Green Economic Development: Driver for Competitiveness and Innovation of the Industry and Services in the Philippines

The Green Growth Program of DTI

Climate Smart Industries and Services is one of the desired outcomes in the 2010 National Climate Change Action Plan (NCCAP). Climate change and green growth is one of the future-oriented themes in the 2011 – 2016 Micro, Small and Medium Enterprise (MSME) Development Plan.

Similarly, in Chapter 3 of the Competitive Industry and Service Sectors of the 2011
– 2016 Philippine Development Plan (PDP), “greening” was introduced by the Department of Trade and Industries (DTI). The DTI works together with a number of Development Partners such as USAID, EU, Canada and Global Green Growth Institute, on “Green Economic Development”. In 2013, DTI and GIZ started a joint project called Promotion of Green Economic Development (ProGED) in Cebu and Bohol with the value chain of tourism. Since March 2014, the ProGED approach was replicated in 17 more provinces in 7 Regions spread over Luzon, Visayas, and Mindanao. The project covers the priority sectors in these provinces like food processing, handicrafts, and coffee in addition to tourism. It works along three lines of intervention: (1) Information and awareness on GED;
(2) Green service facilitation and matchmaking; (3) and Green framework conditions.

About 99.6% of all companies registered in the Philippines are micro, small and medium enterprises (MSMEs). MSMEs should consider seven environmental hotspots to green their processes, products and services: 1) Energy efficiency and renewable energy;
2) Water and wastewater; 3) Solid and toxic waste management; 4) Transport management; 5) Local supplies; 6) Raw materials; and 7) Natural resources management. The DTI has already “greenstreamed” environment-friendly and climate smart business strategies into its major MSME promotion instruments: SMERA, SSF, industry cluster development, product design, Negosyo Centers. The DTI will actively promote the shift of the Philippine economy towards a low carbon, innovative, competitive and climate smart business sector.

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