Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. _ 2807

Introduced by Rep. FERDINAND ALEXANDER A. MARCOS
I District, Ilocos Norte

EXPLANATORY NOTE

The Philippines, by virtue of its archipelagic configuration, is
inherently a maritime nation. Article I of the 1987 Philippine
Constitution, which defines the national territory, provides:

“(T]he Philippine archipelago, with all the islands and
waters embraced therein, and all other territories over which
the Philippines has sovereignty or jurisdiction, consisting of
its terrestrial, fluvial, and aerial domains, including its
territorial sea, the seabed, the subsoil, the insular shelves,
and other submarine areas.”

The same provision further declares:

“The waters around, between, and connecting the islands of
the archipelago, regardless of their breadth and dimensions,
form part of the internal waters of the Philippines.”

This constitutional articulation firmly establishes the maritime
character of the Philippine State and underscores the integral role of our
marine domain in upholding national sovereignty, asserting jurisdiction,
promoting ecological security, and advancing sustainable economic
development.

As a “Blue Economy,” the Philippines is endowed with vast and
productive maritime zones. It supports a vibrant fisheries industry, ranks
among the most biodiverse marine ecosystems globally, and is home to
world-renowned coastal and marine tourism destinations. It also remains
cone of the top global suppliers of seafarers—demonstrating the enduring


strategic value of the maritime sector to the national economy and to the
country’s global competitiveness.

However, due to the political and economic challenges in the
international arena and the escalating impacts of climate change, resource
degradation, and geopolitical tension, there is an urgent imperative to
adopt a more coordinated, science-based, and future-resilient approach to
managing, developing, and protecting the Philippines’ marine and coastal
domains.

This proposed measure seeks to establish a robust and coherent
framework for the Blue Economy, premised on the principles of
sustainability, inclusivity, and intergenerational equity. It consolidates
existing interventions under a single national framework that promotes a
whole-of-nation approach to the sustainable development, management,
protection, and preservation of the country’s marine and coastal
resources. By institutionalizing the Blue Economy as a national
development agenda, this measure gives effect to the State’s
constitutional mandates to “protect and advance the right of the people to
a balanced and healthful ecology in accord with the rhythm and harmony
of nature” (Article II, Section 16), and to “promote a just and dynamic
social order that will ensure the prosperity and independence of the
nation” (Article II, Section 9).

This proposed measure adopts the version of the bill that was
approved on Third Reading by the House of Representatives during the
19th Congress on 7 December 2023, with two hundred fifty-four (254)
affirmative votes.

In view of the foregoing considerations, the favorable approval of
this bill is earnestly sought.

ER A. MARCOS:



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. 2807

Introduced by Rep. FERDINAND ALEXANDER A. MARCOS
1" District, Ilocos Norte

AN ACT

ESTABLISHING A FRAMEWORK FOR BLUE ECONOMY,
PROMOTING STEWARDSHIP AND SUSTAINABLE
DEVELOPMENT OF COASTAL AND MARINE ECOSYSTEMS
AND RESOURCES, REORGANIZING AND RENAMING THE
NATIONAL COAST WATCH SYSTEM AS THE NATIONAL
MARITIME MONITORING SYSTEM, AND PROVIDING FUNDS
THEREFOR

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the "Blue
Economy Act."

SEC. 2. Declaration of Policy. — It shall be the policy of the State

(a) Adopt blue economy as a framework for equitable and
sustainable development and safe use of marine wealth within
our maritime zones, as a pillar of our national economy and
patrimony;

(b) Exercise stewardship of our seas and coasts, and protect and

conserve the health and resilience of marine and coastal

ecosystems and habitats, through strong _ institutional
mechanisms for maritime monitoring and regulatory


enforcement, to promote the well-being, prosperity and
security of present and future generations;

(c) Preserve our maritime heritage, recognize the social, cultural,
and historical value of our seas and coasts, and foster public
understanding and respect of the value of our seas and coasts
to build a strong foundation for social responsibility;

(d) Enrich scientific understanding of marine and coastal
ecosystems, the benefits we gain from these ecosystems like
carbon sequestration, their changing conditions and the causes
thereof, and use the best available scientific knowledge to
inform decisions affecting our seas and coasts and to enhance
our capacity to respond and adapt to changing maritime
environments;

(e) Foster international cooperation and multi-stakeholder
engagement, and exercise rights and jurisdiction in accordance
with applicable international laws, including on freedom of
navigation;

(f) Ensure a whole-of-nation approach and a comprehensive,
integrated framework for the stewardship of our seas and
coasts to facilitate cohesive action of the national government,
local authorities, academe, nongovernmental organizations, the
private sector, and the public; and

(g) Promote, support and monitor science, technology and
innovation programs of public and private academic and
research institutions to strengthen interdisciplinary research in
marine science, and to develop emerging technologies to
catalyze growth of new maritime sectors.

