Sustainable Consumption and Production in The Philippines

9”x6” b2543 Sustainable Asia
Copyright © 2017 by the European Union

Open Access chapter published by World Scientific Publishing Company and
distributed under the terms of the Creative Commons Attribution Non-Commercial
(CC BY-NC) 2.5 License.
Chapter 10
Sustainable Consumption and

Production in the Philippines
Sustainable Asia Downloaded from www.worldscientific.com
Leonardo L. Sta. Romana

by 62.160.8.25 on 02/27/17. For personal use only.
10.1 The Philippines and the Path

to Sustainable Development
In the years from 2010 to 2015, the Philippines economy has been recov-
ering from its unenviable reputation as the “laggard of East Asia.” It is
now exhibiting rapid rates of economic growth — 7.1% in 2013 and 6.1%
in 2014 [National Statistical Coordination Board, 2015b] — and improv-
ing its ranking in global competitiveness reports. The Philippines ranks as
a promising newly-industrialised country, with its export economy mov-
ing away from agriculture to electronics and labour-intensive manufac-
tured goods (like garments, footwear, processed foods, and furniture). Its
credit rating has also been upgraded by international rating agencies to the
level of sovereign investment grade.
While that has been a worthwhile achievement in itself, some thought-
ful observers have raised the question about the apparent stubbornly-high
incidence of poverty that has remained, despite the evident economic
expansion. Another question about the economic growth is the continued
deterioration of the environment, felt especially in Metro Manila and the
country’s other big cities.
239
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9”x6”
b2543 Sustainable Asia
240 L. L. Sta. Romana
In this chapter, environmental issues will be considered as well

as — partially — poverty alleviation. Firstly, various concepts will be
clarified, despite being further elaborated elsewhere in the book, as they
form the context of the discussion.
Sustainable development refers to the development of a country that
meets the needs of the present without compromising the ability of future
generations to meet their own needs [UNEP, 2010]. In this specific sense of
having a regard for the needs of future generations, sustainable development
is, in part, equivalent to an environmentally-sustainable development. The
concept of sustainable development consists, however, of two other aspects,
namely, the well-known (though still elusive to some) notion of economic
progress, and that of socially inclusive growth and poverty eradication (as
opposed to the traditional “grow first, redistribute later” policy mind-set).
This leads to the concept of “green growth,” which is an environmentally-

sustainable economic progress that fosters low-carbon, socially inclusive
development [OECD, 2014; GGBP, 2014]. Green growth is the opposite of
the prevailing “grow first, clean up later” type of economic growth
[UNESCAP-ADB-UNEP, 2012]. The concept of sustainable consumption
and production (SCP), with its various approaches, is a major element of
green growth and an important means to achieving it [UNEP, 2012a, 2012b].
10.2 Are the Consumption and Production

Patterns of the Philippines Sustainable?
This section starts with a brief look at some of the main policies in the
country relating to SCP, then an introduction to the promotion of SCP in
the country by the SWITCH-Asia Programme. This is followed by a
review of a number of indicators of the overall state of the environment in
the Philippines.
10.2.1 Policies for SCP in the Philippines

The Philippines is known as a leader in the region regarding laws that
provide the legal and policy framework for protecting the environment, for
example, the Clean Air Act 1999, the Ecological Solid Waste Management
Act 2000, the Clean Water Act 2004, the Biofuels Act 2006, and the
Renewable Energy Act 2008 (see Table 10.1).
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Sustainable Consumption and Production in the Philippines 241
Table 10.1: Selected Philippine laws on the environment

Designation of the Law Purpose of the Law
Philippine Environmental Impact A Decree providing the legal and procedural
Statement System (PEIS) of framework for conducting Environmental
1978 (Presidential Decree Impact Assessments (EIA) for projects likely
1586) to have significant environmental impact. This
has been updated by several DENR
administrative orders.
Clean Air Act of 1999 An Act providing for a comprehensive air
pollution control policy and a national
programme to prevent, manage, control, and
reverse air pollution through both regulatory
and market based instruments.

Ecological Solid Waste An Act setting up a national programme for

Management Act of 2000 managing the transfer, transport, processing,
and disposal of solid waste. It calls for a
phasing out of open dump sites and converting
them into sanitary landfills.
Clean Water Act of 2004 An Act providing for a comprehensive water
quality management, with the aim of
protecting the country’s water bodies from
pollution from land-based sources.
Biofuels Act of 2006 An Act establishing the framework for the
promotion of the use of biofuels in road
transport (biodiesel and gasoline blended with
bioethanol).
Renewable Energy Act of 2008 An Act establishing the framework for the
accelerated development of renewable energy
resources.
Climate Change Act of 2009 An Act establishing the Climate Change
Commission, tasked to coordinate, monitor
and evaluate programmes, and action plans.
Sources: DENR website (denr.gov.ph); NEDA [2014]; and Philippine Senate [2011, 2014].
Regarding SCP, the Philippines has not yet enacted a single policy or
plan specifically for SCP. The country has stated its vision of a green
economy in the Philippine Development Plan 2011–2016, which empha-
sises the need for inclusive growth as well as “sustainable use of resources
to benefit the present and future generations.” A specific sector outcome
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goal is defined as improving environmental quality for a cleaner and

