PHILIPPINES POVERTY ENVIRONMENT … Mining Act of 1995 (RA 7942) ... PHILIPPINES POVERTY ENVIRONMENT INITIATIVE (PPEI) Share of LGUs on revenues from natural resources

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Environment and Natural Resources and Benefits for Poverty Reduction and Environmental Sustainability

PHILIPPINES POVERTY ENVIRONMENT INITIATIVE

PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT

• The Philippines is a country in Southeast Asia composed of 7,107 islands, rich in natural and environmental resources.

• Forests, fisheries, arable land, minerals and renewable energy sources like wind, solar, water and geothermal are abundant

PHILIPPINES POVERTY ENVIRONMENT INITIATIVE (PPEI)

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Philippines is a lower middle income country w/ an estimated population of 94 million. 2010 HDR ranked it 97th out of 169 countries, w/ an HDI of 0.638. In 2011, Philippines ranked 112th out of 187 countries in human development. GDP grew 7.3% in 2010; slid to 3.7% in 2011 and in the first quarter of 2012 recovered at 6.4% and accelerated by 7.1% in third quarter of 2012.


There are wide disparities in INCOME and QUALITY OF LIFE across regions and sectors.

As of 2009, 26.5% of the total population or an equivalent of 25 million poor Filipinos live below

poverty line, including 10 million women. To achieve the first MDG to halve poverty by 2015, the Philippines has to reduce poverty by 1.65%

every year beginning 2010.

Poverty in the Philippines is a rural phenomenon. 75% of all poor

families in the Philippines live in rural areas mainly dependent on ENR

for their subsistence. IPs make up about 15 % of the population and occupy an estimated 17 % of total

land area.

HOWEVER …


Philippines suffers from severe deforestation, declining fish production and overflowing solid waste

Environmental degradation in the Philippines is hugely damaging to poor people’s livelihoods, as well as to the economy as a whole.

In urban areas, the poor suffer more from exposure to air and water pollution.

PHILIPPINES POVERTY ENVIRONMENT INITIATIVE (PPEI) PHILIPPINES POVERTY ENVIRONMENT INITIATIVE (PPEI)

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Philippines also continues to suffer from environmental hazards such as floods, typhoons, and climate change,

which affect poor groups disproportionately.



“[t]he degraded state of the country’s environment and natural resources is felt most intensely by the poor, especially the rural

communities given that they depend on these resources for their primary source of living. On the other hand, poverty frequently aggravates environmental stress as the marginalized population presses upon

limited resources, such as unregulated activities and upland cultivation. ” - PDP 2010-2016 assessment of the State of the

Environment and Natural Resources


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Mining in Particular … Philippines being the fifth most mineralized

country in the world PDP 2011-2016 identifies the mining sector as

one of the ten (10)high-growth potential industries

HOWEVER, • Contributed relatively little to GDP and employment-

generation over the years

• Revenue sharing: under the current legal framework, the government gets only 2% excise tax as share in a mineral production sharing agreement

• Institutional safeguards: need for proper regulation of mining activities and protection of the environment, and the IPs and those host communities



The Continuing Key Challenge …

reverse the persistent poverty situation by turning the country’s environment and natural resources into capital for poverty reduction and sustainable management of environment and natural resources.


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Positive linkages Positive linkages

ENVIRONMENT POVERTY REDUCTION

The Philippines Poverty-Environment Initiative

Promote the poverty-environment linkage in national plans, sectoral strategies, local governance, economic decision making and sub-national planning through rational

utilization of natural resources, environmental protection, social equity measures, and poverty alleviation actions towards an inclusive green growth.

Main goal of supporting the Philippine government, civil society and the business sector to utilize revenues and benefits from sustainable environment and natural

resources management for poverty reduction through improved capacity and enabling conditions at national and local levels.


The PPEI Phase 1 (2011-2012): Establishing the Baseline and Initializing Reforms

OUTPUT1

Opportunities for Central government agencies and LGUs

identified for improve ENR revenues &

benefits

OUTPUT 2

LGU capacity enhanced to improve benefit sharing from

sustainable ENR management

OUTPUT 3

Enabling conditions at national level established to promote the

identified opportunities for sustainable ENR

management

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Our continuing initiatives … The PPEI Phase 2 (2013-2015): Scaling-up and Institutionalizing the Gains

OUTPUT1

Timely release of environment and natural resource

revenues to LGUs

OUTPUT 2 Improved

utilization of NR revenues for social services delivery, poverty reduction

and environmental sustainability

through mainstreaming P-E

linkages in the planning and

budgeting system of LGUs

OUTPUT 3

Developed national and

local government capacities on linking P-E concerns in governance

OUTPUT 4

Transparent collection of

natural resource revenue applied

through the introduction of the Extractive

Industries Transparency

Initiative (EITI)

