NINETEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES }
Third Regular Session 
}
SENATE
S. NO. 2V47
o( t!)C 'Zy- f fl-n'i
24 JUL 23 PI :21
W-CBVT
Introduced by Senator Francis "Tol" N. Tolentino
AN ACT GRANTING JURIDICAL PERSONALITY AND LEGAL CAPACITY TO 
THE LOSS AND DAMAGE FUND BOARD IN THE PHILIPPINES
EXPLANATORY NOTE
The United Nations Framework Convention on Climate Change (UNFCCC) is a 
multilateral treaty adopted in 1992 and is currently composed of 198 countries, who 
have joined together to measure progress and negotiate multilateral responses to 
climate change. It has provided the basis for various international climate negotiations, 
including the Kyoto Protocol of 1997 and the Paris Agreement of 2015.
The Conference of the Parties (COPs) have created global milestones for the 
climate movement, setting standards and advancing action, including on reducing 
carbon emissions, accelerating a global energy transition, and helping countries adapt 
and build resilience to compounding climate issues. COPs are crucial in bringing 
governments together while also mobilizing the private sector, civil society, industry 
and individuals to tackle the climate crisis.1
During the COP 27 of the UNFCCC in 2022, the Parties agreed to establish a 
loss and damage fund, aimed to provide financial assistance to nations particularly 
vulnerable and impacted by the adverse effects of climate change. Loss and damage 
refer to the negative consequences that arise from the unavoidable risks of climate 
change, like sea level rise, prolonged heat waves, desertification, acidification of the 
sea, and extreme events.2
In 2023, during the COP 28, the Parties adopted the operationalization of the 
Loss and Damage Fund (L&D Fund).3 The L&D Fund will be governed and supervised 
by a Board composed of 26 members representing an equitable and balanced 
representation of all Parties. Thereafter, President Ferdinand R. Marcos, Jr. announced
1 https://www.un.orq/en/climatechanae/un-climate-
conferences#:~:text=The%20UN%20Climate%20Chanae%20Conference%20in%20Sharm%20el%2
DSheikh%2C%20Eqvpt,Celsius%20above%20pre%2Dindustrial%20levels%2C
2 https://www.unep.orq/news-and-stories/storv/what-vou-need-know-about-cop27-loss-and-damage-
fund
3 https://unfccc.int/loss-and-damage-fund-joint-interim-secretariat


his call for the Philippines to host the L&D Fund Board, as this will symbolize 
Philippines' commitment to inclusivity, and will ensure that the economic and non­
economic loss of the countries most affected by climate change will be addressed.4 
The Philippines has then secured a membership on L&D Fund Board, as permanent 
representative of the Asia Pacific Group for 2024 and 2026, and as an alternate 
representative of the Asia Pacific Group for 2025.5
According to the World Risk Index 2023, the Philippines topped as the most 
disaster-prone country in the world.6 Manifestations of climate change such as rising 
temperature, sea level rise, frequency and intensity of typhoons, variability of 
precipitation, floods, droughts, and heat waves are all experienced in the country.
On 09 July 2024, the Philippines was elected as the host country of the L&D 
Fund Board. The hosting of the L&D Fund Board reflects the Philippines' ability and 
commitment to address the critical issue of global climate action and equity.7 The 
benefits of hosting the L&D Fund Board are: (1) showing the firm resolve of the 
country to be an active voice of the developing world in pushing for the need to 
respond to loss and damage; (2) enabling the Philippines to promote its national 
response plans on loss and damage from the impacts of climate-induced hazards and 
disasters; and (3) increasing awareness in the country regarding international 
cooperation to addressing the local needs to respond to loss and damage due to the 
impacts of climate change.
The Philippines has demonstrated a deep commitment in addressing climate 
change through comprehensive legislative frameworks and proactive measures, 
including Republic Act No. 9729 or the "Climate Change Act of 2009". The current 
proposed measure is consistent with the country's commitment to multilateralism and 
in ensuring that the voices of the most affected by climate change will shape the future 
of international climate policies.8
Moreover, this bill will strengthen the country's commitment in addressing Loss 
and Damage, as one of the countries greatly impacted by climate change. Included 
among the Philippines' proposal in hosting the L&D Fund Board is the conferment of 
legal personality and legal capacity, to include privileges and immunities.
Through this bill, the L&D Fund Board, as the governing body of the L&D Fund, 
shall be granted juridical personality with full capacity to enter contracts, acquire and 
dispose properties, institute legal proceedings, enter into hosting agreement with the 
World Bank, and undertake necessary activities to carry out the purpose for the L&D 
Fund Board. In order to conclude the domestic requirements, i.e. the grant of juridical 
personality and legal capacity to the L&D Fund Board, this bill must be given high and
4https://pco.gov.ph/news_releases/making-ph-the-host-of-loss-and-damage-fund-to-ensure-
countries-most-affected-by-climate-change-are-heard-pbbm/
5https://pco.gov.ph/news_releases/pbbm-ph-secures-a-seat-in-inaugural-loss-and-damage-fund-
board/
6 https://kpl.gov.la/EN/detail.aspx?id=:81794
7 https://www.pna.gov.ph/articles/1228637
8https://denr.gov.ph/news-events/the-philippines-wins-bid-to-host-the-loss-and-damage-fund- board/


utmost priority which shall be enacted not later than ninety (90) days after the 
confirmation of the Philippines, as the host country.
sought.
In light of the foregoing considerations, the passage of this bill is immediately
:IS "TOL" N. TOLENTINO
Senator


NINETEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES }
Third Regular Session 
}
SENATE
S. NO.
o *•;47
of t!if .C . ■ rf.".
24 JUL 23 PI :21
r:;u{Vuvj ii
Introduced by Senator Francis "Tol" N. Tolentino
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AN ACT GRANTING JURIDICAL PERSONALITY AND LEGAL CAPACITY TO 
THE LOSS AND DAMAGE FUND BOARD IN THE PHILIPPINES
Be it enacted by the Senate and House of the Representatives of the Philippines 
in Congress assembled:
SECTION 1. Short Title. - This Act shall be known and referred to as "The 
Loss and Damage Fund Board Act."
SEC. 2. Declaration of Policy- It is the policy of the State to advance the 
right of the people to a balanced and healthful ecology in accord with the rhythm and 
harmony of nature and to protect the climate system for the benefit of humankind.
As a party to the United Nations Framework Convention on Climate Change 
("UNFCCC") and the Paris Agreement, the State strongly supports the creation of the 
Fund for Responding to Loss and Damage ("L&D Fund") to assist developing countries 
that are particularly vulnerable to the adverse effects of climate change in responding 
to economic and non-economic loss and damage associated with the adverse effects 
of climate change, including extreme weather events and slow onset events.
By virtue of the UNFCCC Decision 1/CP28, 5/CMA.5 on the "Operationalization 
of the new funding arrangements, to include a fund for responding to loss and damage 
referred to in paragraphs 2-3 of decisions 2/CP.27 and 2/CMA.4":
"the Governing Instrument of the Loss and Damage Fund ("L&D Fund") 
was approved, and the Board of the Fund ("Board") will be conferred 
with legal personality and the legal capacity as necessary for 
discharging its roles and functions. In particular the legal capacity to 
negotiate, conclude and enter into a hosting arrangement with the 
World Bank as interim trustee and host of the Fund's secretariat.
Noting further Section III C.2 of the Governing Instrument, the Board 
will serve the objectives and purpose of the Fund and steer its 
operations so that they evolve with its scale and maturity".


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To facilitate the establishment and operationalization of the Fund, the State
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hereby grants juridical personality and legal capacity to the Board.
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SEC. 3. Juridical Personality and Legal Capacity of the Loss and 
Damage Fund Board - The Board, as the governing body of the Fund established 
by the Meeting of Parties to the Paris Agreement under the UNFCCC shall be granted 
juridical personality with full legal capacity to:
(a) Contract;
(b) Acquire and dispose of immovable and movable property;
(c) Institute legal proceedings;
(d) Negotiate, conclude, and enter into a hosting arrangement with the 
World Bank as interim trustee and host of the Fund's secretariat; and
(e) Undertake related or necessary activities to carry out the purpose for 
which the Board was created.
SEC. 4. Privileges, Immunities, and Exemptions - The Board, as an 
international organization, shall enjoy the status, prerogatives, immunities, privileges, 
and exemptions granted under the host country agreement entered into with the 
Government of the Republic of the Philippines.
SEC. 5. Tax Exemptions. -The Property, operations and transactions of the 
LDF and its Board shall be exempt from the payment of all taxes, duties, and other 
charges imposed by the Government and local authorities. The LDF and its Board shall 
also be exempt from any obligation for the payment, withholding or collection of any 
tax or duty.
The LDF and its Board shall be exempt from the payment of all taxes, duties, 
and other charges imposed by the Government and local authorities, except charges 
for storage, transport and services supplied, on the importation of equipment, 
machinery, motor vehicles, and materials intended for use in the board meeting. The 
same shall be processed in the manner and under existing procedures applied by the 
Department of Finance in similarly situated cases.
The non-Filipino LDF Officials and invited Experts and Observers shall be 
exempt from the payment of income tax on salaries, stipends, emoluments, 
indemnities, and sickness and accident benefits, received from the LDF, regardless of 
currency used. The Government retains its rights to tax its own nationals. They shall 
likewise not be subject to taxes on their local purchases in the quantity as appropriate 
for the duration of the board meeting.
The non-Filipino LDF Officials and invited Experts and Observers shall be 
exempt from the payment of all taxes, duties, and other charges imposed by the 
Government and local authorities, except charges for storage, transport and services 
supplied, on the importation of personal effects in the quantity as appropriate for the 
duration of the board meeting.


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Goods released tax-free and duty-free under this Agreement shall be subject 
to applicable taxes and duties if sold, transferred, or exchanged in the Philippines to 
non-exempt persons or entities, computed based on the value of the goods at the 
time of the importation pursuant to existing Government rules and regulations.
SEC. 6. Repealing Clause. - All laws, presidential decrees, executive orders, 
administrative orders, and rules and regulations inconsistent with this Act are hereby 
repealed, modified, or amended accordingly.
SEC. 7. Effectivity. - This Act shall take effect upon publication in the Official 
Gazette or in at least two (2) newspapers of general circulation.
Approved,