Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

House Bill No. 3498

INTRODUCED BY REPRESENTATIVES RALPH WENDEL P. TULFO
AND JOCELYN P. TULFO

AN ACT
TO INSTITUTE POLICIES AND SYSTEMS TO ADDRESS CLIMATE
CHANGE, ESTABLISHING THE NECESSARY INSTITUTIONAL
MECHANISMS FOR THE PROTECTION OF MOST VULNERABLE
COMMUNITIES FROM LOSS AND DAMAGE IN THE COUNTRY,
PROVIDING FOR CORPORATE AND STATE ACCOUNTABILITIES AND
REPARATIONS FOR VIOLATION THEREOF, AND OTHER PURPOSES

EXPLANATORY NOTE

Article II, Section 16 of the 1987 Philippine Constitution mandates 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. This constitutional duty is reinforced
by Section 2 of Republic Act No. 9729, otherwise known as the “Climate Change Act
of 2009”, which directs the State to strengthen, integrate, consolidate, and
institutionalize government efforts to ensure coordinated action in addressing climate
change within the context of sustainable development.

Despite these legal foundations, the Philippines remains among, the most
climate-vulnerable nations in the world. According to the 2024 World Risk Index, the
Philippines has ranked first globally as the nation with the highest risk to natural and
climatic threats with a risk index of 46.91%. This marks the 16 consecutive year the
country has held the top spot, underscoring the persistent and growing threats to our
people and communities from more frequent and more intense natural disasters.’

The devastating effects of this vulnerability were once again evident from July
21 to July 24, 2025, when the National Disaster Risk Reduction and Management
Council (NDRRMC) recorded 895 flooding incidents nationwide due to the combined
impact of Tropical Storm “Crising” and the Southwest Monsoon (Habagat). In
response, President Ferdinand R. Marcos, Jr. called for long-term measures to mitigate

1 Frege, Dr. Iona Auer, et al., “WorldRiskReport 2024”, BUNDNIS ENTWICKLUNG HILFT & RURH
UNIVERSITY BOCHUM - IFHV, https: / / weltrisikobericht.de/ worldriskreport/.


the worsening effect of climate change, acknowledging the need to enhance
government emergency response mechanisms, including faster deployment of food
packs and search-and-rescue teams in calamity-hit areas.”

Moreover, climate change is not only in manifesting in extreme storms, but also
in unprecedented heatwaves. According to Climate Central, a US-based non-profit
science organization, Manila has experienced 69 days of extreme heat strongly
influenced by climate change since December 2024, making it the third most affected
megacity globally. Other highly impacted areas include Quezon City, Zamboanga,
Davao, Caloocan, and Canagatan, Cagayan. In fact, 2024 has been recorded as the
hottest calendar year in history, further emphasizing the urgent need for
comprehensive climate action.

In light of these developments, Greenpeace, a global network of independent
campaigning organizations promoting environmental solutions, has renewed its call
for the Philippine government to enact the Climate Accountability (CLIMA) Bill and
place climate justice at the forefront of national policy and protect communities from
the worsening impacts of the climate crisis.

This proposed measure responds to that call. It seeks to institutionalize a robust
framework for climate resilience and accountability. Salient provisions include the
establishment of a Climate Change Actions Welfare and Support Board, the creation
of a Climate Change Actions Welfare and Support Fund, mechanisms for business
accountability in the context of climate impacts, and the penalization of harmful
practices such as greenwashing, climate denialism, breaching the threshold for
acceptable emissions, and the filing of SLAPP suits.

In view of the foregoing, the urgent passing of this bill is earnestly sought.

RALPH. Bon P. TULFO joa . TALFO
Representative Representafve
2nd District of Quezon City ACT-CIS Partylist

2 Medenilla, Samuel P., “Marcos eyes long-term climate change adaptation measures”, BUSINESS
MIRROR, 24 Jul 2025, hitps:/ /businessmirror.com.ph/2025/07/24/marcos-eyes-long-term-climate-
change-adaptation-measures/.

3 Greenpeace Philippines, “Greenpeace urges Marcos to fast-track CLIMA Bill as Manila ranks 3+ worst
affected ‘megacity’ by climate-change related heat", GREENPEACE, 21 Mar 2025,
https:/ / www greenpeace.org/ philippines press /67721 /urge-marcos-fast-track-clima-bill-manila-
ranks-3rd-worst-affected-megacity-by-climate-change-heat/.


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

L
House Bill No. 34 58

INTRODUCED BY REPRESENTATIVES RALPH WENDEL P. TULFO
AND JOCELYN P. TULFO

AN ACT
TO INSTITUTE POLICIES AND SYSTEMS TO ADDRESS CLIMATE
CHANGE, ESTABLISHING THE NECESSARY INSTITUTIONAL
MECHANISMS FOR THE PROTECTION OF MOST VULNERABLE
COMMUNITIES FROM LOSS AND DAMAGE IN THE COUNTRY,
PROVIDING FOR CORPORATE AND STATE ACCOUNTABILITIES AND
REPARATIONS FOR VIOLATION THEREOF, AND OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

CHAPTER I
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known and referred to as “The
Climate Accountability (CLIMA) Act.”

SEC. 2. Declaration of Policy. - It is the declared policy of the State to protect
and advance the right of the people toa balanced and healthful ecology in accord with
the rhythm and harmony of nature, and shall protect and promote the right to health,
dignified life, of the people and instill health consciousness among them.

