Climate Change Act Amendments and People's Survival Fund

Legal basis and amendments made

Republic Act No. 10174 amends Republic Act No. 9729 (Climate Change Act of 2009) by revising Sections 2, 3, 4, 5, 6, 7, 9, 11, 12, 15, 16, 17.
Republic Act No. 10174 inserts and renumbers Sections 18, 19, 20, 21, 22, 23, 24 and 25 in Republic Act No. 9729 to create the People’s Survival Fund (PSF) system.
Republic Act No. 10174 provides that succeeding sections are renumbered accordingly.
Republic Act No. 10174 repeals or modifies all inconsistent laws, ordinances, rules, regulations, and other issuances or parts thereof through its repealing clause.

Policy declaration and climate principles

The State policy is to afford full protection and advance the right of the people to a healthful ecology in accord with the rhythm and harmony of nature.
The State adopts the Philippine Agenda 21 framework for sustainable development that fulfills human needs while maintaining the quality of the natural environment for current and future generations.
The State adopts protecting the climate system for the benefit of humankind based on climate justice (common but differentiated responsibilities) and the Precautionary Principle to guide decision-making in climate risk management.
As a party to the UNFCCC, the State adopts the Convention’s ultimate objective: stabilization of greenhouse gas concentrations to prevent dangerous anthropogenic interference with the climate system, achieved within a time frame sufficient for natural ecosystems to adapt, to ensure food production is not threatened, and to enable sustainable economic development.
As a party to the Hyogo Framework for Action, the State adopts strategic goals to build national and local resilience to climate change-related disasters.
The State recognizes the vulnerability of the Philippine archipelago and its local communities—particularly the poor, women, and children—to potential dangerous consequences of climate change and global warming, including increasing temperatures, rising seas, changing landscapes, increasing frequency and/or severity of droughts, fire, floods and storms, climate-related illnesses and diseases, and damage to ecosystems and biodiversity loss affecting the country’s environment, culture, and economy.
The State commits to cooperate with the global community on climate change issues, including disaster risk reduction.
The State enjoins participation of national and local governments, businesses, nongovernment organizations, local communities and the public to prevent and reduce adverse impacts of climate change while maximizing potential benefits of climate change.
The State mandates that climate change and renewable energy efforts use a gender-sensitive, pro-children and pro-poor perspective.
The State strengthens, integrates, consolidates, and institutionalizes government initiatives to achieve coordination in implementing climate change plans and programs in the context of sustainable development.
The State integrates disaster risk reduction into climate change programs and initiatives because disaster risk reduction and management are interrelated with climate change and effectiveness enhances adaptive capacity.
The State requires systematic integration of climate change into phases of policy formulation, development plans, poverty reduction strategies, and other development tools by all government agencies and instrumentalities, founded on sound environmental considerations and sustainable development.

