The views expressed in this paper are the views of the author and do not necessarily reflect the

views or
policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of
Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in
this paper and accepts no responsibility for any consequences of their use. Terminology used may not
necessarily be consistent with ADB official terms.

COUNTRY PAPER
Prepared for the Regional Workshop
On
Eco-Industrial Cluster
Japan
2-4 December 2013

Florante Leal
Philippines

Florante Leal
Philippines

INTRODUCTION

I.

By 2050, the Philippines is projected to be the 16 th largest economy in the world,

according to the international bank HSBC in its report released January 2012. This
development goes with it rapid industrialization and urbanization which in effect poses a
great threat on resource consumption and stress in the environment. Changes in
industrial production process and resource consumption patterns are needed. At the
same time, ample evidences exist that industrialized urban areas are location of
clustered economic activities and thus sources of waste, pollution and emission.
The Philippines has 93.4 million people ( 2010) and most of these people are living in
urban areas. Moreover, the concentration of industries in urban areas has resulted in
air and water pollutions. Today Asian cities are among the most polluted in the world,
mainly caused by the disposal of untreated sewage, industrial waste and other
emissions and pollutants. Enough evidences exist to argue that industrialized urban
areas are the centres of resource consumption, whereas physical resources like bios
and human capital labour come from the rural areas to support industrial expansion.
Conventionally, products for both consumption by the urban and export markets are
sourced from rural areas, while mainstream production process, adding value to raw
material and converting them directly usable products, takes place in the rural-fringe
areas, serving the markets in the urban centres.
Based on the concept of industrial ecology and business competitiveness, EcoIndustrial Clusters (EIC) can reduce waste and pollution as well as create green jobs,
attracting service providers and generating local wealth. The benefits however of EIC
based regional development planning in addressing the environmental and poverty
concerns are not widely recognized by many local governments in both developed and
emerging economies.

II.

ECO- INDUSTRIAL MEASURES / PROGRAMS

x

On The General Environment:

x

P.D. 1151 Philippine Environmental Policy

x defines the general policies on the pursuit of a better quality
of life for the present and future generations and mandates
the undertaking relative
the environmental impact
assessments for all projects, which may significantly affect
the environment.

PD 856 December 23, 1975 - Sanitation Code of the Philippines

x To prescribe sanitation requirements for food establishments
and refuse collections and disposal system of cities and
municipalities

Florante Leal
Philippines

x
x

Places the responsibility in the local government units for the

solid waste management in his area of production.
places the responsibility in the local government units for the
solid waste management in his area of production.

P.D. 1181 (supplements the provision of P.D. 984 or the Pollution Decree
of 1976 providing for the abatement, control and prevention of vehicular
pollution & establishing the maximum allowance emissions of specific air
pollutants from all types of vehicle.

Environmental Impact Assessment

o P.D. 1151 Philippine Environmental Policy
defines the general policies on the pursuit of a better quality of life for
the present and future generations and mandates the undertaking of
the environmental impact assessments for all projects, which may
significantly affect the environment.
o P.D. 1586 June 11, 1978
o defines the framework for the implementation of the environmental
impact assessment as the mechanism to reconcile the impacts of
development projects on society and the physical environment.
o DENR Administrative Order No. 96-37 December 02, 1996
Revising DENR Administrative Order No. 21, Series of 1992, to Further
Strengthen the Implementation of the Environmental Impact Statement
(EIS) System.
o It is the policy of the DENR to attain and maintain a rational and
orderly balance between socio-economic growth and environmental
protection through the sustainable use, development, management,
renewal and conservation of the countrys natural resources,
including the protection and enhancement of the quality of the
environment, not only for the present generation but for the future
generations as well.
o DENR Administrative Order No. 2000-05 Series of 1994 (Revised)
o Revising DENR Administrative Order (DAO) No. 94-11,
Supplementing DENR Administrative Order No. 96-37, Series of
1996, and Providing For Programmatic Compliance Procedures
Within The Environmental Impact Statement (EIS) System
o Supplementing DENR Administrative Order No. 37, Series of 1996
on the implementation of the EIS System, the Department also
assure environmentally and socially acceptable development of
industrial areas within the Philippines in furtherance of, among other
provisions, Art. I, Section 8, Rules and Regulations Implementing the