The protection of climate systems advances the right of the people to a
balanced and healthful ecology and is a common good. As such common good, all
economic agents of the State, including corporations, are to contribute to its
attainment.


Likewise, to ensure informed and effective responses to climate change, the
State shall recognize the importance of addressing climate denialism to prevent the
corporations and the public in disseminating false information, intentional
misrepresentation of facts, or dismissal of anthropogenic climate change contrary to
scientific consensus, through denial or conspiracy theories.

Further, the State shall enact measures that protect and enhance the right of all
the people to human dignity and reduced social and economic inequalities, especially
those that arise from adverse impacts attributed to climate change. Towards this end,
the State shall regulate the acquisition, ownership, use, and disposition of property
and its increments and therefore.

SEC. 3. Definition of Terms. - For the purposes of this Act, the following terms
shall be defined as:

(a) Adaptation refers to the adjustment in natural or human systems in response
to actual or expected climatic stimuli or their effects, which moderates harm.
and/or exploits beneficial opportunities;

(b) Attribution science refers to the process of evaluating the relative
contributions of GHG and multiple causal factors to the observed change
or event in the climate system with an assessment of confidence. This is
done through a systematic analysis, using physical understanding,
observational data, statistical analysis and climate models by climate
experts;

(0) Business refers to a for-profit enterprise, State-owned enterprises,
transnational corporations and business enterprises of transnational
character, other business enterprises, and joint ventures, whether
individual or aggregate entities, undertaken by a natural person or a
juridical person duly incorporated under the Revised Corporation Code of
the Philippines or the corresponding relevant corporate establishment
legislation in other countries. For the purposes of this Act, “business” shall
mean businesses that reported a revenue of more than Fifteen Billion Pesos
(P15,000,000,000.00) in the previous tax year, or carbon majors, regardless
of amount of gross income;

(d) Business relationship refers to any relationship between businesses to
conduct business activities, including those activities conducted through

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affiliates, subsidiaries, agents, suppliers, partnerships, joint venture,
beneficial ownership, or any other structure or contractual relationship as
provided under the domestic law of the State, including activities
undertaken by electronic means;

Carbon majors refer to juridical entity producing crude oil, natural gas, coal,
or cement with a substantial share of cumulative GHG emissions and with
operations or a legal presence in the Philippines;

Climate accountability refers to the responsibility of and corresponding need
for remedial action from businesses and carbon majors significantly
responsible for climate change. A climate accountability regime establishes
a governance mechanism for ensuring that climate targets are met through
formal climate governance structures and processes for setting meeting and
monitoring progress against the countries’ long term emission targets
and/or pollution reduction and biodiversity protection and conservation
targets. The accountability of carbon majors as defined in this Act shall
range from negligence to causation based on emissions thresholds upon the
promulgation of this Act;

Climate change refers to a change in climate that can be identified by changes
in the mean and/or variability of its properties and that persists for an
extended period typically decades or longer, whether due to natural
variability or as a result of human activity;

Climate change impact refers to the effects on natural and human systems of
extreme weather and climate events and in general, climate change.
Impacts generally refer to effects on lives, livelihoods, health, ecosystems,
economies, societies, cultures, services, and infrastructure due to the
interaction of climate changes or hazardous climate events occurring within
a specific time period and the vulnerability of an exposed society or system;

Climate Change Victims/Survivors refer to (a) vulnerable groups of people or
communities who suffered harm, including physical or mental injury,
emotional suffering, or economic or property loss, or impairment of their
human rights as a result of climate-related loss and damage; or (b) those
communities affected by slow or extreme climatic events of such
magnitude, that cannot be avoided either by mitigation (avoiding and
reducing greenhouse gas emissions) or adaptation (adjusting to current and

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future climate change impacts); or who have been, or are likely to be,
severely affected by climate change, while at the same time having
inadequate human, social, and economic capital for climate change
adaptation, including relocation;

Climate-related financial disclosures refer to the information about an entity’s
climate-related risks and opportunities that could reasonably be expected
to affect the entity’s cash flows, its access to finance, or cost of capital over
short, medium, or long term;

Climate justice refers to justice that links development and human rights to
achieve a human-centered approach to addressing climate change,
safeguarding the rights of the most vulnerable people and sharing the
burdens and benefits of climate change and its impacts equitably and fairly;

Climate risk refers to the potential for adverse consequences for human or
ecological systems, recognizing the diversity of values and objectives
associated with such systems;

Climate systems refer to the global system consisting of five (5) major
components: the atmosphere, the hydrosphere, the cryosphere, the
lithosphere, and the biosphere; and the interactions between them. The
climate system changes in time under the influence of its own internal
dynamics and because of external forcings such as volcanic eruptions, solar
variations, orbital forcing, and anthropogenic forcings such as the changing
composition of the atmosphere and land-use change;

Extreme weather event refers to a single, discrete event with a clearly
identifiable beginning or end and that occur or reoccur in a matter of days
or even hours at a local, national, or regional scale;