Definitions governing the Act

“Adaptation” means adjustment in natural or human systems in response to actual or expected climatic stimuli or their effects, moderating harm or exploiting beneficial opportunities.
“Adaptive capacity” means the ability of ecological, social or economic systems to adjust to climate change, including climate variability and extremes, to moderate or offset potential damages and to take advantage of associated opportunities or cope with consequences.
“Anthropogenic causes” means causes resulting from human activities or produced by human beings.
“Climate Change” means a change in climate identifiable by changes in the mean and/or variability of its properties that persists for an extended period typically decades or longer, due to natural variability or human activity.
“Climate Finance” means resources allocated or that may be utilized toward the country’s and vulnerable communities’ climate change adaptation and mitigation requirements.
“Climate Variability” means variations in the average state and other statistics of climate on all temporal and spatial scales beyond individual weather events.
“Climate Risk” means the product of climate and related hazards working over the vulnerability of human and natural ecosystems.
“Disaster” means a serious disruption of the functioning of a community or society involving widespread human, material, economic or environmental losses and impacts that exceed the ability of the affected community or society to cope using its own resources.
“Disaster Risk Reduction and Management (DRRM)” means a systematic process using administrative directives, organizations, and operational skills and capacities to implement strategies, policies, and improved coping capacities to lessen adverse impacts of hazards and the possibility of disaster; Prospective DRRM includes avoiding development of new or increased disaster risks when risk reduction policies are not put in place.
“Gender mainstreaming” means making women’s and men’s concerns and experiences an integral dimension of design, implementation, monitoring, and evaluation in all political, economic, environmental or ecological and societal spheres so that women and men benefit equally and inequality is not perpetuated, including assessing implications of planned action such as legislation, policies, or programs.
“Global Warming” means increase in the average temperature of Earth’s near-surface air and oceans associated with increased greenhouse gas concentrations in the atmosphere.
“Greenhouse effect” means the absorption of infrared radiation by the atmosphere warming the Earth.
“Greenhouse gases (GHG)” means constituents of the atmosphere that contribute to the greenhouse effect, including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride.
“Mainstreaming” means integrating climate change policies and measures into development planning and sectoral decision-making.
“Mitigation” means human intervention to reduce anthropogenic emissions sources and enhance removals by sinks of all GHG, including ozone-depleting substances and their substitutes.
“Mitigation potential” means the scale of GHG reductions relative to emission baselines for a given level of carbon price (cost per unit of carbon dioxide equivalent emissions avoided or reduced).
“Sea level rise” means increase in sea level influenced by global warming through expansion of sea water and melting ice, and local factors such as land subsidence.
“Vulnerability” means degree a system is susceptible to, or unable to cope with, adverse effects of climate change, including climate variability and extreme climate events; it is a function of character, magnitude, and rate of climate change and variation, exposure, sensitivity, and adaptive capacity.