SEC. 3. Definition of Terms. — As used in this Act:

(a) Aquaculture refers to fishery operations involving all forms of
raising and culturing fish and other fishery species in fresh,
brackish, and marine water areas;

(b) Aquasilviculture refers to a multi-purpose production system
that allows production of fish and other aquatic species in a
mangrove reforestation project;


(c) Aquatic resources refer to fish and other living resources of the
aquatic environment that have or will have commercial value
when utilized;

(d) Blue economy refers to the integrated, holistic, cross-sectoral,
and cross-stakeholder approach for the sustainable, resilient and
inclusive use, governance, management and conservation of
oceans, seas as well as marine and coastal resources and
ecosystems for economic growth, leveraging green
infrastructure and technologies, innovative __ financing
mechanisms and proactive institutional mechanisms, and
improving human well-being and social equity, and reducing
environmental risks and ecological scarcities;

(e) Blue carbon refers to organic carbon that is captured by marine
and coastal ecosystems, such as algae, seagrass, mangroves,
and other plants growing in salt marshes and coastal wetlands;

() Blue public expenditure refers to public expenditures that
address issues related to coastal and marine resources,
environmental degradation, and development aspirations that
depend on marine resources and environments;

(g) By-catch refers to fish or other marine species that a fisher does
not intend to catch, including juveniles of commercially-
valuable species and biologically-important species caught
unintentionally while trying to catch a certain type of fish;

(h) Commercial fishing refers to the taking of fishery species by
passive or active gear for trade, business and profit beyond
subsistence or sports fishing, to be further classified as: small
scale commercial fishing, or fishing with passive or active gear
utilizing fishing vessels of three and one-tenth (3.1) gross tons
(GT) up to twenty (20) GT; medium scale commercial fishing
or fishing utilizing active gears and vessels of twenty and one-
tenth (20.1) GT up to one hundred fifty (150) GT; and large
commercial fishing or fishing utilizing active gears and vessels
of more than one hundred fifty (150) GT;

(i) Contiguous zone refers to the contiguous zone of the

Philippines to the waters beyond and adjacent to its territorial

sea and up to the extent of twenty-four (24) nautical miles from

the baselines from which the breadth of the territorial sea is
measured;


(j) Continental shelf refers to the seabed and subsoil of the
submarine areas of the Philippines that extend beyond its
territorial sea throughout the natural prolongation of its land
territory to the outer edge of the continental margin, or to a
distance of two hundred (200) nautical miles from the baselines
from which the breadth of the territorial sea is measured, where
the outer edge of the continental margin does not extend up to
that distance;

(k) Ecosystem services refer to the flow of benefits which humans
gain from ecosystems, through biological processes and
climate, hydrological and biochemical cycles, and experiences
that contribute to intangible culture;

()) Environmental-economic accounting refers to a systematic way
to measure and report on stocks and flows of natural assets and
resources both biotic and abiotic, renewable and non-renewable
and ecosystem services, to determine the contribution of the
environment to the economy and the impact of the economy on
the environment;

(m) Environmental-economic accounts refer to _ statistical
information, in physical or monetary terms, about the extraction
of natural resources, their use within the economy, natural
resource stock levels, the changes in those stocks during a
specific period, and such other economic activities related to
the environment;

(n) Exclusive economic zone (EEZ) refers to the waters beyond and
adjacent to its territorial sea and up to the extent of two hundred
(200) nautical miles from the baselines from which the breadth
of the territorial sea is measured, as established by Presidential
Decree No. 1599, otherwise known as the "Philippine
Exclusive Economic Zone of 1978", and to the extent
consistent with the other provisions of this Act and with the
provisions of the 1982 United Nations Convention on the Law
of the Sea (UNCLOS);

(0) Fisheries refer to all activities relating to the science and act of
business of fishing, culturing, preserving, processing,
marketing, developing, conserving, and managing of aquatic
resources, and environment;