Florante Leal
Philippines

Intent and Provisions of PD 1586 Establishing the Environmental

Impact Statement (EIS) System in Relation to Presidential Decree
No. 1151 Promulgating the Philippine Environmental Policy.
o

To identify environmental constraints and opportunities of natural

systems in order to guide the planning and development of industrial
projects that have multiple stages or components.
a) To incorporate incentives for industrial siting in regional industrial
centers.
b) To incorporate cost-effective environmental management systems
in compliance with Philippine environmental standards.
c) To assess the carrying capacity of the natural environment in
areas designated for industrial development.
d) To assure environmentally sensitive development of industrial
projects and programs.
e) To assess the induced effects on the social and natural
environment of concentrated industrialization programs.
f) To streamline the procedures for environmental compliance for
industries locating in regional industrial centers.
g) To encourage industries to locate in geographic areas which are
environmentally and socially suitable to their activities.

Air Quality Management

o R.A. 8749 Philippine Clean Air Act of 1999
o provides for a comprehensive air pollution control policy
o executive order No. 446
o Mandating the phase-out of leaded gasoline as one of the means of
solving air pollution.

Control Of Toxic Substances And Hazardous Wastes:

x

R.A. 6969 Toxic Substances and Hazardous and Nuclear Wastes

Control Act
o Authorizes the DENR to establish a program to regulate, restrict or
prohibit the importation, manufacture, processing, sale, destruction,
use and disposal of chemical substances, and mixture that present
unreasonable risk and/or injury to health or the environment.

DAO 92-29 IRR of RA6969

o A law designed to respond to increasing problems associated with
toxic chemicals and hazardous and nuclear wastes. RA 6969
mandates control and management of import, manufacture,
process, distribution, use, transport, treatment, and disposal of toxic

Florante Leal
Philippines

substances and hazardous and nuclear wastes in the country. The

Act seeks to protect public health and the environment from
unreasonable risks posed by these substances in the Philippines.

Solid Waste Management:

x

R.A. 9003 The Solid Waste Management Act of 2001

o an act providing for an ecological solid waste management
program, creating the necessary institutional mechanisms and
incentives, declaring certain acts prohibited and providing penalties,
appropriating funds therefor, and for other purposes.

DAO 98-49 Technical Guidelines for Municipal Solid Waste Disposal

o The LGUs shall prepare and implement local action plans and
formulate local regulations to facilitate and support the closure
and upgrading of existing open dumps.

Mining Development:
x

RA 7942 Mining Act of 1995- An Act Instituting A New System Of Mineral

Resources Exploration, Development, Utilization And Conservation
o All mineral resources in public and private lands within the
territory and exclusive economic zone of the Republic of the
Philippines are owned by the State. It shall be the responsibility
of the State to promote their rational exploration, development,
utilization and conservation through the combined efforts of
government and the private sector in order to enhance national
growth in a way that effectively safeguards the environment and
protect the rights of affected communities.

Zoning & Construction Requirement:

x

PD 1096 National Building Code

o Provide for all buildings and structures, a framework of minimum
standards and requirements by guiding, regulating, and
controlling their location, siting, design, quality of materials,
construction, use, occupancy, and maintenance, including their
environment, utilities, fixtures, equipment, and mechanical
electrical, and other systems and installations.