Climate Change Commission governance

A Climate Change Commission is established and is an independent and autonomous body with the same status as a national government agency, attached to the Office of the President.
The Commission is the lead policy-making body tasked to coordinate, monitor and evaluate government programs and action plans to ensure mainstreaming climate change into national, sectoral and local development plans and programs.
The Commission must be organized within sixty (80) days from the effectivity of Republic Act No. 10174.
The Commission is composed of the President of the Philippines as Chairperson and three (3) Commissioners appointed by the President, with one (1) appointed as Vice Chairperson.
The Commission has an advisory board composed of listed national officials and sector representatives, including secretaries of multiple departments, the NEDA Director-General and other named bodies, plus representatives from the academe, business sector, and nongovernmental organizations; at least one (1) sectoral representative must come from the disaster risk reduction community.
The President appoints sectoral representatives from a list of nominees submitted by their groups and endorsed by the Commission; they serve a maximum term of six (6) years, and an appointment may be terminated by the President based on withdrawal of endorsement or recommendation of the sector represented.
Commission commissioners must be Filipino citizens, residents of the Philippines, at least thirty (30) years old at appointment, with proven experience on climate change, proven honesty and integrity, and expertise in climate change through educational background, training and experience.
At least one (1) Commissioner must be female; Commissioners may not come from the same sector; no Commissioner may appoint representatives to act on their behalf.
Commissioners serve six (6) years and may be reappointed, but no person may serve for more than two (2) consecutive terms; vacancies are filled with appointments meeting qualifications for the unexpired portion only.
No Commissioner may be designated in a temporary or acting capacity.
A Commissioner may be removed before term expiration for cause or incapacity and in accordance with due process under pertinent laws.
The Vice Chairperson and Commissioners have the rank and privileges of a Department Secretary and Undersecretary respectively, with corresponding compensation and emoluments and the same disqualifications.
The Commission convenes every first or last Monday of every third month or as often as it deems necessary.
If the Chairperson cannot preside, the Vice Chairperson presides.
Resolutions or decisions require approval by the majority of the three (3) Commissioners.
The Chairperson may vote decisions of the Commission within thirty (30) days from receipt.
The Commission has powers and functions including: coordinating and synchronizing climate change programs; formulating a Strategic Framework; exercising policy coordination; recommending legislation and investments; creating enabling environments for risk-sharing and risk-transfer instruments and multi-stakeholder participation; formulating GHG mitigation strategies; partnering with the National Disaster Risk Reduction and Management Council; representing the Philippines in climate negotiations and leading the UNFCCC negotiator panel with official positions; updating guidelines for vulnerability determination and adaptation assessments; coordinating with LGUs and private entities; facilitating capacity building and technical/financial support for local research and merit programs; overseeing dissemination of climate information; establishing a transparency-coherence mechanism for administration of climate funds; and performing other functions necessary for implementation.
The Commission’s National Strategic Framework on Climate Change must be formulated within six (6) months from effectivity; it is the basis for climate change planning, R&D, extension, monitoring, and climate financing; it protects vulnerable and marginalized communities and must be based on vulnerabilities, specific adaptation needs, and mitigation potential consistent with international agreements.
The Framework is reviewed every three (3) years or as deemed necessary, through participatory and interactive process.
The Framework includes components such as national priorities; impact/vulnerability/adaptation assessments; policy formulation; compliance with international commitments; research and development; database development and management; academic programs and capability building and mainstreaming; advocacy and information dissemination; monitoring and evaluation; and gender mainstreaming.
Government agencies must implement the Framework strategy and program on climate change, including:
- DepED integrating climate change into curricula and subjects (e.g., science, biology, Sibika, history) and education materials;
- DILG and Local Government Academy facilitating development and provision of capacity-building programs for LGUs in climate change, including technology provision and socioeconomic/geophysical/policy content, with focus on women and children, especially rural areas;
- DENR overseeing climate change information management systems and networks with other concerned agencies and LGUs;
- DFA reviewing international agreements and recommending ratification and compliance;
- PIA disseminating climate information, vulnerabilities and risks, laws and protocols, and adaptation and mitigation measures;
- DOF coordinating on fiscal policies related to climate change and monitoring and reporting climate finance measures;
- DBM formulating the annual national budget prioritizing and allocating funds for climate change programs and projects;
- DOST/PAGASA promoting and assisting, and where appropriate undertaking, research and development and projections/analysis of future climate scenarios including observation, data collection and processing such as rainfall, sea-level-rise, extreme climate events, rising temperatures, and long-term severe drought records, coordinated with LGUs in priority monitoring sites for agriculture, natural resources, commerce and industry and other vital areas; and
- Government financial institutions (except BSP) providing preferential financial packages for climate change-related projects notwithstanding charter provisions, and in consultation with BSP, issuing implementing guidelines within thirty (30) days from effectivity.
In developing and implementing National Climate Change Action Plan and local action plans, the Commission must consult and coordinate with NGOs, civic organizations, academe, people’s organizations, private and corporate sectors, and other stakeholder groups.
The Commission is authorized to accept grants, contributions, donations, endowments, bequests or gifts in cash or in kind from local and foreign sources supporting climate change programs and plans.
Foreign government donations require prior clearance and approval of the President upon recommendation of the Department of Finance.
Donated or granted funds accepted under this authority may not be used to fund personal services expenditures and other operating expenses of the Commission.
Donation proceeds must be used for: research/development/demonstration/promotion of technologies; assessments of vulnerabilities, resource inventory, and adaptation capability building; advocacy/networking/communication for information campaign; and other reasonably necessary activities defined by the Commission.
Community participation is addressed through observers: community representatives and/or NGO counterparts may participate as observers in Commission project identification, monitoring and evaluation for adaptation projects supported by the PSF.

