenessoftheenvironmentalframeworkbehindthepushforthenationalmodernizationofpublicutilityvehicles.

MostJustTransitionsolutionsarrivedatbyleadersofthesectoraftertheDiscussionzeroinonissuessurroundingthePUVModernizationProgram,butholduseful,underlyingprinciplesthatcouldapplyinexaminingeveryothertransitionprogrambythegovernment.

Collectively,theconvenedtransportgroupssharedthefollowingdemandsregardingtheformulationandimplementationoftheProgram:

(a)Ensuringtheaccessibilityoflow-emissiontechnologyandensuringsubstantialcompensationandassistancebythegovernmentforallmembersofthesectoraffectedbythetransition(b)Directdialogueandconsultationbythegovernmentwithkeystakeholdersfromtheground(c)Adjustingimplementationstrategiesforthetransitioninamannerthattakesintoaccountthechallengesposedbythetransitionformembersoftheaffectedsector

Thefollowingarethedocumented,concretedemandstothegovernmentbytheconvenedtransportgroupsinresponsetotheformulationandimplementationoftheProgram:

STOPandGO(SamahanngTsuperatOperatorngPilipinas-GenuineOrganization)

1.TheMotorVehicleInspectionSystem—amechanismensuringroadworthinessofaregisteredvehicle(takingintoaccountbothsafetyandenvironmentalcompliance)—shouldbefullyoperationalbeforethefullimplementationoftheProgram.Thosethatdonotpassorwillnotpassthemechanismaretheonlyonesthatshouldbecompelledtomodernize.2.SuspendthecompulsoryimplementationoftheDepartmentOrder2017-011(therootlawofthePUVModernizationProgram)3.Encouragingvoluntaryratherthancompulsorysurrenderofunroadworthyjeepneyunitsandtheextendingofdirectfinancialassistancebythegovernmentwhovoluntarysurrendersuchunits. ALTODAP(AllianceofTransportOperatorsandDriversAssociationofthePhilippines)

1.Ensurethatthecountry’slocalmanufacturingsectorandothersectorsthatwilldirectlyaidinthetransitiontowardsjeepneymodernizationarereadytoparticipateinthetransition,especiallysincethemandatedenginescompliantwithemissionstandardsarenotaccessibletothelocalmanufacturingsector.2.Lowerinterestratesofloanassistanceprogramsbybanks,inaidofthejeepneyoperators.3.Providegovernmentaidandeducationforthenewfleetsystemthatitwillintroducetosmall-timeoperators.

LTOP(LigangTransportasyonatOperatorssaPilipinas)1.Allocategreaternationalbudgetforthemodernizationprogram.2.ProvideopportunitiesfordirectparticipationoftransportgroupstothediscussionsontheProgram3.Prioritizekeyandgroundmembersofthetransportsectorineverydialogueregardingthemodernizationprogram PASANGMASDA1.Providealongerperiodforfulltransition—fromlessthanayearto5-7yearsodtransition.2.Releaseofmodernjeepneymodelsnextyeartoensuredeeperunderstandingonthepartsofdriversandcommutersofhowfullymodernizedpublicutilityvehicleswillfunction.3.Provideacommuter-orientedmodernizationprogram,primarilyintermsofconvenienceandsafety. FEJODAP(FederationofJeepneyOperatorsandDriversAssociationofthePhilippines)1.Providediscussionanddialoguetoaffectedtransportsectormembersonwhymodernizationisneeded.2.Donotrushthemodernizationprocess,especiallyonthepartofmodernization.3.Educatesingle-operatorsonmanagingthenewfleetsystemimposedbytheProgram.4.EnsureretainedownershipofsingleoperatorsovertheirvehicleunitsamidstacooperativemodelencouragedintheProgram.5.ImmediatelydeferimplementationoftheProgramwhileitscomponentsarestillbeingpolished.6.ProvideImplementingRulesandRegulations(IRR)forthePUVModernizationProgrambeforefullimplementation.7.EnsureparticipationoftransportgroupsinthedraftingoftheIRRoftheProgram. ACTO(AllianceofConcernedTransportOrganizations)1.Takeintoconsiderationtheimpactofthemodernizedmodelonfareprices.2.Takeintoconsiderationthewagesoftheregularcommutersandtheimpactsofthepriceofmodernizationonthesecommuters.3.Concentrateeffortsof(rehabilitative)modernizationonthe20%ofjeepneysectorthatmosturgentlyneedmodernizationefforts(i.e.thosethataredilapidated,et.al.)4.Ensuregradualimplementationofthemodernizationprogram.5.Takeintoconsideration,inthestudyandimplementationoftheprogram,thedifferencesbetweenthecountry’slocalsettingandtheforeignsettingofthegovernment'smodelsofmodernization.6.Ensuremodernizationofroadsandstrengthentrafficrulesandregulationsinlightofthemodernizationprogramimplementation.7.Takeintoaccounttheaccommodationoftrainingprogramstowardstheagebracketoftheaffecteddriversandoperators.Ensureemployabilityofoldergenerationofdriversintheimplementationofthemodernizationprogram.8.Protectthegroundmembersofthetransportsectorfrommonopolizationbybiggercorporationsandentitiesoverthemoreexpensivemodernizedvehicles.9.Providefurtherstudiesontheproposedfleetsystemtomakeitmoreunderstandableforsingle-operators.

NOTOJEEPNEYMODERNIZATIONCOALITION1.ReviewoftheDepartmentOrderforthePUVModernizationProgrambeforeitsimplementation.


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