Greenhouse gases (GHG) refer to gaseous elements of the atmosphere both
natural and man-made that absorb and emit radiation from the earth's
surface leading to global warming that contribute to the greenhouse effect
including, but not limited to, those identified in the latest
Intergovernmental Panel on Climate Change (IPCC) Report, such as water
vapour (HzO), carbon dioxide (COz), nitrous oxide (N20), methane (CHi)
and ozone (O:), Sulphur Hexafluoride (SFs), Hydrofluorocarbons (HFCs),
chlorofluorocarbons (CFCs), and perfluorocarbons (PFCs) ;

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Intergovernmental Panel on Climate Change refers to the intergovernmental
body of the United Nations responsible for assessing the science related to
climate change and for providing internationally coordinated scientific
assessments of the magnitude, timing; and potential environmental and
socio-economic impact of climate change and realistic response strategies;

Just transition refers to maximizing the social and economic opportunities
of climate action, while minimizing and carefully managing any social
disruption, political and social risks - through effective social dialogue
among all groups impacted, and respect for fundamental labor principles
and rights;

Loss and damage refers to the political debate under the United Nations
Framework Convention on Climate Change (UNFCCC) following the
establishment of the Warsaw Mechanism on Loss and Damage in 2013,
which is to ‘address loss and damage associated with impacts of climate
change, including extreme events and slow onset events, in developing
countries that are particularly vulnerable to the adverse effects of climate
change. Broadly, losses and damages refer to the harm from observed
impacts and projected risks and can be economic or non-economic;

Mitigation, in the context of climate change, refers to human intervention to
reduce GHG emissions or enhance their removal by natural sinks, e.g,
nature-based solutions, or through GHG capture by manmade
mechanisms;

Nationally determined contribution refers to the Philippines’ nationally
determined contribution (“NDC”), as a climate action plan to cut emissions
and adapt to climate impacts, undertaken and communicated pursuant to
Article 3 of the Paris Agreement. For the purposes of this Act, the NDC
includes the National Adaptation Plan (NAP) and the Nationally
Determined Contribution Implementation Plan (NDCIP). It is the country’s
long-term development plan towards a climate-resilient and low-carbon
pathway;

Paris Agreement refers to an international treaty on climate change adopted
by the Parties, including the Philippines, to the United Nations Framework
Convention on Climate Change (UNFCCC) at the twenty-first session of the

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Conference of Parties of the UNFCCC in December 2015 and duly
deposited with the United Nations Secretary-General as its Treaty
Depositary which aims to strengthen the global response to the threat of
climate change, in the context of sustainable development and efforts to
eradicate poverty, and will be implemented to reflect equity and the
principle of common but differentiated responsibilities and respective
capabilities, in light of different national circumstances. It increases the
ability to adapt to the adverse impacts of climate change and foster climate
resilience and low GHG emissions development;

Reparations refer to the amends for a tort or injury inflicted, especially, in
the context of this bill, compensation, relocation, and rehabilitation and
recovery for victims/ survivors of climate loss and damage. Remedies can
be in the form of pecuniary or monetary and non-pecuniary or non-
monetary under existing laws;

Slow onset event refers to risks and impacts associated with increasing
temperatures, desertification, loss of biodiversity, land and forest
degradation, glacial retreat and related impacts, ocean acidification, sea
level rise, and salination;

Stakeholder refers to an individual or a group who holds an interest in how
an organization operates as it can be the source of benefit or harm a
stakeholder;

Source attribution refers to the process of identifying and assigning climate
change impacts to specific sources of GHG emissions to allocate
accountability for climate change. A source can be a particular sector, entity
or activity;

Scope 1 emissions refer to GHGs released directly by a company or
organization in manufacturing a product or delivering a service. The
emissions are owned or controlled by the company;

Scope 2 emissions refer to GHGs generated from electricity, heating, cooling,
steam, or gas purchased by the company for its operation. Thus, the level
of the emissions is indirectly influenced by the demand by the company
even as they are generated outside the company; and


(bb) Scope 4 emissions refer to GHGs reduced or avoided by a company or
organization that happen outside a product's or a service's life cycle or
value chain. It is a result of the use by customers of the product or service
developed by the company.

CHAPTER II
POLICIES AND SYSTEMS

SEC. 4, Adoption of the Precautionary Principle. - In cases where there is a
threat or risk of serious damage and the need for environmental protection, the courts
shall be guided by Rule 20 of the Rules of Procedure for Environmental Cases,
modified as follows:

(a) Applicability. — When there is a lack of full scientific certainty in establishing a
causal link between human activity and environmental effect and when human
activities may lead to threats of serious and irreversible damage to the
environment that is scientifically plausible, actions shall be taken to avoid or
diminish that threat. In these cases, the court shall apply the precautionary
principle in resolving the case before it, with the proponent of an activity, rather
than the public, bearing the burden of proof.

The constitutional right of the people to a balanced and healthful ecology shall
be given the benefit of the doubt.

(b) Standards for application. ~ In applying the precautionary principle, the
following factors, among others, may be considered: (1) serious threats to
human life or health; (2) inequity to present or future generations; and (3)
prejudice to the environment.

The business and the SEC assisted by the CCC, academe, and research
institutions which assists SEC on the analysis of the GHG emissions, shall also be
obliged to disclose whether or not the cause and effect have not yet been scientifically
established.