(p) Integrated coastal management (ICM) refers to a holistic and
integrative management that incorporates the following
components: (1) connectivity of various ecosystems
environment and resources; (2) various sectors and
stakeholders; (3) institutional arrangements that are relevant;
and (4) assessment of drivers of coastal ecosystem degradation,
management planning and implementation, including research
and education, to address coastal degradation and biodiversity
losses, and to improve the well-being of communities in coastal
and interconnected areas;

(q) Integrated Marine and Coastal Area Management (IMCAM)
refers to a participatory process for decision-making to prevent,
control, or mitigate adverse impacts from human activities in
the marine and coastal environment, and to contribute to the
restoration of degraded coastal areas;

(®) Internal waters refer to waters on the landward side of the
archipelagic baselines not forming part of archipelagic waters
under Section 4 of this Act and delineated in accordance with
Article 50 of the UNCLOS; and waters on the landward side of
the baselines of the territorial sea of territories outside of the
archipelagic baselines, drawn in accordance with Article 8 of
the UNCLOS;

(s) Investment promotion agencies (IPAs) refer to government
entities created by law, executive order, decree or other
issuance, in charge of promoting investments, granting and
administering tax and non-tax incentives, and overseeing the
operations of the different economic zones and freeports in
accordance with their respective special laws. These include the
Board of Investments (BOI), Bangsamoro Board of
Investments, Philippine Economic Zone Authority, Bases
Conversion and Development Authority, Subic Bay
Metropolitan Authority, Clark Development Corporation, John
Hay Management Corporation, Poro Point Management
Corporation, Cagayan Economic Zone Authority, Zamboanga
City Special Economic Zone Authority, PHIVIDEC Industrial
Authority, Aurora Pacific Economic Zone and Freeport
Authority, Authority of the Freeport Area of Bataan, Tourism
Infrastructure and Enterprise Zone Authority, and all other
similar existing authorities that may be created by law;


(t) Mariculture refers to the sea farming of aquatic plants and
fishes;

(u) Marine scientific research refers to any research activity, which
is conducted for exclusively peaceful purposes, for the purpose
of increasing scientific knowledge about the marine
environment, including all-natural resources, toward the benefit
of mankind and according to the UNCLOS;

(v) Maritime domain awareness refers to the effective
understanding of any activity that could impact upon the
security, safety, economy or environment;

itime spatial planning refers to a process by which human
ies in maritime zones are analyzed and organized, based
on best available scientific knowledge, to achieve economic,
ecological and social objectives;

(x) Maritime zones refer to the maritime zones of the Philippines
comprising the internal waters, archipelagic waters, territorial
sea, contiguous zone, EEZ, and continental shelf;

(y) Ocean-based activities refer to activities that are undertaken in
the ocean, such as fisheries and aquaculture, offshore oil and
gas, mining, ocean energy, desalination, shipping and marine
transportation, marine tourism, and marine construction;

(z) Ocean-related activities refer to activities that use products
from the ocean such as seafood processing, marine
biotechnology, chemicals, salt, and produce products and
services for the ocean and ocean-based activities such as
shipbuilding and repair, ports, tourist resorts, communication,
maritime insurance and law, and maritime technical services;

(aa) Subsistence fishing refers to fishing for personal
consumption or traditional/ceremonial purposes; and

(bb) Ocean literacy refers to an understanding of the ocean's
influence on humans and human influence on the ocean.

SEC. 4. Scope of Application. — For purposes of this Act, the
Philippines shall exercise sovereignty, sovereign rights and jurisdiction,
in accordance with commitments under the UNCLOS and other related
treaties which the Philippines has ratified, in internal waters, archipelagic

8


waters, territorial sea, contiguous zone, exclusive economic zone and
continental shelf, herein collectively referred to as "maritime zones",
including its seabed and subsoil, and any and all maritime features within
the maritime zones and where appropriate, the relevant airspace above the
territorial sea, internal waters and archipelagic waters now known or to be
known in the future.

CHAPTER II
NATIONAL MARITIME MONITORING SYSTEM

SEC. 5. National Maritime Monitoring System. — The National
Coast Watch System, established under Executive Order (EO) No. 57,
series of 2011, is hereby renamed as the National Maritime Monitoring
System.

SEC. 6. National Maritime Council. — The National Coast Watch
Council, created under EO 57, series of 2011, is hereby renamed and
reconstituted as the National Maritime Council, herein referred to as the
"Council", and its functions expanded to include the formulation of an
integrated strategy to promote blue economy and ecosystem-based
management of coastal and marine resources.

