Declaration of policy and objectives
- Republic Act No. 10771 declares it to be the policy of the State to:
- affirm labor as a primary social economic force in promoting sustainable development;
- afford full protection to labor, local and overseas, organized and unorganized, and promote full and productive employment and equality of employment opportunities for all; and
- promote the rights of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature (Section 2).
- The State must identify needed skills, develop training programs, and train and certify workers for jobs in industries that produce goods and render services for the benefit of the environment, conserve natural resources for the future generation, and ensure sustainable development and transition into a green economy (Section 2).
- The State must provide incentives to individuals and business enterprises for participation in jobs creation (Section 2).
Coverage and defined terms
- Republic Act No. 10771 applies to all business enterprises, unless otherwise provided in the Act (Section 3).
- Business enterprises refers to establishments engaged in production, manufacturing, processing, repacking, assembly, or sale of goods and/or services, including service-oriented enterprises, and it includes self-employed or own-account workers, micro, small, and medium enterprises (MSMEs), and community-based business enterprises (Section 4(a)).
- Climate change means a change in climate identifiable by changes in the mean or variability of its properties that persists for an extended period, typically decades or longer, whether due to natural variability or as a result of human activity (Section 4(b)).
- Green jobs are employment that contributes to preserving or restoring environmental quality in agriculture, industry, or services, including jobs that:
- protect ecosystems and biodiversity;
- reduce energy, materials and water consumption through high efficiency strategies;
- decarbonize the economy; and
- minimize or altogether avoid generation of all forms of waste and pollution.
Green jobs are decent jobs that are productive, respect workers’ rights, deliver fair income, provide workplace security and social protection for families, and promote social dialogue (Section 4(c)).
- Green economy is a low-carbon and resource-efficient economy that generates green jobs and improves human well-being and social equity, while significantly reducing environmental risks and ecological scarcities (Section 4(d)).
- Green goods and services benefit the environment or conserve natural resources and may include research and development and installation and maintenance services (Section 4(e)).
- Green technologies are products, equipment, and systems developed and applied to conserve the environment and natural resources (Section 4(f)).
- Sustainable development is development that meets present needs without compromising the ability of future generations to meet their own needs (Section 4(g)).
Green jobs incentives for enterprises
- Republic Act No. 10771 authorizes incentives to encourage business enterprises to generate and sustain green jobs as certified by the Climate Change Commission pursuant to Section 6(o) (Section 5(a)).
- Qualified business enterprises receive a special deduction from taxable income equal to fifty percent (50%) of the total expenses for skills training and research development expenses that are over and above the allowable ordinary and necessary business deductions for those expenses under the National Internal Revenue Code of 1997, as amended (Section 5(a)(a)).
- Qualified business enterprises receive tax and duty free importation of capital equipment that is actually, directly and exclusively used in promoting green jobs of the business enterprise (Section 5(a)(b)).
- Incentives under Republic Act No. 10771 are in addition to fiscal and non-fiscal incentives under existing laws, orders, issuances, and regulations (Section 5(b)).
- Republic Act No. 10771 requires that it must not be interpreted or construed to diminish or limit existing incentives, including those under:
- Republic Act No. 10121 (Philippine Disaster Risk Reduction and Management Act of 2010);
- Republic Act No. 10068 (Organic Agriculture Act of 2010);
- Republic Act No. 9513 (Renewable Energy Act of 2008);
- Republic Act No. 9367 (Biofuels Act of 2006);
- Republic Act No. 9275 (Philippine Clean Water Act of 2004);
- Republic Act No. 9003 (Ecological Solid Waste Management Act of 2000);
- Republic Act No. 8749 (Philippine Clean Air Act of 1999); and
- Republic Act No. 8550 (Philippine Fisheries Code of 1998) (Section 5(c)).
Agency roles and national implementation
- The Department of Labor and Employment (DOLE) must, in coordination with other government agencies, formulate a National Green Jobs Human Resource Development Plan to enable and sustain transition into a green economy and generation of green jobs toward more employment and equal opportunities, promoting social justice and workers’ welfare (Section 6(a)).