healthier environment with reduction targets for air pollution, water pol-
lution and waste generation [NEDA, 2014].
To advance SCP, the Philippines is also using an enhanced national
Agenda 21 plan as part of the national development strategy, which
includes six key actions:
1. Need to increase economic ecological activities and opportunities for

green markets.
2. Need to increase awareness of consumer options for sustainable
consumption.
3. Businesses must be able to receive assistance to change to better pro-

duction practice.
4. Life cycle assessment (LCA) must be brought down to a level the

consumer understands.
5. Accelerate the establishment of a government green public procure-
ment system.
6. Need to assess policy options for promoting SCP, especially an incen-
tive structure for green production [IGES, 2010].
This environmental policy framework, including those policies relat-

ing to SCP, is an important starting point, yet policy implementation is
less clear. The Department of Environment and Natural Resources
(DENR) is the agency tasked with implementing the country’s environ-
mental policy, however, it performs this task through regional offices in
the country’s 13 administrative regions. The enforcement of environmen-
tal laws has been devolved to local government units (LGUs), but despite
this devolution of power, LGU enforcement remains subject to the super-
vision of the DENR.
For example, the local heads of the country’s smallest administrative
units, called the Punong Barangay, are tasked to enforce laws relating to
pollution control and environmental protection, while municipal mayors
are mandated to safeguard and conserve land, mineral, marine, forest, and
other resources of the municipalities [Lerma and Batan, 2015]. As a result,
multiple issues including political interference, corruption, lack of coordi-
nation, lack of support from the community, and lack of logistical and
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financial resources have hindered the enforcement of environmental

policies.
The actual environmental situation (or “outcomes”) experienced by
the ordinary citizens is covered in the following sections below.
10.2.2 Promoting SCP in the Philippines through

the SWITCH-Asia Programme
The SWITCH-Asia Programme has been implementing projects in the
Philippines since 2009, all of which are aimed at facilitating and support-
ing the shift to SCP.
The programme is implemented on two levels: firstly, policy support

at the national government level; secondly, pilot projects at the enterprise

level. The preceding section covered the national environmental policy
framework; this following section covers the SWITCH-Asia National
Policy Support Component (NPSC) (see Box 10.1).
Box 10.1 The SWITCH-Asia NPSC

The SWITCH-Asia Programme’s involvement in the Philippines includes
technical assistance to support the national government’s implementation of
policy instruments related to the “switch” towards SCP.
The Philippines is one of the five countries receiving this technical assis-
tance, namely SWITCH-Asia National Policy Support Component (NPSC).
The NPSC in the Philippines was implemented by a consortium consisting
of GFA Consulting Group (Germany) as the leading organisation, Ecorys
(Netherlands), Milieu (Belgium), and ASSIST (Philippines).
The technical assistance project started in July 2012 and continues until
December 2016, thus the present discussion involves a project that has not yet
finished.
With the objective of supporting the government in implementing SCP
policies, the project focuses its efforts in three areas: (1) clean energy and
energy efficiency; (2) green procurement and eco-labelling; and (3) capacity-
building at the DENR in order to be able to address cross-cutting SCP issues,
including the Clean Air Act. The other government agencies that receive
(Continued )
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Box 10.1 (Continued )
technical assistance from the project are the Department of Energy (DOE), the
Department of Trade and Industry (DTI), the Climate Change Commission,
and the Philippine Council for Sustainable Development.
One recent project achievement was the approval in July 2014 by the DOE
secretary of the Energy Efficiency and Conservation Roadmap 2014–2030,
whose development was supported by the technical assistance team [Lister,
2013]. Several consultation meetings were held earlier to obtain inputs from
relevant government agencies and stakeholders, including professional organi-
sations, and development partners. After extensive discussions, the roadmap
was revised incorporating pertinent inputs and recommendations from these
stakeholders.
When technical assistance from a foreign donor to a government is
involved, a major concern is the issue of “buy-in” by the respective govern-

ment agency of the policy support. This is often referred to as the degree of
“ownership” manifested by the recipient agency regarding the technical sup-
port being provided. This has been addressed successfully by the project, as
the most recent half-yearly progress report states “the project is well integrated
in the partner institutions […] There is a high level of ownership among the
main partners, especially at the DOE, DTI, and DENR” [Bischoff and
Balamiento, 2015].
At the enterprise level, in 2015 there are nine SWITCH-Asia grant

projects either completed or operational in the country (see Table 10.2).
We used two criteria to “triangulate” on which projects to select as case
studies. One criterion was that the project focused solely on the
Philippines, since some involve a number of other countries in the region.
This criterion reduced the number of projects to four. A second criterion
was that the projects should already be completed, rather than on-going.
At the time of writing, three projects had already been completed. The
Zero Carbon Resorts is already discussed in this book’s chapter on sus-
tainable tourism (see Chapter 14). We therefore focus on the two other
completed projects as case studies, namely, the projects GPIoS and
SMART Cebu. Both projects are presented below in text boxes, but they
do not involve a detailed ex post evaluation (i.e., performance evaluation
and/or impact evaluation).
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Table 10.2: SWITCH-Asia projects in the Philippines, 2015
Implementing Places of Brief Project

Name of Project Period Organisations Implementation SCP Practice Description
Philippines Only
Sustainable Consumption and Production in the Philippines

