sec ramon paje's osac presentation

STATE OF THE ENVIRONMENTSTATE OF THE ENVIRONMENT--Investment ProspectsInvestment ProspectsInvestment ProspectsInvestment Prospects

Department of Environment and Natural ResourcesDepartment of Environment and Natural Resources

ENVIRONMENT FRAMEWORK

SECTION 16 ARTICLE II, SECTION 16 ARTICLE II, 1987 PHILIPPINE CONSTITUTION1987 PHILIPPINE CONSTITUTION1987 PHILIPPINE CONSTITUTION1987 PHILIPPINE CONSTITUTION

“The State shall protect and advance the right of the people to a balancedthe right of the people to a balanced and healthful ecology in accord with th h th d h f t ”the rhythm and harmony of nature.”

ENVIRONMENT FRAMEWORK

Philippine Development Plan: 2011-20161. Improved

conservation2. Improved

environmental 3. Enhanced

resilience of natural

Philippine Development Plan: 2011-2016

conservation, protection and rehabilitation of natural

quality for a cleaner and healthier

systems and improved adaptive capacities of human natural

resourceshealthier environment

capac es o u acommunities to cope with environmental hazards includinghazards including climate related risks

FORESTRY

Forest ManagementSituationerSituationer::

g

• Philippine forest at 7.2 M ha or 24% of country’sland area

• 8 M ha of forestlands degraded (26% of landarea)

Forest ManagementGovernmentGovernment Actions:Actions:

g

• Total log ban in natural forests to conserve &protect (E.O. 23)

• Created National Anti-Illegal Logging Task Force

Forest ManagementGovernmentGovernment Actions:Actions:

g

• Confiscated 10.6 M bd. ft. of logs/lumbervalued at P 317 M

• Filed 269 cases for illegal logging• Closed 215 wood processing plants

Forest ManagementGovernmentGovernment Actions:Actions:

g

• Established National Greening Program, biggestreforestation in Philippine history (E.O. 26)

Plant 1.5 B trees in 1.5 M ha in 6 years (27 8% higher than (27.8% higher than past 50 years).

For 2011, target is For 2011, target is 50 M trees in 100,000 ha.

CLEAN AIR

Clean AirSituationerSituationer –– Major Major urbanurban centerscenters are are pollutedpolluted

• Total Suspended Particulates(TSP) in Metro Manila is 166micrograms/normal cubic meters(μg/Ncm) in 1st half of 2010

84% beyond standard of 90μg/Ncm (WHO)μg ( )

Other polluted cities: SanFernando, Calapan, Cebu,Fernando, Calapan, Cebu,Zamboanga, Davao

Clean AirSituationerSituationer –– Major Major urbanurban centerscenters are are pollutedpolluted

• 80% of pollution due to vehicular emissions• Per WB 18M Filipinos exposed to air pollution• Per WB, 18M Filipinos exposed to air pollution,

with health cost & loss of income of P 7.6B/year

Clean AirGovernmentGovernment Actions:Actions:

• Strengthened enforcement & regulations

More stringent air emission standards for Compression & Spark-Ignition Engines (motorcycles & tricycles)(motorcycles & tricycles)

Agreement with Earth Day Network to Earth Day Network to make EDSA “Linis Hangin Zone.” (cellphone to catch (cellphone to catch smoke-belchers)

Clean AirGovernmentGovernment Actions:Actions:

DENR, LTO, MMDA, etc. worked to reduce traffic &

• Strengthened enforcement of regulations

DENR, LTO, MMDA, etc. worked to reduce traffic &ensure compliance with emission testing to reducevehicular emissions

Clean AirGovernmentGovernment Actions:Actions:

• Strengthened enforcement of regulationsDeveloped program with ADB to provide creditfor conversion of tricycle engines to electric

Clean AirGovernmentGovernment Actions:Actions:

• As of June 2011, pollution reduced by 32% from 166 to 113 μg/Ncm.

166

160

170

180

)

Total Suspended Particulates (TSP) Level

133.5

113130

140

150

160

el (u

g/Ncm

)

Actual113

9090

100

110

120

TSp leve Standard

80

1st Sem 2010 2nd Sem 2010 1st Sem 2011

CLEAN WATER

Clean WaterSituationerSituationer –– WaterwaysWaterways//esterosesteros in major in major urbanurban

• Biochemical Oxygen Demand (BOD), or demandfor oxygen in water for 19 major rivers in 2010

centerscenters unfitunfit for for humanhuman activityactivity

for oxygen in water, for 19 major rivers in 2010at 27 milligrams/liter, 4x the standard at 7 mg/L

Clean WaterGovernmentGovernment Actions:Actions:

Initiated “Adopt an Estero Program”

Before AfterAfter

Estero de Paco, Manila(ABS-CBN Foundation)

Clean WaterGovernmentGovernment Actions:Actions:

Adopt an Estero Program

Before After

Estero de Paco, Manila

Clean WaterGovernmentGovernment Actions:Actions:

Adopt an Estero Program

Before AfterBefore After

Estero de Paco, Manila

Clean WaterGovernmentGovernment ActionsActions ::

Adopt an Estero Program

226Major companies have adopted waterways nationwide (Examples: Jollibee, San Miguel Foundation Toyota Masinloc Power Corp )Foundation, Toyota, Masinloc Power Corp.)

