Jessica Mae Ballesfin Peralta Research Associate Business Article for The Philippine Alert The Wallace Business

Forum +639178309240/+639152882407 Green growth initiatives During its annual meeting, the Asian Development Bank (ADB) urged Asia-Pacific countries to pursue cleaner economic development by decreasing carbon emissions. Asia-Pacific countries, the Philippines in particular, have already been implementing climate change measures but still lag in addressing main causes of environmental degradation. The environment has been sacrificed in exchange for economic growth over the past 20 years. This has been the case in many countries, especially in the Asia-Pacific region. Asian Development Bank (ADB) President Haruhiko Kuroda, during the 45th ADB Annual Meeting of the Board of Governors held in Manila last May 2 to 5, 2012, stressed that rapid economic growth should not cause environmental degradation. From 9 billion tons in 1985, resource extraction for economic use increased to 13 billion tons in 1995, and further climbed to approximately 18 billion tons in 2005. The environment has been sacrificed in exchange for economic growth over the past 20 years. Low-carbon green growth is one of the initiatives endorsed by the ADB to achieve sustainable development. The ADB Institute study on Policies and Practices for LowCarbon Green Growth in Asia indicated that emerging Asian countries have already been implementing programs to address carbon emission. However, cooperation among Asian countries and financial support from the private sector and the developed countries is crucial for this effort, mainly because these Asian countries are also tackling other priorities. Bulk of the budgetary allocations is usually allocated to the social sector; an estimated $6 trillion is needed for Asias new energy infrastructure by 2030. In the Philippines, the Commission on Climate Change, in partnership with the United Nations Development Programme (UNDP), has initiated 2 major projects, "Climate Change Capacity Building Project in the Framework of the Low-Emission Capacity Building Program," and "Enabling the Cities of Cagayan de Oro and Iligan to Cope with Climate Change" (also known as Project Climate Twin Phoenix), that will be implemented until 2014. These initiatives are good but cant entirely provide green growth to the Philippines. The first project aims to reduce emissions in the agriculture, industry, transport, and waste sectors by developing Low Emission Development Strategies (LEDs). It will also create green house gas (GHG) emission inventories to establish the countrys carbon footprint reduction targets, among others. Funding for this project, valued at $750,000, will be sourced from the European Union and the governments of Germany

(through the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety or BMU) and Australia (through the Australian Government Overseas Aid Program (AusAid)). The second project intends to bring disaster risk reduction strategies and climate change adaptation measures down to local government units (LGUs), particularly in the cities of Cagayan de Oro and Iligan, by assessing disaster vulnerabilities and introducing low cost response measures. Funding, worth $100,000, will be provided by the AusAid, UNDP, and the Philippine government. The Philippines in cooperation with the ADB has also set an estimated $500 million worth of environmental sustainability projects. These projects cover the preservation of natural resources, improvement of water supply, funding for disaster risk programs, and solid waste management (see table). Specifically, the projects include the comprehensive development of the Agusan river basin, where water resources and significant ecosystems are mismanaged and underutilized and the urban water supply and sanitation project that aims to decrease the number of Filipinos without access to safe drinking water and basic sanitation. The abovementioned initiatives are good but cant entirely provide green growth to the Philippines. Addressing the major drivers of environmental degradation, such as rapid urbanization, poverty, and pollution, among others, is vital to achieve sustainable development. Rapid urbanization in Metro Manila (MM) has been worsening heat circulation; households considering themselves poor increased to 11.1 million in March 2012 from 9.1 million in December 2011 according to the Social Weather Stations (SWS); and MM has been listed as one of the worlds five most polluted cities by the World Health Organization (WHO) and the United Nations Environment Program (UNEP).

INDICATIVE ASSISTANCE PIPELINE FOR ENVIRONMENTAL SUSTAINABILITY OF THE ASIAN DEVELOPMENT BANK TO THE PHILIPPINES Project 2012 Firm Comprehensive Development for the Agusan River Basin Project Integrated Natural Resources and Environmental Management Project Urban Water Supply and Sanitation Project (PFR 1) 2012 Standby Water District Development Sector Project 2013 Firm Disaster Risk Financing Project Water District Development Sector Project 2013 Standby Solid Waste Management Sector Project 2014 Firm Solid Waste Management Sector Project Total Source: www.adb.org Year of Project Preparatory Technical Assistance 2009 2008 Cost of funding ($ million) 100 100

2009 2008

70 50

2012 2008

70 50

2012 2012

70 70 580