PHILIPPINES COUNTRY ENVIRONMENTAL ANALYSIS 2008 PHILIPPINES © 2009 Asian Development Bank
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COUNTRY ENVIRONMENTAL ANALYSIS 2008 PHILIPPINES COUNTRY ENVIRONMENTAL ANALYSIS 2008 PHILIPPINES © 2009 Asian Development Bank All rights reserved. Published 2009. Printed in the Philippines. Publication Stock No. RPT090189 ISBN 978-971-561-807-6 Cataloging-in-Publication Data Asian Development Bank. Country Environmental Analysis 2008—Philippines. Mandaluyong City, Phil.: Asian Development Bank, 2008. 1. Environmental analysis. 2. Philippines. I. Asian Development Bank. The views expressed in this book are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the govern- ments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. The Asian Development Bank (ADB) encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgement of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express written consent of ADB. Asian Development Bank 6 ADB Avenue Mandaluyong City 1550 Metro Manila Philippines Tel +63 2 632 4444 Fax +63 2 636 2444 www.adb.org For orders, please contact: Department of External Relations Fax +63 2 636 2648 [email protected] Contents List of Figures vi List of Tables vi List of Text Boxes vii Abbreviations viii Acknowledgments xii Executive Summary xiii Chapter 1: Introduction 1 Chapter 2: Background 3 Country Overview 3 Role of the environment and natural resources in the economy 8 Socioeconomic overview 8 Medium-Term Philippine Development Plan 10 Millennium Development Goals 11 Main Environmental Concerns 15 Forest resources 15 Agriculture resources 18 Fishery resources 18 Biodiversity resources 22 Water resources 28 Air quality 46 Land resources 52 Mining and mineral resources 53 Urban environment 54 Environmental spatial planning 56 Hazardous and solid wastes 57 Climate change 61 Renewable energy 62 Environmental emergencies 64 Regional environmental concerns 68 Regulatory and Institutional Framework 69 Policy and regulatory framework 69 Institutional framework 77 Donor agencies 93 iv Country Environmental Analysis 2008: Philippines Chapter 3: Challenges and Opportunities 99 DENR Institutional Rebuilding 99 Insufficient government budget for ENR 99 Need for DENR restructuring to fulfill expanding mandate 101 Major capacity building requirement for better ENR regulation 104 Need for integrated and improved information and communication management system 106 Resolution of mandate overlaps and gaps 106 Passage of other important legislation 108 Improvement of the Environmental Impact Statement System 108 Incomplete Devolution of ENR Functions to LGUs 109 From Sector-Based to Integrated, Ecosystem-Based Planning and Management 111 Need for Increased Efforts in Forest Management and Biodiversity Conservation 112 Climate Change Mainstreaming in the Government Program 113 Need for Increased Financing for Environmental Projects 114 Need to Improve and Widen the Use of Market-Based Instruments 115 ENR Concerns and Poverty Reduction 117 Chapter 4: Strategic Priorities 121 Extensive Institutional Rebuilding and Strengthening of DENR 121 Better Management of ENR Data and Information 122 Restructuring and Refocusing of the Philippine Environmental Impact Statement System 123 Genuine Devolution and Decentralization of ENR Functions 123 Continued Application of Integrated Approach to Planning and Management 123 Adoption and Application of Spatial Development Plans 124 Increased Financing for Environmental Infrastructure Programs and Projects 124 Use of Market-Based Instruments to Promote ENR Programs and Projects 125 Integration of ENR Principles into Poverty Reduction Programs 125 Chapter 5: Implications for the Country Partnership Strategy 127 ADB’s Long-Term Strategic Framework 127 Environmental Components of Key ADB Strategies for the Philippines 128 Philippine country partnership strategy 128 Government-ADB poverty partnership agreement 128 Philippine urban infrastructure road map 129 ADB’s environment policy 129 Contents Environmental Considerations in the Philippine Lending Portfolio 129 Current portfolio 130 Portfolio in CPS 2005–2007, COBP 2007–2008, and COBP 2009–2010 130 Strategic issues 131 Possible ADB Interventions 132 Mainstreaming of environment considerations in government policies and investment programs 132 Environment as a core area of operation 133 Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 136 Summary of Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 136 Appendixes 159 1 Water