TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
Mi -g
:06
SENATE
306
S. No.
Introduced by: Senator Loren Legarda
AN ACT
ESTABLISHING A COMPREHENSIVE FRAMEWORK FOR CIRCULAR 
ECONOMY IN THE PHILIPPINES, PROVIDING MECHANISMS FOR WASTE 
MINIMIZATION, EXTENDED PRODUCER RESPONSIBILITY, CIRCULAR 
PROCUREMENT, AND COMMUNITY PARTICIPATION IN SUSTAINABLE 
RESOURCE USE
EXPLANATORY NOTE
The Philippines is in the midst of an escalating resource and pollution crisis. 
The Philippines generates over 21 million metric tons of solid waste annually.1 
Every day, this translates to a staggering 61,000 metric tons of waste, including 163 
million plastic sachet packets, 48 million shopping bags, and 45 million thin-film bags.2 
This pervasive plastic use not only overwhelms local waste systems but also spills Into 
our rivers and seas, making the country a global focal point for ocean pollution. In 
2019, the Philippines contributed the highest share of piastic waste discharged into 
the world's oceans, accounting for 36.38% of global oceanic plastic pollution.3
These figures reveal not only the scale of the problem, but the urgent need for 
a structural transformation of how we extract, use, and dispose of materials.
The current linear economic model, take, make, and dispose, is simpiy no 
longer viable. It wastes resources, generates pollution, and burdens communities and
1 Retrieved on 07 July 2025, from Ernesto M. Pernia, Waste management for renewable energy, 
https://ppD.QOV.ph/in the news/waste-manaaement-for-renewable-energy/,
https://opinion.inauirer.net/157304/waste-manaaement-for-renewable-enerqy
2 Retrieved on 07 July 2025, from Ateneo de Manila University - News, "Refill Revolution Returns 
Ateneo," https://www.ateneo.edu/news/2025/03/ll/refill-revolution-returns-ateneo
3 Retrieved on 07 July 2025, from earth.org, "How Did the Philippines Become the World's Biggest 
Ocean Plastic Polluter?," https://earth.orq/philippines-plastic/
1


local governments with mounting environmental and fiscal costs. In fact, 78% of the 
material value of plastics in the Philippines—estimated at nearly USD $890 million 
annually—is lost because recyclable materials are not recovered but discarded.4 
Simultaneously, the economic cost of plastic pollution, including impacts on fisheries, 
tourism, and health, has been estimated at over USD $1.2 billion per year.5
This bill proposes the establishment of a comprehensive legal framework for 
transitioning to a circular economy—an economic model that keeps resources in use 
for as long as possible, extracts the maximum value from them while in use, and 
recovers and regenerates products and materials at the end of their service life.
According to the United Nations Development Programme, shifting to this 
model could yield US$4.5 trillion in benefits by 2030, lower emissions, create stable 
jobs, and expand green markets.6 The International Labour Organization estimates 
that the circular economy is projected to unlock seven to eight million job 
opportunities.7 Better estimates are placed in the Southeast Asian context, with 
sufficient programs and funding, adopting circular strategies could create 6.6 million 
additional jobs by 2030, especially in recycling, repair, remanufacturing, and 
secondary material processing.8
Our legal foundation for sustainable production and waste management already 
exists but remains fragmented and under-implemented. Republic Act No. 9003 or the 
Ecological Solid Waste Management Act of 2000 remains under-enforced. As of early 
2025, the Philippine Institute for Development Studies (PIDS) reported that only 
11,625 materials recovery facilities (MRFs) have been established across the country—
4 Retrieved on 07 July 2025, from World Bank, Market Study for the Philippines: Plastics Circularity 
Opportunities and Barriers, https://www.worldbank.ora/en/countrv/philiDDines/Dublication/market- 
studv-for-philippines-plastics-circularitv-opportunities-and-barriers-report-landina-Daae
5 Retrieved on 07 July 2025, from Climate Impacts Tracker, Plastic Pollution in the Philippines, 
https://www.climateimpactstracker.com/plastic-pollution-in-the-philippines/
6 Retrieved on 07 July 2025, from UNDP Climate Promise, "Transitioning to a circular economy: The 
future we cannot afford to delay," httPs://climateDromise.undp.orQ/news-and-stories/transitloninq- 
drcular-economv-future-we-cannot-afford-delav
7 Retrieved on 07 July 2025, from International Labour Organization, "Global South circular economy 
could generate millions of job opportunities," https://www.ilo.ora/resource/news/qlobal-south- 
circular-economy-could-qenerate-millions-iob-opportunities
8 Retrieved on 07 July 2025, from Xueling Lee, Chris Addy, Roger Thompson, and Rose Farah, 
Promoting Equitable and Inclusive Green Job Growth in Southeast Asia, The Bridgespan Group, 
https://www.bridaesDan.ora/aetmedia/9ab68ac6-6baa-47d6-a2c3-9f0dd3e786f5/promotinq-
equitable-inclusive-qreen-iob-arowth-in-southeast-asia-2023.pdf
I ^


