NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
Senate
o( tiK
72 JUL14 P3 77
SENATE 
S. No._6 21
RECEIVED BV:
Introduced by Senator Loren B. Legarda
AN ACT
TO PROMOTE A CIRCULAR ECONOMY
EXPLANATORY NOTE
Amid the multiple climate change shocks and the COVID- 19 pandemic, the 
country is facing unprecedented challenges to achieve resilience and meet the 2030 
Sustainable Development Agenda. The pandemic caused socio-economic stresses 
which impinge on the sustainable development goals.
Akin to the climate crisis, the COVID-19 pandemic not only exposed the 
vulnerability of economies and communities but also brought out opportunities for a 
green recovery through the adoption of a sustainable, inclusive, resilient, low-carbon, 
low-polluting, nature-positive, and circular economy-based pathway for society, one 
that can withstand future shocks coming from climate change, natural and manmade 
disasters, and other global challenges1. Our economy must leapfrog to a cleaner 
future, merging environmental sustainability with the long-time objective of socio­
economic development without following the trajectories of developed countries that 
resulted in massive environmental degradation.
Toward this goal, the principles and strategies of circular economy and 
sustainable consumption and production (SCP) serve as guideposts for policy and
1GEF's Response to COVID-19,16 May 2020.


decision-makers. A circular economy implies using and reusing resources already in 
the economy more efficiently to minimize losses and rely less on extracting natural 
resources.
The National Economic and Development Authority (NEDA) is developing the 
National Action Plan for SCP, with the goal for Filipinos to "produce and consume 
green goods and services to accelerate the shift towards sustainable and climate-smart 
practices and lifestyles" and the expected outcome of internalized and integrated 
social and environmental impacts of economic activities in the market system.
This bill seeks to pave the way for the development of green markets by 
instituting measures that promote the circular economy, sustainable consumption, 
and production by improving reuse, recycling, and reducing plastic consumption; 
promote the use of permaculture as a design tool for urban and rural development; 
and foster a just, inclusive, and sustainable green recovery from the pandemic.
The activities contemplated in this act cover the interplay between the public 
and private sectors, as well as national, subnational, regional, and global stakeholders, 
taking into consideration the trajectories imder the better normal or green recovery 
directions consistent with the national economy and planet-people-nature nexus.
In view of the foregoing, the passage of this bill is earnestly sought.
LOREN LEGARDA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s. No. 621
Cli'l Senate
of tl)p
*22 JUL14 P3 *28
RECEIVED BV:
Introduced by Senator Loren B. Legarda
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AN ACT
TO PROMOTE A CIRCULAR ECONOMY
Be it enacted by the Senate and House of Representatives of the Republic of the Philippines in 
Congress assembled:
Section 1. Title. - This Act shall be known as the "Philippine Circular Economy 
Promotion Act."
Sec. 2. Declaration of Policy. - It is the policy of the State to protect and advance 
the right of ihe people to a balanced and healthful ecology in accord with the rhythm 
and harmony of nature and promote sustainable development. In line with the 2030 
Sustainable Development Agenda, che Philippines adopts the goals of making cities 
and human settlements inclusive, resilient, and sustainable, ensuring sustainable 
production and consumption patterns, taking urgent action to combat climate 
change and its impacts, and restoring natural ecosystems, in line with national 
development priorities and capacities. Towards this end, the State shall prevent and 
reduce the impact of certain plastic products, particularly marine litter, on the 
environment, and human health, as well as promote the transition to a circular 
economy with innovative and sustainable business models, products, and materials.