Quantity Scorecard for Major Rivers and Basins and Hot Spots Rating for Water Quantity 160 2 Major Environment and Natural Resources Laws and Regulations 162 3 Official Development Assistance to the Environment and Natural Resources Sector, as of November 2007 171 4 Senate and House Bills on Environment and Natural Resources Filed at the 14th Congress of the Philippines 182 5 Status of Public Sector Lending, Private Sector Operations, and Nonlending Operations, as of 15 August 2007 (ADB Country Strategy and Program 2005–2007) 198 6 Summary of Results of the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report 202 7 Participants at the Consultative Meeting on the 2008 Philippine Country Environmental Analysis Report 215 References 223 vi Country Environmental Analysis 2008: Philippines List of Figures 1 Land Classification, 2005 16 2 Forest Cover, 2003 17 3 Protected Areas, 2004 25 4 Annual Consumption of ODS and Alternatives, 2001–2006 47 5 CDM Projects with Letters of Approval, February 2008 63 6 CFC Consumption, 1995–2005 75 List of Tables 1 Country Economic Indicators 4 2 Country Poverty and Social Indicators 6 3 Value of Fish Production, by Subsector, 2003–2005 9 4 Philippines Millennium Development Goal Indicators 13 5 Country Environment Indicators 19 6 Level of Endemism and Status of Vertebrate Fauna in the Philippines 23 7 Number of Rare, Threatened, and Endangered Wildlife Species, 1996–2006 24 8 Classification of Water Bodies in the Philippines 29 9 Water Demand in Major Cities of the Philippines 30 10 Change in Dissolved Oxygen in Priority Rivers, 2003–2005 31 11 Groundwater Quality Scorecard 33 12 Water Quality Scorecard for Surface Water (Rivers, Lakes, Bays) 36 13 Sewerage Services in Metro Manila, 2001–2005 43 14 Sewerage and Sanitation Systems outside Metro Manila 44 15 Philippine, US-EPA, and WHO Ambient Air Quality Guidelines for Common Pollutants 46 16 Annual Mean Roadside TSP Levels in Major Cities and Urban Centers in the Philippines, 2003–2004 48 17 Total Mass Emissions in Metro Manila, 2005 51 18 Urbanization Forecast for the Philippines 56 19 Chemical Waste Generation and Trade 58 20 Strategic Environmental Evaluation of Proposed Pipeline Projects in COBP 2009–2010 and CPS 2011–2015 137 Contents vii List of Text Boxes 1 Strategies for Potable Water in the Medium-Term Philippine Development Plan 2004–2010 45 2 Strategies for the Mining Sector in the Medium-Term Philippine Development Plan 2004–2010 55 3 Strategies for Hazardous Waste in the Medium-Term Philippine Development Plan 2004–2010 60 4 Strategies for Environmental Emergencies in the Medium-Term Philippine Development Plan 2004–2010 65 5 Policy Agenda of the Minerals Action Plan 66 6 Elements of Philippine Agenda 21 69 7 International and Regional Environmental Agreements 73 8 Bureaus, Attached Agencies, and Offices of the Department of Environment and Natural Resources 78 9 FY2008 Programs and Projects of the Department of Environment and Natural Resources 86 10 Nongovernment Organizations in Environmental Protection 91 11 Guiding Principles for the Rationalization Plan of the Department of Environment and Natural Resources 103 Abbreviations ADB – Asian Development Bank AFMA – Agriculture and Fisheries Modernization Act (1997) (Republic Act 8435) APIS – Annual Poverty Indicators Survey AQMF – Air Quality Management Fund ARMM – Autonomous Region in Muslim Mindanao ASEAN – Association of Southeast Asian Nations BIMP-EAGA – Brunei Darussalam–Indonesia–Malaysia– Philippines East ASEAN Growth Area BOD – biochemical oxygen demand CAA – Clean Air Act (1999) (Republic Act 8749) CAC – command and control CARP – Comprehensive Agrarian Reform Program CDM – Clean Development Mechanism CENRO – community environment and natural resources officer CITES – Convention on International Trade of Endangered Species of Wild Fauna and Flora CLUP – comprehensive land-use plan CO2 – carbon dioxide COBP – country operations business plan CPS – country partnership strategy CTI – Coral Triangle Initiative CWA – Clean Water Act (2004) (Republic Act 9275) DA – Department of Agriculture DAO – Department of Environment and Natural Resources administrative order DAR – Department of Agrarian Reform DBM – Department of Budget and Management DBP – Development Bank of the Philippines DENR – Department of Environment and Natural Resources DILG – Department of Interior and Local Government DMC – developing member country DOE – Department of Energy DPWH – Department of Public Works and Highways Abbreviations