Completed
(1) GPIoS 2009–2013 VSB-Tech Univ Metro Manila, Cleaner production, Green Philippines
Ostrava, GrAT, CALABARZON resource efficiency Islands of
AREC, ASSIST, Sustainability
ECCP

(2) SMART Cebu 2009–2013 SEQUA, EFA, ECCP, Cebu Cleaner production, SMEs for environmental
ADFIAP eco-design Accountability,
Responsibility, and
Transparency
(3) Zero Carbon 2009–2014 GrAT, PCSD, Palawan Resource efficiency, Building Energy
Resorts, ZCR PSA-CIEMAT, 3R (reduce, Autonomous Resorts,
ASSIST replace, redesign) Creating Appropriate
Technology Solutions
On-going
(4) High-Efficiency 2014–2018 IIEE, ICASEA, Various areas Energy efficiency Increasing the Uptake
Motors ASSIST, ECCP of High Efficiency
Motors and Drive
Systems in Philippine
Industries
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245
(Continued )
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246
9”x6”
Table 10.2: (Continued )
Implementing Places of Brief Project

Name of Project Period Organisations Implementation SCP Practice Description
Including Other Countries:

Completed:
(5) AEMAS 2010–2014 ASEAN Centre for 7 ASEAN nations Energy efficiency Establishment of the
Energy, ASD, accreditation ASEAN Energy
ENPAP Manager

Accreditation Scheme
L. L. Sta. Romana
On-going:
(6) Efficient Air 2013–2016 Europe Copper Inst, 7 ASEAN nations Energy efficiency Promotion and
Conditioners UNEP-DTIE, IIEE Deployment of Energy
Efficient Air
Conditioners in
ASEAN
(7) Hand-Woven 2013–2017 Hivos, NTFP-EP Indonesia Sustainable SCP of Hand-Woven
Eco-Textiles consumption, Textiles (Songket,
eco-design Ulos, Lurik, Abaca,
Ikat), Female
Entrepreneurship in
Indonesia and the
Philippines
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(8) Lead Paint 2011–2015 IPEN, Arnika-Toxics 6 Asian nations Eco-labelling Elimination of lead in
Elimination & Waste paints through
Project Programme, awareness raising

EcoWaste Coalition and standard setting
(9) ZCR for 2014–2018 GrAT, PCSD, Thailand Resource efficiency Zero Carbon Resorts
Sustainable PSA-CIEMAT, towards Sustainable
Tourism Development of the
Tourism Sector in the
Philippines and
Thailand
Source: European Union [2014], SWITCH-Asia’s 80 Projects at a Glance: Fact Sheet (2014).
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9”x6”
10.3 Indicators on the Impact on

the Environment and Climate
In this section, selected indicators to evaluate the impact of unsustainable
consumption and production patterns on the environment and society in
the Philippines are discussed.
There has been growing literature regarding appropriate indicators to
use to monitor green growth towards the green economy [UNEP, 2015;
GGKP, 2013; UNESCAP, 2013]. While the tendency is to propose a dash-
board of socio-economic and environmental indicators, there is also the
need to have a single so-called “headline” indicator (parallel to the Gross
Domestic Product) that will communicate easily the state of green growth
to policy makers and to the educated layperson.

But problems with both concept and measurement exist, and while the
search for such an elusive indicator continues, there the Environmental
Performance Index (EPI) exists which offers a summary index for the
“green” aspect of growth. The EPI, updated every two years, is a joint
project of the Yale University Center for Environmental Law and Policy
and the Columbia University Center for International Earth Science
Information Network [Hsu et al., 2014].
The EPI ranks how well countries perform on high-priority environ-
mental issues in two broad policy areas: protection of human health from
environmental harm and protection of ecosystems. Within these two pol-
icy objectives, the EPI scores country performance in nine issue areas
comprised of 20 indicators. The nine areas are health impacts, air quality,
water and sanitation, fisheries, water resources, agriculture, forests, biodi-
versity and habitat, and climate and energy.
Based on the EPI, the Philippines ranked 114th out of 178 countries in
2014, while 2012, it ranked 42nd out of 132 (see Table 10.3). Its EPI rank-
ing thus fell from the 68th percentile in 2012 to the 36th percentile in 2014,
i.e., only 36% of countries are now ranked below the Philippines.
Refinements in the methodology and underlying data perhaps make the
comparison of rankings over time an exercise of limited validity, yet the 2014
ranking represents the best estimate of the country’s environmental perfor-
mance, as they have been calculated using latest iteration of this measure. Since
2006, the EPI has been recalibrated, refined and updated every two years.
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Table 10.3: Selected sustainability indicators: Philippines

Indicator Latest Previous Source

GDP growth rate 6.9 (2014 Q4) 5.3 (2014 Q3) NSCB [2015a]