In addition to the powers and functions of the Council enumerated
in Section 3 of the same EO, the Council is likewise further mandated to:

(a) Steer the development, research, and sustainable resource
explorations in maritime zones, especially in areas with high
economic potential such as the Philippine Rise and the West
Philippine Sea;

(b) Coordinate the maritime regulation or licensing and law
enforcement for strengthened preparedness and responsiveness
to potential security threats or concerns in the country's
maritime areas and zones; and

(c) Build capacities in monitoring, including the use of digital and
innovative technologies for security and surveillance activities.

The Council is likewise authorized to convene committees or sub-
committees to oversee the abovementioned functions. In this way, all
strategic maritime zones will be covered and will reduce the call for the
creation of new bodies or authorities to manage the same.


SEC. 7. Composition of National Maritime Council. — The
Council is composed of the Executive Secretary as Chairperson and the
Secretaries of the following national agencies as members:

(a) Department of Economy, Planning, and Development
(DEPDev);

(b) Department of Environment and Natural Resources;

(c) Department of National Defense;

(d) Department of Foreign Affairs (DFA);

(c) Department of Justice;

(f) Department of the Interior and Local Government;

(g) Department of Agriculture;

(h) Department of Tourism;

(i) Department of Transportation;

(j) Department of Trade and Industry;

(k) Department of Energy;

(1) Department of Science and Technology;

(m) Department of Finance;

(n) Department of Education (DepEd);

(0) Department of Information and Communications Technology;

(p) National Security Council; and

(q) Bureau of Fisheries and Aquatic Resources.

Department Secretaries may designate an alternative
representative, whose portfolio covers matters directly or principally
relating to the development or management of coastal and marine
resources and ecosystems, if applicable. They shall sit in a permanent
capacity, and their acts shall be considered the acts of their principals.

SEC. 8. National Maritime Secretariat. - The Coastal Watch
Council Secretariat, established under Section 4 of EO 57, series of 2011,
is hereby renamed as the National Maritime Secretariat and shall continue
to provide technical and administrative support to the Council and
perform its functions under the same EO.

SEC. 9, National Maritime Coordination Center. — The National
Coast Watch Center, established under Section 5 of EO 57, series of
2011, is hereby renamed as the National Maritime Coordination Center
and shall continue to be the operational support unit of the National
Maritime Monitoring System and perform its functions under the same
EO.

SEC. 10. Support Agencies. — In order to ensure the efficient and
effective discharge of its responsibilities, in addition to the agencies

10


enumerated under Section 6 of EO 57, series of 2011, the Council may
call upon other departments, bureaus, offices and instrumentalities of the
government, representatives from maritime industries, and academic and
research institutions engaged in marine science and ocean-based or
ocean-related activities to participate in working groups, as it may deem
necessary.

CHAPTER III
POLICY FRAMEWORK ON BLUE ECONOMY

SEC. 11. Policy Framework on Blue Economy. — The Council
shall, within six (6) months from the effectivity of this Act, formulate a
Policy Framework on Blue Economy, herein referred to as the Policy
Framework. The Policy Framework shall serve as the basis for marine
spatial planning, determination of investments to develop modern
physical infrastructure and build an enabling environment for blue
economy to prosper, and enhance maritime domain awareness, and
enforcement of economic and environmental regulations within our
maritime zones. The Policy Framework shall be subject to mandatory
review and modification every five (5) years.

SEC. 12. Components of the Policy Framework on Blue
Economy. - The Policy Framework shall include the following
components:

(a) Review of all existing policies, plans, programs, projects, rules
and regulations on ocean-based and ocean-related activities in
our maritime zones, including seafood processing and storage,
and commercial research and development (R&D) activities for
biomass resource and fish stock estimation, artificial
intelligence for forecasting fish stocks and supply;

(b) Compliance to local and international maritime laws;

(c) Analysis of current and emerging trends in demography,
consumption, trade, technology and climate that show the
interaction between the economy and the environment, and
present threats and pressures on coastal and marine
environments;

(d) Environmental-economic accounting of coastal and marine
assets and resources, and ecosystem goods and services from
coastal and marine environments;


(e) Priority strategic and sustainable ocean-based and ocean-related
economic activities within our maritime zones, which may
include the following:

(1) Fisheries, including commercial fishing, but with
preference to subsistence fisheries, as mandated by Section
7, Article XIII, of the Constitution;

