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Clean Air Act

Philippines: Clean Air Act
The Clean Air Act outlines the government’s 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 country’s 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 country’s 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

Incentives specifically mentioned in the law are tax and duty exemption on imported capital equipment and tax credit on domestic capital equipment. civic groups) are required to ensure that performance actually improves due to the provision of incentives. regular coordination with other agencies like the Bureau of Internal Revenue and the Department of Finance needs to be undertaken. A complete program on evaluation to monitoring of CWArelated investments and efforts would require funding for regular operations. NGOs. from the consultations conducted by the Department of Environment and Natural Resources (DENR) with various stakeholders (manufacturers. Also. This provides an incentive to stakeholders to immediately implement their . Planning. was necessary. Also. and an information and data base system for keeping track of the performance of those granted with the incentives. A. additional staff needs to be hired in order to accommodate the administrative tasks related with accommodating applicants. Also. Policy Framework: D. Human Resources: III. 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. The funds they are using for existing environment projects are dependent on support given by various international donor agencies. heavy discussions with respect to exemption from Value-Added Tax (VAT) occurred. Budgetary and Financial Requirements: F. Outcomes or Results: The guidelines and procedures on availing the incentives provided by the Clean Water Act have just been recently formulated. C. In the case of the CWA. 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. For instance. the Bureau of Investment would also require an information system that will aid whether the incentives given were really spend on CWA-related activities. The additional administrative tasks related with evaluating the applications would require additional resources like vehicles for inspection and evaluation. Material Resources: An initial barrier that was encountered was the Clean Water Act’s harmonization with preceding laws on incentives and taxation. and local government units). assess the performance (in terms of pollution control. positive response on the incentives was generally elicited. Institutional Support: Partnerships with the local government and other stakeholders (NGOs. private sector. Another barrier encountered is that though the law mentions the involvement of private lending institutions. E.that minimizes waste. heavy coordination with other government agencies. Also. it was discovered that lending institutions do not have a regular source of funding for environment projects like waste water treatment and pollution abatement. discharge) of those who would avail of incentives. However. specifically with the Bureau of Investments (BOI). B. it was realized that other government agencies are tasked on evaluating the merits of an application for tax exemptions. It was identified that regional DENR office need to have resources in order to conduct evaluation and monitoring of those granted with CWA incentives. At the same time.

less than ten years is provided for the the provision of incentives. In the case of the Clean Water Act.program their investment plans. .