Working Towards Building a Green Economy and Sustainable Local Communities

DILGUNEPUNDP

Who We Are

About the Poverty-Environment Initiative in the Philippines

 

PPEI efforts directed at maximizing the economic and social benefits of the development and utilization of ENR, particularly extractive industries while enforcing regulatory measures to minimize their environmental and socio-cultural risks.

 

Poverty and environmental integrity are closely linked. Poor people that depend on natural resources for their livelihood would have limited opportunities if their resources are degraded. A degraded environment lowers productivity and income, thus, rendering the poor to be poorer. The deterioration of the productive capacity of natural resources is perceived as a risk that can affect poverty alleviation initiatives.

The Philippine Poverty-Environment Initiative (PPEI) supports the government, civil society and the business sector to utilize revenues and benefits from sustainable ENR management for poverty reduction and environmental protection. It aims at demonstrating that, if managed properly and sustainably, natural resources can propel the country to a path of an inclusive and sustainable development.

The PPEI operates at national and local levels, providing a better enabling environment for national and local government to ensure that ENR revenues are equitably shared by the communities and re-invested to preserve social and natural capital. It seeks to influence institutions, policies and investments to harness the potential of the country’s natural resources to achieve a greener and more inclusive development path.

Download the PPEI Programme Brief

Expected Results:

PPEI is critically designed to deliver Outcome 2 of United Nations Development Assistance Framework (UNDAF) which states that “More men and women will have decent and productive employment for sustainable, inclusive and greener growth”. It also helps to achieve Millennium Development Goals 1 (Eradicate extreme poverty and hunger) and 7 (Ensure environmental sustainability).

By 2015, the following are the expected results of the project:

  1. Strengthened capacities of local communities including LGUs to access and manage assets and revenues from ENR for local economic development;
  2. Increased budget allocation and level of spending for poverty-environment measures in lead agencies, sectoral departments and LGUs;
  3. Improved capacity of LGUs to integrate pro-poor and environmental concerns into the design and implementation of local development plans and programs;
  4. More efficient processes on the distribution of National Wealth (NW) between national government and LGUs through policy reforms and systems improvement;
  5. Full public disclosure of ENR revenues collection and payment, and its utilization by LGUs;
  6. Increased number of people gaining employment and/or venturing into productive enterprises from sustainable management of ENR, especially from resource extraction activities such as mining, oil and gas, geothermal, etc., and
  7. More LGUs adopted green growth strategy through shift into renewable energy (RE) sources and clean development mechanisms (all LGUs with RE resources map and energy plans integrated in their Comprehensive Development Plan (CDP), and improved access of local communities to RE resources).

 

Rational Environment and Natural Resource Extraction and Utilization

Some of the strongest links between poverty and environment are the industries extracting the natural wealth, such as mining, oil and gas, geothermal and hydropower plants. Extractive industries in the country refer to five investment areas: (1) mineral mining, (2) forest and secondary forest products, (3) energy resources, (4) water resources, and (5) coastal and marine resources.

To optimize the contribution of natural resources to local economic development and greener growth, an extractive industry economics must alleviate poverty by gravitating people into the enterprise with jobs, downstream economic activities, and provision of social services from the proceeds:. Natural resource revenues and benefits may be earmarked for rehabilitation of degraded ecosystem and to increase efficiencies of social services. Some of the revenues maybe used to catalyze green investments thereby generating green jobs for the general population of the community.

  • Resource extraction must be a positive economic enterprise bringing out natural wealth for use by the population in general, including the investor.
  • Extractive industries pay taxes, fees, and royalties to government. These are technically known as revenues from national wealth and are procedurally defined by laws and implementing policies. On special cases when an indigenous community is engaged because the resource is within their ancestral domain, the payment arrangement is specific.
  • Apart from the payments made by the industry, it is obliged to allocate part of their proceeds for social responsibility projects in the community where the resource is extracted. The industry is expected to generate jobs and propel community-level economic enterprises through the influx of hired people and their families engaging into productive undertaking. This magnetizing ability of an extractive industry could address poverty for as long as directed community preparation is equally established.

Quick Facts: Poverty Trends in the Philippines

  • In the first semester of 2012, poverty incidence among the population was estimated at 27.9%;
  • In the first 6 months of 2012, there were 16 provinces that have over 40% of their population living below the poverty threshold, most of them are located in Mindanao;
  • 10% of Filipino families are rated “extremely poor”;
  • 75% of all poor families live in rural areas, and
  • Fishermen and farmers are the poorest sectors in the country with poverty incidence levels of 41.4% and 36.7%, respectively, in 2009.

Source: NSCB

Quick Facts: Environmental Degradation Affecting the Poor

  • Philippines faces severe deforestation, declining fish production and overflowing trash;
  • About 100,000 ha of forests are lost every year;
  • 70% of coral reefs are destroyed;
  • Less than 40% of solid waste is collected while the rest find their ways in water bodies and streets;
  • Almost 58% of all groundwater is contaminated;
  • Moreover, climate change impacts further aggravated the condition of the country, and
  • Although the Philippines is the 5th most mineral-rich in the world and its mineral deposits have been estimated to be worth 840 billion to 1.4 trillion dollars, this sector has yet to con­tribute significantly to economic growth and human development.

Source: DENR