Poverty incidence (% of population) 25.8 (2014 H1) 24.6 (2013 H1) NSCB [2015a]
Environmental Performance Index (ranking among nations) 114 out of 178 (2014) 42 out of 132 (2012) EPI [Hsu, 2012, 2014]
Protected forest land area increase (hectares) 333,160 (2014 Q3) 221,763 (2013) NEDA [2015]
Households with electricity (% of total) 79.1 (2013) 76.7 (2012) NEDA [2015]
Households with access to safe water (% of total) 83.8 (2013) N.A. NEDA [2015]
Households final consumption expenditure 5.4 (2014) N.A. World Bank [2015]
(annual % growth)
Source: The respective data source is indicated on the right-hand column above, with the full reference given at the end of the chapter.
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This survey of selected indicators of the unsustainable patterns of

consumption and production in the country would not be complete with-
out some discussion of the threat of global warming and climate change.
In terms of emissions of greenhouse gases (GHG), the country accounts
for only 0.4% of global emissions, and is therefore not a major emitter of
GHGs [ADB, 2011]. A recent report [World Bank, 2013a], however, iden-
tifies that the country’s GHG emissions are increasing rapidly compared
to other low and middle-income countries, and can be expected to increase
further, as the economy continues its recent rapid growth.
Another way of looking at the same issue is through the lens of a
country’s Ecological Footprint. It measures the amount of biologically
productive land and sea area that a country needs to produce the resources
it consumes, provide room for its infrastructure, and absorb its waste
[WWF and ADB, 2012].

As people consume resources from around the world, the Ecological
Footprint adds these areas together regardless of where they are located
on the planet. Because trade is global, a country’s footprint includes land
or sea from all over the world. The footprint is usually measured in
“global hectares” (or gha), a unit that encompasses the average produc-
tivity of all the biologically productive land and sea area in the world in
a given year.
One estimate puts the per-person Ecological Footprint of the
Philippines at 1.3 gha in 2008, within the limits of the world average avail-
able biocapacity of 1.8 gha [Global Footprint Network, 2012], and one of
the smallest-footprint nations in the region. For Asia-Pacific as a whole,
the footprint is 1.6 gha, while Australia and Singapore are in the largest-
footprint category of nations, with a range of 5–7 gha [WWF and ADB,
2012].
However, in 2008, there was only 0.6 gha of biocapacity per person
available in the Philippines [Global Footprint Network, 2012], indicating
that although consumption levels are relatively low, the demand exceeds
the country’s biocapacity. The report also shows that 61% of the ecologi-
cal footprint of households comes from the food sector, which highlights
the limited contribution of other sectors, like construction, transport,
goods, and services. It also highlights the Philippines’ dependence on
“food biocapacity” imports from other countries.
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To return to our point of the country’s minor role as a global emitter

of GHGs, the Philippines, however, is one of the most highly vulnerable
countries to existing climate risks and future climate change. To be specific,
four Philippine cities — San Jose, Manila, Roxas, and Cotabato — are
among the top 10 cities in the East Asia/Pacific region most vulnerable to
the climate-related impacts of intensified storm surges and sea-level rise
[Dasgupta et al., 2009].
The Philippines is ranked second country in the world most at risk
from natural hazards (i.e., earthquakes, storms, floods, droughts, and sea-
level rise) including the adverse effects of climate change, according to
the latest World Risk Index [Welle, Birkmann, and Rhyner 2014]. And in
a related study but with a focus on coastal areas, the Philippines is among
the top 10 countries in the world with the highest risk from coastal hazards
(i.e., storms, floods, surges, tsunamis, and sea-level rise), according to the
Coasts@Risk Index [Beck, 2014].
The next sub-chapter will address the implications of a shift to a sus-
tainable pattern of consumption and production on the issue of global
warming and climate change.
10.3.1 Indicators on air pollution, human health,

and municipal waste generation
Unsustainable patterns of consumption and production contribute to air
pollution. Industries, households, and cars, trucks, and other vehicles
emit various mixtures of air pollutants, many of which are harmful to
human health. Among these pollutants, fine particulate matter has the
most harmful effects.
Most fine particulate matter results from fuel combustion, both from
“mobile” sources (i.e., vehicles), and from “stationary” sources (i.e., smoke
stacks). Some major sources include exhaust fumes from vehicles, emis-
sions from manufacturing facilities (e.g., factories) and power generation
(e.g., smoke stacks of coal-fired power plants) [WHO, 2014].
High concentration of small and fine particulate pollution is particu-
larly associated with high numbers of deaths from heart disease and
strokes, as well as respiratory illnesses and cancers. Measurement of
fine particulate matter of 10 micrometers or less (also known as microns)
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9”x6”
in diameter (“PM10”) is one indicator of the level of health risks from

air pollution. The most health-damaging particles are those with a diam-
eter of 10 microns or less, which can penetrate and lodge deep inside the
lungs.
Air quality measurements are typically reported in particles per cubic
meter of air volume. Following the WHO’s Ambient (outdoor) Air
Pollution Database Update 2014, the PM10 reading for the country was
50 (in 2010), which would indicate a level of pollution that is 2.5 times
higher than the WHO air quality guideline value of 20 [WHO, 2014]. This
value was taken from four stations in the three cities of Manila, Cebu, and
Baguio. The major contributor to air pollution is the transport sector
(mainly the ubiquitous jeepneys, buses, and tricycles) [ADB, 2011].

