NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
)
)
)
SENATE
S. No. c734
si’l Ui. • c
24 JUL18 A 8 ;25
RHCEU'cD BV
Introduced by Senator Loren B. Legarda
AN ACT 
w _uc
GRANTING JURIDICAL PERSONALITY AND l-EcGcA^MnAnaM^TE DUE TTO 
BOARD OF THE FUND FOR RESPONDING TO LOSS AND DAMAGE DUE
CLIMATE CHANGE IN THE PHILIPPINES
EXPLANATORY NOTE
"Loss and damage" refers to the negative consequences that arise from the 
unavoidable risks of climate change, including extreme weather events such as 
typhoons and severe rainfall, and slow onset impacts such as sea level rise, prolonged 
heatwaves, desertification, acidification of the sea.1
At the 28th Conference of the Parties (COP) to the United Nations Framework 
convention on Climate Change (UNFCCC) or COP28, the Loss and Damage Fund 
(L&D Fund) was operationalized, particularly to assist vulnerable countries 
responding to the adverse effects of climate change. The L&D Fund exists as an 
entity entrusted by the COP with the operation of the Financial Mechanism of the 
UNFCCC, which would also serve the Paris Agreement. The Fund will be accountab 
to and function under the guidance of the COP.2
Governing the L&D Fund is a Board composed of 26 members representing an 
equitable representation of Parties to the UNFCCC, including two co-chairs, where 
one represents the group of developing countries and another that of develop
1https://WWW .unep.org/newS'and-stoi‘ies/story/wliat-you-need-know-about-cop27-loss-and-
damage-fund. 
. 
.
2 https;/ / unfccc.int/loss-and-damage-fmTd-jomt-mterim-secretan .
1


countries. The Philippines has secured a membership on the Board as permanent 
representative of the Asia Pacific Group of developing countries to serve for the years 
2024 and 2026, and as alternate representative for the year 2025.3
On May 13, 2024, the L&D Fund Board issued a Call for Expressions of Interest 
from countries to host the Board of the Fund. Guided by the announcement of 
President Ferdinand R. Marcos, Jr. that the Philippines, though one of the world's 
most vulnerable countries, is offering to host the L&D Fund Board, the Philippines 
responded to the Call and submitted its bid, to symbolize its commitment to climate 
leadership and ensure that the economic and non-economic loss of the countries 
most affected by climate change will be addressed.4 On July 9, 2024, at the second 
meeting of the Board held in Songdo, Republic of Korea, the Philippines was elected 
as the host country among eight contenders.
The hosting of the L&D Fund Board reflects the Philippines' ability and 
commitment to global climate action and equity.5 As host, the Philippines is able to: 
(1) show the firm resolve of the country to be an active voice of the developing world 
in pushing for the need to respond to loss and damage; (2) promote its national 
response plans on loss and damage from the impacts of climate-induced hazards and 
disasters; and (3) increase awareness regarding the value of international 
cooperation in addressing loss and damage. Through this bill, the country commits 
to multilateralism so that the voices of those most affected by climate change can 
shape the future of climate policy.6 This bill enables the country to deliver a concrete 
legacy for future generations.
Included in the Philippine proposal in hosting the Board is the conferment of 
legal personality and legal capacity, including privileges and immunities to the Board. 
Through this bill, the L&D Fund Board, as the governing body of the L&D Fund, shall 
be granted juridical personality with full capacity to enter into contracts, acquire and
3 https://pco.gov.ph/news_releases/pbbm-ph-secures-a-seat-in-inaugural-loss-and-damage-fund- 
board/
4 https://pc.gov.ph/news_releases/making-ph-the-host-of-loss-and-damage-fund-to-ensure- 
countries-most-affected-by-climate-change-are-heard-pbbm/
5 https://www.pna.gov.ph/articles/1228637
6 https://denr.gov.ph/news-events/the-philippines-wins-bid-to-host-the-loss-and-damage-fund- 
board/


dispose properties, institute legal proceedings, enter into hosting agreement with the 
World Bank, and undertake necessary activities to carry out the purpose for the L&D 
Fund Board.
In order to conclude the domestic requirements, i.e. the grant of juridical 
personality and legal capacity to the Board, it is envisioned that this bill be given 
utmost priority and enacted not later than ninety (90) days after the confirmation of 
the Philippines as the host country. In light of the foregoing considerations, the 
passage of this bill is immediately sought.
LOi^Nt-EGARDA