Sec. 3. Definition of Terms, - For purposes of this Act, the following terms are 
defined:
a) Alternative delivery systems shall refer to sustainable eco-friendly 
apparatuses or processes for storing and dispensing different retail items, 
goods, and consumer products;


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b) Assimilating capacity assessment shall refer to an assessment of the 
assimilative capacity of a certain ecosystem, which is the ability to 
accommodate a particular activity or rate of an activity (usually pertaining 
to waste and residuals-producing activities such as the discharge of 
contaminants), without unacceptable impact;
c) Biocapacity assessment shall refer to an assessment of the biocapacity which 
is the ability of biologically productive ecosystems to provide the resources 
and services used by humanity;
d) Business enterprises shall refer to establishments engaged in the production, 
manufacturing, processing, repacking, assembly, or sale of goods and/or 
services, including service-oriented enterprises. It shall include self- 
employed or own-account workers, micro, small and medium enterprises 
(MSMEs) and community-based business enterprises;
e) Capacity assessment shall refer to the generic term for the following sub­
classifications: carrying capacity assessment, biocapacity assessment and 
assimilating capacity assessment. The assessments shall focus on ecosystem 
and environment-related systems of interest;
f) Carrying capacity assessment shall refer to an assessment of the carrying 
capacity of a certain ecosystem, which is the maximum number of people, 
or individuals of a particular species, that a given area of the environment 
can sustain without causing environmental, economic or socio-cultural 
stress or damage;
g) Circular economy shall refer to a system approach wherein products are 
designed for durability, reuse and recyclability, and materials for new 
products come from old products. It minimizes waste and maximizes the 
use of natural resources;
h) Collection shall refer to the act of gathering and/or removal of solid waste 
from a source or from a communal storage point and/or facility;
i) Consumer shall refer to a natural person who is a purchaser, lessee, recipient 
or prospective purchaser, lessor or recipient of consumer products, services 
or credit, pursuant to the defined terms under Republic Act No. 7394 or the 
Consumer Act of the Philippines;


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j) Ecological footprint shall refer to human demand/activity on the biosphere,
the extent to which the regenerative capacity of the planet is being used by 
human activities, and related methods of assessing or computing the same.
k) Incentives shall refer to incentives provided for under RA No. 9520 otherwise 
known as the Philippine Cooperative Code of 2008, RA No. 9178 otherwise 
known as the Barangay Micro-Business Enterprise Act of 2002, RA No. 9501 
otherwise known as the Magna Carta for Micro, Small and Medium 
Enterprises, Executive Order No. 226 otherwise known as the Omnibus 
Investment Code of 1987, RA No. 10771 otherwise known as the Green Jobs 
Act of 2016 or incentives as defined by the local government unit through 
an ordinance specifically for the purpose of this Act, where applicable;
l) Natural Capital Accounting and Valuation or Environment and Natural Resource 
Accounting and Valuation shall refer to a process that provides a systematic 
way to measure and report on stocks and flows of natural capital, 
recognizing the environment as an asset that must be maintained and 
managed;
m) Permaculture shall refer to an innovative framework for creating sustainable 
ways of living. It is a practical method of developing ecologically 
harmonious, efficient, and productive systems. The application of 
permaculture principles enables households, communities, and businesses 
to creatively re-design their environment with less energy and resources;
n) Producer shall also refer to a manufacturer which has been defined under 
RA No. 7394 as "any person who manufactures, assembles, or processes 
consumer products, except that if the goods are manufactured, assembled 
or processed for another person who attaches his own brand name to the 
consumer products, the latter shall be deemed the manufacturer. In case of 
imported products, the manufacturer's representative or, in his absence, 
the importer, shall be deemed the manufacturer";
o) Recovery or Resources recovery shall refer to the collection, extraction or 
recovery of recyclable materials from the waste stream for the purpose of 
recycling, generating energy or producing a product suitable for beneficial 
use;


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p) Recycling shall refer to the treatment of used or waste materials through a 
process of making them suitable for beneficial use and for other purposes, 
and includes any process by which solid waste materials are transformed 
into new products in such a manner that the original product may lose their 
identity, and which may be used as raw materials for the production of 
other goods or services;
q) Single-use plastics shall refer to plastic products which are not conceived, 
designed and placed on the market to accomplish, within its life 
span/cycle, multiple usage or rotations such as being returned to the 
producer for refill or reused for the same purpose for which it was 
conceived. These include, but are not limited to, items such as grocery bags, 
food packaging films and bags, straws, stirrers, containers, 
styrofoam/ styros, cups, sachets and plastic cutlery;
r) Sustainable Consumption and Production (SCP) shall refer to the use of 
services and related products, which respond to basic needs and bring a 
better quality of life while minimizing the use of natural resources and toxic 
materials as well as the emissions of waste and pollutants over the life cycle 
of the service or product so as not to jeopardize the needs of further 
generations.
