THE PHILIPPINES has obtained a technical assistance commitment from the OPEC Fund for International Development (OPEC Fund) to help streamline right-of-way acquisition for major government infrastructure projects, the Department of Finance (DoF) said on Tuesday.

The agreement was sealed during a meeting between Finance Undersecretary Joven Z. Balbosa and OPEC Fund President Abdulhamid Alkhalifa on the sidelines of the World Bank-International Monetary Fund Spring Meetings in Washington, DC on April 18.

“The DoF has secured a commitment from the OPEC Fund for technical assistance to address right-of-way acquisition issues to support the smooth implementation of the administration’s big-ticket infrastructure projects,” the DoF said in a statement.

The OPEC Fund also showed interest in co-financing the Asian Development Bank’s (ADB) Public Financial Management Reform Program Subprogram 1.

The loan will support the Philippine Development Plan 2023-2028, and forms part of the ADB’s country partnership strategy for the Philippines for 2018 to 2023, which is focused on accelerating infrastructure and long-term investment, the DoF said.

“Subprogram 1 is aligned with the goals of the Paris Agreement because it will build a public financial management system conducive to catalyzing climate finance through public-private partnerships and improving climate resilience and readiness among local government units (LGUs),” it added.

The DoF and OPEC Fund also cited the need to execute the Framework Agreement of the Establishment of Private Sector Operations in a timely manner, which would allow the latter to work with the private sector in supporting small- and medium-sized enterprises.

The OPEC Fund provides financial aid from OPEC member countries to non-member countries.

Last year, the OPEC Fund provided the Philippines a $500,000 grant for the pilot phase of the government’s digital food voucher program, “Walang Gutom 2027.” This was conducted alongside the Department of Social Welfare and Development, the World Food Program, and the ADB.

“The OPEC Fund assured the DoF of its flexibility in supporting the Philippines’ needs, especially as it transitions to an upper-middle income country,” the department said.

Meanwhile, the National Economic and Development Authority (NEDA) backed the need to fast-track the approval process of the government’s infrastructure flagship projects (IFPs) to attract more private sector investors to drive job creation and growth. 

“The primary goal of (a recent Executive Order) is to minimize, if not eliminate, delays in the implementation of IFPs,” NEDA Secretary Arsenio M. Balisacan said in a statement.

“We are in a hurry to catch up with our neighbors in the region so the government must enable — not hinder — the timely completion of these projects,” he added.

Executive Order (EO) No. 59 streamlines requirements needed for the NEDA Board-approved list of IFPs, and requires National Government agencies (NGAs) and local government units (LGUs) to review their charters for any redundancies in implementing IFPs.

President Ferdinand R. Marcos, Jr. issued EO 59 last week.

“By streamlining the processing of IFPs, we are making it easier for implementing agencies and more attractive for our partners in the private sector to execute transformative infrastructure projects that would spur job creation for our people and enable us to sustain our economy’s rapid expansion,” Mr. Balisacan said.

NGAs must also set up a digital payment system and automate their respective databases to enable easier data sharing and avoid the duplication of documents.

LGUs should also establish one-stop shops for IFPs for applicants seeking to obtain licenses, permits, and other documents. They must also coordinate with the Department of Information and Communications Technology for the adoption of interoperable and ICT platforms, NEDA said. 

“The EO covers all NGAs, government-owned or -controlled corporations, and other government instrumentalities. It applies to LGUs involved in the issuance of licenses, clearances, permits, certifications, and authorizations that are required for projects included in the NEDA board-approved list of IFPs,” it said.

There are 185 infrastructure flagship projects in the pipeline, valued at P9.4 trillion, NEDA said.

The government’s infrastructure program for this year is pegged at P1.472 trillion, equivalent to 5.6% of gross domestic product, according to the Development Budget Coordination Committee. — Beatriz Marie D. Cruz

BROAD ADOPTION of “green” farming techniques by middle-income economies could help reduce greenhouse gas emissions by nearly a third, the World Bank (WB) said.

The bank said the opportunities to reduce agrifood emissions rest largely with middle-income countries should they choose to adopt sustainable land use practices.

The global agrifood system is viewed as a major contributor to climate change. However, large numbers of people also depend on it for food and job security.

The World Bank noted that financing for agrifood system mitigation remains “strikingly low” at $14 billion, against $660 billion in total climate financing.