People’s Survival Fund creation and operation

A People’s Survival Fund (PSF) is established as a special fund in the National Treasury for financing adaptation programs and projects based on the National Strategic Framework.
The Act appropriates One billion pesos (P1,000,000,000.00) under the General Appropriations Act (GAA) as the PSF opening balance.
Thereafter, the PSF balance from all sources—including the GAA amount for the current year—must not be less than One billion pesos (P1,000,000,000.00).
The PSF balance may be increased as need arises, subject to review and evaluation by the Office of the President and the Department of Budget and Management (DBM) of accomplishments of the Commission and other concerned LGUs.
The PSF may not be used to fund personal services and other operational expenses of the Commission.
PSF balances—including the GAA amount that forms part of the fund—do not revert to the general fund.
The Commission must submit to Congress and DBM a semi-annual physical/narrative and financial report on PSF utilization.
The PSF may be augmented by donations, endowments, grants and contributions, which are exempt from donor’s tax and treated as allowable deductions from the gross income of the donor in accordance with the National Internal Revenue Code of 1997, as amended.
The PSF is used to support adaptation activities of local governments and communities, including:
- adaptation activities where sufficient information exists in water resources management, land management, agriculture and fisheries, health, infrastructure development, and natural ecosystems including mountainous and coastal ecosystems;
- improvement of monitoring of vector-borne diseases triggered by climate change and, in that context, improving disease control and prevention;
- forecasting and early warning systems for preparedness for climate-related hazards;
- supporting institutional development for local governments in partnership with local communities and civil society groups for preventive measures, planning, preparedness and management of impacts relating to climate change, including contingency planning in particular for droughts and floods in areas prone to extreme climate events;
- strengthening existing and where needed establishing regional centers and information networks to support climate change adaptation initiatives and projects;
- serving as a guarantee for risk insurance needs for farmers, agricultural workers and other stakeholders; and
- community adaptation support programs by local organizations accredited by the Commission.
The PSF is suppletory to annual appropriations allocated by relevant government agencies for climate change-related programs and projects and by LGUs, and it encourages counterpart funding among local governments, community organizations, the private sector, and other entities.
A People’s Survival Fund Board (PSF Board) is created under the Commission and convenes at least twice a year.
The PSF Board is composed of: Secretary of Finance (Chair); Vice Chairperson of the Commission; Secretary of DBM; NEDA Director-General; Secretary of DILG; Chairperson of the Philippine Commission on Women; a representative from the academe and scientific community; a representative from the business sector; and a representative from NGOs.
Academe/scientific community, business, and NGO PSF Board representatives are disqualified from accessing the fund during their term set by the Commission, and for one (1) year after their tenure ends or is completed; the Commission identifies and designates them as such.
The PSF Board powers and functions include:
- promulgating policies to maintain the PSF Board’s fiduciary character;
- providing overall strategic guidance for management and use of the fund, including developing funding windows for adaptation activities (including counterpart funding arrangements) and guidelines for project assessment, approval and evaluation;
- developing social, financial and environmental safeguards for project implementation;
- identifying additional sources for the fund;
- issuing final approval of projects for use of the fund;
- adopting a conflict of interest policy so board members do not vote on projects where they have direct stakes;
- ensuring independent third-party evaluation and auditing of fund-supported activities with transparency and accountability, and consistent with government accounting and auditing roles and regulations.
The Commission’s Climate Change Office, headed by the Vice Chairperson of the Commission, evaluates and reviews project proposals and recommends approval to the PSF Board based on PSF Board-agreed policies, guidelines and safeguards.
The Commission’s recommendation requires the concurrence and endorsement of a majority of the climate change Commissioners appointed by the President.
The Commission is not a project implementor.
The Commission must create mechanisms ensuring transparency and public access to information regarding funding deliberations and decisions.
The Commission must develop guidelines to accredit local organizations seeking access to the fund, based on criteria including organizational independence, track record in the community and/or field of expertise, financial management, and participatory practices.
Fund allocation prioritization criteria developed by the Commission include: level of risk and vulnerability to climate change; participation of affected communities in project design; poverty reduction potential; cost effectiveness and attainability of the proposal; co-benefits beyond LGU territory; maximization of multi-sectoral or cross-sectoral benefits; responsiveness to gender-differentiated vulnerabilities; and availability of a climate change adaptation action plan.
Community representatives and/or NGO counterparts may participate as observers in the Commission’s project identification, monitoring and evaluation process to ensure transparency and participation of vulnerable and marginalized groups in adaptation projects supported by the fund.

Separability, repealing, and implementation effects

Separability clause: if any section or provision of Republic Act No. 10174 is declared unconstitutional or invalid, the other sections or provisions remain unaffected.
Repealing clause: all inconsistent laws, ordinances, rules and regulations, and other issuances or parts thereof are repealed or modified accordingly.
The Act’s effectivity is governed by the fifteen (15) days post-publication rule in at least two (2) national newspapers of general circulation.