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
SENATE 
s. NO. 2734
oi ttjf r ' 
t."
24 JUL 18 A 8 25
RtCEIVED BV
Introduced by Senator Loren B. Legarda
AN ACT
GRANTING JURIDICAL PERSONALITY AND LEGAL CAPACITY TO THE 
BOARD OF THE FUND FOR RESPONDING TO LOSS AND DAMAGE DUE TO 
CLIMATE CHANGE IN THE PHILIPPINES
Be it enacted by the Senate and House of the Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known and referred to as "The Loss
2 
and Damage Fund Board Act."
3 
Sec. 2. Declaration of Policy. — It is the policy of the State to advance the right
4 
of the people to a balanced and healthful ecology in accord with the rhythm and
5 
harmony of nature and to protect the climate system for the benefit of humankind.
6 
As a party to the United Nations Framework Convention on Climate Change
7 
C'UNFCCC") and the Paris Agreement, the State strongly supports the creation of the
8 
Fund for Responding to Loss and Damage (''L&D Fund") to assist developing
9 
countries that are particularly vulnerable to the adverse effects of climate change in
10 
responding to economic and non-economic loss and damage associated with the
11 
adverse effects of climate change, including extreme weather events and slow onset
12 
events.
13 
By virtue of the UNFCCC Decision 1/CP28, 5/CMA.5 on the "Operationalization
14 
of the new funding arrangements, including a fund, for responding to loss and
15 
damage referred to in paragraphs 2-3 of decisions 2/CP.27 and 2/CMA.4", the
16 
Governing Instrument of the Loss and Damage Fund C'L&D Fund") was approved.


1 
and the Board of the Fund C'Board") will be conferred with legal personality and the
2 
legal capacity as necessary for discharging its roles and functions, in particular the
3 
legal capacity to negotiate, conclude and enter into a hosting arrangement with the
4 
World Bank as interim trustee and host of the Fund's secretariat. Noting further
5 
Section III C.2 of the Governing Instrument, the Board will serve the objectives and
6 
purpose of the Fund and steer its operations so that they evolve with its scale and
7 
maturity.
8 
On the second meeting of the Board held on July 9, 2024, the Board adopted
9 
a unanimous Decision selecting the Philippines as the host country of the Board of
10 
the Fund.
11 
To facilitate the establishment and operationalization of the Fund, the State
12 
hereby grants juridical personality and legal capacity to the Board.
13 
Sec. 3. Juridical Personality and Legal Capacity of the Loss and Damage Fund
14 
Board. - The Board, as the governing body of the Fund established by the Meeting
15 
of Parties to the Paris Agreement under the UNFCCC shall be granted juridical
16 
personality with full legal capacity to:
17 
(a) Contract;
18 
(b) Acquire and dispose of immovable and movable property;
19 
(c) Institute legal proceedings;
20 
(d) Negotiate, conclude, and enter into a hosting arrangement with the
21 
World Bank as interim trustee and host of the Fund's secretariat; and
22 
(e) Undertake related or necessary activities to carry out the purpose
23 
for which the Board was created.
24 
Sec. 4. Exemption from Taxation. - The Property, operations and transactions
25 
of the L&D Fund and its Board shall be exempt from the payment of all taxes, duties,
26 
and other charges imposed by the Government and local authorities. The L&D Fund
27 
and its Board shall also be exempt from any obligation for the payment, withholding
28 
or collection of any tax or duty.
29 
The L&D Fund and its Board shall be exempt from the payment of all taxes,
30 
duties, and other charges imposed by the Government and local authorities, except
31 
charges for storage, transport and services supplied, on the importation of
32 
equipment, machinery, motor vehicles, and materials intended for use in the board


1 
meeting. The same shall be processed in the manner and under existing procedures
2 
applied by the Department of Finance in similarly situated cases.
3 
The non-Filipino L&D Fund Officials and invited Experts and Observers shall be
4 
exempt from the payment of income tax on salaries, stipends, emoluments,
5 
indemnities, and sickness and accident benefits, received from the LDF, regardless
6 
of currency used. The Government retains its rights to tax its own nationals. They
7 
shall likewise not be subject to taxes on their local purchases in the quantity as
8 
appropriate for the duration of the board meeting.
9 
The non-Filipino L&D Fund Officials and invited Experts and Observers shall be
10 
exempt from the payment of all taxes, duties, and other charges imposed by the
11 
Government and local authorities, except charges for storage, transport and services
12 
supplied, on the importation of personal effects in the quantity as appropriate for the
13 
duration of the board meeting.
14 
Goods released tax-free and duty-free under this Agreement shall be subject
15 
to applicable taxes and duties if sold, transferred, or exchanged in the Philippines to
16 
non- exempt persons or entities, computed based on the value of the goods at the
17 
time of the importation pursuant to existing Government rules and regulations.
18 
Sec. 5. Repealing Clause. - All laws, presidential decrees, executive orders,
19 
administrative orders, and rules and regulations inconsistent with this Act are hereby
20 
repealed, modified, or amended accordingly.
21 
Sec. 6. Effectivity. - This Act shall take effect immediately upon its publication
22 
in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,