SEC. 5. Adoption of the Polluter Pays Principle. - Carbon majors or polluters
shall pay for the damage they caused to the environment, as may be provided under
relevant environmental and natural resource management laws such as, but not
limited to:


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(a) Presidential Decree No. 705 or the “Revised Forestry Code of the
Philippines”;

(b) Presidential Decree No. 856 or the “Code on Sanitation of the Philippines”;

(©) Presidential Decree No. 979 or the “Marine Pollution Decree of 1976”;

(d) Presidential Decree No. 1152 or the “Philippine Environmental Code”;

(e) Presidential Decree No. 1219 or “The Coral Resources Development and
Conservation Decree”;

(f) Presidential Decree No. 1586 or “Establishing an Environmental Impact
Statement System, Including Other Environmental Management Related
‘Measures and for Other Purposes”;

(g) Republic Act No. 6969 or the “Toxic Substances and Hazardous and
Nuclear Wastes Control Act of 1990”;

(h) Republic Act No. 7076 or the “People’s Small-scale Mining Act of 1991”;

(i) Republic Act No. 7586 or the “National Integrated Protected Areas Systems
Act of 1992” as amended by Republic Act No. 11038;

(i) Republic Act No. 7942 or the “Philippine Mining Act of 1995”;

(k) Republic Act No. 8048 or the “Coconut Preservation Act of 1995”;

() Republic Act No. 8041 or the “National Water Crisis Act of 1995”;

(m) Republic Act No. 8371 or “The Indigenous Peoples’ Rights Act of 1997”;

(n) Republic Act No. 8435 or the “Agriculture and Fisheries Modernization
Act of 1997”;

(0) Republic Act No. 8550 or “The Philippine Fisheries Code of 1998”;

(p) Republic Act No. 8749 or the “Philippine Clean Air Act of 1999”;

(q) Republic Act No. 9003 or the “Ecological Solid Waste Management Act of
2000”;

(t) Republic Act No. 9136 or the “Electric Power Industry Reform Act of
2001”;

(8) Republic Act No. 9147 or the “Wildlife Resources Conservation and
Protection Act”;

(8) Republic Act No. 9072 or the “National Caves and Cave Resources
Management and Protection Act”;

(u) Republic Act No. 9003 or “The Ecological Solid Waste Management Act”
as amended by RA No. 11898 dated 23 July 2022, or the “Extended
Producer Responsibility Act of 2022”;

(v) Republic Act No. 9168 or the “Philippine Plant Variety Protection Act of
2002”;

(w) Republic Act No. 9275 or “The Philippine Clean Water Act of 2004”;

(x) Republic Act No. 9367 or the “Biofuels Act of 2006”;

(y) Republic Act No. 9513 or the “Renewable Energy Act of 2008”;

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(2) Republic Act No. 9729 or the “Climate Change Act of 2009” as amended by
Republic Act No. 10174;

(aa)Republic Act No. 10121 or the “Philippine Disaster Risk Reduction and
Management Act of 2010”;

(bb) Republic Act No. 7611 or the “Strategic Environmental Plan (SEP) for
Palawan Act”;

(cc) Republic Act No. 9483 or the “Oil Pollution Compensations Act of 2007”;
and

(dd) Republic Act No. 11285 or “An Act Institutionalizing Energy Efficiency
and Conservation, Enhancing the Efficient Use of Energy, and Granting
Incentives to Energy”.

The rights and causes of action that are created under this Act shall be without
prejudice to other causes of actions under existing laws. In estimating the amount of
and accountability for damage, attribution science can be used as a complementary
framework in lieu of proof of actual damage.

SEC 6. Application of the Doctrine of Last Clear Chance. ~ The Doctrine of
Last Clear Chance shall be applied to this Act whereby carbon majors’ knowledge of
their significant contribution to climate change as what has been documented by the
Report of the Commission on Human Rights’ (CHR) National Inquiry on Climate
Change, compels them to substantially reduce GHG emissions to be faithful to their
duty of care. Failure to do so implicates them in exacerbating and, thus, makes them
accountable for significantly contributing to the climate crisis.

For the doctrine to apply, it must be shown that both parties were negligent
but the negligent act of one was appreciably later in time than that of the other. It may
also apply when it is impossible to determine who caused the resulting harm; thus,
the one who had the last opportunity to avoid the impending harm and who failed
to do so will be held liable.

SEC. 7. Attribution Science. - Attribution science is a process that seeks to
identify the relationship of climate drivers to an affected system (nature, socio-
cultural or economic). In attribution science, it is important to establish the causal
connection between the defendants’ GHG emissions or activities to the plaintiff's
injuries and that these injuries were a foreseeable result of the emissions.

The first step is the detection of the change which demonstrates that a certain
variable has changed in a statistically significant way. The second step is attribution

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which seeks to analyze causative factors to determine the role of a driver with respect
to the detected change. The process looks into three areas: climate change attribution,
impact attribution, and source attribution. The use of attribution science shall depend
on the maturity of the tool and the readiness and technical capacity of the country.

The adjudication of cases under this Act, therefore, shall make use of
attribution science as one of its bases for ruling. The adjudication shall build on
existing understandings of the climate-related events most substantially affected by
human influence on the climate. Establishing a threshold for GHG emissions beyond
which corporations will be found liable shall be the principal basis for prosecuting
and penalizing corporations.