s) 
Source reduction refers to the reduction of solid waste before it enters the 
solid waste stream by methods such as product design, materials 
substitution, materials reuse, and packaging restrictions.
Sec. 4. Scope, - This Act shall apply to producers and consumers involved in 
value chains of all goods, products, services, and processes contributing to the 
Philippine economy, and to the mechanisms facilitating the policy, regulatory, and 
advocacy measures to promote, implement, monitor, and evaluate the strategies on 
circular economy, complementing thereby the goals and targets of sustainable 
consumption and production.
The activities contemplated in this Act cover the interplay between the public and 
private sectors, as well as national, subnational, regional, and global stakeholders, 
taking into consideration the trajectories under the better normal or green recovery 
directions consistent with the national economy and planet-people-nature nexus.


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In pursuing the circular economy, the following value creation principles, which 
underpin the transition from a value chain to a value circle perspective, shall be 
adhered to2:
a. The "inner circle" refers to minimizing comparative materials use vis-a- 
vis the linear production system. The tighter the circle, i.e. the less a 
product has to be changed in reuse, refurbishment, and 
remanufacturing and the faster it returns to use, the higher the potential 
savings on the shares of material, labor, energy, and capital still 
embedded in the product, and the associated externalities (such as 
greenhouse gas emissions, water, and toxicity).
b. The "circling longer" refers to maximizing the number of consecutive 
cycles (be it repair, reuse, or full remanufacturing) and/or the time in 
each cycle. Each prolonged cycle avoids the material, energy and labor 
of creating a new product or component;
c. The "cascaded use" refers to diversifying reuse across the value chain or 
transforming materials across product categories to offset the need for 
virgin material inputs;
d. The "pure inputs" postulates that uncontaminated material streams 
increase collection and redistribution efficiency while maintaining 
quality, particularly of technical materials, which in turn extends 
product longevity and thus increases material productivity.
e. The utmost need to remove the use of toxic chemicals and hazardous 
substances in the production of goods and products. The elimination of 
toxicity in the production line will protect workers' health and 
guarantee safe and clean recycling processes throughout the product's 
lifecycle; and
f. All products are designed to avoid waste leakage into the oceans and 
environment and must meet the guaranteed minimum number of 
recycling cycles per material.
Sec. 5. Product or Process Design, - Any entity or individual engaging in the
https://reports.weforum.org/toward-the-circular-economy-accelerating-the-scale-up-across-global-supply-chains/


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design of process, equipment, product, and packing material shall, in accordance with 
the requirements of reducing resource consumption and waste generation, give 
priority to choosing designs and materials that are easy to be recovered, dismantled, 
and degraded, nontoxic and harmless or with low toxic or harm, in addition to 
complying to the mandatory requirements as prescribed in relevant industry 
standards.
With respect to electric and electronic products that may pollute the 
environment in the processes of dismantling and handling, toxic and harmful 
substances as defined by law or treaty may not be used in the design. The design of 
product packing shall be subject to standards for product packing to avoid wasting 
resources and polluting the environment due to overpacking.