covering just around 27.7% of the 42,011 barangays. The study also noted that only 
237 sanitary landfills are currently in operation to serve the waste disposal 
requirements of 1,634 cities and municipalities nationwide.9 Waste segregation at 
source, mandated by law for two decades, remains inconsistently implemented. 
Meanwhile, Republic Act No. 11898 or the Extended Producer Responsibility Act of 
2022, while a landmark for plastic accountability, remains limited in reach and 
currently covers only large corporations.
The need for integration and coherence is clear. This bill addresses that gap by 
mandating the formulation of a Philippine Circular Economy Roadmap anchored in 
measurable goals, sectoral transition pathways, and localization strategies. It 
institutionalizes the Circular Economy Inter-Agency Council (CE-IAC) to ensure policy 
harmonization and to evaluate coherence across fiscal, environmental, industrial, and 
development agendas.
A key feature is the creation of a Circular Economy Incentive Code, in 
collaboration with the Department of Finance and the Board of Investments, to 
harmonize existing fiscal and non-fiscal incentives for circular enterprises, 
cooperatives, innovators, and LGUs. Circularity cannot thrive without enabling 
investments, and this bill ensures the alignment of capital, enterprise development, 
and innovation support.
To promote innovation, the bill also mandates the establishment of Circular 
Economy Innovation Sandboxes, where regulatory flexibility may be applied to test 
and scale circular business models. These sandboxes will provide real-world testing 
grounds for alternative packaging, reverse logistics systems, refill/reuse platforms, 
and biomaterial-based manufacturing, among others.
Recognizing that environmental transformation is also a local and community- 
led process, this measure supports the development of Local Circular Economy Action 
Plans to be integrated into existing local development plans. Rather than impose a 
new bureaucracy. Local Circular Economy Advisory Committees may be embedded as
9 Retrieved on 07 July 2025, from Philippine Institute for Development Studies, "Waste management 
is a collective responsibility: contribute your share for a healthier environment,"
httDs://www.Dids.QOV.Dh/details/news/in-the-news/waste-manaQement-is-a-collective-responsibility-
contribute-vour-share-for-a-healthier-
environment#:~:text=Despite%20the%20mandates%20of%20Republic.the%20financial%20and%2
0technical%20aspects.


sub-committees within Local Development Councils, ensuring coherence while 
maintaining participation by communities and key sectors.
This bill also builds on existing national policies. The Philippine Development 
Plan (PDP) 2023-2028 already identifies circular economy and sustainable 
consumption and production as strategic goals for inclusive and climate-resilient 
development. The National Climate Change Action Plan (NCCAP) recognizes circularity 
in waste and industry as resilience-building strategies. And Republic Act No. 11995 or 
the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act of 2024 
provides the data infrastructure to track resource flows, environmental degradation, 
and ecosystem services, allowing circular economy strategies to be guided by evidence 
and adjusted for impact.
Importantly, this bill also seeks to update the nation's single-use plastic policies 
by mandating a transition plan within one (1) year of effectivity and a phase-out of 
non-recyclable, non-compostable SUPs within five (5) years, in line with local capability 
assessments and global best practices. The shift away from sachet-based and low- 
value plastics must be matched by support for local manufacturers, MSMEs, and 
consumers through public procurement, education, and innovation grants.
We must act decisively. Our current trajectory is environmentally and 
economically unsustainable. This bill provides a clear framework, a strong institutional 
mechanism, and coherent incentives for circular transformation. If implemented with 
vigor and foresight, the Philippines can turn from being a leading plastic polluter into 
a regional leader in circular economy innovation, job creation, and sustainable 
development.
Let this be our national commitment—to design out waste, regenerate our 
ecosystems, and build an economy where nothing is wasted, and no one is left behind.
LOREN LEGARDA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 306
-9 9.
Introduced by: Senator Loren Legarda
AN ACT
ESTABLISHING A COMPREHENSIVE FRAMEWORK FOR CIRCULAR 
ECONOMY IN THE PHILIPPINES, PROVIDING MECHANISMS FOR WASTE 
MINIMIZATION, EXTENDED PRODUCER RESPONSIBILITY, CIRCULAR 
PROCUREMENT, AND COMMUNITY PARTICIPATION IN SUSTAINABLE 
RESOURCE USE
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Title. - This Act shall be known as the "Philippine Circular
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Economy Promotion Act."
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Sec. 2. Declaration of Policy. - It is the policy of the State to protect and
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advance the right of the people to a balanced and healthful ecology in accord with the
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rhythm and harmony of nature and promote sustainable development. In line with the
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2030 Sustainable Development Agenda, the Philippines adopts the goals of making
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cities and human settlements inclusive, resilient, and sustainable; ensuring sustainable
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production and consumption patterns; taking urgent action to combat climate change
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and its impacts; and restoring natural ecosystems, in line with national development
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priorities and capacities.
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Towards this end, the State shall prevent and reduce the impact of certain
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plastic products, particularly marine litter, on the environment and human health, as
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well as promote the transition to a circular economy with innovative and sustainable
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business models, products, and materials.
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Sec. 3. Definition of Terms. - For purposes of this Act, the following terms are
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defined:


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a) Alternative delivery systems shall refer to sustainable eco-friendly 
apparatuses or processes for storing and dispensing different retail 
items, goods, and consumer products;
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;


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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;
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) National Solid Waste Management Commission (NSWMC) refers to the 
inter-agency body created under RA No. 9003 responsible for solid waste 
management policymaking, coordination, and oversight;
m) 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;
n) Permacuiture 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 
appiication of permacuiture principles enables households, communities, 
and businesses to creatively re-design their environment with less 
energy and resources;


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o) 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";
p) 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;
q) RecyclingshdtW 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;
r) 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;
s) 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; and


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t) Source reduction refers to the reduction of solid waste before it enters
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the solid waste stream by methods such as product design, materials
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substitution, materials reuse, and packaging restrictions.
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Sec. 4. Scope. - This Act shall apply to producers and consumers involved in
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value chains of all goods, products, services, and processes contributing to the
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Philippine economy, and to the mechanisms facilitating the policy, regulatory, and
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advocacy measures to promote, implement, monitor, and evaluate the strategies on
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circular economy, complementing thereby the goals and targets of sustainable
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consumption and production.
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The activities contemplated in this Act cover the interplay between the public
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and private sectors, as well as national, subnational, regional, and global stakeholders,
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taking into consideration the trajectories under the better normal or green recovery
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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
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underpin the transition from a value chain to a value circle perspective, shall be
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adhered to:
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a) The "inner circle" refers to minimizing comparative materials use vis-a-
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vis the linear production system. The tighter the circle, i.e., the less a
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product has to be changed in reuse, refurbishment, and remanufacturing
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and the faster it returns to use, the higher the potential savings on the
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shares of material, labor, energy, and capital still embedded in the
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product, and the associated externalities (such as greenhouse gas
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emissions, water, and toxicity);
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b) The "circling longer" refers to maximizing the number of consecutive
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cycles (be it repair, reuse, or full remanufacturing) and/or the time in
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each cycle. Each prolonged cycle avoids the material, energy, and labor
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of creating a new product or component;
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c) The "cascaded use" refers to diversifying reuse across the value chain
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or transforming materials across product categories to offset the need
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for virgin material inputs;
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d) The "pure inputs" postulates that uncontaminated material streams
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increase collection and redistribution efficiency while maintaining


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quality, particularly of technical materials, which in turn extends product
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longevity and thus increases material productivity;
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e) The utmost need to remove the use of toxic chemicals and hazardous
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substances in the production of goods and products. The elimination of
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toxicity in the production line will protect workers' health and guarantee
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safe and clean recycling processes throughout the product's lifecycle;
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and
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f) All products are designed to avoid waste leakage into the oceans and
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environment and must meet the guaranteed minimum number of
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recycling cycles per material.
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Sec. 5. Product or Process Design. - Any entity or individual engaging in the
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design of process, equipment, product, and packing material shall, in accordance with
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the requirements of reducing resource consumption and waste generation, give
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priority to choosing designs and materials that are easy to be recovered, dismantled,
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and degraded; non-toxic or of low toxicity, with minimal environmental and health
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risks, in addition to complying with the mandatory requirements as prescribed in
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relevant industry standards.
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With respect to electric and electronic products that may pollute the
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environment in the processes of dismantling and handling, toxic and harmful
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substances as defined by law or treaty may not be used in the design. The design of
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product packing shall be subject to standards for product packing to avoid wasting
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resources and polluting the environment due to overpacking.
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Sec. 6. Innovation in Products and Services. - Innovation contemplated in this
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Act shall include the following, among others:
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a) Mobile technology which enables universal and low-cost access to data
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and applications and reduces the need for physical resources;
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b) Machine-to-Machine (M2M) Communication used in factory control
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systems and vehicle telematics, enabling critical mass to mainstream
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M2M use as wireless network coverage expands worldwide;
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c) Cloud Computing/Dematerialization, which enables the replacement of
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"something physical" with a digital alternative, transforming data and
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service industries;