CHAPTER III
INSTITUTIONAL MECHANISMS

SEC. 8, National GHG Registry. - The CCC shall develop a platform for
administering GHG compliance by all sectors. The registry shall serve the following

purposes:

(a) NDC monitoring of all regulatory activities;

(b) GHG data consolidation for country reporting to the UN;

(©) Calculating GHG reduction from mitigation actions;

(d) Accounting for Internationally Transferable Mitigation Outcomes
(ITMOs);

(©) Tracking carbon credit transactions (compliance and voluntary markets);
and

(6) Connection to international carbon markets.

The registry shall have the following features:

(a) It shall cover both government and non-government GHG inventories;

(b) The information has the capability to be disaggregated at the unit level (e.g.
LGU, agency, and company); and

(©) It must be inter-operable for cooperation approaches with other countries
such as the transfer of ITMOs pursuant to Article 6 of the Paris Agreement.

SEC. 9, Establishment of the Climate Change Actions Welfare and Support
Board. - There is hereby created an independent quasi-judicial body to be known as
the Climate Change Actions Welfare and Support Board, hereinafter referred to as the

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“Board,” which shall be attached to the CHR. The Board shall prepare and submit
reports on the administration of the funds to the DOF.

The Board shall be composed of nine (9) members, who shall possess the following
qualifications:

(a) Must be of known probity, competence, and integrity; and
(b) Must have a deep and thorough understanding and knowledge of climate
change, environmental law, and/or ecosystems science.

There shall be four (4) permanent members and five (5) other members. The four
(4) permanent members must be members of the Philippine Bar who have been
engaged in the practice of environmental law or human rights for at least ten (10)
years.

The five (5) other members shall consist of two (2) climate scientists or recognized
experts who have a technical proficiency of climate science and the subfield of climate
attribution science; two (2) representatives from private sectors; and one (1)
representative from a chosen civil society organization engaged in human rights and
climate justice issues. The Vice Chairperson or Commissioner of the CCC shall be an
ex officio member.

The Board shall be chaired by a lawyer and shall organize itself within thirty (30)
days from the completion of appointment of all three (3) members and shall,
thereafter, organize its Secretariat.

SEC. 10. Appointment to the Board. - The President of the Philippines shall
appoint the Chairperson and the members of the Board; Provided, That human rights
organizations, environmental organizations, and indigenous peoples’ rights,
women’s rights, youth’s rights, and people with disabilities’ rights advocates may
submit nominations to the President for the civil society representative; Provided,
further, That the members of the Board cannot be removed without justifiable cause.

SEC. 11. Term of Office. - The members of the Board shalll serve for three (3)
years: Provided, That for the first appointees, the Chairperson and two (2) members,
shall hold office for three (3) years and two (2) members shall hold office for two (2)
years; Provided, further, That appointment to any future vacancy shall only be for the
unexpired term of the predecessor: Provided, finally, That there shall be no
reappointment and in no case shall any member serve for more than seven (7) years.

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SEC. 12. Functions of the Board. - The Board shall have the following powers
and functions:

(a) Receive, evaluate, process, and investigate applications for claims under
this Act;

(b) Issue subpoena ad testificandum and subpoena duces tecum;

(©) Enjoin any and all acts involving or arising from any claims pending
before it, which, if not restrained forthwith, may cause further or
irreparable damage to any of the parties to the claim or seriously affect
social and economic stability;

(a) Hold any person in contempt, directly or indirectly, and impose
appropriate penalties therefor;

(e) Administer the Climate Change Actions Welfare and Support Fund;

() Approve with finality all eligible claims under this Act;

(g) Deputize appropriate government agencies to assist the Board in order
for it to effectively perform its functions;

(h) Exercise administrative control over its Secretariat;

(i) Promulgate such rules as may be necessary to carry out the purposes of
this Act, including rules of procedure in the conduct of its proceedings,
with the Revised Rules of Court of the Philippines having suppletory
application; and

() Perform such other duties, functions, and responsibilities as may be
necessary to effectively attain the objectives of this Act.

In cases where the issue is related to pollution in violation of environmental
laws, the Pollution Adjudication Board of the Department of Environment and
Natural Resources (DENR) shall be invited as a resource group to improve technical
analysis of the complaint.

In any proceeding before the Board, the rules of evidence prevailing in the
courts of law or equity shall not be controlling but applied suppletorily, and it is the
spirit and intention of this Act that shall govern. The Board shall use every and all
reasonable means to ascertain the facts in each case speedily, objectively, and without
regard to technicalities of law or procedure, all in the interest of due process and social
justice: Provided, That any decision, order, award, or ruling of the Board may be
brought for review to the Court of Appeals within 15 days from receipt of a copy
thereof.

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In any proceeding before the Board, the parties may be represented by a legal
counsel. The findings of fact of the Board shall be conclusive and binding on the
parties and its decision or order shall be deemed final and executory.

SEC. 13. Compensation. - The Chairperson and members of the Board shall be
entitled to compensation in accordance with the Salary Standardization Law.

SEC. 14. Secretariat of the Board. - The Board shall be assisted by a Secretariat
provided by the CHR, without prejudice to the hiring of additional personnel as
determined by the Board to accommodate the volume of required work.

The Secretariat shall assist the Board with its functions and perform other
duties as may be assigned by the Board.

The Chairperson of the Board shall appoint a Board Secretary who shall head
the Secretariat for the duration of the existence of its Board. There shall be a Technical
Staff Head to be assisted by five (5) legal officers and three (3) climate scientists, and
an Administrative Staff Head shall be assisted by three (3) administrative support
staff.