OUTPUT 5

Improved regulatory

framework for small-scale

mining for an optimized

contribution to sustainable

development

PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT PHILIPPINES POVERTY ENVIRONMENT INITIATIVE (PPEI)

Province of Benguet Province of Benguet

Municipality of Aroroy, Masbate Municipality of Aroroy, Masbate

Brgy. Taganito/ Municipality of Claver

Brgy. Taganito/ Municipality of Claver

PPEI PILOT LGUs PPEI PILOT LGUs

City of Toledo, Cebu City of Toledo, Cebu

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… PPEI aims to reach all the LGUs hosting Extractive Industries. PPEI also works with other NGAs, CSOs, Private Sectors/Businesses, Academe and community stakeholders.

… PPEI aims to reach all the LGUs hosting Extractive Industries. PPEI also works with other NGAs, CSOs, Private Sectors/Businesses, Academe and community stakeholders.


Turning the Country’s Environment and Natural Resource Revenues and Benefits as Capital for Poverty Reduction and Environmental Sustainability

Turning the Country’s Environment and Natural Resource Revenues and Benefits as Capital for Poverty Reduction and Environmental Sustainability

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Executive Order 79


Requirements of Environmental Protection and Community Development in Mining Operations

SECTION 2. Full Enforcement of Environmental Standards in Mining.

SECTION 3. Review of the Performance of Existing Mining Operations and Cleansing of Non Moving Mining Rights Holders.

SECTION 7. Disposition of Abandoned Ores and Valuable Metals in Mine Wastes and Mill Tailings.

SECTION 8. Value-Adding Activities and the Development of Downstream Industries for the Mineral Sector.

SECTION 9. Constituting the Climate Change Adaptation and Mitigation and Economic Development Cabinet Clusters as the Mining Industry Coordinating Council (MICC).

SECTION 11. Measures to Improve Small-Scale Mining Activities.

SECTION 12. Consistency of Local Ordinances with the Constitution and National Laws/ LGU Cooperation.

SECTION 13. Creating a One-stop Shop for all Mining Applications and Procedures.

SECTION 14.

Improving Transparency in the Industry by Joining the Extractive Industries Transparency Initiative (EITI).

SECTION 15. Creation of a Centralized Database for the Mining Industry.


Philippines Mining Act of 1995 (RA 7942) - Certificate of Environmental Management and Community Relation Record

- Environment Work Program

- Environmental Compliance Certificate

- Environmental Protection and Enhancement Program

- Memorandum of Agreement preceded by the Free Prior

- Informed Consent of the Indigenous Peoples


Requirements(…) Cont’d.

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Philippines Constitution

“Local governments shall be entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas, in the manner provided by law, including sharing the same with the inhabitants by way of direct benefits.”

Local Government Code of 1991

“Local government units shall, in addition to the internal revenue allotment, have a share of 40% of the gross collection derived by the national government from the preceding fiscal year from mining taxes, royalties, forestry and fishery charges, and such other taxes, fees, or charges, including related surcharges, interests, or fines, and from its share in any co-production, joint venture or production sharing agreement

in the utilization and development of the national wealth within their territorial jurisdiction.”


Share of LGUs on revenues from natural resources


Royalties and excise tax from mineral and mineral products (LGC 1991 Title 2,Chap 2) Proceeds from the share shall be appropriated to finance local government and livelihood projects

Income from energy sources (LGC 1991, Section 294) At least 80 % of the proceeds derived from the development and utilization of hydrothermal, geothermal and other sources of energy shall be applied solely to lower the cost of electricity in the LGU where such source of energy is located”


Utilization of LGUs’ shares in the natural resource revenues

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In order to attain the vision of the country of a sustainable development, ENR-related

activities, especially those extractive industries should be operated in harmony with the

national and local environment, especially with the rural communities, poor people, IPs and other community stakeholders so that they

become the permanent beneficiaries and not the victims of natural resource extraction and

development. - Sec. Jesse Robredo 25 July 2012, PPEI’s Knowledge Sharing & MOA Signing Event

“

”

Maraming Salamat po!

PPEI knowledge products & publications are available at:

www.undp.org.ph

Documents

PHILIPPINES POVERTY ENVIRONMENT … Mining Act of 1995 (RA 7942) ... PHILIPPINES POVERTY ENVIRONMENT INITIATIVE (PPEI) Share of LGUs on revenues from natural resources