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d) Social technology which reduces the cost of setting up sharing platforms 
by tapping into existing networks and facilitating 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 product functionality 
and extends product lifecycles by allowing only defective parts to be 
replaced or repaired;
g) Advanced Recycling Technology which enhances recycling efficiency and 
returns on circular economy investments;
h) Life and Material Sciences Technology which creates circular material 
input options at scale and enables outputs to be reused as inputs;
i) Trace and Return Systems which support circular business models by 
making product collection for reuse, repair, recovery, refurbishment, or 
recycling more cost-effective; and
j) 3-D Printing which facilitates repair and creates opportunities for circular 
inputs that are biodegradable or infinitely recyclable.
Sec. 7. Role of National Government Agencies and Stakeholders.-
a) The Department of Economy, Planning, and Development (DEPDev) 
shall formulate and regularly update the Philippine Action Plan for 
Sustainable Consumption and Production (PAP4SCP), which shall serve 
as the anchor plan for mainstreaming the circular economy in 
development activities and ensuring its contribution to sustainable 
development. DEPDev shall lead in the implementation of this Act; and
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). The Plan shall institutionalize a 
comprehensive system for accounting, valuing, and assessing the quality 
and integrity of the country's natural capital, and support policy, 
technical, technological, administrative, and market-based interventions.


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The NCACAP shall enable the following programs and activities:
1. Development of localized methodology for accounting and 
valuation of capital resources;
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 circular economy performance;
5. Development of guidelines on damage compensation;
6. Design of finance modalities for payment for ecosystem services 
(PES) and user-fee systems;
7. Implementation of natural capital accounting and capacity 
assessment interventions;
8. Conduct of ecosystem loss and damage valuations;
9. Development of data transparency arrangements and reporting 
systems; and
10. Development of ICT infrastructure/platforms to support NCA and 
capacity assessment programs.
The DENR and PSA shall lead the formulation and implementation of the 
NCACAP within one (1) year from the effectivity of this Act, in 
consultation with concerned agencies including DICT, DEPDev, 
Department of Finance (DOF), Department of Agriculture (DA), Office of 
Civil Defense (OCD), Climate Change Commission (CCC), and relevant 
stakeholders.
c) The DOF shall identify incentives and market interventions to 
mainstream circular economy principles, in line with harmonized 
incentives under existing laws;
d) The DTI, in coordination with the Department of the Interior and Local 
Government (DILG), shall lead in developing standards for circular 
economy product or process design; and


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e) Non-government organizations, civil society organizations, and academe
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working in marine ecosystems, healthcare, forest conservation, mining,
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and sustainable agriculture shall be consulted by DEPDev, DENR, and
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PSA in the formulation of PAP4SCP and NCACAP.
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The implementation of the NCACAP under this Act shall be aligned with the
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standards, institutional arrangements, and reporting mechanisms established under
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Republic Act No. 11995 or the PENCAS Act. All relevant data. Indicators, and
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ecosystem accounts shall be consistent with those generated by the Philippine
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Statistics Authority pursuant to the PENCAS Act.
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Sec. 8. Creation of the Circular Economy Inter-Agency Council. — There is
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hereby created a Circular Economy Inter-Agency Council (CE-IAC) to serve as the
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primary coordinating and oversight body for the implementation of this Act. It shall
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harmonize strategies, resolve conflicts among implementing agencies, monitor
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compliance, and ensure alignment with national development goals.
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The CE-IAC shall be composed of the following:
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1) Chairperson: Secretary of DEPDev
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2) Co-Chairs: Secretaries of the DENR, DTI, and DOF
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3) Members:
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a) DOST
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b) DA
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c) DepEd
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d) TESDA
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e) DILG
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f) DICT
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g) CCC
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h) NSWMC
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i) PSA
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j) OCD
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k) Two (2) representatives from the private sector, to be appointed
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by the Council