CHAPTER IV
FRAMEWORK OF BUSINESS ACCOUNTABILITY

SEC. 15. Due Diligence Standard of Care in the Conduct of Business. ~ In line
with the country’s commitment to abide by the global goals of the Paris Agreement,
the country shall develop a roadmap or a long-term strategy for the Philippine NDC
Implementation Plan per sector (agriculture, transportation, energy, waste, industrial
processes, and product and land use). The roadmap shall be co-developed by the
respective lead agencies with its stakeholders and consolidated and monitored by the
CCC. The accountability of business shall be referenced on its corresponding
obligation in the roadmap.

Consistent with the sectoral plans of the NDC Implementation Plan, businesses
in the conduct of their activities shall do no harm. To this end, these businesses are
mandated to undertake the following throughout their value chain, among others:

(a) Businesses must assess and report or inform the actual and potential
human rights impacts their operations may cause or contribute to cause
and to prevent and address them;

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(b) Businesses must proactively adopt measures and enact company policies
to reduce their climate change impacts, and to uphold human rights,
specifically, through the crafting and submission of transition plans, in line
with the government's NDC;

(©) Businesses must assess the impact of climate change and other global
environmental issues in the sustainability of their operations; and

(d) Businesses should ensure that reports relating to human rights risks and
impacts, including their findings and how the human rights impacts were
addressed are publicly available and accessible.

Businesses must undertake measures that are in reasonable proportion to the
nature and scope of the business activities, their ability to influence, the severity of
the violation that can typically be expected, and the nature of and causal contribution
to such harms.

A business shall be held accountable for gross negligence emanating from the
businesses’ role in exacerbating extreme weather events or slow-onset events where
they exceed established thresholds for GHG emissions. Thresholds are limits for
ambient concentrations of GHGs that are sufficient to protect public health and
welfare. DENR, CCC, and DOST shall provide technology-based emission standards
reflecting the best available technology or system for emission reduction.

The thresholds to determine business’ climate accountability shall be informed
by the government’s NDC, national policies and programs as well as their technical,
economic, and operational circumstances.

SEC. 16. Business Responsibilities. - Businesses have the responsibility to
align their conduct and policies with the United Nations Guiding Principles on
Business and Human Rights to respect human rights and to provide a grievance
redress mechanism when human rights are transgressed. Moreover, they have the
following tasks and responsibilities under the law:

(a) Climate related financial disclosures. - Businesses shall disclose to the SEC
climate-related financial disclosures and the names of those who
authorized the climate-related financial transactions. This shall include
opportunities and risks from climate impacts, climate policies and new
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(b) Measurement of GHG emissions. - Businesses shall measure, analyze, and
report their GHG emissions, throughout their value chains, to comply with
the standards based on the most recent scientific methodologies and reports
of the IPCC;

(©) Prevention of human rights abuses. - Businesses must ensure, throughout
their value chains, that in the conduct of their operations and activities,
efforts must be made not just to counter the adverse impacts of climate
change, but also to ensure the protection of human and vulnerable people
and communities’ rights. Businesses shall respect, protect, and promote the
human rights of stakeholders, including the right to life, liberty and
property, freedom of movement, right of public participation, and the right
to self-determination of indigenous cultural communities. In accordance
with the United Nations Guiding Principles on Business and Human
Rights, businesses have the responsibility to respect human rights
especially in the context of climate change, and should avoid harming these
rights by taking proactive steps to identify, prevent, mitigate, and address
adverse impacts with which they are involved;

(d) Monitoring of people who experience the impacts of climate change. - Due
diligence must be undertaken by businesses to address the adverse climate
change-related human rights impacts they may cause or contribute through
its own activities, or which may be directly linked to its operations,
products or services by its business relationships. This can be achieved
through on-the-ground assessments of adverse impacts through
stakeholder participation.

Stakeholder consultations should be held on a regular basis with reports
released on a semi-annual period. These can be in the form of surveys,
assemblies, focus group discussion, and other modalities as appropriate.

For projects that require the consent of the communities in which
infrastructure is constructed, the business must proactively pursue the
compliance with and adherence to the provisions of Republic Act No. 8371,
or “The Indigenous People’s Rights Act of 1997”.

(c) Decarbonization Plan, - Businesses shall develop its mitigation and
adaptation strategies that will comprise its decarbonization climate action


plan and shall report on the status of this plan on an annual basis to the
designated government agency under this Act or relevant Act; and

(f) Reporting. - Businesses shall submit an annual compliance report of their

findings, and initiatives to address the issues mentioned under Chapters
IV, V, and VI of this Act. The annual compliance report shall contain the
following:

i, Emissions Baseline and Reduction Progress - A detailed inventory of
the current GHG emissions, including any reductions achieved during
the reporting period, measured against the _enterprise’s
Decarbonization Pathway;

ii, Reduction Activities and Outcomes - A comprehensive description of
specific emissions reduction activities undertaken, their outcomes, and
the impact on the enterprise's overall GHG emissions. This shall
include, but is not limited to, the following:

a. Implementation of energy efficiency improvements;

b. Transition to renewable energy sources;

c. Enhancements in waste management practices;

d. Other measures and initiatives undertaken within the value chain
to reduce emissions; and

e. Quantitative and qualitative outcomes of these activities and their
contributions to the enterprise's emissions reduction targets;

Emissions Allowance and Excess Emissions - Documentation of the
allocated emissions allowance for the year and any excess emissions;
and

iv. Future Plans - Outline of planned emissions reduction activities and

investments for the upcoming year, aligned with the Philippine NDC
Implementation Plan per sector.