Sec. 6. Innovation in Products and Services. — Innovation contemplated in this Act 
shall include the following, among others3:
a. Mobile technology which enables universal and low-cost access to data and 
applications and reduces the need for physical resources;
b. Machine-to-Machine (M2M) Communication being used in factory control 
systems and vehicle telematics enabling critical mass to mainstream M2M 
use as wireless network cc verage expands worldwide;
c. Cloud Computing/Dematerialization which enables the replacement of 
"something physical" with a digital alternative transforming data and 
service industries and services;
d. Social technology which reduces the cost of setting up sharing platforms as it 
allows tapping into existing networks and receiving consumer feedback;
e. Big Data Analytics that, consistent with the circular economy, enables 
organizations to generate revenues from product use instead of sales;
f. Modular Design Technology which revolutionizes not only how products 
function but also the length and nature of customers' relationships with 
those products such that when a modularly designed product breaks, only 
the defective part is replaced or repaired extending its overall product 
lifecycle;
Achieving a Circular Economy. How the Private Sector is Reimagining the Future of Business. US Chamber of 
Commerce Foundation (2015)


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g. Advanced Recycling Technology which recognizes that recycling has benefited 
from innovation and returns on circular economy investments;
h. Life and Material Sciences Technology which leads to new circular material 
input options at scale and enables altering of outputs so they can be used as 
inputs;
i. 
Trace and Return Systems which supports circular business models by 
making it more cost-effective to collect used products in order to service, 
repair, recover, reuse, refurbish, or recycle them; and
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3-D Printing which facilitates repairing and creates opportunities for 
circular inputs that are biodegradable or infinitely recyclable.
Sec. 7. Role of National Government Agencies and Stakeholders. -
a. The National Economic and Development Authority (NEDA) shall 
formulate and regularly update the Philippine Action Plan for Sustainable 
Consumption and Production (PAP4SCP). It shall be the anchor plan to 
mainstream the circular economy in the development activities of various 
stakeholders in the country and ensure its impact on sustainable 
development. As such, the NEDA shall lead in the implementation of this 
Act.
b. The Department of Environment and Natural Resources (DENR) and 
Philippine Statistics Authority (PSA) shall formulate the National Natural 
Capital Accounting or Environment and Natural Resource Accounting and 
Capacity Assessment Plan (NCACAP). I he Plan will institutionalize a 
comprehensive system for accounting, valuing, and assessing the quality 
and integrity of the rich natural capital of the country, and shall serve as a 
basis for the policy, technical and technological, administrative, and 
market-based interventions promoting the principles of circular economy,
, complementing the PAP4SCP.
The NCACAP shall enable the following programs and activities, among 
others:
1. Development of localized methodology for accounting and valuation of 
capital resources covered in the value chain of goods and services 
contemplated in this Act;


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2. Development of implementing guidelines and methodology on capacity 
assessments;
3. Development of standards and indicators for calculating ecological 
footprints;
4. Development of circularity indicators and adequate metrics to assess 
performance in the context of a circular economy;
5. Development of guidelines on damage compensation;
6. Design of finance modalities for payment for ecosystem services (PES) 
and user-fee system;
7. Implementing actual NCA and capacity assessment interventions;
8. Conduct of valuation of losses and damages for ecosystems;
9. Development of Data Transparency Arrangements and Reporting 
Systems;
10. Development of Information and Communications Technology (ICT) 
infrastructure/ system/platform to support the implementation of the 
NCA and capacity assessment programs.
The DENR and the PSA shall lead the formulation and implementation 
of the NCACAP within one (1) year upon effectivity of this Act, in 
consultation with national government agencies concerned, including the 
Department of Information and Communications Technology (DICT), 
Philippine Council for Sustainable Development (PCSD), National 
Economic and Developnient Authority (NEDA), Department of Finance 
(DOF), Department of Tourism, (DOT) and Department of Agriculture 
(DA), Office of Civil Defense (OCD), Climate Change Commission (CCC), 
and relevant stakeholders.
The DOF shall identify incentives and market interventions to promote and 
facilitate the mainstreaming of the circular economy principles and 
practices consistent with the harmonization of incentives under existing 
laws.
d. The DTI, in coordination with the DILG, shall lead in developing standards 
for circular economy design on a product or process.
c.