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I) Two (2) representatives from civil society organizations (CSOs)
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working on sustainable development, ecological governance, or
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waste management
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m)One (1) representative from local government units (LGUs),
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nominated through the League of Provinces of the Philippines
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The CE-IAC shall meet at least bi-annually and may convene special sessions
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as necessary. It may create technical working groups (TWGs) or task forces to carry
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out specific functions, including monitoring, technical assessments, or conflict
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resolution.
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The CE-IAC shall be supported by the Economic Development Committee of
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the DEPDev as its permanent Secretariat, which shall coordinate documentation,
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stakeholder engagement, and inter-agency follow-through.
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The CE-IAC shall submit an annual Circular Economy Progress Report to the
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President and to both Houses of Congress, through the Committee on Sustainable
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Development Goals, Innovation, and Futures Thinking of the Senate and the
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Committee on Ecology of the House of Representatives. The report shall include: (a)
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updates on implementation milestones, (b) metrics on waste reduction and circularity
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performance, (c) identified challenges, and (d) policy and legislative recommendations
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to further advance the goals of this Act.
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Sec. 9. Single-use Plastic Phase-Out and Extended Producer Responsibility
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Measures- The phase-out of single-use plastics (SUPs) by business enterprises shall
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take full effect five (5) years after the effectivity of this Act.
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A transition plan shall be formulated within one (1) year after the effectivity of
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this Act, led by the DENR through the NSWMC, in coordination with DTI, DOST, DILG,
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DOF, DOLE, DEPDev, CCC, and other stakeholders.
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The phase-out and transition plan shall include:
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a. SUP Production and Consumption Reduction Program;
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b. Extended Producer Responsibility Schemes;
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c. Greener Plastic Product Standards;
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d. R&D for Alternatives to SUP Products;
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e. Regulatory Instruments and Incentives for Producers and Consumers;
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f. Collection, Recovery, and Recycling Plan;
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g. Just Transition Plan for displaced workers;
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h. Support to businesses adopting zero-waste and sustainable delivery
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systems;
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i. Awareness-raising and Information, Education, and Communication (lEC)
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strategies.
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The Plan shall adopt a phased approach considering economic rippie effects,
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business model shifts, and worker liveiihood transitions.
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Sec. 10. Circular Public Procurement Program. - All government agencies shali
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estabiish Circuiar Public Procurement Programs incorporating circuiar economy
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standards and set annual targets. Submissions to the Government Procurement Policy
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Board (GPPB) are due six (6) months from the effectivity of this Act. The GPPB shaii
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submit annual compliance reports to Congress.
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The GPPB, in coordination with the Department of Budget and Management
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(DBM), Department of Trade and Industry (DTI), and Commission on Audit (COA),
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shall issue guidelines within thirty (30) days of effectivity to promote sustainable
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government procurement. It shall also lead capacity-building for circular procurement
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professionals.
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The Public-Private Partnership Center and DTI's Bureau of Product Standards
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shall ensure vital infrastructure procurement and product sales comply with this Act.
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LGUs shali aiso integrate circuiar economy criteria in their procurement
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pianning and may adopt localized Circuiar Public Procurement Programs aligned with
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national guidelines, subject to capacity-building support from the DILG and GPPB.
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Sec. 11. Integration of Permacuiture Principles and Practices. - NGAs, GOCCs,
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sues, and LGUs shall integrate permacuiture into programs, services, and operations.
25 
The DepEd shall integrate permacuiture education into the K-12 curriculum,
26 
covering agrobiodiversity, sustainable mobility, seed saving, food gardens, and
27 
ecological waste management.
28 
The DILG-Local Government Academy shall develop training for LGUs on
29 
permacuiture.
30 
TESDA shall offer permaculture-related skills and entrepreneurship training.
31 
Permacuiture integration shali be monitored as part of circularity indicators
32 
under the Circular Economy Monitoring and Accountability Framework (CEMAF).
11