All publicly listed companies and unlisted companies with revenues equal
or above Ten Billion Pesos (P10,000,000,000.00) shall be covered by this Act.

The report shall be filed with the SEC copied the CCC and PAGASA, which
shall impose penalties for non-compliance with its guidelines on these
mandates, and shall be made available on all their platforms for download

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and distribution to the public at any time. The CHR, upon petition, may
conduct investigations and assist in the gathering of evidence to determine
compliance with the reporting obligations under this Act. The SEC shall
handle the storage and management of reports, including the
system/platform to which the reports are stored. Provided, That the Board
shall allocate a budget for the maintenance of such system/ platform.

To help businesses with their reportorial requirements, this Act shall
establish a reporting facility for GHG emissions of businesses, and a
threshold for acceptable emissions established. Such a reporting facility will
be lodged with the SEC.

(g) Greenwashing. ~ Greenwashing refers to the conveyance of false information
on the environmental soundness of their products, operations, and services.
‘Acts of greenwashing include, but are not limited to, outright false
statements, understating impacts, omitting trade-offs, absence of proof
backing up claims, vague or overbroad claims, false third-party
certifications, and the like, More detailed guidelines shall be provided in
the implementing rules and regulations of the Act. Any act of greenwashing
shall be restrained and the culpable business engaged in greenwashing
fined under the existing Civil Code and existing environmental statutes.

SEC. 17. Incentives. — Businesses which observe their due diligence standard
of care as set out in the Philippines’ NDC and other mechanisms and roadmaps shall
be recognized by the government through a tax credit regime. The qualification for
incentives and the list of incentives shall be rationalized in the implementing rules
and regulations upon the passage of this Act and in accordance with Republic Act No.
11534 or the “Corporate Recovery and Tax Incentives for Enterprises Act (CREATE)”
and Republic Act No. 10771 or the “Green Jobs Act”.

The basis of the incentives in the context of this Act is the avoidance or
prevention of emissions by users asa result of the utilization of a company’s products
or services. These are called Scope 4 or avoided emissions. These are reduction of
emissions outside the company’s life cycle or value chain and due to the use of the
products or services. The avoided emissions are what would have been released if the
product or services have not been optimized or developed. The carbon credit from
avoided emissions cannot be used to compensate the company’s generated direct
(Gcope 1) and indirect emissions (Scope 2) in the processing of its products.

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Notwithstanding the grant of such incentives, there shall be imposed a 3%
windfall tax on the gross profit of carbon majors operating in the country for the
immediately preceding year after the approval of this Act. The proceeds of such tax
shall accrue to the funds of the Peoples’ Survival Fund as amended by this Act. In
addition, to hasten the transition to renewable energy sources, the fossil fuel-based
operations of carbon majors shalll be taxed at 1% of the current net present value of
such assets which shalll progressively be reduced at 10% intervals until such assets are
transitioned away.

CHAPTER V
LOSS AND DAMAGE MECHANISM

SEC. 18. Establishment of the Climate Change Actions Welfare and Support
Fund. - The Climate Change Actions Welfare and Support (CLAWS) Fund is hereby
created as a special fund in the Bureau of the Treasury for the financing of the claims
approved by the Board. The CLAWS Fund shall be used to respond to claims made
by climate change victims/survivors. Claims may take the form of the following,
among others:

(a) Compensation for economic and non-economic harms;
(b) Technology transfers;

(©) Capacity building;

(d) Financial support

(©) Relocation; and

(f) Recovery and rehabilitation measures.

The amount of Fifty Million Pesos (P50,000,000.00) shall be initially allotted as
the opening balance of the CLAWS Fund under the General Appropriations Act
(GAA); Provided, That the balance of the CLAWS Fund may be increased as the need
arises; Provided, further, That the CLAWS Fund shall not be used to fund personal
services and other operational services of the Board; Provided, finally, That the Board
shall submit to the Congress and the Department of Budget and Management (DBM)
an annual narrative and financial report on the utilization of the CCRF.

The CLAWS Fund may be augmented by donations, endowments, grants, and
contributions, which shall be exempted from donor's tax and be considered as
allowable deductions from the gross income of the donor, in accordance with the
provisions of the National Internal Revenue Code of 1997, as amended. The CLAWS

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Fund shall also serve as the repository for funds generated by international and other
mechanisms created for loss and damage finance, such as the funding arrangements
responding to loss and damage associated with the adverse effects of climate change
established under Decision 2/CP.27 and Decision 2/CMA.4.

SEC. 19. Complaints on Climate-related Violations. - Any real party in
interest or the climate change victims/survivors may seek redress for any harm
caused by non-compliance of the business entity with its obligations under Sections 4
and 15 to 16 of this Act or commission of any prohibited activities under this Act.

For the purpose of enforcing the provisions of this Act or its implementing
rules and regulations, any real party in interest or climate change victims/survivors
may file appropriate civil, criminal, and administrative suits against any of the
following:

(a) Any person who violates or fails to comply with the provisions of this Act
or its implementing rules and regulations; or

(b) Any public officer with respect to orders, rules, and regulations inconsistent
with this Act.