Levels of pollution have to be seen in its context, as some advances
have already been made in air quality parameters. Lead concentrations

have dropped since the complete phase out of lead in petrol/gasoline in
December 2000. The lead concentration in the ambient (outdoor) air in
Metro Manila was monitored in 2003 to be much lower than the national
air quality guideline value of 1.0 microgram per cubic metre. This com-
pares with a value in 1992 of around 1.7 [ADB and Clean Air Asia, 2006;
World Bank, 1997]. The closure of some coal and oil-fired power stations
has also reduced sodium dioxide concentrations, and there is much lower
consumption of ozone-depleting substances.
Another indicator of the consequences of unsustainable patterns of
consumption and production is municipal solid waste generation and its
disposal. The issue of appropriate solid waste management is particularly
important in highly urbanised areas, where an effective waste manage-
ment system will determine of the level of impacts on public health, envi-
ronmental quality, and the resulting quality of life.
When the waste management works well, residents give it little
thought: out of sight and quickly out of mind. Discarded materials are
collected, some are recycled or composted, and most are landfilled or
incinerated. However, the problem soon rears its ugly head when there is
poor disposal of collected and uncollected waste. Indiscriminate dumping
of solid waste onto open areas and watercourses and unsanitary methods
of final disposal are major factors behind the deterioration of urban
environment.
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The Philippines generates about 30,000 tonnes of garbage per day,

only half of which is collected. Even in Metro Manila, only 70% of the
8,000 tonnes of garbage generated each day is collected [ADB, 2011]. The
rest often winds up on the streets and in local rivers. The waste that is col-
lected is taken to open dump sites that often catch fire or contaminate local
water supplies. The waste decomposes and produces methane, a GHG that
is 21 times more potent than carbon dioxide and is a major cause of cli-
mate change [World Bank, 2012]. The country also remains inadequately
equipped to deal with hazardous waste.
When the collection of waste material is difficult, as is the case in
many cramped settlements of informal settler families, nearby water-
courses such as creeks and rivers become convenient dumping grounds,

ultimately hampering water discharge during the rainy season and thus
contributing to flooding. The waste materials also causes damage to

pumping stations, thereby affecting their function of pumping out flood-
water. Hence, a city’s ability to keep solid waste out of drainage ditches
can influence whether a neighbourhood floods after a heavy storm.
LGUs, responsible for the collection and disposal of solid waste mate-
rial, generally have little capacity to plan, develop, operate, and maintain
sanitary landfills and have difficulty in complying with the Ecological
Solid Waste Management Act [ADB, 2012].
City dwellers have a role to play regarding the problem of solid
waste, as they consume and discard resources at an ever-increasing rate.
The responsible authorities will need to develop more effective pro-
grammes to reduce, reuse, recycle, and recover waste. While recycling
helps to manage solid waste, reducing consumption, and minimising
waste based on principles of reduce, reuse, or recycle (3Rs) should be
the ultimate goal (see also Chapter 15). By minimising waste, the
demand for landfill space can be reduced, which in turn will save
resources and energy, reduce pollution, and increase the production
efficiency of industries.
As simple as it sounds, however, waste minimisation is difficult to
achieve because it requires a change in people’s mindset. Simply expect-
ing people to reduce, reuse, or recycle simply because it is the right thing
to do is an ideal, since most are caught up in the culture of consumerism.
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The persistent challenge is how to remove and manage waste in a safe,

environmentally sound, and cost-effective manner. If done well, municipal
waste management practices can contribute to the reduction of GHG
emissions of a city, also short-lived climate pollutants such as methane
that is far more potent than carbon dioxide. Under the SWITCH-Asia
Programme, the “Green Philippines Islands of Sustainability” (GPIoS)
project carried out a number of activities and initiatives to address the
issue of waste management and recycling (see Box 10.2).
Box 10.2 The Case Study of SWITCH-Asia project Green

Philippines Islands of Sustainability (GPIoS)

The objective of the GPIoS project was to contribute to an overall improve-

ment of the environmental situation of a strategic area of the country, namely,
Metro Manila and its linked regions, the CALABARZON, Subic, and Clark
areas [Labodova, 2014].
In order to attain the objective, it aimed to achieve the reduction in pollu-
tion level, as well as the reduction in: (1) waste water, (2) hazardous waste,
(3) raw and auxiliary materials, and 4) energy consumption for a significant
number of SMEs and other specific companies in the targeted regions.
The GPIoS project was the successor to a pilot project, the Green
Philippines project, which ran from 2006–2009. While the pilot was focused
in the Pampanga, Subic, and Clark regions, GPIoS extended its scope to Metro
Manila and CALABARZON regions. The pilot project was limited to only
30 companies, several of which continued on to the GPIoS.
The GPIoS’s main instrument for attaining its objectives involved work-
shops and individual consulting by experienced consultants. The project trans-
ferred know-how through training workshops and coaching, combined with a
system of quality assurance and monitoring. At the core was a 12-month
capacity-building programme of workshops offered on a periodic basis to help
interested companies clean up their production processes. In order to do this,
it had the benefit of several European partner organisations, namely the Center
for Appropriate Technology (GrAT) in Austria. GrAT provided the technical
know-how with its expertise in environmental solutions as well as interna-
tional experience.
(Continued )
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Using the ‘training the trainers’ approach, GrAT shared European best
practice to local consultants, also through coaching in on-the-job training.
Another organisation, Austrian Recycling (AREC), contributed expertise in
waste management and recycling. AREC assisted in the validation of
environmental recommendations implemented by SMEs involved in the
project. Collaboration between VSB-Technical University of Ostrava in the
Czech Republic, as the lead organisation, with GrAT and AREC had resulted
from their participation in the GPIoS project.
Locally, the Asia Society for Social Improvement and Sustainable
Transformation (ASSIST) mobilised local stakeholders for the implementa-
tion of the project. The Philippine Chamber of Commerce and Industry

