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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. 10602
Introduced by Representatives EDGAR M. CHATTO (First District, Bohol), 
JOCELYN SY LIMKAICHONG (First District, Negros Oriental), 
FERNANDO T. CABREDO (Third District, Albay),  
JOSE MANUEL F. ALBA (First District, Bukidnon),  
ANNA VELOSO-TUAZON (Third District, Leyte),  
CHRISTIAN TELL YAP (Second District, Tarlac) and  
JOSE FRANCISCO B. BENITEZ (Third District, Negros Occidental) 
EXPLANATORY NOTE 
During the 2022 Conference of Parties (COP) to the United Nations Framework 
Convention on Climate Change (UNFCCC), the Parties agreed to provide a loss and 
damage funding, particularly for vulnerable countries hit hard by the adverse effects 
of climate change. Loss and damage refer to the negative consequences that arise from 
the unavoidable risks of climate change, like sea level rise, prolonged heatwaves, 
desertification, acidification of the sea, and extreme events.1  
In 2023, during the COP 28, the Parties adopted the operationalization of the 
Loss and Damage Fund (L&D Fund).2 The L&D Fund will be governed and supervised 
by a Board composed of 26 members representing an equitable and balanced 
representation of all Parties. In the same event, President Ferdinand Romualdez 
Marcos, Jr. announced his call for the Philippines, though one of the most vulnerable 
countries, to host the L&D Fund Board as this will symbolize a commitment to 
inclusivity and will ensure that the economic and non-economic loss of the countries 
most affected by climate change will be addressed.3 As such, the Philippines has 
secured a membership on L&D Fund Board, as permanent representative of the Asia 
Pacific Group for 2024 and 2026, and as an alternate representative of the Asia Pacific 
Group for 2025.4 
1 https://www.unep.org/news-and-stories/story/what-you-need-know-about-cop27-loss-and-
damage-fund 
2 https://unfccc.int/loss-and-damage-fund-joint-interim-secretariat 
3 https://pco.gov.ph/news_releases/making-ph-the-host-of-loss-and-damage-fund-to-ensure-
countries-most-affected-by-climate-change-are-heard-pbbm/ 
4 https://pco.gov.ph/news_releases/pbbm-ph-secures-a-seat-in-inaugural-loss-and-damage-fund-
board/ 
July 15, 2024
3:09 pm


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On 09 July 2024, among the seven other contenders, the Philippines was 
elected as the host country of the L&D Fund Board. The hosting of the L&D Fund 
Board reflects the Philippines’ ability and commitment to global climate action and 
equity.5 The benefits of hosting the L&D Fund Board are: (1) showing 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) enabling the Philippines to promote its national 
response plans on loss and damage from the impacts of climate-induced hazards and 
disasters; and (3) increasing awareness in the country regarding international 
cooperation to addressing the local needs to respond to loss and damage due to the 
impacts of climate change. 
 
 
Relative thereto, among the Philippines’ proposal in hosting the L&D Fund 
Board is the conferment of legal personality and legal capacity, including privileges 
and immunities. This bill is the response of the Philippines’ commitment to Loss and 
Damage as one of the countries which bore the brunt of climate change impacts despite 
its miniscule contribution to the phenomenon. 
 
 
Considering the geographical location of the Philippines, it is greatly vulnerable 
to the impacts of climate change. The manifestations of climate change in the 
Philippines include rising temperature, sea level rise, frequency and intensity of 
typhoons, variability of precipitation, floods, droughts, and heat waves. According to 
the World Risk Index 2023, the Philippines topped as the most disaster-prone country 
in the world.6 
 
 
For this reason, the Philippines continued to demonstrate a deep commitment 
in addressing climate change through comprehensive legislative frameworks and 
proactive measures, including Republic Act No. 9729 or the “Climate Change Act of 
2009”. Moreover, this bill is consistent with the country’s commitment to 
multilateralism and in ensuring that the voices of the most affected by climate change 
will shape the future of international climate policies.7 
 
 
Further, 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 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 L&D Fund Board, this bill must be given high and 
 
5 https://www.pna.gov.ph/articles/1228637 
6 https://kpl.gov.la/EN/detail.aspx?id=81794 
7 https://denr.gov.ph/news-events/the-philippines-wins-bid-to-host-the-loss-and-damage-fund-
board/ 


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utmost priority which shall be 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. 
 