Florante Leal
Philippines

Agriculture:
x

PD 1144 Creation of Fertilizer and Pesticides Authority

o Agency to regulate fertilizer importation, manufacture, formulation,
distribution, delivery, sale, transport and storage as well as
pesticide labeling, distribution, storage transportation, use and
disposal,

Establishing a Green Procurement Program for all Departments, Bureaus,

Offices and Agencies of the Executive Branch of the Government (
Executive Order No. 301)
x All government departments, offices and agencies are ordered to establish
their respective Green Procurement Program : to promote the culture of
making environmentally-.informed decisions in government, especially in
the purchase and use of different products; to include environmental
criteria in public tenders, whenever possible and practicable; to establish
the specifications and requirements for products or services to be
considered environmentally advantageous; to develop incentive programs
for suppliers of environmentally sound products and services.

Go Green, is a sustainable environmental program to revitalize the Philippine

ecosystem and sustain the Philippine fashion accessories industry. It is an
initiative of the Fashion Accessories Manufacturers And Exporters Foundation
Philippines, Inc. (FAME Foundation) in partnership with the Department Of
Environment And Natural Resources Region VII (DENR-VII). Go Green has a 3fold objective: RECYCLE natural components to ensure continuing natural
sources. REPLENISH what is used to use what has been replenished.
REVITALIZE nature and breathe new life to the communities.

The National Eco-labelling Programme - Green Choice Philippines (NELPGCP) is one of the country's initiatives to exercise the fundamentals of
sustainable development. It aims to change the behavioral patterns in
consumption and production that tend to misuse, abuse, and degrade our
environment.

Green Purchasing Alliance Movement : a high-profile, flexible Movement of

industries and institutions working together in various networks for environmentfriendly performance, supported by campaigns and programs and strategic
alliances

Florante Leal
Philippines

III.

INDUSTRY CLUSTERING INITIATIVES IN THE PHILIPPINES

The development and promotion of industry clusters are identified as a major
strategy under the Philippine Development Plan 2011-2016 in helping achieve its
visions of a globally competitive and innovative industry and services sector that
contributes significantly to inclusive growth and employment generation. It
supports the Presidents social contract particularly in the creation of conditions
conducive to the growth and competitiveness of private businesses, big, medium
and small. Below are the industry clusters in the Philippines :
A. North Luzon Clusters
x Coffee Industry Cluster : the cluster hopes to improve the
productivity of coffee farms, improve the quality of coffee beans to
be processed, packed and marketed
x Milkfish Industry Cluster : Milkfish is now positioned to expand
to serve the growing local consumption and penetrate international
markets through product quality improvement and development of
brand and market promotion
x Dairy Industry Cluster : hopes to increase the production of milk
to support the feeding program of the government and supply the
requirement of local dairy product processors and other users.
x Bamboo Industry Development Cluster : to promote the huge
potential of bamboo as a product
B. South Luzon Clusters
x Health and Wellness Industry Cluster : aims to increase the
availment of medical, dental, and wellness services of foreign
nationals and overseas Filipinos through development of health and
wellness packages, linkages with ancillary services and
enhancement of human capital competencies.
x ICT Industry Cluster : the CALABARZON aims as the premier
ICT hub of the Philippines, the preferred investment destinations for
the Offshoring and Outsourcing Industry
x Wearables and Homestyle Cluster : being a resourced-based
industry caters to extensive use of indigenous materials and human
resources, it can improve the economy and create better
opportunities
C. Visayas Clusters
x Health and Wellness Tourism Cluster : leverages on the
presence of internationally recognized tourism facilities, availability
of professional health practitioners and medical facilities with state
of the art equipment

Florante Leal
Philippines

Gifts, Decors and Housewares : a value adding industry on fiberbased handicrafts, stands to trigger more backward and forward
linkages, upstream and downstream businesses. It particularly
caters to the requirement of the tourism industry . it also addresses
the concerns on gender, green growth and fair trade.