Clean WaterGovernmentGovernment Actions:Actions:• Reduced solid wastes

Required Philippine Plastic Industry to Required Philippine Plastic Industry to develop program for retrieval/collection/ recycling of plastics

Launched “Reusable Bag Campaign for Greener g p gEnvironment” with major malls & supermarkets

Clean WaterGovernmentGovernment ActionsActions::

Clean Water

• Reduced solid wastesAgreement with 11 Metro Manila LGUs for solidwaste management systems in subdivisions/condominiums. Initially, 4,717 homeownersassociations identified

GEOHAZARD

GeohazardSituationerSituationer::

• Philippines is prone to natural disasters due togeographical location & geological attributes:l d lid fl di th k t i tlandslides, flooding, earthquakes, tsunami, etc.

GeohazardGovernmentGovernment Actions:Actions:

• Completed geo-hazard mapping of all provinces/cities/municipalities at 1:50,000 scale

Di t ib t d 65 000 h t t ll LGU• Distributed 65,000 map sheets to all LGUs

• More detailed mapping started for 88 landslide-pronecities/municipalities (scale of 1:10,000)cities/municipalities (scale of 1:10,000)

• Conducted coastal geohazard

t f 46 assessment of 46 coastal municipalities

MINERAL REFORMS

Mineral Reforms

• Started cleansing of idle mining applications underSituationerSituationer::• Started cleansing of idle mining applications under

“use it or lose it” policy. Additional 5.2 M ha havebeen opened for new and serious investors, resultingfrom cleansing/denial of 2 136 pending and idlefrom cleansing/denial of 2,136 pending and idlemining applications (97% of total)

• Suspended acceptance and processing of new p p p gmining applications to ensure successful implementation of the on-going cleansing of mining applicationsapp cat o s

Mineral ReformsGovernmentGovernment Actions:Actions:

• Cleansing the remaining idle mining applicationsunder the “use it or lose it” policyunder the “use it or lose it” policy.

GOOD GOVERNANCE

Good Governance

• Removed opportunities for graft and corruptionGovernmentGovernment Actions:Actions:• Removed opportunities for graft and corruption

Policy shift to donate confiscated logs/lumber toDepEd, instead of auction

o Donated 2.282 M bd. ft. of confiscated logs/lumber to DepEd, LGUs, and other government offices (additional 5.5 M bd.ft. for donation)

o Produced 9,699 armchairs, 174 school desks, 171 tables, 55 cabinets & repaired 197 buildings (i.e., schools, chapel, mun. buildings & CENRO Offices), , p , g ),etc)

Good Governance

f fGovernmentGovernment Actions:Actions:• Removed opportunities for graft and corruption

Rationalized and reduced DENR checkpointsfrom 274 to 118 or by 57%

Good Governance GovernmentGovernment Actions:Actions:

• Removed opportunities for graft and corruptionInstalled 902 Closed Circuit Television (CCTV)cameras up to field offices

Eliminated face-to-face transactions

Good Governance GovernmentGovernment Actions:Actions:

• Strengthened prosecution and justice system

No. of P lPersonnel

Show cause issued 118

Formally charged 31

Fined/Suspended 7Fined/Suspended 7

Dismissed from service 10

Filed 297 cases for illegal logging

Good Governance GovernmentGovernment Actions:Actions:• Strengthened prosecution and justice system

Strengthened capacities of DENR personnel,prosecutors & judges through trainings with theprosecutors & judges through trainings with theSupreme Court

PUBLIC ASSESSMENT

Public Assessment

• From one of the most corrupt in December, 2009,DENR is now the 4th least corrupt agency in March2011 (Pulse Asia Survey)2011 (Pulse Asia Survey)

• Environment ranked 4th in assessment of governmentperformance by Movement for Good Governanceperformance by Movement for Good Governance(August 2011)

Public Assessment

OVERALL PERFORMANCE(Pulse Asia Survey)

• Efforts of government in stopping the destruction & abuse of• Efforts of government in stopping the destruction & abuse of environment

Period Approval Rating Disapproval Net Approval pp g ppRating

ppRating

October 2009 +27 -39 -12October 2009 +27 -39 -12

March 2011 +48 -16 +32

June 2011 +50 -14 +36

INVESTMENT PROSPECTS

INVESTING in theFORESTRY SECTOR in the

PHILIPPINESPHILIPPINES

Investing in theForestry SectorForestry SectorP t ti l A f I t t

• Industrial Tree Plantation

Potential Areas for Investment

Industrial Tree Plantation• Agroforestry

E t i• Eco-tourism• Wood Pellet• Bio-energy

Investing in theForestry SectorForestry Sector

Potential Areas forTree Plantations

Region 10 Region 10

Region 9 Region 11

Region 13

Region 9

Region 12

Investing in theForestry SectorForestry SectorPolicy Reforms Underway to Encourage

• Identification of Clear investment zones – Forest Land

Private Sector Participation

Use Planning process transparent and participatory

• Simplified procedures for investing that reducetransaction coststransaction costs

• Stable policy environment which guarantees the rightto harvest or benefit from investment

- Secured land tenure - De-regulated policy especially in harvestingplanted treesplanted trees

- Harmonized policies with LGUs, NCIP, NGAs

Investing in theForestry SectorForestry SectorAdoption of Investment Portfolio Approachp pp

• To encourage public-private forestry investments

Objectives• To encourage public-private forestry investments

through reduction of transaction costs by undertaking preparatory work relative to completing documentary requirements and securing necessary clearances

• To develop investment portfolio package optionsfor private investors on potential forestry

enterprises (industrial tree plantations agroforestry enterprises (industrial tree plantations, agroforestry, ecotourism , etc.)

Investing in theForestry SectorForestry SectorInvestment Portfolio ApproachppObjectives

T f t j t i d • To ensure forestry projects are in accordance with national and LGU plans (Comprehensive Land Use Plans (CLUP), Forest Land Use Plans (FLUP)

• To allow synergy and convergence of To allow synergy and convergence of government agencies’ programs