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e. Non-government organizations, civil society organizations, and academe 
actively working in the fields of marine ecosystems, healthcare, forest 
conservation, mining, and sustainable ecological agriculture, among others, 
shall be consulted by the NED A, DENR, and PSA in the formulation of the 
PAP4SCP and NCACAP.
Sec. 8. Single-use Plastic Phase-Out and Source Reduction and Waste Minimization 
through Polluters Pay Principle / Extended Producer Responsibility Schemes. — The 
phase-out of single-use plastics by all business enterprises to consumers shall be in 
full force and in effect three (3) years from the effectivity of the Act. A phase-out and 
transition plan shall be formulated within one (1) year from the effectivity of this Act, 
and shall be led by the DENR through the National Solid Waste Management 
Commission (NSWMC), in coordination with DTI, DOST, DILG, DOF, Department 
of Labor and Employment (DOLE), NED A, and CCC and other government agencies 
concerned, and non-govemment stakeholders, as may be necessary.
The phase-out and transition plan shall include, but are not limited to, the 
following components:
a. Single-use Plastic Production and Consumption Reduction Program, including 
phase-out;
b. Extended Producer Responsibility Schemes for business enterprises and plastic 
producers;
c. Greener Plastic Product Standards for plastic products that are made of 
compostable materials, do not produce microplastics, and can degrade 
naturally in the environment;
d. Research and Technology Development for Alternatives to Single-use Plastics 
Products;
e. Regulatory Instruments and fiscal and Non-Fiscal Rewards and Incentives for 
Producers and Consumers;
f. Collection, Recovery, and Recycling Plan for local governments and business 
enterprises;
g. Just transition plan for displaced workers in affected industries and ensure 
their access to livelihood support programs and other available green job 
opportunities;


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h. Support to business enterprises adopting Zero Waste business models, refills 
and alternative delivery systems, and producing sustainably sourced 
alternatives to SUP products;
i. Awareness-raismg and other Information, Education, and Communication 
Strategies for business enterprises, producers, and consumers.
The Plan shall adopt a phased-transition approach towards phasing out plastic, 
recognizing the rippliag effects of the phase-out on the economy, including the shift 
of business models of plastic producers and the livelihood opportunities for workers 
of plastic producers.
Sec. 9. Circular Public Procurement Program. — All departments, bureaus, offices, 
and agencies of the government shall establish their respective Circular Public 
Procurement Programs, which shall take into account circular economy standards 
and set annual target accomplishments through a phased approach. All agencies 
shall submit their respective Circular Public Procurement Program to the 
Government Procurement Policy Board (GPPB) within six (6) months from the 
effectivity of this Act. The GPPB shall in turn submit an annual report to the Congress 
of the Philippines on the compliance of agencies.
The GPPB, in coordination with the DBM, DTT, and Commission on Audit (COA), 
within thirty (30) days from the effectivity of this Act, shall issue the necessary 
guidelines to accelerate the optimal use of government resources through the 
procurement of public goods and services adhering to the circular economy and 
sustainable consumption and production, subject to development and accotmtability 
measures as may be appropriate and promulgated under the said joint implementing 
rules.
The GPPB shall develop and provide a capacity-building program for agencies to 
develop circular public procurement professionals and experts.
The Public-Private Partnership Center and the Bureau of Product Standards of 
the DTI, among others, shall ensure that the procurement for vital government 
infrastructure and enforcement of standards in the sale of products in the Philippines 
shall adhere to tlie principles undei this Act.
Sec. 10, Integration of Permaculture Principles and Practices. - National 
Government agencies (NGAs), government-owned and controlled corporations
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(GOCCs), state universities and colleges (SUCs), and local government units (LGUs) 
shall integrate permaculture principles and practices in their respective programs, 
services, projects, and operations.
