Greening the Philippine

Manufacturing Roadmap

Process

Vickie Antonio GIZ - ProGED

La Union

4 March 2016

Outline

1. Linking the initial Roadmap Process to Green Economic Development (GED)

2. Major findings and recommendations

3. Follow-up process: Latest developments, discussions and agreements

The Key Challenge

The worldwide dynamics of industrial development and the integration process of the ASEAN Economic Community challenges the manufacturing industry in the Philippines

to position itself as a globally competitive industry that is successful in domestic,

regional and global markets.

Green Economic Development

A green economy is one whose growth in income and employment is driven by

public and private investments to reduce carbon emissions and pollution, enhance

energy and resource efficiency, and prevent the loss of biodiversity and

ecosystem services (UNEP)

Promotion of Economic Development

(ProGED) Project

• Enhancing the competitiveness of enterprises through the

adoption of climate smart and environment friendly

strategies

• Using the value chain approach, we are working with DTI in

18 provinces to help enterprises green their operations

Linking the Roadmap Process to Green

Economic Development (GED)

• DTI and BOI acknowledge that a critical part of modernizing

the Philippine industry sector involves greening

• Introduce GED in the manufacturing industry

• The Industry Roadmap Process is a unique opportunity to lead

a transformation to an industry driven green economy for the

Philippines

– comprehensively addressed within the overall Roadmap Process

– integrated into selected sector roadmaps

Strategy development for industries

“Green“ should be an integral part of the modernization strategies of the Philippine industry

• Automotive and autoparts industry

• Pulp and paper industry

• Plastic industry

• Furniture industry

• Housing industry

• Copper industry

Greening the Philippine Manufacturing Industry Roadmap

• Integration of Green Economic Development (GED) in industry sector policies of the Philippines (Roadmaps)

• Climate smart, environment friendly and globally

competitive industries

Previous Missions of Dr Bernd Gutterer 1. July 2014: Analysis of overall situation and meeting with industry associations

and other stakeholders

2. November 2014: One-on-one discussions with six industries to assess possible integration of GED

3. March 2015: “Greening Manufacturing and Increasing Competitiveness Forum”

GOALS

Greening the Philippine Manufacturing Industry Roadmap

Greening Manufacturing and Increasing Competitiveness Forum, 12 March 2015

Trade and Industry Development Talk (TID Talk), 7 August 2015

1 August – 8 August 2015 Mission

• Supporting industry associations (automotive, copper, furniture, mass housing, plastics, pulp and paper) to specify their focus on GED

• Presenting strategic options of GED at the “Industry Roadmaps and the AEC Game Plan: Regional Roadmaps for Competitiveness” on 6 August 2015 in Tagaytay City

• Trade and Industry Development Talk (TID Talk) with Industries, BOI champions and government departments on 7 August 2015 •All industry associations reported on encouraging steps towards greening their sectors, NGAs like DENR and DOE responded

• Specification of the role of DTI on Green Economic Development

Strengthen awareness building and institutional development process

Strategic Options

Energy

Efficiency

&RENEWABLES

Helps bring down production costs and contribute to reduction of GHG emissions

By improving business processes, not only production costs can be reduced but costs for the management of solid and hazardous waste, and wastewater as well (and reduce the ecological footprint).

Resource Efficiency

Strategic Options

Meeting international production and process standards Participating in global supply chains and having a good standing on major markets depends highly on good quality product and service delivery. Good quality is the result of well organized business processes that are aligned with international production and process standards relevant for their main markets

Strategic Options

Fostering innovation: Innovation happens when companies and research institutions are given opportunities to collaborate within industry clusters and/or along global value chains.

Strategic Options

Mitigating conflicts resulting from the overuse of natural resources: Finding the right balance for equal and equitable access to natural resources. It also means ensuring its preservation through responsible business practices

Shaping favorable framework conditions for investments

Philippine industry perceives foreign investment as a key for strengthening its competitiveness. But favorable investment conditions (infrastructure,

service provision, etc) are needed.

Key Messages

“Green“ must be integral part of the modernization strategies of the Philippine industry

• good business practices = integral part of global business relations

• strengthens competitiveness of the Philippine industry

• makes industry resilient to climate change impacts

Recent Developments in the

Philippines promoting GED

GP3

Green Expo

and

Conferences

Energy

Efficiency Law

Energy

Efficiency

Roadmap

Renewable

Energy

Development

Feed-in-Tariff

and Net

Metering

Update of the

National CC

Action Plan

Green Public

Procurement

Philippine

Contributions

to COP 21

Eco Labelling

& Certification

Green Jobs

Act

Green

Financing

Electric

Mobility

Emission

Standard

Euro 4

Legislating

Green

Building

Standards

Green

Building Code

of DPWH

Sustainable

Tourism

Ecotourism

Green Industry Development

Drivers of change

Drivers of change

Drivers of change

“There is an urgent need to

substitute fossil fuels with

sustainable energy and this

must be available to

everyone, including the

poorest. Richer countries

must help poorer countries to

make the shift away from

fossil fuels or leapfrog to

cleaner sources of energy

through financing,

technology transfer and

technical assistance.”

Laudato Si, Chap. 26 & 52, 165 & 179

More goals directly linked to climate change (MDGs: only one)

Sustainable Development Goals (SDGs) and Climate Change

188 countries contributed climate action plans to the new agreement, which will dramatically slow the pace of global greenhouse gas emissions. These plans will be revised every five years, thereby steadily increasing the ambitions in the long-term.

The universal agreement’s main aim is to keep a global temperature rise this century well below 2 degrees Celsius and to drive efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial levels.

Countries will continue to engage in a process on mitigation opportunities and will put added focus on adaptation opportunities. Additionally, they will work to define a clear roadmap on ratcheting up climate finance to USD 100 billion by 2020

COP 21: 2015 United Nations Climate Change Conference

Conclusions

• Greening = Strengthening systemic competitiveness and

fostering inclusive growth

• “Green” is not to be seen as an add on, but as a key

driver for innovation

» GED inherent in process, technological and

product innovation

• Philippine industry would have to adopt at least

minimum standards to become competitive

» On top potentially ISO 14000 / 50000

Environmental / Energy Management, other

EMSs

Conclusions

• Greening = Strengthening systemic competitiveness and

fostering inclusive growth

• “Automotive industry, housing and plastic industry are

already facing pressure and are moving into the “green

direction”

» Others should do the same, follow suit

• DTI and BOI should take the lead in proposing and

implementing a systematic and coherent approach

towards Green Economic Development

Industry Pathway

The Philippines‘ way towards a globally competitive manufacturing sector should follow the pathway

from a “Resource Based Economy”

via an “Efficiency Based Economy” towards

an “Innovation Driven Green Economy”

Maraming salamat po

Salamat kaayo

Vielen Dank

Thank you www.greeneconomy.ph