The information on this page reflects some of the main environment issues for the Philippines and some of the initiatives that the World Bank is undertaking to address them.
Overview  The Philippines was one of the first countries to adopt the Agenda 21 process, initiated at the Rio Earth Summit in 1992, by formulating its own National Agenda 21, through a highly participatory process, in 1996. However, despite its government’s good intentions, rapid population growth, urbanization and industrialization have far outstripped urban environment services and weak natural resource management systems have led to rapid degradation of those environments, too. Â
Natural Resource Degradation  Rapid conversion of forestlands and grasslands to urban use is depleting these natural systems. Agricultural yields in lowland areas are stagnating, and population pressures are stimulating cultivation of fragile upland areas, causing serious soil erosion. While estimates of deforestation differ, forest cover in the Philippines has certainly been significantly reduced over the last forty years, due to increasing urbanization, illegal logging, and forest fires. Reforestation efforts by the government have been erratic, with low tree survival rates. Marine resources are heavily stressed by over-exploitation and pollution.
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The loss of forests and other critical habitats is also threatening the Philippines’ rich biodiversity. Although the number of protected areas has grown on paper, so have the rates of destruction and habitat conversion within them. Management is hampered by inconsistent laws, inadequate regulations, over-lapping institutional mandates, weak enforcement and funding shortages.  The World Bank is providing extensive agricultural assistance to help take pressure off natural resources. In partnership with the GEF, support has been provided for the large-scale Conservation of Priority Protected Areas Project. Its shortcomings and other natural resource management challenges were recently analyzed in a Natural Resource Management Study, the conclusions of which are guiding preparation of a possible natural resource sector-wide operation and parallel GEF co-financed biodiversity conservation program.  Back to top
Deteriorating Urban Environment  Air pollution levels in Metro Manila and other cities exceed national air quality standards and impose a serious economic burden on society. According to a perception survey (2001) more than 72 percent of Manila's residents said that they were alarmed by air pollution and 73 percent said that they were not aware that the government was doing something to control it. However, the government is aware of the problem, which is estimated to cost about US$ 1.5 billion every year, but is struggling to find a solution.  While household garbage collection is improving, 90 percent of sewage is not treated and disposed of in an environmentally sound manner. Less than 10 percent of the country’s total population is connected to sewers and others rarely maintain adequate on-site sanitation. Increasing water pollution is degrading the country’s groundwater, rivers, lakes, and coastal areas, and the quality of half of the country’s rivers fall below water quality norms. The annual economic cost of water pollution is estimated at US$1.3 billion, including health costs, losses in fisheries production, and impact on tourism. Community and civil society-led recycling programs have become popular, but hazardous and toxic waste disposal has emerged as a major environmental challenge.
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Expansion of urban environmental services has been and continues to be one of the main platforms of the World Bank’s country assistance program. Project loans and technical assistance are expanding and improving water supply, wastewater treatment, solid waste management and transport systems, with a focus on the huge, environmentally stressed Manila metropolitan area.  Back to top
Water Pollution  Water demand is increasing rapidly, but fragmented water management, weak enforcement of regulations, and poor planning are preventing adequate responses. The discharge of domestic and industrial wastewater and agricultural runoff has caused extensive pollution of the receiving water-bodies. This effluent is in the form of raw sewage, detergents, fertilizer, heavy metals, chemical products, oils, and even solid waste. The adverse impact of water pollution costs the economy an estimated PhP67 billion annually (more than US$1.3 billion). In the last few years the government has employed economic instruments such as pollution fines and environmental taxes to address the problem. The new Clean Water Act proposes an integrated, holistic, decentralized and participatory approach to abating, preventing and controlling water pollution in the country. This step should help consolidate the existing fragmented system and unify the work to reduce water pollution.
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In addition to its Manila-focused water pollution management assistance mentioned above, the World Bank is supporting the expansion of sanitation services in a quarter of the country’s small towns, and implementation of the Laguna de Bay Environment Project has just started.  Back to top
Inadequate Institutional Capacity  Over the past decade, the Government of Philippines has tried to reverse environmental degradation by introducing innovative institutional and legal reforms. In addition, in recent years, many donors, including the World Bank, have supported efforts to improve overall environmental governance in the country by building the capacity of the Department of Environment and Natural Resources (DENR), the Laguna Lake Development Authority, the National Economic Development Authority, the Department of Public Works and Highways, the Land Bank of the Philippines, local governments, NGOs, and local communities, and by supporting innovative partnerships among them. In spite of all these efforts, capacity in environmental and natural resources governance still requires signficant improvement, particularly in local government units.  A planned World Bank Sector-Wide Environment Project will try to systematically overcome some of the long-standing weaknesses in DENRs institutional performance.  Back to top
Ozone Depletion & Persistant Organic Pollutants (POPs)  In order to phase out its use of Ozone Depleting Substances the Philippines is implementing a national CFC Phase-out Plan. One element of this work is to reduce the use of Methyl Bromide. The Executive Committee of the Montreal Protocol (Excom) recently approved a joint World Bank project to phase out 9 Ozone Depletion Potential tons of this material.
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The Philippines is also a party to the Stockholm Convention for Elimination of POPs. Recognizing the impacts of POPs on human health and the environment, the Government is actively preparing the country to implement the Convention. The World Bank, in partnership with the Canadian Government, is helping: (i) increase understanding of the health and environmental impacts of POPs; (ii) compliance with the Philippine’s Chemical Control Order for Polychlorinated Biphenyls, and (iii) strengthen technical and analytical capacity to monitor and manage POPs and mitigate their adverse impacts. The activities funded by this grant will be one of the initial steps taken by the Government to further fulfill its obligations under the Stockholm Convention.
 For more details on our environment-oriented assistance to the Philippines, visit the Philippines Country Page.  Back to top |
   
 
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