1 
Sec. 12. Local Circular Economy Action Plans and Incentives for Local
2 
Government Units. - All provinces, cities, and municipalities shall prepare and
3 
implement a Local Circular Economy Action Plan (LCEAP) within two (2) years from
4 
the effectivity of this Act. These plans shall be aligned with the PAP4SCP and shail
5 
inciude, at a minimum:
6 
1. Targets and timelines for waste reduction, reuse, and circular business
7 
models;
8 
2. Local ordinances supporting circuiar practices and the phase-out of
9 
single-use plastics;
10 
3. Partnerships with communities, MSMEs, cooperatives, and civil society;
11 
and
12 
4. Integration into the Locai Development Plan and Annual Investment
13 
Program (AIP).
14 
The DILG, in coordination with DEPDev, DENR, and DTI, shali provide capacity-
15 
building programs to assist LCDs in formuiating and implementing their LCEAPs. LGUs
16 
that demonstrate measurable outcomes in implementing their LCEAPs may access the
17 
following incentives:
18 
1. Priority access to circular economy project funding from the Generai
19 
Appropriations Act and the Circular Economy Implementation Fund
20 
(CEIF);
21 
2. Eiigibility for performance-based grants or awards from DILG and DBM;
22 
3. Technicai and iogisticai support for scaiing up high-impact circular
23 
initiatives.
24 
The DILG shail jointly monitor LGU compliance and performance, with annuai
25 
reporting to the CE-IAC.
26 
Sec. 13. Incentives and Rewards for the Public Sector.-The DBM, with relevant
27 
agencies, shall implement an incentives system for NGAs, GOCCs, SUCs, and LGUs
28 
choosing circular economy standards. Up to 25% of savings from such measures may
29 
be used for additional performance incentives.
30 
Sec. 14. Capacity-building for Government and Sectors. - Government agencies
31 
shali promote and invest in capacity building to implement circular economy programs.
32 
DOLE, TESDA, DICT, and DENR shall provide technicai assistance to their sectors.
12


1 
Sec. 15. Strategic Communications Pian. - The PIA shall lead the creation and
2 
implementation of a strategic communications plan for sustainable consumption and
3 
production, aligned with RA No. 9512 (National Environmental Awareness and
4 
Education Act of 2008).
5 
Sec. 16. Mainstreaming Circuiar Economy in the Nationai Budget - The DBM
6 
shall align the annual national budget with circular economy goals and sustainable
7 
production and consumption practices.
8 
Sec. 17. Monitoring and Evaiuation Framework. - To ensure effective
9 
implementation, transparency, and continuous improvement of this Act, the following
10 
shall be undertaken:
11 
a) The DEPDev, in coordination with the PSA, shall develop and maintain a
12 
Circular Economy Monitoring and Accountability Framework (CEMAF).
13 
This framework shall:
14 
1. Establish key performance indicators (KPIs) for circularity, waste
15 
reduction, resource use, and innovation uptake;
16 
2. Establish standardized protocols for data collection and
17 
submission for ail implementing agencies and LGUs;
18 
3. Provide for independent data verification, audits, and third-party
19 
assessments;
20 
4. Align with the PAP4SCP, Natural Capital Accounting plans, and
21 
SDG indicators.
22 
b) All implementing agencies and LGUs shall submit annual progress
23 
reports to DEPDev and PSA, based on prescribed templates and metrics
24 
under the CEMAF.
25 
Results from the CEMAF shall be used to inform national and local planning,
26 
investment prioritization, and performance-based budgeting.
27 
Sec. 18. Citizen Participation and Community Engagement -To ensure broad
28 
public involvement in the implementation of this Act, the following shall be
29 
undertaken:
30 
(a) Local Circular Economy Advisory Committees shall be established by all
31 
provinces, cities, and municipalities, composed of representatives from
32 
civil society, community organizations, and key local sectors. These
13


1 
Committees shall assist in planning, monitoring, and recommending
2 
programs under the Local Circular Economy Action Plans.
3 
The Local Circular Economy Advisory Committee may be
4 
constituted as a functional sub-committee or technical working group
5 
under the Local Development Council, Local Special Bodies, or similar
6 
mechanisms established by the LGU, to streamline implementation and
7 
avoid redundancy;
8 
(b) The CE-IAC, in coordination with the DILG, shall convene annual multi-
9 
stakeholder consultations to gather public input and review progress on
10 
national circular economy programs;
11 
(c) LGUs shall integrate circular economy initiatives in their Annual
12 
Investment Plans through participatory planning 
and budgeting
13 
processes; and
14 
(d) A public feedback mechanism, including an online portal, shall be
15 
developed by the CE-IAC to enable citizens to suggest solutions, report
16 
violations, and access information related to this Act.
17 
Sec. 19. Circular Economy Implementation Fund. — To support the
18 
implementation of this Act, particularly the operations of the CE-IAC and its technical
19 
working groups, a Circular Economy Implementation Fund (CEIF) is hereby
20 
established.
21 
The Fund shall be administered by the DEPDev and sourced from the following:
22 
a. Agency savings allocated for environmental, innovation, or sustainability
23 
programs;
24 
b. Appropriations under the annual General Appropriations Act (GAA) for
25 
DEPDev and CE-IAC member agencies;
26 
c. A portion of proceeds from Extended Producer Responsibility (EPR)
27 
schemes, as may be determined in the Implementing Rules and
28 
Regulations (IRR);
29 
d. Official development assistance, climate finance instruments, and
30 
donations from domestic or international sources.
31 
The CEIF shall be used to support capacity-building programs, technical
32 
working groups, monitoring and evaluation systems, circular innovation pilots,
14