(PCCI), the European Chamber of Commerce of the Philippines (ECCP), and
the Philippine Business for Environment (PBE) were partner organisations

who spread the word about the project among local firms and helped recruit
the target number of SMEs.
As a result, over the course of 2009–2013, the project had involved around
400 SMEs within its geographical scope, thus raising environmental aware-
ness among the participating SMEs. To create an enabling policy environment,
the project worked in close collaboration with the DNER, which increased
legal compliance of the participating SMEs. The project also established a
relationship with two municipalities of Pasig City and Angeles City. At the end
of the project, a training and consulting centre was established as a joint activ-
ity of project partner ECCP and a local consultancy, which employs six con-
sultants trained within the project. A detailed business plan has been created,
which included a number of companies in need of a good financial base to
become self-sustaining.
10.4 Micro, Small, and Medium-sized

Enterprises and the SWITCH-Asia Projects
Another source of pollution and resource consumption in the Philippines
is the industrial sector. Of the 944,897 business enterprises operating in the
country in 2012, 99.6% are micro-, small-, and medium-sized enterprises
b2543_Ch-10.indd 255 11/17/2016 9:47:51 AM

9”x6”
Table 10.4: Definition of micro-, small-, and medium-sized enterprises
Number of Employees Amount of Assets (PHP)

Micro 1–9 Less than or equal to 3 million
Small 10–99 More than 3 to less than 15 million
Medium 100–199 15 to less than 100 million
Source: Employment — Magna Carta for MSMEs of 2008; and Assets — MSME Development Plan
2011–2016.
(MSMEs) [Department of Trade and Industry, 2014]. In the following

Table 10.4, the definition of MSME as defined by the Philippine
government is described [World Bank, 2013b].

Looking at each category of the MSME sector, micro firms account

for 89.4% of all enterprises, small firms for 9.7%, while medium firms for
0.4%. Given that only 0.4% of all enterprises are large firms, it is not
surprising that the average employment per establishment in the country
is 25 [National Statistics Office, 2015].
According to the Micro, Small, and Medium Enterprise Development
Plan for 2011–2016 [MSMEDC, 2011], in terms of total employment of
all enterprises, in 2008 the MSME sector contributed 64.9% of the total
jobs, which can be broken down into 30.5% from micro firms, 27.2%
from small firms, and 7.3% from medium firms. In terms of value-added,
in 2006, the MSME sector contributed 35.7% for all enterprises, which
can be further broken down to 4.9% from micro firms, 20.5% from small
firms, and 10.3% from medium firms.
In terms of the location of the MSME sector, 22.4% of the enterprises
are located in Metro Manila, and 15.4% are in the CALABARZON
region. (CALABARZON is an acronym for the group of adjacent prov-
inces of CAvite, LAguna, BAtangas, Rizal, and QueZON.) 11.2% are
located in the rest of Central Luzon. Making up the rest of the top five
geographical areas are Central Visayas with 7% of the enterprises, fol-
lowed by Western Visayas with 5.7% of the firms. These top five regions
accounted for 61.7% of the MSME sector.
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10.4.1 SMEs, inclusive growth, and poverty

alleviation
It has become an important development goal for policy makers to design
and implement policy initiatives, which ensure that economic growth is
broad-based and reduces the incidence of poverty. Yet, the grim reality is
that poor people do not, and cannot, fully participate in and enjoy the
fruits of the current economic growth in the Philippines.
As mentioned, SMEs contribute nearly 65% of the total employment
of all enterprises in the country due to the less sophisticated and labour
intensive production systems. SMEs tend to have lower entry requirements
in terms of skills, education, and qualifications. They are also likely to
employ marginalised groups who may otherwise have difficulties finding

jobs in large enterprises. As such, some SMEs are “survival enterprises,”

operating out of necessity, rather than with the intention to grow, providing
incomes, and livelihoods to the majority of the poor who are faced with the
absence of any real alternative due to a lack of sufficient wage employment
[ILO, 2015].
At the same time, though, it is important to note that SMEs and large
enterprises do not exist in isolation, but form part of an interacting system,
where large enterprises provide SMEs with markets. SMEs require access
to credit, new inputs, technology, and services that lead to improved prod-
ucts that large enterprises are looking to purchase [Habito, 2010;
Paderanga, 2011].
This suggests the need to focus on creating openings for small
enterprises to integrate into domestic value chains or in the different
stages of production and trade of goods and services. This is the means
for SMEs to develop linkages with large enterprises in the economy,
expanding the business scope of the SME sector and enhancing
competitiveness.
The substantial share of jobs that come from the SME sector would
seem to provide a pointer to an alternative path leading to a more inclu-
sive type of economic growth. An example of achieving sustainable
development and more inclusive growth, by supporting SMEs, has been
demonstrated by the SWITCH-Asia SMART Cebu project (see Box 10.3).
b2543_Ch-10.indd 257 11/17/2016 9:47:51 AM

9”x6”
Box 10.3 The Case Study of SWITCH-Asia project: Small

and Medium Enterprises for environmental Accountability,
Responsibility, and Transparency (SMART Cebu)
The objective of the SMART Cebu project was to increase the competitiveness
of SMEs in the home and lifestyle industries through cleaner production pro-
cesses of eco-friendly products, thereby contributing to the cleaner environ-
ment in the Cebu province [Ritter, 2014]. Three industries of the home and
lifestyle sector were engaged in the course of the project’s life over three-and-
a-half years (2009–2013), namely: (1) furniture and furnishings, (2) gifts, toys,
and housewares, and (3) fashion accessories. These have been long-standing
industries in Cebu, for which the province is renowned, and constitute an
important element of the local economy.