To cut agrifood emissions by 2030 and achieve net zero emissions by 2050, annual investment must be increased to $260 billion, it said. 

“Action should happen across all countries to get to net zero, through a comprehensive approach to reducing emissions in food systems, including in fertilizers and energy, crop and livestock production, and packaging and distribution across the value chain from farm to table,” the bank said.

East Asia and the Pacific was reported to have some of the lowest rates of agrifood emissions per capita at 2 tons of carbon dioxide equivalent (tCO2 eq), behind Latin America and the Caribbean (4.4 tCO2 eq), and Europe and Central Asia (2.5 tCO2 eq).

“While the food on your table may taste good, it is also a hefty slice of the climate change emissions pie,” World Bank Senior Managing Director Axel van Trotsenburg said in a statement.

“The good news is that the global food system can heal the planet — making soils, ecosystems, and people healthier, while keeping carbon in the ground. This is within reach in our lifetimes, but countries must act now: simply changing how middle-income countries use land, such as forests and ecosystems, for food production can cut agrifood emissions by a third by 2030.”

The report also calls on high-income countries to shift subsidies from high-emitting food sources and to provide technical assistance to low- and middle-income economies in adopting low-emission farming practices.

Low-income countries must focus on preserving and restoring rainforests, as most of its agrifood emissions are caused by forest clearing, the World Bank said. — Beatriz Marie D. Cruz

THE PHILIPPINES needs to support a tax on fossil fuel producers to help fund the mitigation of climate change impacts in vulnerable countries, Greenpeace said on Tuesday.

“It is in the best interest for the country to advocate for and champion accountability mechanisms that make those most responsible pay for the losses and damages from climate impacts,” Greenpeace campaigner Jefferson Chua said at a briefing.

The tax would be imposed in countries hosting major fossil fuel producers, Mr. Chua said.

“We all know that OECD (Organisation for Economic Co-operation and Development) and G7 (Group of Seven) countries are historically responsible for the acceleration of climate impacts around the world,” he said. “At the same time, countries like ours are lagging in terms of development (relative to) these other countries.”

According to a report by Greenpeace and several other organizations, a climate damages tax (CDT) “addresses the injustice of climate devastation impacting populations around the world who did not cause the climate change but are left to pay for it without the means to do so.”

“On the side of the Philippines, we really need enabling policies here that will facilitate that fund transfer,” Mr. Chua told reporters on the sidelines of the briefing.

A proposed CDT seeks to collect a fee for each ton of coal, barrel of oil or cubic liter of gas extracted by fossil fuel producers, based on a formula that determines the fuels’ carbon dioxide equivalent (CO2e).

The report proposes an initial rate of $5 per ton of CO2e, increasing each year.

A portion of the climate damages tax will go to the Loss and Damage Fund (LDF), while the other half would be remitted as domestic dividends to fund the just transition systems in affected countries.

“We propose that the tax receipt does more than boost government income for allocation to the LDF, but also offers a domestic dividend that can be spent on climate action nationally, helping to pay for workers to transition away from fossil fuels, towards green energy and transport,” according to the report.

Rosa T. Perez, independent climate change specialist fellow at the Manila Observatory and the National Resilience Council, said a climate damages tax could fund measures to address climate-related events like drought.

The tax would be imposed more on fossil fuel producers, compared to a carbon tax, which seeks a general pricing scheme on carbon emissions, she said.

The Loss and Damage Fund was operationalized under the 28^th United Nations Climate Change Conference (COP28) in Dubai last year.

The Philippines secured a seat on the Loss and Damage Fund Board for the 2024-2026 period.

However, only $700 million has been committed to the Loss and Damage Fund, or 0.2% of the actual amount necessary to address climate damage globally, Mr. Chua said.

Despite this, the world’s biggest fossil fuel companies generated more than $100 billion in profits last year, Greenpeace said.

“Like other taxes, this has advantages and disadvantages, so we need safeguards against its negative impacts… especially on vulnerable people,” Ms. Perez said.

If implemented this year, the CDT is expected to generate $216.2 billion in global revenue, according to the report. OECD and G7 countries may contribute tax revenue of up to P55.8 billion and P41.9 billion, respectively.

“If President Marcos is sincere with his pronouncement in being a climate leader worldwide, he will need to heed the clamor of communities who are standing up to carbon makers,” Mr. Chua said. — Beatriz Marie D. Cruz