A policy note by the Philippine Institute for Development Studies (PIDS), authored by Senior Research Fellow Sonny Domingo and colleagues, outlines how CE pathways can reshape waste practices and strengthen environmental governance at both national and local levels.

While existing laws—including the Ecological Solid Waste Management Act and the Extended Producer Responsibility (EPR) Act—provide a solid foundation, implementation remains uneven. The study cites weak enforcement, unclear institutional mandates, and limited upstream interventions as key constraints.

Stakeholders remain cautiously optimistic, noting recent policy gains but pointing to persistent governance gaps and the need to tailor CE strategies to local conditions. Integrating the IWS and MSMEs into formal waste systems is seen as critical to scaling impact.

The authors stress that CE strategies must go beyond waste disposal, focusing instead on waste reduction and more efficient, sustainable production and consumption patterns.

“Strategies that empower these groups not only enhance implementation capacity but also ensure that social equity is embedded in CE programs,” the authors said, emphasizing the role of community participation in driving behavioral change.

To accelerate CE adoption, the study calls for clearer institutional roles, stronger enforcement of existing laws, and better alignment of national and local policies. It also underscores the importance of embedding social and environmental justice in CE initiatives.

Among the key policies cited are the Ecological Solid Waste Management Act, the EPR Act, the Toxic Substances and Hazardous and Nuclear Wastes Control Act, the Clean Air Act, and the Green Jobs Act.

The EPR Act of 2022 mandates companies to implement waste reduction, collection, and diversion programs, while encouraging upstream measures such as the use of recycled materials and sustainable product design. Meanwhile, the Green Jobs Act provides incentives for businesses engaged in environmentally sustainable activities, including recycling and innovative waste solutions.

In a news release, DTI Secretary Cristina A. Roque said the new strategy is expected to attract ₱120 billion in capital investments that would help spur job creation across the country. The said influx of investments will generate about ₱11.4 trillion in economic output.

In addition, the EVIS is expected to boost the government’s tax revenue by ₱400 billion compared to a fully import-based electric vehicle (EV) market, funding essential public services. It will also save the country up to $30 billion in foreign exchange by reducing dependence on imported vehicles and parts. 

“President Ferdinand Marcos Jr. has made it clear: Economic transformation must be felt by every Filipino. The EVIS is our concrete response, laying the foundation for a strong, inclusive EV industry that empowers our workers, strengthens local manufacturing, and delivers lasting opportunities for communities nationwide,” said DTI Secretary Roque.

The DTI’s Board of Investments developed the EVIS, anchored on the Electric Vehicle Industry Development Act (EVIDA), to provide targeted fiscal and non-fiscal incentives that stimulate local production of EVs, batteries, motors, components, charging stations, and testing facilities. The incentive structure supports both capital investment and sustained production. 

Eligible companies will be required to comply with Philippine and international standards, provide long-term after-sales support, and submit BOI-vetted investment plans.

The strategy sets ambitious yet attainable production targets from 2028 to 2040, supporting the local rollout of up to nine million electric vehicles, including two- and three-wheelers, passenger cars, buses, and trucks, along with nearly 400,000 charging stations.

The DTI is working closely with the FIRB to finalize the EVIS, which is scheduled for deliberation next month, in July 2025.

Finance Secretary Ralph Recto, Energy Secretary Raphael Lotilla, Environment Secretary Maria Antonia Yulo-Loyzaga, and Trade Undersecretary Maria Cristina Aldeguer-Roque joined the discussions, alongside Budget Secretary Amenah Pangandaman, who participated virtually. They highlighted the pivotal role of government policies in fostering investments in clean energy and green industries.

Energy Secretary Lotilla noted that part of President Ferdinand Marcos Jr’s energy diplomacy is to ensure the Philippines work with our partners in the international community to pursue different pathways for producing sustainable aviation fuel in the country, as well as other biofuels.

“Ambassador Melbin was just here discussing some potential sources, including the use of banana waste from plantations, as these banana stocks that are wasted can be potential sources of sustainable aviation fuel and biofuels,” Lotilla said.

“I hope that you and the private sector will continue to explore opportunities for investing in these different sources of energy toward a cleaner and sustainable future that will also be fairly priced for our people,” he added.

Environment Secretary Loyzaga said her department is proactively working with various sectors following the acceleration of demand for transition critical minerals amidst the impact of climate change in the country.

“We are set to release areas with high mineral potential for exploration through competitive bidding by early 2025. These initiatives are only the beginning as we address legacy issues related to this sector,” Loyzaga said.

“We hope to generate more jobs, green jobs and push this sector’s contribution to GDP upwards from the 0.5% it currently is contributing, while advancing as well our climate and disaster resilience goals,” she added.

International diplomats, including Canadian Ambassador David Hartman, Spanish Ambassador Miguel Utray, Israeli Ambassador Ian Fluss, and New Zealand Ambassador Catherine McIntosh, joined the discussions, emphasizing global collaboration in the Philippines’ green energy transition.

Leaders from major corporations, such as Ayala Corporation, ACCIONA Infrastructure, and Prime Infra, also participated. Guillaume Lucci, President and CEO of Prime Infra, and Cosette Canilao, President and CEO of Aboitiz InfraCapital, discussed the private sector’s role in deploying capital and innovation to advance clean energy initiatives.

Stratbase Group President Dindo Manhit emphasized that the Pilipinas Conference serves as a platform to align government, business, and international stakeholders in shaping policies for sustainable development.

“The private sector is not just a stakeholder but a powerhouse of ideas and resources critical to building a resilient and competitive economy,” Manhit said. “Together, we can address immediate challenges while ensuring a sustainable and inclusive future for all.”