However, the sectors were having a negative impact on the environment, since
energy and raw materials were not being used in an efficient manner. Production
processes released dust and fumes from sanding, cutting and paint spraying,
exposing those workers with inadequate protection to unhealthy indoor pollution.
To reach the SMEs, the business membership organisations (BMOs) of
the three industries became the vehicle, namely: the Association of Cebu Gifts,
Toys, and Hardware (Cebu GTH), the Cebu Furniture Industries Foundation
(CFIF), and the Association of Cebu Fashion Accessories Manufacturers and
Exporters (Cebu FAME). The project sought to instil a SMART Cebu mind-set
(i.e., resource efficiency and cleaner production, or RECP).
The project’s lead organisation, SEQUA, a non-profit development organ-
isation from Germany, teamed up with experts from Energy Efficiency Agency
(EFA) in North Rhine-Westphalia, Germany, to train and coach local experts
and staff of the BMOs. They first trained six counsellors to provide advisory
services to member companies of the BMOs. Then a pool of 30 clean produc-
tion experts is trained to guide the SMEs on the technical aspects of how to
make the manufacturing processes cleaner and more efficient.
In total, the project conducted 150 walk-through eco-assessments and
coached SMEs on the use of metrics in production operations and proper cost-
ing. RECP actions led to savings in energy and water, lower use of chemicals,
less in-factory pollution, and improved operational efficiencies. Around 1,000
participants from close to 300 SMEs were involved in more than 30 training
sessions on eco-design, SCP, RECP, as well as other SCP-related conferences.
(Continued )
b2543_Ch-10.indd 258 11/17/2016 9:47:51 AM

For the first time, Cebu’s home and lifestyle sector was able to participate
in international trade fairs in Europe and Asia, presenting the sector as a global
partner for sourcing and designing eco-friendly products. Marketing of these
products was undertaken at these trade fairs and a new line of eco-friendly
products was launched on the international market.
About 12 fashion accessories companies, 12 GTH companies, and nine
furniture companies promoted their newly developed eco-product lines at
trade fairs in Paris, Cologne and Frankfurt. The participating companies can
now claim that they are utilising natural and renewable resources more effi-
ciently in its production process, while reducing the carbon footprint of the
products as they reach the world market.

Another key aspect of the SMART Cebu project was its pair of local part-
ners, the European Chamber of Commerce in the Philippines (ECCP) and the
Association in Development Financing Institutions in Asia and the Pacific
(ADFIAP), a regional organisation based in Manila. After the project was
completed, its website became the responsibility of ECCP. The project also
collaborated closely with the Department of Science and Technology; one
result of this collaboration is the eventual accreditation of most of the local
trainers coached by the project.
Given the relative success of this project, other sectors in Cebu were quite
eager to be the beneficiaries of a similar SMART project (e.g., hotels, resorts,
restaurants, and food companies), as well as BMOs in other regions (e.g., other
provinces in the Visayas and Luzon).
10.5 Conclusions
This chapter gives an overview of the SCP patterns in the Philippines,
within the framework of its sustainable development. The search for sim-
ple and understandable indicators for the environmental impacts of the
prevailing patterns of consumption and production in the country initially
has yielded few results. Indicators that attempt to assess the overall state
of environment in the Philippines were reviewed, together with those that
indicate the country’s ecological footprint and emissions of GHGs, as well
as indicators on air pollution and the generation of waste material. The
indicators show environmental degradations in all domains assessed.
b2543_Ch-10.indd 259 11/17/2016 9:47:51 AM

9”x6”
Environmental policy and the legal framework that pertains to the

country’s laudable endeavours to switch from its unsustainable patterns of
consumption and production were addressed, but the indicators suggest a
considerable gap between the rhetoric of the stated policies and laws ver-
sus the environmental outcomes. This indicates that there is room for
improvement in the implementation of existing policy frameworks at vari-
ous levels of environmental governance.
One explanation for such a wide gap between policy design and
implementation is the persisting lack of political will and bureaucratic
inertia, which results in the weak — or worse, lack of — enforcement of
the laws. There is, however, some attempt to improve the state of affairs,
as discussed above in the case of SWITCH-Asia NPSC, which works to

promote and strengthen the adoption of SCP-related policies.
The SWITCH-Asia NPSC provides technical assistance and policy

support to the Philippine national government. Its three selected priority
areas are the constituent elements of the country’s efforts toward SCP,
namely, clean energy and energy efficiency, green procurement and eco-
labelling, and capacity-building at the DENR in order to enable it to
address cross-cutting SCP issues, including the Clean Air Act.
To date, the NPSC has progressed well, with the recent approval of the
Energy Efficiency and Conservation Roadmap by the DOE cabinet secre-
tary. However, challenges continue, which is common with any other
foreign donor’s technical assistance, regarding the degree of “ownership”
of the technical support being provided by the recipient agency.
Being the backbone to the economy, MSMEs were also addressed.
The MSME sector makes up 99.6% of all enterprises and contributes
almost 65% of jobs. A policy direction was identified by which MSMEs
can be assisted as part of the national effort towards more inclusive growth
and poverty alleviation.
In the context of the Philippines’ pursue of sustainable development,
case studies of two completed SWITCH-Asia projects were described,
with a focus on SMEs and their industrial processes, and how they may
contribute to the objectives of reducing poverty and environmental degra-
dation. Both projects had advocated a switch from business as it is to a
more resource efficiency and cleaner production. By doing so, the projects
contributed to a cleaner environment in their implementation areas in the
b2543_Ch-10.indd 260 11/17/2016 9:47:51 AM