The Department of Education (DepEd) shall integrate permaculture education 
mto the primary and secondary education curricula, which shall include basic 
permaculture concepts and principles, sustainable mobility, agrobiodiversity, saving 
seeds, establishing a home, school, and community food gardens, and ecological solid 
waste management, among others.
The Department of the Interior and Local Government (DILG) - Local 
Government Academy shall facilitate the development and provision of a training 
program for LGUs on implementing permaculture practices.
The Technical Education and Skills Development Authority (TESDA) shall 
offer technical-vocational skills training programs and certificate courses on 
permaculture design and practices geared toward the acquisition of practical skills 
and employment and entrepreneurship opportunities.
Sec. 11. Incentives and Reward for the Public Sector. - The DBM, in coordination 
with national government agencies concerned, shall institute an incentives and 
rewards system for NGAs, GOCCs, SUCs, and LGUs for choices in products, services, 
operations, and public works that adhere to the circular economy standards. The 
incentives and rewards system shall include the utilization of 25% of the savings 
generated from such measures for the payment of additional performance incentives.
Sec. 12. Capacity-building for Government and Sectors. - National government 
agencies shall promote and invest in capacity building for their institutions and 
stakeholders to enhance their technical, institutional, and implementation capacities 
to design, implement, and monitor circular economy programs and projects, 
including circular public procurement.
The DOLE, TESDA, DICT, and DENR, among other NGAs, shall extend 
technical assistance to their respective sectors and stakeholders in building their 
capacities to contribute to the implementation of this Act.
Sec. 13. Strategic Communications Plan. - The Philippine Information Agency 
(PIA) shall formulate and implement a strategic communications plan for sustainable 
consumption and production.
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This Plan shall build on the existing plans and programs of the government, 
including among others, RA No. 9512 or the "National Environmental Awareness and 
Education Act of 2008."
Sec. 14. Muinstrearning Circular Economy in the National Government Budget. - The 
DBM shall undertake the formulation of the annual national budget in a way that 
ensures the alignment of the allocation of funds with the circular economy and 
sustainable consumption and production standards and practices.
Sec. 15. Monitoring. - The PCSD shall oversee the implementation of this Act 
and ensure that all provisions, plans, and programs are formulated and implemented 
within the timelines set forth in this Act. It shall convene regularly, enjoin other 
relevant stakeholders, as it deems necessary, and establish a monitoring and 
evaluation system to track the progress of the implementation of this Act. The PCSD 
shall determine whether existing regulations hamper circular economic activities or 
resource efficiency and propose interventions such as lifting existing restrictions or 
setting positive legal frameworks.
Sec. 16. Citizen Participation and Community Mobilization. - The State shall take 
measures to enable citizen participation and community mobilization towards the 
effective implementation of this Act. In all strategies, plans, and programs, citizen 
participation must be ensured, and massive awareness-building shall be conducted 
in local government units (LGUs) to localize and inform communities on the 
strategies.
Sec. 17. Appropriations. - The amount necessary for the initial implementation 
of this Act shall be taken from existing allocations of the agencies concerned. 
Thereafter such sums as shall be necessary to carry out the provisions of this Act shall 
be included in the annual General y appropriations Act.
Sec. 18. Implementing Rules and Regulations. - The NED A, in coordination with 
the DENR, DTI, DOST, DICT, DOF, CCC, and PCSD, among other government 
agencies, shall issue implementing rules and regulations, within six (6) months after 
the effectivity of the law. Failure to issue rules and regulations shall not in any 
manner affect the executory provisions of the Act.
Sec. 19. Separability Clause. - If for any reason any section or provision of this 
Act is declared by the Court as unconstitutional or invalid, the other sections or
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provisions thereof shall not be affected thereby.
Sec. 20. Ejfectivity. - This Act shall take effect fifteen (15) days after its complete 
publication in the Official Gcizette or in two (2) newspapers of general circulation.
Approved,
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