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Clean Air Act

Philippines: Clean Air Act


The Clean Air Act outlines the governments measures to
reduce air pollution and incorporate environmental protection
into its developement plans. It relies heavily on the polluter
pays principle and other market-based instruments to
promote self-regulation among the population. It sets
emission standards for all motor vehicles and issues
registration only upon demonstration of compliance. It also
issues pollutant limitations for industry. Polluting vehicles and
industrial processes must pay a charge. Any individual,
enterprise, corporation or groups that installed pollution
control devices or retrofitted its existing facilities to comply
with the emissions standards in the Act can apply for tax
incentives of accelerated depreciation, deductibility of R&D
expenditures or tax credits on the VAT of the equipment and
are exempt from real property tax on the machinery or
equipment used to comply. It also establishes a R&D program
for air pollution reduction mechanisms and technologies. It
bans incineration and smoking in public places. At the local
and municipal levels, governments are allowed to set
emission quotas by pollution source, and the development of
recycling programs is encouraged.
The Clean Water Act Law of the Philippines: The Use of
Incentives to Promote Investments
Date posted:
Jan 26 2010
The Philippines is once known to be relatively abundant in
water resources. However, the pressures of population
growth, urbanization, and industrialization placed a toll on
the resource. One of the most pressing concerns is the
increased competition in the various uses of water. There is
also serious concern regarding watershed degradation and
unmonitored extraction of groundwater by illegal users. The

Clean Water Act Law of the Philippines aims to promote and


encourage the protection of the countrys water resources. To
fully encourage local governments, water districts,
communities, and the private sector to partake in efforts on
reducing water pollution, provisions on incentives are
provided for in the law.
Responsible Party:
Compliance
I. Objectives or Impact:
The Philippines is once known to be relatively abundant in
water resources. However, the pressures of population
growth, urbanization, and industrialization placed a toll on
the resource. One of the most pressing concerns is the
increased competition in the various uses of water. There is
also serious concern regarding watershed degradation and
unmonitored extraction of groundwater by illegal users. At
the same time, pressing issues on water pollution is present.
From a World Bank study, 90% of the sewage generated in
the country is not treated. Major rivers and waterways are
also confronted with pollution and degradation due to the
encroachment of settlers, especially in urban centers. The
Clean Water Act Law of the Philippines aims to promote and
encourage the protection of the countrys water resources. To
fully encourage local governments, water districts,
communities, and the private sector to partake in efforts on
reducing water pollution, provisions on incentives are
provided for in the law.
II. Description of the Good Practice (Outputs):
The Clean Water Act provides incentives to local government
units, water districts, enterprises, private entities, and
individuals to develop or undertake efforts that would result
to effective water quality management and pollution
abatement. Specifically, it encourages efforts on wastewater
treatment, cleaner production, and adoption of technologies

that minimizes waste. Incentives specifically mentioned in


the law are tax and duty exemption on imported capital
equipment and tax credit on domestic capital equipment.

assess the performance (in terms of pollution control,


discharge) of those who would avail of incentives.
C. Human Resources:

III. Outcomes or Results:


The guidelines and procedures on availing the incentives
provided by the Clean Water Act have just been recently
formulated. However, from the consultations conducted by
the Department of Environment and Natural Resources
(DENR) with various stakeholders (manufacturers, private
sector, NGOs, and local government units), positive response
on the incentives was generally elicited.

A complete program on evaluation to monitoring of CWArelated investments and efforts would require funding for
regular operations. It was identified that regional DENR office
need to have resources in order to conduct evaluation and
monitoring of those granted with CWA incentives. Also,
additional staff needs to be hired in order to accommodate
the administrative tasks related with accommodating
applicants.

A. Policy Framework:

D. Material Resources:

An initial barrier that was encountered was the Clean Water


Acts harmonization with preceding laws on incentives and
taxation. For instance, heavy discussions with respect to
exemption from Value-Added Tax (VAT) occurred. Also, it was
realized that other government agencies are tasked on
evaluating the merits of an application for tax exemptions. In
the case of the CWA, heavy coordination with other
government agencies, specifically with the Bureau of
Investments
(BOI),
was
necessary.
Another
barrier
encountered is that though the law mentions the involvement
of private lending institutions, it was discovered that lending
institutions do not have a regular source of funding for
environment projects like waste water treatment and
pollution abatement. The funds they are using for existing
environment projects are dependent on support given by
various international donor agencies.

The additional administrative tasks related with evaluating


the applications would require additional resources like
vehicles for inspection and evaluation, and an information
and data base system for keeping track of the performance
of those granted with the incentives. At the same time, the
Bureau of Investment would also require an information
system that will aid whether the incentives given were really
spend on CWA-related activities.
E. Institutional Support:
Partnerships with the local government and other
stakeholders (NGOs, civic groups) are required to ensure that
performance actually improves due to the provision of
incentives. Also, regular coordination with other agencies like
the Bureau of Internal Revenue and the Department of
Finance needs to be undertaken.

B. Budgetary and Financial Requirements:


F. Planning, Scheduling or Sequencing of Activities:
Another input that was identified as necessary is the
availability of personnel within the DENR who can assess
whether an application merits the CWA incentives. Also, it
was also important to have a unit or regular staff that will

Typical programs that provide subsidies or incentives for


environment programs have a gestation period. This provides
an incentive to stakeholders to immediately implement their

program their investment plans. In the case of the Clean


Water Act, less than ten years is provided for the the
provision of incentives.