Greater Manila/Luzon and Cebu regions. To sustain the results, the projects
had embarked on an outreach programme involving a large number of
SMEs to further promote the adoption of RECP techniques and practices.
As with all projects that run for a limited period of time (whether foreign
or domestic), the long-term desirable effects of the SWITCH-Asia projects
on the target groups, especially SMEs, may not be immediately apparent.
Two final remarks can be made of this chapter. Firstly, the search for
indicators that are understandable to policy makers and educated laymen
has to continue — the indicators discussed in this chapter can serve as a
starting point for such a search. Only through such indicators can progress
in green growth and SCP implementation be monitored, and with moni-
toring comes the resulting pressure from citizens for further environmen-
tal action from government and companies. Secondly, there is a relationship
between the push for a shift toward SCP and the climate change. As the
Philippines has minor role as a global emitter, this seems to suggest the
need for a rethinking of priorities in environment-related programmes.
It suggests there is a “double dividend” for the country from any action to
shift consumption and production to more sustainable patterns.
One dividend will be felt in the not-so-distant future — less fossil fuel
fumes, pollution, waste and garbage, environmental degradation, and per-
haps even less floods in cities. The second dividend is the country’s contri-
bution toward a reduction in the emission of GHGs and its ecological
footprint, which already exceeds its national biocapacity. It would seem to
be the equivalent of hitting two targets (or birds) with one policy instrument
(or stone), with due apology for the metaphor to the conservationists looking
after the country’s national bird, the critically endangered Philippine eagle.
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Sustainable Consumption and Production in The Philippines

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9”x6” b2543 Sustainable Asia

Copyright © 2017 by the European Union

Sustainable Consumption and

Leonardo L. Sta. Romana

10.1 The Philippines and the Path

b2543_Ch-10.indd 239 12/16/2016 7:10:12 AM

240 L. L. Sta. Romana

In this chapter, environmental issues will be considered as well

This leads to the concept of “green growth,” which is an environmentally-

10.2 Are the Consumption and Production

10.2.1 Policies for SCP in the Philippines

b2543_Ch-10.indd 240 11/17/2016 9:47:50 AM

Sustainable Consumption and Production in the Philippines 241

Table 10.1: Selected Philippine laws on the environment

and market based instruments.

Ecological Solid Waste An Act setting up a national programme for

b2543_Ch-10.indd 241 11/17/2016 9:47:50 AM

242 L. L. Sta. Romana

goal is defined as improving environmental quality for a cleaner and

1. Need to increase economic ecological activities and opportunities for

3. Businesses must be able to receive assistance to change to better pro-

4. Life cycle assessment (LCA) must be brought down to a level the

This environmental policy framework, including those policies relat-

b2543_Ch-10.indd 242 11/17/2016 9:47:50 AM

Sustainable Consumption and Production in the Philippines 243

financial resources have hindered the enforcement of environmental

10.2.2 Promoting SCP in the Philippines through

The programme is implemented on two levels: firstly, policy support

at the national government level; secondly, pilot projects at the enterprise

Box 10.1 The SWITCH-Asia NPSC

b2543_Ch-10.indd 243 11/17/2016 9:47:50 AM

244 L. L. Sta. Romana

involved, a major concern is the issue of “buy-in” by the respective govern-

At the enterprise level, in 2015 there are nine SWITCH-Asia grant

b2543_Ch-10.indd 244 11/17/2016 9:47:50 AM

Implementing Places of Brief Project

Sustainable Consumption and Production in the Philippines

b2543 Sustainable Asia

Implementing Places of Brief Project

Including Other Countries:

b2543 Sustainable Asia

b2543 Sustainable Asia

248 L. L. Sta. Romana

10.3 Indicators on the Impact on

to policy makers and to the educated layperson.

b2543_Ch-10.indd 248 11/17/2016 9:47:51 AM

Table 10.3: Selected sustainability indicators: Philippines

Indicator Latest Previous Source

b2543 Sustainable Asia

250 L. L. Sta. Romana

This survey of selected indicators of the unsustainable patterns of

[WWF and ADB, 2012].

b2543_Ch-10.indd 250 11/17/2016 9:47:51 AM

Sustainable Consumption and Production in the Philippines 251

To return to our point of the country’s minor role as a global emitter

10.3.1 Indicators on air pollution, human health,

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252 L. L. Sta. Romana

in diameter (“PM10”) is one indicator of the level of health risks from

9”x6” b2543 Sustainable Asia

10.1 The Philippines and the Path

10.2 Are the Consumption and Production

10.2.2 Promoting SCP in the Philippines through

10.3 Indicators on the Impact on

10.3.1 Indicators on air pollution, human health,

10.4 Micro, Small, and Medium-sized

10.4.1 SMEs, inclusive growth, and poverty