Greening the Philippine Manufacturing Industry Roadmap
The manufacturing sector of the Philippines is challenged to significantly strengthen its competitiveness in order to be prepared for the challenges lying ahead. Seeing the worldwide dynamics of industrial development and the integration process of the ASEAN Economic Community, it becomes obvious that the manufacturing industry needs to successfully position itself as a globally competitive industry on domestic, regional and global markets.
Asia’s economies and their businesses are increasingly becoming main drivers for Green Economic Development (GED) worldwide. It is obvious that the manufacturing industry of the Philippines is challenged to be responsive and proactive to this worldwide trend. Already today, the business community sees in the overuse of natural resources and the impacts of climate change a key challenge to do business successfully and to ensure its long-term economic growth perspective.
In a common effort, industry and government in the Philippines have launched an initiative, in which sectoral road maps have been elaborated and submitted to the Department of Trade and Industry and the Board of Investments. The so-called Road Map Process is a unique opportunity to define a well-focused stimulation and promotion for an industry driven GED that is integral part of a modernization and innovation process of the economy of the Philippines. Within the industry sectors, each company have to elaborate and implement their own strategy to unleash the specific market potential for products and service delivery.
Public policies on regulation, subsidies, incentives and information have a central role to play for the green modernization of the industry. Green investment from both the public side and the private side is an investment for immediate returns and for the future.
Worldwide experiences show that without a forceful and coordinated set of actions that removes barriers and sets favorable framework conditions, it is unlikely that even the most economically beneficial options would overcome a short-term sighted ”Buy-the-Cheapest“ or “Business-as-Usual” attitude. In cooperation with other government entities, the BOI and DTI should contribute to setting framework conditions and to building up capacities that support a paradigm shift towards an innovation process that results in competitiveness, good environmental performance, climate change resilience and job creation.
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Greening Manufacturing: Way Forward, August 7, 2015
About Promotion of Green Economic Development (ProGED) Project
ProGED is a project of the Department of Trade and Industry (DTI) with the Federal Republic of Germany through the Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ). It is primarily aimed at improving the competitiveness of MSMEs while coping with climate change adaptation and mitigation requirements through the adoption of environment-friendly, climate-smart, and inclusive strategies and measures.
Interventions are implemented at the operational level through the Regional and Provincial offices of DTI (to support the enterprises in greening their operations), as well as at the policy level through the Regional Operations Group (ROG), where the green perspective is integrated into the programs and projects of DTI. A Green Growth Core Group has likewise been established within ROG to steer their initiatives on greening MSMEs within the Department.
ProGED promotes a green economy strategy founded on the five pillars of mitigation, adaptation, competitiveness, green jobs, and preserving or even improving nature’s capital. The project focuses initially on the tourism sector with its high potential for investment, employment, and poverty reduction due to its linkages with upstream and downstream industries in other economic sectors.
The project is implemented from 2013 to 2016, and piloted its approach in the Provinces of Cebu and Bohol. Since 2014, it has expanded to include fourteen replication provinces in seven regions, namely: Pampanga and Tarlac (Region 3) Laguna and Cavite (Region 4A), Palawan and Occidental Mindoro (Region 4B), Albay and Camarines Sur (Region 5), Negros Occidental and Capiz (Region 6), Negros Oriental and Siquijor (Region 7), and Agusan del Norte and Surigao del Norte (Region 13). Aside from tourism, additional priority sectors are taken up according to the location’s competitive advantages.
In relation to its efforts to support the greening of enterprises and upon the request by DTI, ProGED also supported the Greening the Manufacturing Industry Roadmaps process, which aims at integrating green economic development elements in selected industry roadmaps and the overall manufacturing roadmap. This will create climate smart, environment friendly, and globally competitive manufacturing industries in the Philippines.
Started in 2014, the initiative has fielded three missions by Dr. Bernd Gutterer, an international GED consultant commissioned by GIZ to the Philippines. The first mission was held in July 2014, wherein initial consultations with various industry associations and stakeholders were conducted to assess awareness of GED concepts. The second mission was held in November 2014, wherein one-on-one discussions with six industries selected by DTI (automotive, copper, furniture, mass housing, plastics, and pulp and paper) were conducted to determine how green elements could be integrated in their respective roadmaps.
On 12 March 2015, during the third mission, the DTI and GIZ organized an event entitled “Greening Manufacturing and Increasing Competitiveness Forum” during which Dr. Gutterer presented the results of the previous two missions, including his analysis of the challenges and opportunities of greening the manufacturing sector and the selected six industries, which led to recommendations on how to green these industries in order to meet global standards. The activity was attended by more than 100 participants, including key representatives of the priority sectors in focus. Click here for more on the forum.