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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH  CONGRESS 
Third Regular Session 
HOUSE BILL NO. 10603 
___________________________________________________________________ 
Introduced by Rep. MARIA RACHEL J. ARENAS 
___________________________________________________________________ 
EXPLANATORY NOTE 
The Philippines, an archipelago of over 7,000 islands, is highly vulnerable 
to climate change impacts due to its geographical, socio-economic, and 
environmental characteristics. Despite contributing only 0.40% to global greenhouse 
gas emissions, it ranks among the world's most vulnerable nations. 
As a committed party to the UNFCCC and the Paris Agreement, the 
Philippines has been a leader in advancing climate finance and addressing loss 
and damage associated with climate change. The establishment of the Fund for 
Responding to Loss and Damage (L&D Fund) by the parties to these agreements is 
a critical initiative to support developing countries facing climate impacts. 
On May 13, 2024, the Co-chairs of the L&D Fund Board issued a Call 
for Expressions of Interest to host the Board. The Philippines submitted its bid on 
June 7, 2024, emphasizing inclusivity and global climate leadership. On July 9, 
2024, the Philippines was unanimously selected as the host country, subject to 
fulfilling its commitments. 
Hosting the Board positions the Philippines to play a pivotal role in global 
climate finance and loss and damage policies, building on its long-standing 
engagement in climate negotiations since COP 1. Granting juridical personality 
and legal capacity to the Board, along with necessary privileges and immunities, 
will ensure the effective operation of the Fund and support its objectives. 
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July 16, 2024
8:00 am


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This bill establishes the legal framework necessary to confer juridical 
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personality, legal capacity, tax exemptions, and administrative support to the L&D 
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Fund Board. The timely passage before August 9, 2024, underscores the Philippines' 
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readiness to fulfill its hosting responsibilities and advance global climate resilience 
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efforts. 
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In view of the foregoing, the immediate passage of this bill is earnestly sought. 
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  MARIA RACHEL J. ARENAS 
    Representative 
  3rd District, Province of Pangasinan 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH  CONGRESS 
Third Regular Session 
HOUSE BILL NO. 10603 
___________________________________________________________________ 
Introduced by Rep. MARIA RACHEL J. ARENAS 
___________________________________________________________________ 
AN ACT 
GRANTING JURIDICAL PERSONALITY AND LEGAL CAPACITY TO THE 
BOARD OF THE FUND FOR RESPONDING TO LOSS AND DAMAGE IN THE 
PHILIPPINES 
Be it enacted by the Senate and House of the Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as "The Loss and Damage Fund 
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Board Act." 
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SEC. 2. Declaration of Policy. - It is the policy of the State to advance the right of the 
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people to a balanced and healthful ecology in accord with the rhythm and harmony of 
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nature and to protect the climate system for the benefit of humankind.   
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As a party to the United Nations Framework Convention on Climate Change 
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("UNFCCC") and the Paris Agreement, the State strongly supports the creation of the 
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Fund for Responding to Loss and Damage ("L&D Fund") to assist developing countries 
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that are particularly vulnerable to the adverse effects of climate change in responding 
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to economic and non-economic loss and damage associated with the adverse effects 
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of climate change, including extreme weather events and slow onset events.  
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Under the UNFCCC Decision 1/CP28, 5/CMA.5 on the "Operationalization of 
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the new funding arrangements, including a fund, for responding to loss and damage 
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referred to in paragraphs 2-3 of decisions 2/CP.27 and 2/CMA.4", the Governing 
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Instrument of the Loss and Damage Fund ("L&D Fund") was approved, and the Board 
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of the Fund ("Board") will be conferred with legal personality and the legal capacity as 
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necessary for discharging its roles and functions, in particular the legal capacity to 
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negotiate, conclude and enter into a hosting arrangement with the World Bank as 
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interim trustee and host of the Fund's secretariat. Noting further Section III C.2 of the 
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Governing Instrument, the Board will serve the objectives and purpose of the Fund 
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and steer its operations so that they evolve with its scale and maturity.  
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At the second meeting of the Board held on July 9, 2024, the Board adopted a 
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unanimous decision, selecting the Philippines as the host country of the Board of the 
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Fund. 
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To facilitate the establishment and operationalization of the Fund, the State 
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hereby grants juridical personality and legal capacity to the Board.  
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SEC. 3. Juridical Personality and Legal Capacity of the Loss and Damage Fund 
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Board. - The Board, as the governing body of the Fund established by the Meeting of 
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Parties to the Paris Agreement under the UNFCCC, shall be granted juridical 
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personality with the total legal capacity to:  
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(a) Contract; 
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(b) Acquire and dispose of immovable and movable property;  
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(c) Institute legal proceedings;  
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(d) Negotiate, conclude, and enter into a hosting arrangement with the 
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World Bank as interim trustee and host of the Fund's secretariat; and 
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(e) Undertake related or necessary activities to carry out the purpose for 
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which the Board was created. 
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SEC. 4. Exemption from Taxation. - The Property, operations, and transactions of 
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the LDF and its Board shall be exempt from paying all taxes, duties, and other charges 
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imposed by the Government and local authorities. The LDF and its Board shall also 
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be exempt from any obligation for the payment, withholding, or collection of any tax or 
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duty. 
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The LDF and its Board shall be exempt from the payment of all taxes, duties, 
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and other charges imposed by the Government and local authorities, except charges 
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for storage, transport, and services supplied, on the importation of equipment, 
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machinery, motor vehicles, and materials intended for use in the board meeting. The 
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same shall be processed in the manner and under existing procedures applied by the 
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Department of Finance in similarly situated cases. 
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The non-Filipino LDF Officials and invited Experts and Observers shall be 
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exempt from the payment of income tax on salaries, stipends, emoluments, 
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indemnities, and sickness and accident benefits received from the LDF, regardless of 
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the currency used. The Government retains its right to tax its nationals. They shall 
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likewise not be subject to taxes on their local purchases in the quantity as appropriate 
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for the duration of the board meeting. 
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The non-Filipino LDF Officials and invited Experts and Observers shall be 
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exempt from the payment of all taxes, duties, and other charges imposed by the 
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Government and local authorities, except charges for storage, transport, and services 
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supplied, on the importation of personal effects in the quantity as appropriate for the 
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duration of the board meeting.  
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Goods released tax-free and duty-free under this Agreement shall be subject 
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to applicable taxes and duties if sold, transferred, or exchanged in the Philippines to 
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non-exempt persons or entities, computed based on the value of the goods at the time 
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of the importation pursuant to existing Government rules and regulations. 
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SEC. 5. Repealing Clause. - All laws, presidential decrees, executive orders, 
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administrative orders, and rules and regulations inconsistent with this Act are hereby 
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repealed, modified, or amended accordingly. 
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SEC. 6. Effectivity. - This Act shall take effect immediately upon its publication in the 
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Official Gazette or at least two (2) newspapers of general circulation. 
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Approved,