1 
stakeholder consultations, and other operational or implementation needs as
2 
determined by the CE-IAC.
3 
Sec. 20. Appropriations. — The initial implementation of this Act shall be funded
4 
from the current budgets of concerned agencies.
5 
Thereafter, the necessary funds for the operations of the CE-IAC and the
6 
Circular Economy Implementation Fund (CEIF) shall be included in the annual General
7 
Appropriations Act.
8 
Not less than three percent (3%) of the total appropriations for the
9 
implementation of this Act shall be allocated exclusively for monitoring and evaluation
10 
(M&E) activities, including the development and operation of the CEMAF, third-party
11 
audits, and data reporting systems.
12 
Sec. 21. Impiementing Ruies and Regulations. - The Implementing Rules and
13 
Regulations of this Act shall be drafted jointly by DEPDev, DENR, DTI, DOF and the
14 
CE-IAC. It shall ensure that all member agencies, private sector representatives, civil
15 
society organizations, and LGU networks are adequately consulted during the IRR
16 
development process. The IRR shall include operational details for multi-agency
17 
coordination, funding mechanisms, reporting standards, and monitoring systems in
18 
support of this Act. The IRR shall be issued within one hundred twenty (120) days
19 
from the effectivity of this Act
20 
Sec. 22. Enforcement and Penalties. - To ensure compliance with this Act, the
21 
following shall apply:
22 
Any producer, retailer, importer, service provider, or other covered entity that
23 
fails to comply with the requirements of this Act, including the submission of transition
24 
plans, adherence to single-use plastic phase-out schedules, or circular procurement
25 
rules, may face the following:
26 
1. Written warnings and compliance orders;
27 
2. Fines ranging from P50,000 to P500,000, based on a matrix of severity,
28 
frequency, environmental impact, and economic benefit from non-
29 
compliance, as defined in the IRR;
30 
3. Suspension or cancellation of business permits or relevant licenses;
31 
4. Disqualification from government incentives and procurement programs;
32 
5. Escalating penalties for repeat or willful violations.
15


1 
Violations may be detected through the CEMAF, third-party audits, or public
2 
feedback mechanisms established under this Act. Affected entities may appeal such
3 
penalties through a grievance mechanism to be established in the Implementing Rules
4 
and Regulations (IRR), consistent with due process requirements
5 
LGUs that fail to prepare or implement their LCEAPs within the prescribed
6 
period may face administrative sanctions from the DILG, including the suspension of
7 
budget support or exclusion from performance-based circular economy incentives,
8 
subject to due process.
9 
The CE-IAC, in coordination with concerned agencies, shall issue detailed rules
10 
on enforcement, appeals, and penalties within ninety (90) days from the effectivity of
11 
this Act.
12 
Sec. 23. Circular Economy Regulatory Sandbox. - To encourage innovation and
13 
support the development of new business models, technologies, and systems aligned
14 
with circular economy principles, a Circular Economy Regulatory Sandbox Program is
15 
hereby established.
16 
The sandbox shall provide a controlled environment for eligible participants to
17 
test circular solutions—such as sustainable packaging, waste-to-resource platforms,
18 
reverse logistics, and modular product systems—under temporary regulatory
19 
relaxations or exemptions.
20 
The DTI and DEPDev shall issue the implementing guidelines for the sandbox
21 
within six (6) months from the effectivity of the Implementing Rules and Regulations
22 
(IRR), including:
23 
(a) Application procedures and eligibility requirements;
24 
(b) Criteria for sandbox participation, including environmental, economic, or
25 
social benefit;
26 
(c) Incentives for sandbox participants, which may include technical
27 
assistance, regulatory exemptions, fiscal or non-fiscal support, or access
28 
to pilot funding under the Circular Economy Implementation Fund
29 
(CEIF);
30 
(d) Mechanisms for periodic monitoring, reporting, and evaluation of
31 
sandbox initiatives;
16