(2) Aquaculture, mariculture and aquasilviculture and support
industries, including seafood processing and storage, and
aquaculture feed milling;

(3) Marine and coastal tourism;

(4) Shipping, logistics and maritime transport;

(5) Shipbuilding and ship repair;

(6) Production of renewable energy from marine sources;

(7) Installation of submarine cables and pipelines;

(8) Marine biotechnology and bioprospecting;

(9) Desalination;

(10)Underwater cultural heritage and maritime archaeology;
and

(11)Commercial R&D activities and commercialization of new
and emerging technologies developed from _locally-
undertaken R&D;

(f) Principles and indicators to guide environmental impact
assessment of ocean-based and ocean-related economic
activities, taking into account the environmental-economic
accounting of marine resources and ecosystem services that will
be affected;

(g) Adoption of integrated marine and coastal area management;

(h) Strategies to promote blue finance;

(i) Priority research and development agenda, _ including
development of innovative technologies, and human capital to

support the blue economy;

(j) Promotion of ocean literacy and social responsibility towards
the protection of coastal and marine environments;

(k) Enhancement of capability of the Armed Forces of the
Philippines and civilian agencies to enforce laws, rules and
regulations to protect our marine wealth;



() Goals, targets and indicators for growth, resilience and
sustainability of priority strategic and sustainable ocean-based
and ocean-related activities, including its contribution to Gross
Domestic Product and job creation; and

(m) Such other components as may be determined by the
Council as a result of its periodic review, to ensure that the
Policy Framework is continually updated and adapted to the
needs of the times.

CHAPTER IV
COMPLIANCE WITH INTERNATIONAL MARITIME
INSTRUMENTS

SEC. 13. International Maritime Instruments. — The Council
shall direct the Inter-Agency Coordinating Committee, as created under
EO No. 159, series of 2021, to Facilitate the Ratification of/Accession to
and Implementation of Maritime Conventions (ICCRIMC) to establish
mechanisms for the full and effective implementation and enforcement of
the following international maritime instruments and their subsequent
amendments, including, but not limited to the following:

(a) 1982 United Nations Convention on the Law of the Sea;

(b) Convention on the International Trade of Endangered Species
of Flora and Fauna;

(c) United Nations Educational, Scientific and Cultural
Organization (UNESCO) Convention on the Protection of the
Underwater Cultural Heritage;

(d) International Convention for the Safety of Life at Sea, 1974, as
amended, and its Protocol of 1988 (SOLAS 74);

(e) International Convention for the Prevention of Pollution from
Ships and its Protocol of 1978 (MARPOL 73/78);

(f) Convention on the International Regulations for Preventing
Collisions at Sea, 1972, as amended (COLREG 72);

(g) International Convention on Load Lines, 1966 and its Protocol
of 1988, as amended (LL 66);

(h) International Convention on the Tonnage Measurement of
Ships, 1969 (TONNAGE 69);

(i) Convention for the Suppression of Unlawful Acts Against the
Safety of Maritime Navigation, 1988 (SUA) and its Protocol;

Gj) Intemational Convention on Oil Pollution Preparedness,
Response and Co-operation 1990 (OPRC 1990);

(k) International Convention for the Control and Management of
Ships' Ballast Water and Sediments, 2004 (BWM 2004);

B


(1) Convention on the Prevention of Marine Pollution by dumping
of Wastes and Other Matter, 1972, as amended, and its 1996
Protocol (LCP);

(m) Special Trade Passenger Ships Agreement, 1971 (STP 71);

(n) Convention on the International Mobile Satellite Organization,
as amended (IMSO 1976) and its Operating Agreement
(INMARSAT),

(0) International Convention on Standards of Training,
Certification and Watchkeeping for Seafarers, 1978, As
Amended (STCW 78);

(p) International Convention on the Control of Harmful Anti-
Fouling Systems on Ships, 2001 (AFS 2001);

(q) Protocol of 1992 to Amend the International Convention on
Civil Liability for Oil Pollution Damage, 1969;

(x) Protocol of 1992 to amend the International Convention on the
Establishment of an International Fund for Compensation for
Oil Pollution Damage, 1971; and

(s) Other relevant maritime treaties, conventions, or instruments as
may be agreed upon in the future.