- The DOLE plan must include:
- programs, projects, and activities pertaining to basic, higher, and technical-vocational education and training;
- a database identifying and linking green job opportunities with private and public entities; and
- information on knowledge and skill requirements of a green economy (Section 6(a)).
- The DOLE, in coordination with the Philippine Statistics Authority (PSA), must maintain a database of green careers, professions, and skills, and a list of emerging business enterprises that generate and sustain green jobs (Section 6(a)).
- The DOLE must facilitate skills training assessment and certification, career advocacy, provide productivity and livelihood training, and extend technical assistance to enterprises to ensure labor law compliance (Section 6(a)).
- The Department of Finance (DOF) must administer incentives under Section 5 to qualified individuals and business enterprises engaged in registered strategic activities and must maintain a database on the same (Section 6(b)).
- The DENR must establish and maintain a climate change information management system and network as a reference in formulating strategies and approaches to develop potential green jobs (Section 6(c)).
- The Department of Education (DepED) must implement faculty, facility, and curriculum development for primary and secondary education supporting the knowledge and skills requirements of a green economy (Section 6(d)).
- The Commission on Higher Education (CHED) must develop and implement curriculum and related standards and instructional materials supporting the green economy (Section 6(e)).
- The TESDA must formulate necessary training regulations for skills training implementation, program registration, assessment, and certification supporting skilled manpower requirements of the green economy (Section 6(f)).
- The National Economic and Development Authority (NEDA) must ensure mainstreaming of green jobs concerns in development plans (Section 6(g)).
- The Department of Trade and Industry (DTI) must develop a special business facilitation program for individuals and business enterprises that create green jobs (Section 6(h)).
- The Professional Regulation Commission (PRC) must encourage the development of a qualifications framework that facilitates recognition of knowledge, skills, and competencies of professionals working in the green economy (Section 6(i)).
- The Department of Science and Technology (DOST), together with TESDA, must assist DOLE in analyzing skills and training needs related to the use of green technology that can create new green occupations and greener jobs, especially in industries or sectors undergoing structural changes due to climate change and greening of the economy (Section 6(j)).
- DOST and TESDA must provide business development support to MSMEs, including prototyping or modeling technologies, conducting assessments to match technological needs and demands, subcontracting business to develop clean technologies, providing technical written guides, procedures, and instructions, and conducting training on clean technology for business (Section 6(j)).
- The Department of Transportation and Communications (DOTC) must mainstream green jobs concerns in its sectoral development plan and encourage investments in public transport infrastructure and services to optimize public transport potential for public transport to foster green growth and job creation (Section 6(k)).
- DOTC must explore strategies of shifting to more environmentally friendly transport modes and improving the efficiency of all transportation modes (Section 6(k)).
- The Department of Tourism (DOT) must outline sustainable tourism planning and integrated approach for promotion of a job-rich sustainable tourism industry (Section 6(l)).
- The Department of Public Works and Highways (DPWH) must develop and implement programs promoting the importance of green building practices in safeguarding the environment and their role in sustainable economic development (Section 6(m)).
- Any contrary provision in government charters notwithstanding, government financial institutions (GFIs) must, in consultation with the Bangko Sentral ng Pilipinas (BSP), provide preferential financial packages to business enterprises that create green jobs (Section 6(n)).
- The Climate Change Commission (CCC) must, in consultation with concerned agencies including DENR, DTI, DOLE, DA, DOE, DILG, and DOST, develop and administer appropriate standards for assessing and certifying green goods and services and green technologies and practices to:
- regulate availment of incentives; and
- ensure green jobs content pursuant to the National Green Jobs Human Resource Development Plan under Section 6(a) (Section 6(o)).
CCC membership and labor secretary role
- The Secretary of Labor and Employment must be included as an additional member of the Climate Change Commission constituted under Section 5 of Republic Act No. 9729, as amended