1 
(e) Procedures for scaling and integrating successful sandbox outcomes into
2 
formal policy or regulation; and
3 
(0 A grievance and appeals mechanism for rejected or disqualified
4 
applications.
5 
Sandbox participation shall be granted for a period of up to two (2) years,
6 
subject to periodic review. Participants must:
7 
1. Demonstrate potential environmental, social, or economic benefit;
8 
2. Submit monitoring data and implementation reports;
9 
3. Comply with safety, health, and consumer protection laws.
10 
Upon successful completion, sandbox innovations may be recommended for
11 
wider adoption, supported by formal regulatory integration, incentives, or funding
12 
under this Act or related programs.
13 
Sec. 24. Phased Implementation. - The implementation of this Act shall be
14 
carried out in phases, as shall be defined in the Implementing Rules and Regulations
15 
(IRR), taking into account the readiness of sectors, availability and maturity of
16 
technologies, institutional and administrative capacities, and the outcomes of circular
17 
economy pilot programs, including those implemented under the regulatory sandbox
18 
mechanism.
19 
The phased implementation schedule in the IRR shall include clear milestones,
20 
transition pathways, and indicative timelines for government agencies, LGUs, business
21 
sectors, and other stakeholders, ensuring a just and practical transition toward a
22 
circular economy.
23 
The IRR may provide differentiated compliance periods for specific industries
24 
or local government units, particulariy those in resource-constrained, geographically
25 
isolated, or climate-vulnerable areas, provided that such differentiation shall not
26 
prejudice the attainment of national targets under this Act.
27 
All phases shall be aligned with the PAP4SCP, the National Circular Economy
28 
Roadmap, the National Climate Change Action Plan, and the Philippine Development
29 
Plan or its successor frameworks.
30 
The phased implementation schedule shall include, among others, the five-year
31 
transition to single-use plastic (SUP) phase-out as outlined in Section 9 of this Act.
17


1 
Sec. 25. Circular Economy Incentive Code. - To support the transition to a
2 
circular economy, the CE-IAC, in coordination with the DOF, DTI, and other concerned
3 
agencies, shail develop a Circular Economy Incentive Code as part of the IRR of this
4 
Act.
5 
The Incentive Code shail identify and harmonize existing fiscai and non-fiscal
6 
incentives under current laws, regulations, and programs, and provide guideiines for
7 
their effective application to circular economy enterprises, LGUs, cooperatives,
8 
startups, and innovators. It shali establish criteria for eligibility, priority sectors and
9 
technoiogies, appiication procedures, and performance monitoring mechanisms. The
10 
Incentive Code shall also include provisions for regular review, update, and
11 
rationalization of incentive instruments to ensure continued relevance and impact.
12 
The CE-IAC shail serve as the primary harmonization and evaluation body to
13 
ensure that ali incentive mechanisms under this Act are aiigned with nationai
14 
deveiopment goals, sustainable fiscal policies, and the key performance indicators
15 
established under the CEMAF. The DOF, in coordination with the Board of Investments
16 
(BOI), shall be responsible for the technical design, cost-benefit assessment, and
17 
impiementation of fiscai and non-fiscal incentives under the Circular Economy
18 
Incentive Code. Ail incentive proposals shall be reviewed and endorsed by the CE-IAC
19 
prior to approvai to ensure poiicy coherence and alignment with circuiar economy
20 
principles.
21 
Sec. 26. Circular Innovation Hub. - To accelerate the development and
22 
adoption of circular economy solutions, a Circular Innovation Hub shall be established
23 
under the DOST, in coordination with the DICT, DTI, and the DEPDev.
24 
The Hub shall serve as a platform for supporting research, development, and
25 
innovation in circuiar design, materials recovery, waste reduction technoiogies, and
26 
circular business modeis. It shali operate in partnership with higher education
27 
institutions (HEIs), startups, MSMEs, and iocai governments.
28 
The IRR shail define the structure, funding sources, and operationai guideiines
29 
of the Hub, including pilot programs, grant support, and collaborative research
30 
initiatives.
18


1 
Sec. 27. Repealing Clause. - All laws, decrees, executive orders, rules, and
2 
regulations or parts thereof inconsistent with this Act are hereby repealed, amended,
3 
or modified accordingly.
4 
Sec. 28. Separability Clause. - If any provision of this Act is declared
5 
unconstitutional, the rest shall remain valid and effective.
6 
Sec. 29. Effectivity. - This Act shall take effect fifteen (15) days after full
7 
publication in the Official Gazette or in two (2) newspapers of general circulation.
Approved,
19