SEC. 14. Application. - Unless otherwise indicated, the
international conventions enumerated in the preceding section shall apply
to:

(a) All ships, whether seagoing or coastwise, which are registered
under the Philippine flag;

(b) All persons, partnerships, corporations, firms and other entities
that engage in ocean-based or ocean-related enterprise, or those
acting on their behalf; and

(c) Alll foreign ships that are within the waters, ports, harbors and
offshore terminals of the Philippines regardless of whether or
not they are registered in, or belong to, State Parties to the
conventions sought to be implemented by this Act.

SEC. 15. Reciprocity. - The rights and privileges of foreign
vessels and aircraft in Philippine archipelagic waters herein provided are
recognized under conditions of reciprocity and mutual respect. The
President of the Philippines is hereby authorized to institute
countermeasures and other appropriate steps as may be recommended by
the DFA in response to foreign states that do not abide by, or that act
inconsistently with the UNCLOS, or which do not ensure that vessels and
aircraft under their authority comply with their rights and obligations
under the convention.


CHAPTER V
ENVIRONMENTAL-ECONOMIC ACCOUNTE:

SEC. 16. Environmental-Economic Accounting. — The
Philippine Statistics Authority shall include the environmental-economic
accounting of marine ecosystems, as part of the Philippine ecosystem and
natural capital accounting system, in the generation of the Philippine
ocean economy satellite accounts.

CHAPTER VI
INTEGRATED MARINE AND COASTAL AREA MANAGEMENT

SEC. 17. Integrated Marine and Coastal Area Management. —
The IMCAM shall be the framework to address human impacts on marine
and coastal ecosystem, and for promoting its conservation and sustainable
use. The Integrated Coastal Management Framework, principles, and
mechanisms shall be aligned and shall be an integral part of the IMCAM
framework to be developed under this Act.

SEC. 18. Elements of the National IMCAM Framework. — The
Council shall develop and implement the National IMCAM Framework
within one (1) year from the effectivity of this Act to provide direction,
support and guidance to relevant member and support agencies, local
government units and other stakeholders, according to the Elaborated
Programme of Work on Marine and Coastal Biological Diversity
contained in the Annex to Decision VII/5 of the Conference of the Parties
to the United Nations Environmental Programme Convention on
Biological Diversity.

Accordingly, the National IMCAM Framework shall consider the
following elements:

(a) Build capacity of stakeholders, in both national and local levels,
to apply relevant policy instruments to address legal issues,
institutionalize participatory processes, and develop strategies
to promote multidisciplinary and multisectoral ecosystem-based
management of coastal and marine environments;

(b) Direct action to protect coastal and marine environments from
negative impacts, such as:

(1) Identification, protection, prevention of alteration and
destruction, and restoration of coastal and marine habitats,
particularly areas important for reproduction, inter alia,
coral reef systems;

15


(2) Prevention, reduction or control of marine pollution;

(3) Protection of coastal and marine environments from land-
based sources, including proper coastal land use and
watershed management;

(4) Establishment of closed fishing areas, and closed seasons,
in accordance with Republic Act (RA) No. 8550, also
known as the “Philippine Fisheries Code of 1998”, as
amended by RA 10654; and

(5) Reduction of by-catch.

(c) Establish mechanisms and guidelines for research, monitoring
and assessment of coastal and marine ecosystems and
resources, including indicators to measure natural and human-
induced impacts; and

(d)Establish guidelines and mechanisms on green and blue
businesses.

CHAPTER VIL
PROTECTION AND CONSERVATION OF COASTAL
AND MARINE RESOURCES

SEC. 19. Protection of Endangered Species. — The Council shall
spearhead the conservation, protection and rehabilitation of rare,
threatened and endangered aquatic species as it may determine, including
their habitats. It shall recommend to the President of the Philippines and
Congress the designation of coastal and marine areas as protected areas
under the Expanded National Integrated Protected Areas System or under
RA 8550, as amended, and in compliance with the relevant provisions of
international treaties and agreements such as, the Convention on the
International Trade in Endangered Species of Wild Flora and Fauna, the
UNCLOS, and Convention on Biological Diversity.

SEC. 20. Policy Coordination. — The Council shall harmonize
rules and regulations of all relevant agencies responsible for the
implementation and enforcement of laws to prevent and eliminate illegal
fishing such as RA 8550, as amended

CHAPTER VIII
DEVELOPMENT PLANNING

SEC. 21. Maritime Spatial Planning. — The Council, in
consultation with relevant agencies, regional bodies and local government
units (LGUs), shall undertake a nationwide maritime spatial planning,

16


guided by the standards of the Intergovernmental Oceanographic
Commission, to identify the spatial and temporal distribution of priority
activities and uses and the interactions thereof in maritime zones, in order
to reduce conflict among uses, facilitate complementary uses, mitigate
environmental impacts, and preserve ecosystem services.

