ANTONIO B. LEGARDA JR.
August 7, 2023
3:53 pm
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NINETEENTH CONGRESS OF THE
)
REPUBLIC OF THE PHILIPPINES )
Second Regular Session
)
HOUSE OF REPRESENTATIVES
House Bill No._______
Introduced by Hon. Antonio B. Legarda Jr.
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 the 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, the
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
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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;
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)
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;
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.
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 to1:
a. The “inner circle” refers to minimizing comparative materials
use vis-à-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;
1https://reports.weforum.org/toward-the-circular-economy-accelerating-the-scale-up-across-global-supply-ch
ains/


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 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 others2:
a. Mobile technology which enables universal and low-cost access to
data and applications and reduces the need for physical resources;
2 Achieving a Circular Economy. How the Private Sector is Reimagining the Future of Business. US
Chamber of Commerce Foundation (2015)


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
coverage
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;
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
j. 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).
The
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;
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
Development 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.
c. 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.
The DTI, in coordination with the DILG, shall lead in developing
standards for circular economy design on a product or process.
d. 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 NEDA,
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), NEDA, and CCC and
other government agencies concerned, and non-government 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;
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-raising
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 rippling 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, DTI, 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 accountability 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 the principles under this Act.
Sec. 10. Integration of Permaculture Principles and Practices. -
National Government agencies (NGAs), government-owned and controlled
corporations (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 into 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.


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.
Mainstreaming
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
Appropriations Act.


Sec. 18. Implementing Rules and Regulations. - The NEDA, 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 provisions thereof shall not be affected thereby.
Sec. 20. Effectivity. - This Act shall take effect fifteen (15) days after
its complete publication in the Official Gazette or in two (2) newspapers of
general circulation.
Approved,