NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
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BILLS & INDEX
Introduced by SENATOR IMEE R. MARCOS
AN ACT GRANTING JURIDICAL PERSONALITY AND LEGAL CAPACITY TO 
THE LOSS AND DAMAGE FUND BOARD IN THE PHILIPPINES
EXPLANATORY NOTE
Despite numerous climate change mitigation and adaptation measures, the 
Philippines continues to experience negative impacts of climate change which are 
unavoidable and irreversible, internationally recognized as loss and damage. According 
to the 2023 World Risk Report, the Philippines remains the most at-risk to disasters 
due to its susceptibility to extreme natural and climate-related hazards. It is estimated 
by the World Bank that the Philippines' annual losses from typhoons is around 1.2 
percent of the country's gross domestic product. Between 2012 and 2023, the country's 
typhoon-related losses and damage reached PhP742 billion or approximately, PhP67 
billion per year. It is projected that the economic damage and productivity losses from 
extreme weather events could reach 7.6 percent of the country's GDP by 2030 and 
13.6 percent by 2040.
The Philippines, along with other countries which are highly vulnerable to 
climate-related hazards, advocated for the establishment of new, additional, 
predictable, and adequate financial resources 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. As a result of these efforts, the Loss 
and Damage Fund ("Fund") was established through the Decision 2/CMA.4 of the 
Conference of Parties serving as the meeting of Parties to the Paris Agreement ("CMA") 
and during the 27th Conference of Parties ("COP") to the United Nations Framework 
Convention on Climate Change C'UNFCCC") under Decision 2/CP.27 of the COP in 
November 2022.
During the 28th COP held in December 2023, the Fund was operationalized and 
the Loss and Damage Fund Board ("Board") was formed to serve as the governing and 
decision-making body of the Fund. The Board issued a Call for Proposals to Host the 
Board, wherein the Philippines, together with seven (7) other countries, submitted their 
offers.


On 8 July 2024, the Philippines was selected as the host country for the Board. 
Part of the Philippines' commitment is to confer juridical personality and legal capacity 
as well as grant privileges and immunities to, and execute a Host Country Agreement 
with, the Board, within ninety (90) days from selection as host.
Pursuant to the aforementioned commitment of the country, this bill will grant 
the requisite juridical personality and legal capacity to the Board to enable it to perform 
its mandates, including the capacity to negotiate and conclude and enter into a hosting 
agreement with the World Bank as interim trustee and host of the Fund's secretariat.
The Philippines'extensive involvement in the creation of the Board is a testament 
to the country's advocacy for climate justice and equity. In addition, the country's 
hosting of the Board will help establish the Philippines' leadership in climate justice, 
showcase expertise in disaster risk management and financing, gain fair access to Fund 
resources, and gather more technical and scientific assistance including capacity 
building and technology transfer programs.
In view of the foregoing, the urgent approval of this bill is earnestly sought.
E R. MARCOS


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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
S.B. No
itO TIME: Cjrjfj dm
INDEX
Introduced by SENATOR IMEE R. MARCOS
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 Representatives of the Phiiippines in Congress 
assembied:
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 protect and advance 
the right of the people to a balanced and healthful ecology in accord with the rhythm 
and harmony of nature.
As a party to the United Nations Framework Convention on Climate Change 
C'UNFCCC") and the Paris Agreement, the State lauds the creation of the Loss and 
Damage Fund C'Fund") under the Decision 2/CMA.4 of the Conference of Parties 
serving as the meeting of Parties to the Paris Agreement ("CMA") and during the 27th 
Conference of Parties ("COP") to the UNFCCC under Decision 2/CP.27 of the COP, and 
its operationalization during the 28th COP under COP Decision 1/CP.28 and CMA 
Decision 5/CMA.5. The State resolutely welcomes its establishment to finance and assist 
the most vulnerable developing countries' response and recovery from losses and 
damages caused by climate change.
In recognition of the role that the State must take to advance climate and 
disaster risk resilience, it shall be the policy of the State to take a whole of government 
approach in creating and implementing effective policy frameworks and to mobilize 
broad and innovative sources of climate financing, addressing loss and damage.
To further unlock opportunities in accelerating access to climate finance and 
investments which are critical for future-proofing the economy and ensuring 
sustainable and inclusive growth for all Filipinos, the State supports the hosting of the 
Loss and Damage Fund Board C'Board") in the Philippines. Towards this end, the State


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recognizes the need to grant juridical personality and legal capacity to the Board to 
enable it to discharge its roles and functions.
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 COP and 
CMA 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 to it under the relevant treaties and international agreements.
SEC. 5. Tax Exemptions. - The property, operations, and transactions of the 
Fund and its Board shall be exempt from the payment of all taxes, duties, and other 
charges imposed by the GOP and local authorities. The Fund and its Board shall also 
be exempt from any obligation for the payment, withholding or collection of any tax or 
duty.
The Fund and its Board shall be exempt from the payment of all taxes, duties, 
and other charges imposed by the GOP 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 Fund 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 Fund, regardless of currency used. 
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 GOP retains its rights to tax its 
own nationals.
The non-Filipino Fund officials and invited experts and observers shall be exempt 
from the payment of all taxes, duties, and other charges imposed by the GOP 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 pursuant to this Act and under the host 
country agreement between the GOP and the Board 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 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,