SEC. 22. Industry Development Plans. - The Council, through
working groups created for the purpose, shall prepare five-year and ten-
year development plans for priority strategic and sustainable ocean-based
or ocean-related industry, in accordance with the Policy Framework and
in consideration of the existing development plans and strategies
formulated by agencies involved in coastal and marine protection and
development. The Council shall also ensure the integration of the
framework in existing industry plans.

SEC. 23. Integration with Area and National Development
Plans. — The DEPDev shall integrate the maritime spatial plan and
industry development plans into the Philippine Development Plan, the
National Priority Plan, the National Physical Framework Plan, and Area
Spatial Development Framework.

SEC. 24. Inclusion in Strategic Investment Priority Plan. — The
Council shall recommend to the BOI the inclusion of identified priority
strategic ocean-based and ocean-related activities in the Strategic
Investment Priority Plan.

SEC. 25. Blue Economic Zones. — Investment Promotion
Agencies (IPAs) shall encourage the establishment of blue economic
zones and the transformation of existing special economic zones into the
same: Provided, That Registered Business Enterprises (RBEs) engaged in
ocean-based or ocean-related activities in these blue economic zones,
duly registered by an IPA, may be entitled to the incentives under Title
XIII (Tax Incentives) of the National Internal Revenue Code of 1997, as
amended.

In addition, the incentives provided under this Act shall be without
prejudice to the following laws:

(a) RA 9003, otherwise known as the “Ecological Solid Waste
Management Act of 2000”;

(b) RA 9275, otherwise known as the “Philippine Clean Water Act
of 2004”;

(c) RA 9513, otherwise known as the “Renewable Energy Act of
2008”; and


(d) RA 10771, otherwise known as the “Philippine Green Jobs Act
of 2016”.

The RBEs operating within blue economic zones may also qualify
for financing provided under RA 11293, otherwise known as the
“Philippine Innovation Act”, as applicable.

CHAPTER IX
BLUE FINANCE

SEC. 26. Role of the Bangko Sentral ng Pilipinas (BSP). — In the
exercise of its regulatory powers over financial institutions, the BSP shall
mandate banks and quasi-banks to adopt the United Nations Environment
Programme Sustainable Blue Economy Finance Principles as a
foundation of corporate governance and risk management.

SEC. 27. Role of Securities and Exchange Commission (SEC). —
The SEC shall encourage the issuance of blue bonds where proceeds will
be exclusively applied to finance or refinance, in part or in full, eligible
Blue Economy activities, in accordance with SEC Guidelines, the
Association of Southeast Asian Nations (ASEAN) Green Bonds
Standards and Green Bonds Principles, as developed and may be revised
from time to time by the SEC, ASEAN Capital Markets Forum, and the
International Capital Market Association, respectively. All designated
Blue Projects or Activities must provide clear benefits to ocean health
and the blue economy or must contribute substantially to United Nations
Sustainable Development Goals (UN SDG) 6 or 14, which shall be
assessed and, where feasible, quantified by the Issuer.

SEC. 28. Role of Government Financial Institutions. - The
Land Bank of the Philippines and the Development Bank of the
Philippines shall provide credit to strategic and sustainable ocean-based
or ocean-related enterprises.

SEC. 29. Blue Public Expenditures. — The Department of Budget
and Management (DBM) shall allocate funds to implement blue economy
programs, activities and projects (PAPs), in consonance with Section 15
of Republic Act No. 9729, as amended. The DBM shall include blue
public expenditures as part of its efforts to increase convergence in
programming and implementation of climate change and disaster risk
reduction PAPs through the Risk Resiliency Program.

CHAPTER X
MARINE SCIENCE, TECHNOLOGY, AND INNOVATION (STI)

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AND OCEAN LITERACY

SEC. 30. Marine Scientific Research. — The State recognizes
marine science as a foundation of maritime governance, insofar as rules
governing the use of coastal and marine resources must be based on the
sound scientific understanding of the marine environment. In accordance
with UNCLOS, the Philippines has the exclusive rights to regulate,
authorize and conduct marine scientific research in our internal waters,
archipelagic waters and territorial sea; whereas, the Philippines has rights
to regulate, authorize and conduct maritime research in our exclusive
economic zone and continental shelf: Provided, That the marine scientific
research activities shall not unjustifiably interfere with other legitimate
uses of the sea and shall not constitute the legal basis for any claim to any
part of the marine environment or its resources.