 
 
 
 
 
EDGAR M. CHATTO  
JOCELYN SY LIMKAICHONG 
 
 
 
 
 
FERNANDO T. CABREDO  
 
 
 
 
 
ANNA VELOSO-TUAZON  
CHRISTIAN TELL A. YAP 
 
 
 
 
JOSE FRANCISCO B. BENITEZ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
 
NINETEENTH CONGRESS 
Second Regular Session 
 
HOUSE BILL NO. 10602 
 
 
Introduced by Representatives EDGAR M. CHATTO (First District, 
Bohol), JOCELYN SY LIMKAICHONG (First District, Negros Oriental),  
FERNANDO T. CABREDO (Third District, Albay),  
JOSE MANUEL F. ALBA (First District, Bukidnon),  
ANNA VELOSO-TUAZON (Third District, Leyte),  
CHRISTIAN TELL YAP (Second District, Tarlac) and  
JOSE FRANCISCO B. BENITEZ (Third District, Negros Occidental) 
 
 
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: 
 
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 advance the 
right of the people to a balanced and healthful ecology in accord with the rhythm and 
harmony of nature and to protect the climate system for the benefit of humankind.   
 
As a party to the United Nations Framework Convention on Climate Change 
(“UNFCCC”) and the Paris Agreement, the State strongly supports the creation of the 
Fund for Responding to Loss and Damage (“L&D Fund”) 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 associated with the adverse effects of 
climate change, including extreme weather events and slow onset events.  
 
By virtue of the UNFCCC Decision 1/CP28, 5/CMA.5 on the “Operationalization 
of the new funding arrangements, including a fund, for responding to loss and damage 
referred to in paragraphs 2-3 of decisions 2/CP.27 and 2/CMA.4”, the Governing 
Instrument of the Loss and Damage Fund (“L&D Fund”) was approved, and the Board 
of the Fund (“Board”) will be conferred with legal personality and the legal capacity as 
necessary for discharging its roles and functions, in particular the legal capacity to 
negotiate, conclude and enter into a hosting arrangement with the World Bank as 
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 
and steer its operations so that they evolve with its scale and maturity.  
 
On the second meeting of the Board held on July 9, 2024, the Board adopted a 
unanimous Decision selecting the Philippines as the host country of the Board of the 
Fund. 
 
To facilitate the establishment and operationalization of the Fund, the State 
hereby grants juridical personality and legal capacity to the Board.  
 
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 Meeting of Parties to the Paris Agreement under the UNFCCC 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. Exemption from Taxation. – The Property, operations and 
transactions of the LDF and its Board shall be exempt from the payment of all taxes, 
duties, and other charges imposed by the Government and local authorities. The LDF 
and its Board shall also be exempt from any obligation for the payment, withholding 
or collection of any tax or duty. 
 
The LDF and its Board shall be exempt from the payment of all taxes, duties, 
and other charges imposed by the Government 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 LDF 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 LDF, regardless of 
currency used. The Government retains its rights to tax its own nationals. 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 non-Filipino LDF Officials and invited Experts and Observers shall be 
exempt from the payment of all taxes, duties, and other charges imposed by the 
Government 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.  
 
Goods released tax-free and duty-free under this Agreement shall be subject to 
applicable taxes and duties if sold, transferred, or exchanged in the Philippines to non-


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exempt persons or entities, computed based on the value of the goods at the time of 
the importation pursuant to existing Government rules and regulations. 
 
SEC.  5. 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.  6. Effectivity. – This Act shall take effect immediately upon its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.