The petitions may be filed before the Environment Management Bureau’s
Pollution Adjudication Board, and appealable before the Department of Environment
and Natural Resources.

The filing of a petition under this Section shall be without prejudice to the
seeking of appropriate administrative recourse, including the remedies available
before the Board, or international redress.

SEC. 20. Resolution of Claims. - The Board shall be convened, with an
attendance of a majority, to resolve all claims.

SEC. 21. Citizen suit. - For the purpose of enforcing the provisions of this Act
or its implementing rules and regulations, any real party in interest as well as minors,
generations yet unborn, and biodiversity represented by a legal guardian, in
compliance with A.M. No. 09-6-8-SC, or the “Rules of Procedure for Environmental
Cases, can file appropriate civil, criminal, and administrative suits against any of the
following:


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(a) Any person who violates or fails to comply with the provisions of this Act
or its implementing rules and regulations; or

(b) Any public officer with respect to orders, rules and regulations inconsistent
with this Act.

CHAPTER VI
FINAL PROVISIONS

SEC. 22, Penal Provisions. — Businesses shall be held liable for any observed
adverse impacts on the climate through the exercise of their work. This is anchored
on Section 32 of the Civil Code of the Philippines which provides for the liability for
damages of any public officer or employee, or any private individual, who directly or
indirectly obstructs, defeats, violates or in any manner impedes or impairs the rights
and liberties of another person. The violation of the human right to the environment
entitles the victims thereto for damages from the perpetrators of such damage. These
shall be complemented by environmental statutes. The following shall be covered by
the act:

(a) Emission Penalty. - Based on data collated by the reporting facility for
businesses’ GHG emissions established by this Act, an emission penalty shall be
applied pursuant to Section 7 of this Act for breaching the threshold for acceptable
emissions which are also aligned with the country’s nationally determined
contributions. The threshold shall be established after due consultation among the
PAG-ASA, the CCRB, SEC, DENR, DTI, DA, DOE, DOTr, and the CCC. The fine shall
be based on the Civil Code and existing environmental statutes. All collected penalties
shall be remitted to the CLAWS Fund.

(b) Strategic lawsuit against public participation (SLAPP) Suits. — SLAPP refers to an
action whether civil, criminal, or administrative, brought against any person,
institution, or any government agency or local government unit, or its officials and
employees, with the intent to harass, vex, exert undue pressure, or stifle any legal
recourse that such person, institution, or government agency has taken or may take in
the enforcement of environmental laws, protection of the environment, or assertion of
environmental rights. This Act shall prohibit SLAPP Suits and shall penalize such
suits filed, with damages equivalent to 15% of the gross income of the petitioner and
entity at whose instance and for whose benefit the SLAPP Suit was filed.

Fines and penalties under this Act shall accrue to the CLAWS Fund. In
addition to the fines, the court has power to order the closure or suspension of

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business until such time that proper environmental safeguards are put into place and
the government is assured of the compliance mechanism by the business: Provided,
That an establishment liable for a third offense shall suffer permanent and immediate
closure.

This paragraph shall be without prejudice to the immediate issuance of an ex
parte order for such closure or suspension or cessation of operations during the
pendency of the case upon prima facie evidence that there is an imminent threat to life,
public health, safety or general welfare, or to biodiversity.

If the offender is a juridical person, the president, manager, directors, trustees,
or the officials directly related to the operations shall suffer the penalty herein
provided.

SEC. 23. Potential Loss of Employment. - The Secretary of the Department of
Labor and Employment is authorized to establish a compensation and reemployment
scheme for employees of businesses that will be affected by any suspension or
permanent cessation of business activities as a result of the implementation and
enforcement of this Act. The Board can help determine the scope of the relief package
for the employees.

SEC. 24. Coordination with Various Sectors. - In order to fully implement this
Act, the SEC in conjunction with the CCC shall consult nongovernment organizations,
community leaders, indigenous peoples, civic society, the academe, youth
organizations, industry associations, professional organizations, the private sectors,
vulnerable groups, and other concerned stakeholder groups.

SEC. 25. Joint Congressional Oversight Committee. - A Joint Congressional
Oversight Committee is created in order to monitor the implementation of this Act.
The Committee shall be composed of five (5) Senators and five (5) members of the
House of Representatives, selected respectively by the Senate President and the
Speaker of the House. The Committee shall be co-chaired by one (1) member from the
Senate and the House of Representatives, selected separately by their peers who are
also members of the Committee.

SEC. 26. Appropriations. - An amount of Fifty Million Pesos (P50,0000,000.00)
shall be appropriated for the initial implementation of this Act. Thereafter, the
amount necessary to effectively carry out the provisions of this Act shall be included
in the General Appropriations Act.


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SEC. 27. Implementing Rules and Regulations. - The CCC, CHR, DENR, the
SEC, DOF, DOST-PAGASA, BOI, DBM, and NEDA, in consultation with the civil
society organizations, academe, and research institutions, shall issue the
Implementing Rules and Regulations within ninety (90) days from the effectivity of
this Act.

SEC. 28. 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, 29, Repealing Clause. - All laws, ordinances, rules, and regulations, and
other issuances or parts thereof, which are inconsistent with this Act, are hereby
repealed or modified accordingly.

SEC. 30. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,

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