D. Mindanao Cluster
x Banana Industry Cluster : contributes about 75% of the total
exports of the region. It comprises the cavendish for fresh exports,
cardava for banana chips for exports and lakatan for local fresh fruit
market.
x Mango Industry Cluster : It hopes to establish strong domestic
and export market niche for the fresh and processed mango.
x Coconut Industry Cluster : It involves the diversification of
coconut products to include food and non-food downstream
industries.
x Seaweed Industry Cluster : aims to make a share in the supply of
Euchema and semi-refined carrageenan in the world market. The
main thrust of the cluster is the expansion of seeweed farms in the
potential areas in the region targeting small fisherfolks in the
coastal areas.
x Wood Industry Cluster : involves the production of plantation
species for processing of construction materials, furniture and
furnishings, woodworks, pallets and boxes, and handicrafts for
domestic and export markets.
x Mining Industry Cluster : intends to support the revitalization of
the industry under the Mining Act of 1995. The industry hopes to
generate investment and jobs through the advocacy for responsible
mining.
x Tourism Industry Cluster : the cluster promotes economically
viable, socially acceptable, culturally sensitive and environmentfriendly tourism projects.
x Rubber Industry Cluster : envisions the country as one of the top
5 natural rubber producers in Asia by expanding domestic and
export market share by 25% in 5 years.
x Poultry Industry Cluster : aims to develop competitiveness in the
domestic market and establish a strong niche in the export market
x Tuna Industry Cluster : aims not only to parade fresh and frozen
tuna to the local and foreign markets but hopes to maximize
business opportunities by adding more tuna value-added
enterprises in SOCCSKSARGEN
x Oil Palm Cluster : the cluster aims to be globally competitive
producer of palm oil products.

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Philippines

IV.

ECONOMIC ZONES IN THE PHILIPPINES

As of June 30, 2013
Type

Number

Total Area (hectares)

Operating Eco -Zones

Agro Industrial Economic Zone

18

683.9

IT Parks /Centers

187

616.09

Manufacturing Economic Zones

65

32,112.28

Medical Tourism Parks/Center

2.89

Tourism Economic Zones

17

850.94

Total

289

34,266.10 has.

Eco- Zones Being Developed

Agro Industrial Economic Zone

101.79

IT Parks /Centers

69

252.8247

Manufacturing Economic Zones

25

5,049.76

Tourism Economic Zones

228.33

Total

107

5,632.7047 has

The major institutions which plays vital roles in pursuing industrial

development include:
Department of Trade and Industry
Board of Investments
Philippine Economic Zone Authority
National Economic & Development Authority
On one side, the environmental concerns are being handled by:
Department of Environment & Natural Resources
Environmental Management Bureau
Laguna Lake Development Authority

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Philippines

V.

CHALLENGES FACED IN INTEGRATING INDUSTRIAL DEVELOPMENT

x

Solid Waste Management

The unavailability of landfill sites, the ban on the use of incinerators, the
poor design of landfills as dumpsites, and the non-compliance to waste reduction
approaches have all contributed to the environmental problems.

Industrial Waste Management (non-toxic hazardous wastes (non-THW)

There is a clear need for baseline data, an integrated waste management
master plan and the promotion of recycling methods and by-product exchange.

Toxic and Hazardous Wastes

There is no THW disposal plant to dispose of these wastes properly.
Current practices include exporting the THWs to other countries for treatment &
simply storing them in drums within plants.

Stakeholders' Constraints
The government still needs to strengthen regulatory implementation and
support systems (incentives, streamlined procedures, technical assistance) to
fully manage the environmental concerns of the country.
Other partners like financial institutions, academia, socio-civic groups and
nongovernmental organizations can be called upon for support in addressing
these problems.

VI.
x

FINANCING AND CAPACITY BUILDING ACTIVITIES

GTZ supported PEZA in the creation of so called Area-Based Multipartite
Monitoring Teams where companies, authorities, park management and
communities jointly work on observation and improvement of environmental and
social conditions in and around the industrial park as a whole.
The National Industry Cluster Capacity enhancement Project (NICCEP) is a 3
year technical cooperation project funded by the Japan International Cooperation
Agency (JICA) . The project envisions of developing and mobilizing pilot industry
clusters nationwide.