Marine scientific research by foreign states and competent
international organizations may only be conducted with the express
consent of and the conditions set forth by the Council, in accordance with
the UNCLOS.

SEC. 31. Marine Technology and Innovation. — The State
recognizes that science, technology, and innovation have a critical role in
hamessing ocean resources for the blue economy while ensuring
sustainability. Marine technology and innovations are needed to address
technical and logistical constraints that impede the development of
Philippine blue industries. Among these technologies are advanced
materials, subsea engineering and technology, sensors and imaging, big
data analytics, autonomous systems, biotechnology, nanotechnology,
marine spatial planning, and circular blue economy. The government
shall also support the development and adoption of locally-developed
marine-related technologies.

SEC. 32. Ocean Literacy Framework. — The DepEd,
Commission on Higher Education, Technical Education and Skills
Development Authority, and other government agencies implementing
sector-specific literacy programs, in consultation with relevant members.
of the Council or support agencies, shall integrate into the curricula of K-
12, the Alternative Learning System, general education programs of
higher education institutions, technical and vocational education and
training, and other community-based training programs, the essential
principles and fundamental concepts of ocean sciences to develop the
following competencies:


(a) Understanding the economic, socio-cultural, spiritual, scientific
and political importance/significance of the ocean to humankind in
general and the Filipinos in particular;

(b) Communicating about the ocean in a meaningful way; and

(c) Making informed and responsible decisions regarding the ocean
and its resources.

CHAPTER XI
FREEDOM OF NAVIGATION

SEC. 33. Archipelagic Sea Lanes. — The President of the
Philippines shall designate sea lanes and air routes thereabove, suitable
for the continuous and expeditious passage of foreign ships and aircrafts
through or over the archipelagic waters and the adjacent territorial sea,
and shall, where necessary as regards the safety of navigation, require
foreign ships exercising the right of innocent passage to use such lanes
and traffic separation schemes in accordance with the UNCLOS.

CHAPTER XII
ROLE OF LOCAL GOVERNMENTS

SEC. 34. Role of Local Government Units. — Cities and
municipalities shall continue to exercise jurisdiction over municipal
waters, pursuant to RA 7160, otherwise known as the “Local Government
Code of 1991”, as amended, and RA 8550, as amended subject to the
jurisdiction and authority of national government agencies as stated in the
provisions of special laws as the case may be. Consistent with this
mandate, LGUs shall act as the frontline agencies in the formulation,
planning, and implementation and enforcement of the law of IMCAM in
their respective jurisdictions. The LGUs shall integrate the National
Maritime Spatial Plan in their Comprehensive Development and Annual
Investment Plans.

SEC. 35. Inter-LGU Cooperation. — Consistent with the
provisions of RA 7160, as amended, LGUs may group themselves,
consolidate or coordinate their efforts, services, and resources for the
accomplishment of the objectives of this Act.

CHAPTER XII
FINAL PROVISIONS

SEC. 36. Joint Congressional Oversight. — For the effective
implementation of this Act, a Joint Congressional Oversight Committee is
created, to be known as the Blue Economy Oversight Committee, which

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shall be composed of five (5) Senators and five (5) Representatives to be
appointed by the Senate President and the Speaker of the House of
Representatives, respectively. The Minority shall be entitled to pro rata
representation. The Blue Economy Oversight Committee shall be jointly
chaired by the Chairperson of the Senate Committee on Economic Affairs
and the Chairperson of the House Committee on Economic Affairs.

SEC. 37. Appropriations. — The amount necessary for the initial
implementation of this Act shall be charged against the current year’s
appropriations of the Office of the President. Thereafter, such amount
shall be included in the annual General Appropriations Act.

SEC. 38. Implementing Rules and Regulations. — The Council
shall issue the necessary rules and regulations to efficiently carry out the
provisions of this Act within sixty (60) days from its effectivity.

SEC. 39. Separability Clause. — If any provision of this Act is
held invalid or unconstitutional, the remaining provisions not affected
shall remain in full force and effect.

SEC. 40. Repealing Clause. — All other laws, decrees, executive
orders, and rules and regulations contrary to or inconsistent with the
provisions of this Act are repealed or modified accordingly.

SEC. 41. Effectivity. — This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved,