Blue Economy Act

CONGRESS OF THE PHILIPPINES TWENTIETH CONGRESS First Regular Session HOUSE OF REPRESENTATIVES H. No. 6762 BY REPRESENTATIVES LEGARDA, VELOSO-TUAZON, BENITEZ (J.M.), MERCADO-REVILLA, ROMAN, RECTO, SINGSON-MEEHAN, SUANSING (B.V.), LABADLABAD, NAZAL, VILLAFUERTE (M.L.), VILLAFUERTE (V.R.L.), HORIBATA, RIDON, ESCUDERO, CO-PILAR, SUANSING (M.A.), COJUANGCO (J.E.M.), DY (F.), MARCOS, TULFO (R.W.), TULFO (J.), REVILIA (B.), REVILLA (R.J.), SUAN, EMANO, ROMUALDEZ (F.M.), ROMUALDEZ (Y.M.), ROMUALDEZ (A.J.), ACIDRE, LEGAZPI, CHUA-TAI, ZUBIRI, VILLANUEVA, SALVAME, SALCEDA, OLIVAREZ, MACASAET, PLEYTO, ALBA, MARQUEZ, GALANG, POE, KO, QUIMBO, ORETA, RODRIGUEZ (M.), DE JESUS, ANGELES, SAN FERNANDO, GATO, BELTRAN, CHUA, DIMAGUILA, AMANTE, NAVA, SOLON, PADIERNOS, LAGBAS, DAZA, YAP (A.), VILLA, BARONDA, SINGSON (R.V.), CORVERA, MERCADO, LOPEZ, ROQUE, CENIZA, MONTES, TARRIELA, RIVERA, BARBERS, PASCUAL, BANCORO, HERNANDEZ (C.A.), MANGUDADATU, BARBA, KHO (W.), COLLANTES, DIOKNO, ACOSTA, ROMUALDO, GLEPA, YU (J.K.), YU (J.V.), MASTURA, VERGARA, GONZALES (A.), RAMA, AUMENTADO, BONDOC, PUNO, LAGMAN, LARA AND DOMINGO AN ACT ESTABLISHING A FRAMEWORK FOR BLUE ECONOMY, PROMOTING STEWARDSHIP AND SUSTAINABLE DEVELOPMENT OF COASTAL AND MARINE ECOSYSTEMS AND RESOURCES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: CHAPTER I GENERAL PROVISION

SECTION 1. Short Title. - This Act shall be known as the "Blue

Economy Act."

SEC. 2. Declaration of Policy. - It shall be the policy of the State to:

(a) Adopt the Blue Economy as a framework for the sustainable and safe use and development of marine wealth within our coastal and maritime domain, as a pillar of our national economy and patrimony; (b) Exercise stewardship of our coasts and oceans, protect and conserve the health and resilience of marine and coastal ecosystems and habitats to promote the well-being, inclusive prosperity, and security of present and future generations;

CONGRESS OF THE PHILIPPINES TWENTIETH CONGRESS First Regular Session HOUSE OF REPRESENTATIVES H. No. 6762 BY REPRESENTATIVES LEGARDA, VELOSO-TUAZON, BENITEZ (J.M.), MERCADO-REVILLA, ROMAN, RECTO, SINGSON-MEEHAN, SUANSING (B.V.), LABADLABAD, NAZAL, VILLAFUERTE (M.L.), VILLAFUERTE (V.R.L.), HORIBATA, RIDON, ESCUDERO, CO-PILAR, SUANSING (M.A.) COJUANGCO (J.E.M.), DY (F.), MARCOS, TULFO (R.W.), TULFO (J.), REVILLA (B.), REVILLA (R.J.), SUAN, EMANO, ROMUALDEZ (F.M.), ROMUALDEZ (Y.M.), ROMUALDEZ (A.J.) ACIDRE, LEGAZPI, CHUA-TAI, ZUBIRI, VILLANUEVA, SALVAME, SALCEDA, OLIVAREZ, MACASAET, PLEYTO, ALBA, MARQUEZ, GALANG, POE, KO, QUIMBO, ORETA, RODRIGUEZ (M.), DE JESUS, ANGELES, SAN FERNANDO, GATO, BELTRAN, CHUA, DIMAGUILA, AMANTE, NAVA SOLON, PADIERNOS, LAGBAS, DAZA, YAP (A.), VILLA, BARONDA, SINGSON (R.V.), CORVERA, MERCADO, LOPEZ, ROQUE, CENIZA, MONTES, TARRIELA, RIVERA, BARBERS, PASCUAL, BANCORO, HERNANDEZ (C.A.), MANGUDADATU, BARBA, KHO (W.), COLLANTES, DIOKNO, ACOSTA, ROMUALDO, GLEPA, YU (J.K.), YU (J.V.), MASTURA, VERGARA, GONZALES (A.), RAMA, AUMENTADO, BONDOC, PUNO, LAGMAN, LARA AND DOMINGO AN ACT ESTABLISHING A FRAMEWORK FOR BLUE ECONOMY, PROMOTING STEWARDSHIP AND SUSTAINABLE DEVELOPMENT OF COASTAL AND MARINE STEWAE SOASTAT. ECOSYSTEMS AND RESOURCES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: CHAPTER I GENERAL PROVISION

SECTION 1. Short Title. - This Act shall be known as the "Blue

Economy Act."

SEC. 2. Declaration of Policy. - It shall be the policy of the State to:

(a) Adopt the Blue Economy as a framework for the sustainable and safe use and development of marine wealth within our coastal and maritime domain, as a pillar of our national economy and patrimony; (b) Exercise stewardship of our coasts and oceans, protect and conserve the health and resilience of marine and coastal ecosystems and habitats to promote the well-being, inclusive prosperity, and security of present and future generations;

(c) Preserve our maritime heritage, recognize the economic, social, cultural, and historical value of our coasts and oceans, and foster public understanding and respect for the value of our coasts and oceans to build a strong foundation for social responsibility; (d) Enrich scientific understanding of ocean, marine, and coastal ecosystems, the benefits we gain from these, their naturally changing extent and conditions, and the causes thereof, as well as anthropogenic pressures and impacts, while also using the best available scientific knowledge to inform decisions affecting our coasts and oceans, and to enhance our capacity to respond and adapt to changing ocean environments and climate; (e) Exercise rights and jurisdiction, and enjoyment of freedom of the high seas, under applicable international laws; (f) Strategically address the factors that adversely affect the oceans and the living and non-living resources that comprise our seas, turning threats into opportunities and preventing further harm to all water bodies, including land-and sea-based pollution, habitat and biodiversity loss, illegal, unreported and unregulated (IUU) fishing, introduction of invasive alien species, illegal and environmentally unsound reclamation, and climate change; (g) Ensure a whole-of-nation approach and a comprehensive and integrated framework for the stewardship of our coasts and oceans and management of ecosystems from ridge to reef to facilitate cohesive action of the National Government, local authorities, academe, civil society organizations, indigenous peoples, local communities, and the private sector, to secure our people's safe access to, enjoyment of, and opportunities to invest in sustaining their benefits from our Blue Economy; (h) Uphold marine science as a foundation of maritime governance, ensuring that all rules, policies, and plans governing the use of coastal and marine resources will be based on sound scientific understanding of the marine environment, while also recognizing the value of local and traditional ecological knowledge in enhancing ocean governance and management; and (i) Uphold the value of natural ecosystems and their irreplaceability, as activities that advance a Blue Economy, thereby explicitly excluding illegal reclamation, unregulated habitat conversion, and other activities that remove, replace, or destroy ecosystems from highlands to ocean.

SEC. 3. Definition of Terms. - As used in this Act:

(a) Aquaculture refers to fishery operations involving the cultivation and farming of fish and other fishery species in fresh, brackish, and marine water areas. Aquaculture shall include aquasilviculture, a multi-purpose production system that allows the production of fish in a mangrove reforestation project;

(b) Bioprospecting refers to the research, collection, and utilization of biological and genetic resources for scientific or commercial purposes; (c) Blue carbon refers to organic carbon that is captured by marine and coastal ecosystems, such as algae, seagrass, mangroves, and other plants growing in salt marshes and coastal wetlands. These ecosystems act as important natural carbon sinks, with high sequestration rates, storing carbon in their biomass and the soil below them. The term is used in the context of climate change mitigation, as protecting and restoring these areas helps reduce greenhouse gases in the atmosphere. Blue Carbon is a means to incentivize habitat protection by encouraging conservation and sustainable development; (d) Blue Economy refers to the practical ocean-based economic model 13 winds intae viron tally boud, imate smart, cing biodiversity, and proactive institutional arrangements for meeting the twin goals of protecting our oceans and coasts and enhancing its potential contribution to sustainable development, including improving human well-being, reducing environmental risks and ecological scarcities, and securing resources like food and water, and building resilience to climate change, and other marine hazards and risks; (e) Blue Economy skills refer to competencies, technical expertise, and practical skilis required for or beneficial to economic activities that sustainably use marine and coastal resources, ensure a family living wage, and enhance livelihood and community resilience, while promoting a healthful and balanced ecology, such as sustainable fishing, aquaculture, post-harvest processing, marine conservation, eco-tourism, and sustainable harvesting and processing of high-value marine resources, including commercially valuable marine species. These skills shall include ancillary skills such as maritime entrepreneurship, financing and financial stewardship, accounting, and management; (t) Blue finance refers to financial, investment, and insurance mechanisms specifically directed towards programs, projects, and initiatives that positively impact marine and coastal-related industries, and activities including the protection, regeneration, and conservation of marine and coastal ecosystems; (g) Blue financial instruments refer to financial products, such as investments, loans, or bonds, that aim to direct capital toward the sustainable use and conservation of ocean and freshwater resources, encompassing areas such as marine biodiversity, fisheries, coastal resilience, and water security; (h) Blue public expenditure refers to public expenditures that address issues related to coastal and marine resources, environmental degradation, and development aspirations that depend on marine resources and environments;

i) Commercial fishing refers to the taking of fishery species by passive or active gear for trade, business, and profit beyond subsistence or sports fishing, to be further classified as: (1) Small-scale commercial fishing - fishing with passive or active gear utilizing fishing vessels of 3.1 gross tons (gt) up to 20 gt; (2) Medium-scale commercial fishing - fishing utilizing active gears and vessels of 20.1 gt up to 150 gt; and (3) Large commercial fishing - fishing utilizing active gears and vessels of more than 150 gt; ) Ecosystem services refer to the benefits supplied by the functions of ecosystems and received by humanity and all elements of living systems, which support life systems on the planet. Ecosystem services consist of provisioning, regulating, maintenance, and cultural services; (k) Environmental sustainability refers to the responsible use of land, coastal, marine, and freshwater, resources that protect the marine ecosystem from harmful effects and degradation. Environmental sustainability includes stewardship by the government, private sector, civil society, and local communities to (1) prevent, reduce, and control pollution of the coastal, freshwater, and marine environment; (2) mitigate the impacts of climate change; and (3) protect habitats and biodiversity; (I) Integrated marine and coastal area management (IMCAM) refers to the coordinated, collaborative, inclusive, and sustainable management of coastal and marine resources, and a participatory process for planning and decision-making to prevent, control, or mitigate adverse impacts of human activities to the marine and coastal environment, biodiversity, and climate, and to contribute to the restoration of degraded coastal areas, protection of habitats, and reduction of conflicts among various stakeholders in order to pursue sustainable, climate-smart, gender-responsive, and inclusive growth, support jobs and livelihood, and enhance food, energy and water security, climate resilience, and well-being; (m) Investment promotion agencies (IPAs) refer to government entities created by law, executive order, decree, or other issuance, in charge of promoting investments, granting and administering tax and non-tax incentives, and overseeing the operations of the different economic zones and freeports in accordance with their respective special laws; (n) Land-based pollution refers to municipal, industrial, and agricultural wastes and run-off, including, but not limited to, sewage and waste water, persistent organic pollutants (including pesticides), heavy metals, oils, nutrients, sediments, and plastic wastes, whether brought by rivers or discharged directly into coastal waters; (o) Marine genetic resources (MGR) refer to any material of marine plant, animal, microbial, or other origin containing functional units of heredity of actual or potential value;

(p) Marine resources refer to the diverse range of living and non-living components found within marine ecosystems, including oceans, seas, and coastal areas; (q) Marine spatial planning refers to the public process of analyzing and allocating the spatial and temporal distribution of human activities in marine areas to achieve ecological, economic, and social objectives. It is a practical way to create and establish a more rational organization of marine space and its uses to balance the demand for development with the need to protect marine ecosystems, and to achieve social and economic objectives in an open and planned way; (r) Maritime zones, as defined under Republic Act (R.A.) No. 12064, otherwise known as the "Philippine Maritime Zones Act," refer to (1) the maritime zones of the Philippine archipelago comprising of internal waters, archipelagic waters, territorial sea, contiguous zone, exclusive economic zone (EEZ), and continental shelf, and extended continental shelf; and (2) the respective maritime zones, as appropriate, of all other territories over which the Philippines has sovereignty, sovereign rights, or jurisdiction, in accordance with the 1987 Constitution and international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS); (s) Ocean accounting refers to a statistical framework that guides the compilation and integration of a series of standardized and regular measurements of stocks and flows of ocean economic, societal, environmental, and natural capital components through specific accounting table groups and comprehensive indicators critical for informed and evidence-based decisions; (t) Ocean-based activities refer to activities that are undertaken in the ocean, such as those relating to fisheries and aquaculture, exploration, drilling and production of offshore oil, gas, and ocean energy, mining, desalination, shipping and marine transportation, port operations, marine tourism including management of tourist resorts, communication, marine construction, maritime insurance and law enforcement, or maritime technical services; (u) Ocean-related activities refer to activities that use products from the ocean such as seafood processing, marine biotechnology, chemicals, pharmaceuticals, and marine-based natural products, and salt production, and produce products and services for the ocean and for ocean-based activities, such as shipbuilding and ship repair, and manufacturing of marine-related equipment and machineries; (v) Ocean literacy refers to an understanding of the ocean's influence on humans, and human influence on the ocean, as well as the linkage of ocean, biodiversity and climate and its effect on humans, water, and the biosphere;

(w) Reclamation refers to the deliberate process of converting foreshore land, submerged areas, or bodies of water, into permanent land by filling or other means using dredge fill and other suitable materials for specific purposes; (x) Sea-based pollution refers to wastes, including, but not limited to, oil and chemical spills, ballast water, abandoned, lost and discarded fishing gear, and plastic wastes, generated by fishing and aquaculture, shipping, ocean and coastal mining and quarrying, offshore oil and gas production, and other ocean- based activities; (5) Subsistence fishing refers to fishing and gleaning activities, for personal consumption, or traditional or ceremonial purposes; and (z) Value chain refers to the full range of activities which are required to bring a product or service from conception, through the different phases of production (involving a combination of physical transformation and the input of various producer services), delivery to final consumers, and final disposal after use.

SEC. 4. Scope of Application. - For purposes of this Act, the

Philippines shall, in accordance with national and international law, particularly the UNCLOS, exercise sovereignty, sovereign rights, and jurisdiction, as appropriate, in internal waters, archipelagic waters, the territorial sea, contiguous zone, EEZ, and continental shelf, including extended continental shelf, as defined under R.A. No. 12064, herein collectively referred to as "coastal and marine zones," and any and all maritime features within the maritime zones now known or to be known in the future. The Blue Economy Framework and this law shall cover the following: (a) coastal and marine zones as defined above; and (b) upstream and downstream sectors. CHAPTER II THE BLUE ECONOMY COUNCIL

SEC. 5. Blue Economy Council. - The Blue Economy Council, herein

referred to as the Council, is hereby established to formulate, oversee, and coordinate an integrated strategy to strengthen, grow, and sustain the Philippines Blue Economy, IMCAM, and ecosystem-based management of coastal and marine resources. Given that ocean issues are multi-faceted and transcend the boundaries of any single department or jurisdiction, the Council shall serve as the cross-sectoral and collaborative governance mechanism that shall integrate the management of various ocean-related activities and resources across different government agencies, the private sector, academia, and civil society to achieve sustainable development goals.

SEC. 6. Composition. - The Council shall be composed of the following:

(a) The Executive Secretary as Chairperson; as (b) The Secretary of Environment and Natural Resources Co-Vice Chairperson; (c) The Secretary of Economy, Planning, and Development as Co-Vice Chairperson; and the following as Members: (a) The Director-General of the Technical Education and Skills Development Authority (TESDA); (b) The Secretary of Agriculture; (c) The Secretary of Energy; (d) The Secretary of Finance; (e) The Secretary of Foreign Affairs; (f) The Secretary of Human Settlements and Urban Development; (g) The Secretary of Information and Communications Technology; (h) The Secretary of the Interior and Local Government; (1) The Secretary of Justice; () The Secretary of National Defense; (ks) The Secretary of Public Works and Highways; (I) The Secretary of Science and Technology; (m) The Secretary of Tourism; (n) The Secretary of Trade and Industry; (o) The Secretary of Transportation; and (p) The Vice-Chairperson of the Climate Change Commission. The Department Secretaries may designate an Undersecretary, whose portfolio covers matters directly or principally relating to the development or management of coastal and marine resources and ecosystems and ocean-based members shall constitute a quorum.

SEC. 7. Guiding Principles on Blue Economy. - The Council shall be

guided by the following principles in performing its mandates, powers and functions: (a) Holistic and integrated planning to undertake programming beyond traditional, siloed management of individual sectors including, but rated planning to undert not limited to, fisheries, tourism, or shipping, to consider their cumulative impacts and potential synergies of the various sectors; (b) Balancing economic growth, social equity (including improved livelihoods and poverty reduction), and environmental sustainability (preserving ocean health);

(c) Science-based and ecosystem-based management by using robust data, science, and integrated coastal and marine spatial planning (CMSP), and monitoring and evaluation, to inform decision-making and ensure activities align with ecological boundaries; (d) Multi-level governance at the global, national, and local levels, requiring continuous negotiation and cooperation across different scales to address transboundary issues like illegal fishing and pollution, as well as disruption of Critical Infrastructure, as defined in R.A. No. 11659 or "An Act Amending Commonwealth Act No. 146, otherwise known as The Public Service Act, As Amended," installed or built in coastal and marine zones; and (e) Stakeholder inclusion for effective implementation which requires inclusive participation from all relevant stakeholders, including local communities, indigenous groups, civil society organizations (CSOs), and businesses, to ensure equitable access and benefit sharing.

SEC. 8. Mandates, Powers, and Functions of the Council. - The

Council shall be responsible for formulating and implementing, through the mandated government agencies, a clear, coherent, and comprehensive policy framework and strategic action plan on Blue Economy. It shall oversee and coordinate the implementation of Blue Economy initiatives across all coastal and marine zones. It shall: (a) Develop the country's policy framework and strategic vision for the growth and sustainable, inclusive, and climate-smart development of the country's Blue Economy; (b) Institutionalize an IMCAM; (c) Enhance the country's ecosystem-based management of coastal and marine resources; (d) Align IMCAM plans, fisheries management plans, integrated coastal management plans, coastal resource management plans, climate action plans, tourism plans, national and local development plans, and CMSP to determine zones, and designate allowed, regulated, and restricted activities; (e) Strengthen economic and environmental regulations within the country's coastal and marine areas and adjacent watersheds to preserve the value and sustainability of ocean resources and protect them from threats; (f) Identify climate-resilient and environmentally sound investments, infrastructure, and technologies, including nature-based solutions; (g) Ensure an enabling environment for the growth and development of sustainable investment and finance, including promoting innovative financing to finance sustainable projects; (h) Ensure the integration of "natural capital accounting" into national budgeting processes to help align economic decisions with the real value of marine resources; (i) Identify priority Blue Economy sectors, for potential for economic contribution, social equity, and environmental sustainability;

(i) Coordinate with various agencies and stakeholders to fast-track investments in water, sanitation, wastewater and solid waste management, and habitat restoration, protection, and management to protect human, and ocean health; (k) Enhance data sharing and monitoring among concerned national government agencies and local government units (LGUs) to gather and consolidate consistent, updated data on fish catch, habitat health, pollution levels, and economic activity, among others as basis for evidence-based policy; and (I) Institutionalize regular coastal and ocean monitoring accounting; (m) Coordinate the development of CMSPs and recommend its adoption through an executive issuance; (n) Coordinate with various sectors and agencies to promote policy and program coherence; (o) Coordinate and cooperate with the Maritime Industry Authority (MARINA) to ensure that the maritime industry development plan is consistent with the Blue Economy Framework, such as on energy security, trade and connectivity, navigational safety and security; (p) Coordinate with the Inter-Agency Coordinating Committee to Facilitate the Ratification and Accession to and Implementation of Maritime Conventions and ensure that it will aid in the implementation thereof; (q) Coordinate with the National Maritime Council, created under Executive Order (EO) No. 57, series of 2024, to ensure that its National Maritime Security Policy and Strategy and the Blue Economy Framework complement with each other towards enforcement of maritime regulations, coordinated efforts, and a unified approach to marine and maritime governance. While the National Maritime Council focuses on maritime security including protecting country's maritime interest and sovereignty, it shall provide critical support to enable Blue Economy, through safeguarding navigation routes, providing important oceanographic data to marine industries and protecting rights over valuable marine resources and activities within maritime jurisdiction, among others; (r) Conduct, support, fund, engage, collaborate, and coordinate research and development in Blue Economy; (s) Develop, expand, and strengthen investments in capacity building and skills enhancement programs for the Blue Economy, and encourage such to be featured in the work plans of governments, the private sector, and CSOs; (t) Review, update, and disseminate the policy framework and strategic action plan on Blue Economy; (u) Endorse to the Committee on Optimizing the Executive Branch, created pursuant to R.A. No. 12231, otherwise known as the "Government Optimization Act," recommendations to address institutional gaps and harmonize overlapping and fragmented

functions among government agencies, for consideration in the formulation of proposals to the President on the rationalization or reorganization of agencies for a more coherent and effective governance framework for sustainable Blue Economy development; (v) Submit a proposed list of sustainable marine and coastal activities to the Board of Investments (BOI), as the Secretariat, for inclusion in the Strategic Investment Priority Plan (SIPP); (w) Steer the development, research and sustainable resource explorations in the maritime zones, especially in areas with high economic potential such as the Philippine Rise and the West Philippine Sea; (x) Coordinate the maritime regulation or licensing and law enforcement for strengthened preparedness and responsiveness to potential security threats or concerns in the country's maritime areas and zones; (y) Build monitoring capacities, including the use of digital and innovative technologies for security and surveillance activities; (z) Review and ensure the ecological integrity compliance with the Blue Economy Framework; (aa) Develop and update marine scientific research, in accordance with

Section 27 of this Act;

(bb) Formulate guidelines on clear benefit-sharing for all Blue Economy activities, in accordance with Section 28 of this Act; and (cc) Perform other functions as may be necessary for the implementation of this Act. The Council is likewise authorized to convene committees and subcommittees to oversee the abovementioned functions.

SEC. 9. Creation of Panel of Scientific and Technical Experts. -

To provide technical and scientific expertise to the Council, experts from the different agencies, academe and other institutions shall be formed in the following areas: (a) Ocean accounting, particularly on the economic and scientific factors affecting ocean health; (b) Ocean finance and fiscal reforms to align financial flows with a sustainable ocean economy; innovative and blended finance mechanism; (c) Ocean technology and innovations such as offshore wind and wave energy technologies that are environmentally sustainable; blue biotechnology which uses ocean-based production and new supply chains for innovative products; (d) Pollution control technologies such as those innovations to capture plastic waste, to mitigate noise or oil pollution;

(e) Exploration and ocean research such as study of the ocean floor and water column; and (f) Other technical and scientific areas that may be agreed upon by the Council.

SEC. 10. Secretariat. - The Presidential Office for Maritime Concerns

(POMC) under EO No. 57, series of 2024 shall serve as the Secretariat of the Council and shall provide technical and administrative support to the Council and perform its functions under the same EO. The POMC, as Secretariat, shall have the following functions: (a) Provide secretariat support to the Council, including the preparation of draft strategies, priorities, and other outputs to be adopted by the Council; (b) Consult with scientific and technical experts, as identified in Section 9 of this Act, who can offer insights on Blue Economy and ecosystem- based management of coastal and marine resources policymaking and priority setting; (c) Coordinate with various agencies of the government, private sector, academe, scientific community, CSOs, indigenous peoples, local communities, and the public; (d) Design and implement a Blue Economy development program and promote its use and adoption in the government bureaucracy; (e) Develop recommendations for consideration by the Council; and (f) Perform other functions as may be directed by the Council.

SEC. 11. Support Agencies. - The following agencies shall provide

material or technical support to the Council, as may be necessary: Bangko Sentral ng Pilipinas (BSP); (b) Biodiversity Management Bureau; (c) Board of Investments (BOI); (d) Bureau of Fisheries and Aquatic Resources (BFAR); (e) Commission on Higher Education (CHED); (f) Department of Agriculture-Biotechnology Program Office; (g) Department of Education (DepEd); (h) Department of Foreign Affairs-Maritime and Ocean Affairs Office; (i) Environmental Management Bureau; Fisheries and Aquatic Resources Management Councils; (ks) Forest Management Bureau; (I) IPAs; (m) MARINA;

(n) Mines and Geosciences Bureau; (o) National Fisheries and Aquatic Resources Management Council; (p) National Fisheries Research and Development Institute; (q) National Mapping and Resources Information Authority; (r) National Museum-Maritime and Underwater Cultural Heritage Division; (s) National Telecommunications Commission; (t) Philippine Atmospheric, Geophysical and Astronomical Services Administration; (u) Philippine Coast Guard; (v) Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development; (w) Philippine Council for Agriculture and Fisheries; (x) Philippine Fisheries Development Authority; (y) Philippine National Police-Maritime Group; (z) Philippine Navy; (aa) Philippine Ports Authority; (bb) Philippine Reclamation Authority (PRA); (cc) Philippine Space Agency; (dd) Philippine Statistics Authority (PSA); (ee) Relevant institutions and components of the University of the Philippines; Securities and Exchange Commission (SEC); and (gg) Other relevant government-owned and -controlled corporations, special economic Zones (SEZs), and government financial institutions (GFIs). In order to ensure the efficient and effective discharge of its responsibilities, the Council may create working groups and call upon other departments, bureaus, offices, and instrumentalities of the National Government, and academic and research institutions engaged in marine science and ocean-based or ocean-related activities, to participate therein, as it may deem necessary. CHAPTER III THE BLUE ECONOMY FRAMEWORK

SEC. 12. Policy Development Framework on Blue Economy. - The

Council shall, within six (6) months from the effectivity of this Act, formulate a policy framework on Blue Economy, herein referred to as the Framework. The Framework is a development model that aims to help the country define a roadmap for a diversified, sustainable, climate-smart, gender-responsive, and inclusive ocean economy in a manner that provides long-term economic and social benefits while building resilience to climate change and without compromising the safety and functional integrity of our marine ecosystems. The Framework shall be subject to mandatory review and modification every five (5) years to ensure its alignment and responsiveness with the Long-term Development Framework developed by the Department of Economy, Planning, and Development (DEPDev) as mandated by R.A. No. 12145, otherwise known as the "Economy, Planning, and Development Act."

The Framework shall be formulated in consideration of and in coherence with existing initiatives, strategies, and plans, as reviewed and determined by the Council. The Council shall review existing initiatives, strategies, and plans, to ensure its alignment with the Blue Economy Framework.

SEC. 13. Components of the Policy Framework on Blue Economy.

6 - The Framework shall include the following components: (a) Review of all existing laws, policies, plans, programs, projects, rules, and regulations on the management and use of the resources, and activities in the country's maritime zones; (b) Compliance with local laws, and implementation and enforcement of international laws, international maritime instruments, multi-lateral environmental agreements, and other regional commitments; and (e) Analysis of current emerging trends in demography, consumption, production, trade, technology, ecosystems and biodiversity, and climate that show the interaction between the economy and the environment, present and future threats and pressures on coastal and marine environments, impacts on ocean and human health; (d) Mapping, assessment, and monitoring of coastal and marine ecosystems to provide evidence necessary to effectively implement management interventions; (e) The IMCAM framework to harmonize the different plans and activities in the coastal and marine areas, coordinate the various agencies, sectors, and stakeholders, address human impact on marine and coastal biological diversity, and promote the conservation and sustainable use of this biodiversity. The national IMCAM framework shall consider the following elements: (1) Capacity-building and knowledge-sharing for stakeholders, at both national and local levels, to apply relevant policy instruments to address legal issues, institutionalize participatory, gender-responsive, and develop to promote multidisciplinary and multisectoral ecosystem-based management of coastal and marine environments, and adjacent watersheds; (2) Restoration of critical habitats, and protection of coastal and marine environments from negative impact, such as: (i) Alteration and destruction of coastal and marine habitats, particularly areas important for reproduction, coral reef systems, sea grass areas, mangroves and coastal forests, mudflats, beach, and the sea bed; (ii) Marine and land-based pollution;

(ili) Improper coastal land use, and the mismanagement of watersheds; (iv) IUU fishing, and by-catch especially of endangered, threatened, and protected species; and (v) Introduction of invasive and alien species; (3) Establishment of mechanisms and guidelines for research, monitoring, assessment, and valuation of coastal and marine ecosystems and resources, including indicators to measure natural and human- induced impacts; (4) Assessment and integration of local and traditional ecological knowledge in marine and coastal governance, resource management, and development of sustainable and inclusive livelihoods and nature- based enterprises; and (5) Development of CMSPs, and integration and mainstreaming of CMSPs and IMCAM plans and programs into national and regional development plans, investment plans, Comprehensive Land-Use Plans (CLUPs), and Comprehensive Development Plans (CDPs); (f) Priority strategic and sustainable, climate-smart, and inclusive economic activities in the country's maritime zones, which may include: (1) Fisheries, including municipal and commercial fishing, seafood processing, and commercial research and development, with preference to subsistence fisheries, as under mandated Section 7, Article XIII of the Constitution; (2) Aquaculture and mariculture, and their Value Chains; (3) Marine and coastal tourism; (4) Shipping, logistics, and maritime transport; (5) Shipbuilding and ship repair; (6) Production of renewable energy from marine sources; (7) Installation of submarine cables and pipelines, including submarine communications cables and systems; (8) Bioremediation, marine biotechnology, and bioprospecting; (9) Desalination; (10) Underwater cultural heritage and maritime archaeology; (11) Marine science education and research, and maritime education; (12) Marine Genetic Resources; (13) Seafood processing; (14) Exploration, exploitation and extraction of oil and natural gas; and or extraction of minerals (15) Submarine mining and aggregates; (g) Promotion of sustainable blue finance, including Blue Carbon;

(h) Priority research, development and innovation agenda, and investments that maximize opportunities created for the climate transition, pollution control, remediation, used water economics, circular economy, and other industries that address threats; (i) Promotion of ocean literacy and social responsibility towards the protection of coastal and marine environments; ) Enhancement of the capability of the relevant agencies to enforce laws, rules, and regulations to protect our marine wealth; (k) Analysis of investment needs across the Blue Economy sectors to 10 develop and sustain ocean-based industries, as well as formulate strategies for mobilizing financial resources to close the investment gap; (I) Goals, targets, and indicators for growth, resilience, and sustainability of priority strategic and sustainable coastal, ocean-based and ocean-related activities, including their contribution to gross domestic product, job creation, and livelihood; (m) Scaling up the expansion and management of national and local marine protected areas (MPAs), MPA networks, and marine corridors, through the protection and conservation of coastal and marine ecosystems and resources; (n) Mainstreaming of circular and resource efficiency approaches on the Blue Economy Framework to address the longstanding problem of marine litter and microplastics; (o) Integration of Climate Change Adaptation and Mitigation strategies to help operationalize the country's Nationally Determined Contributions, and the National Adaptation Plan; (p) Strengthening of management capacities of national and local governments, including relevant sectors, to enhance the protection of coastal and marine ecosystems and such other components as may be determined by the Council; (q) Inclusivity of all stakeholders, ensuring that micro, small, and medium enterprises, small-scale fishers, and local and coastal communities have equitable access to the benefits of sustainable ocean and inland water resource utilization; (r) Promotion of enabling conditions for sustainable investment through the development of modern and efficient infrastructure, well-organized institutional arrangements, strong cooperation among stakeholders, and capacity-building programs that equip sectors with the knowledge and competencies needed for the Blue Economy;

(s) Enhancement of capability of the Armed Forces of the Philippines and civilian agencies to enforce laws, rules and regulations to protect our marine wealth and capacity in performing activities on maritime security and surveillance activities and in the protection of Critical Infrastructure, as defined in R.A. No. 11659, installed or built in coastal and maritime zones; and (t) Submission of list of sustainable marine and coastal activities to the BOI, as the Secretariat, for inclusion in the SIPP, and facilitate inclusion of such program, activities, and projects in the Public Investment Program, and Consolidated List of Investment Programs (CLIPs) for Public-Private Partnerships. CHAPTER IV OCEAN ACCOUNTING

SEC. 14. Ocean Accounting. - The PSA and DENR shall undertake

environmental-economic accounting of the ocean, coastal and marine ecosystems, and resources, based on the United Nations System of Environmental-Economic Accounting and in accordance with R.A. No. 11995, otherwise known as the "Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act." Members of the Council and heads of support agencies shall contribute data and submit reports on environmental- economic accounts relating to their mandates including damage estimation and sea level rise projections. The PSA shall likewise enhance the Philippine Ocean Economy Satellite Accounts. CHAPTER V DEVELOPMENT PLANNING

SEC. 15. Coastal and Marine Spatial Planning. - The Council shall

undertake a nationwide CMSP with the participation of key stakeholders to identify the spatial and temporal distribution of priority activities, uses and interactions thereof in maritime zones, to reduce conflict among uses; facilitate complementary uses; mitigate environmental impacts; prevent marine dead zones; protect the Critical Infrastructure, as defined in R.A. No. 11659, installed or built in coastal and maritime zones; rehabilitate dead zones or non- attainment areas, if any; reduce wastage and ensure efficiency in marine supply chains; preserve ecosystem services with the national CMSP providing the guiding principles and overarching delineations, consider the land-ocean interface, and marine corridor and connectivities, and identifying the spatial and temporal distribution of allowed, restricted, and regulated human activities and priority uses and the interactions thereof in the coastal and marine zones; integrating ocean accounting to quantify and value marine ecosystem services, economic activities, and environmental impacts, thereby supporting evidence-based planning, investment programming, and sustainable resource management, and encourage and support the

development of regional and local CMSPs, which can provide a level of granularity that can be linked to actionable investments, regulations and enforcement, coastal and marine resource management and conservation measures, and reduction of risks from climate change and natural disasters. The Council shall ensure mainstreaming of climate change into CMSP for improved preparedness and response, as well as reduced vulnerability of marine systems. "Climate-smart CMSP" refers to planning initiatives in the ocean space which integrate and may adapt to the effects of a changing climate. For CMSP to become "climate-smart," data and knowledge on the pathways through which climate change impacts marine ecosystems and human uses are needed at appropriate spatial scales. The Council shall ensure that a common or unified or appropriate tool for coastal and marine spatial planning among national government agencies, local government units and academe for standard data inputs and more effective basis for planning.

SEC. 16. Blue Economic Zones. - Investment promotion agencies, as

provided in the respective charters, shall encourage the establishment of blue economic zones (BEZs) and the transformation of existing SEZs into BEZs. Registered business enterprises (RBEs) engaged in ocean-based or ocean- related activities as listed under the SIPP are eligible to receive the privileges, benefits, advantages, or exemptions granted to economic zones and freeports in accordance with their respective special laws, Title XIII of the National Internal Revenue Code of 1997, as amended, and other applicable laws, rules, and regulations. In addition, RBEs operating within BEZs may also qualify for as financing under R.A. No. 11293 or the "Philippine Innovation Act," applicable.

SEC. 17. Inclusion in Investment Programming Plans. - The Council

shall: (a) recommend to the BOI the inclusion of identified priority strategic ocean-based and ocean-based activities in the SIPP, and (b) ensure the inclusion of such programs, activities, and projects (PAPs) in the public investment program and CLIPS for Public-Private Partnerships (PPPs). SEC. 18. Constituting Green Lanes for Blue Economy Investments. - All reievant agencies whose mandate and functions cover the promotion of Blue Economy investment shall constitute green lanes consistent with the provisions of EO No. 18, Series of 2023, or as may be amended. The DEPDev shall ensure the alignment and contribution of the national and local MSPs and industry development plans with the country's medium and long-term development agenda, laid out in the Philippine Development Plan, Regional Development Plans, and Long-term Development Framework.

SEC. 19. Promotion of Sustainable Livelihoods and Employment. -

The Council shall, in consultation with the Department of Labor and Employment, the BFAR, and other concerned agencies and stakeholders, 4 develop a policy to ensure the enhancement and sustainability of municipal fisheries as well as the promotion and generation of sustainable livelihood in the Blue Economy towards the creation of more employment and equal opportunities for all, and to strengthen investments in capacity building and skills enhancement programs, in accordance with R.A. No. 10771, otherwise known as the "Philippine Green Jobs Act of 2016."

SEC. 20. Industry Development Plans. - The Blue Economy Council

shall, through working groups created for the purpose, prepare five-year and ten-year development plans for each priority strategic and sustainable ocean- based or ocean-related industry, in accordance with the Framework CHAPTER VI BLUE FINANCE

SEC. 21. Establishment of the Blue Finance Program. - The Blue

Finance Program shall be designed and implemented to: (a) Identify and develop pipelines of Blue Economy projects with strong potential for private investment and scalable impact; (b) Develop and offer standardized blue financial instruments (e.g., blue securities, Environmental, Social, and Governance (ESG)-linked loans, revenue-backed financing facilities) in coordination with financial institutions and capital market actors; (c) Facilitate the use of a government-backed first-loss facility and credit guarantee fund to de-risk private lenders and investors from defaults by small enterprises investing in the Blue Economy, including municipal and small-scale fishers, and small-scale commercial fishers as defined under R.A. No. 8550, otherwise known as "The Philippine Fisheries Code of 1998," as amended, with clear claims processes and payout triggers; (d) Facilitate on-lending and subsidiary loan arrangements to microfinance institutions, rural banks, and accredited cooperatives through official development assistance and proceeds from blue small scale commercial fishers as defined under R.A. No. 8550, as amended, and subject to performance-based lending and transparent fund administration mechanisms; (e) Support fisheries industry and value chain integration; and

(f) Develop sustainability linked criteria ensuring funded activities promote marine conservation and climate resilience.

SEC. 22. Incentives to Issuers of Blue Financial Instruments, or

Blue Enterprises and Projects. - The issuance of Blue Financial Instruments may entitle the issuing entities, enterprises, and projects financed through such instruments to appropriate incentives under relevant laws and regulations, including the following, as may be applicable: (a) Fiscal and non-fiscal incentives granted under the National Internal Revenue Code of 1997, as amended, including income tax holidays, enhanced deductions, and special corporate income tax rates for qualified activities in sustainable fisheries or marine conservation; (b) Tax deductions and duty-free importation under R.A. No. 10771 for projects that promote environmental sustainability and create green employment; (c) Access to credit guarantees and co-financing arrangements under R.A. No. 8435, otherwise known as the "Agriculture and Fisheries Modernization Act of 1997 and its implementing mechanisms, including those managed by the Agricultural Credit Policy Council; (d) Non-fiscal incentives granted by the BOl and other IPAs; and (e) Other incentive programs and facilities as may be authorized by the BSP, the Department of Finance, and relevant GFIs, including support from the Philippine Guarantee Corporation (PGC).

SEC. 23. Role of Government Agencies. - To fulfill the foregoing

objectives, the following agencies shall undertake the corresponding roles and responsibilities: (a) BSP - In the exercise of its regulatory powers over financial institutions, the BSP shall provide an enabling regulatory environment to promote the development of the country's Blue Economy, in line with its sustainable finance framework and considering international standards and best practices; (b) SEC - The SEC shall encourage the issuance of blue securities, the guidelines, and ASEAN Green Bonds Standards and Green Bonds Principles, as developed and may be revised from time to time by the SEC, the ASEAN Capital Markets Forum and the International Capital Market Association. All designated Eligible Blue Projects or Activities must provide clear benefits to ocean health and the Blue Economy and

must contribute substantially to United Nations Sustainable Development Goals 6 and 14, which shall be assessed together with compliance with environmental laws and standards, and, where feasible, quantified by the corporation that will issue the blue securities. The eligibility of these Eligible Blue Projects or Activities shall be subject to the guidelines to be issued by the SEC; (c) GfIs - The Land Bank of the Philippines and the Development Bank of the Philippines shall provide access to credit facilities and financial services to strategic and sustainable ocean-based or ocean-related enterprises, based on their respective credit policies; (d) PGC - The PGC shall implement credit guarantee programs and support lending arrangements to microfinance institutions, rural banks, and cooperatives; (e) Department of Trade and Industry (DTI) - The DTI, in coordination with relevant agencies, shall enhance the value chain of Blue Economy sectors through supporting small enterprises, including small-scale fishers, in product development, market access, investment readiness, technology adoption, and training; (1) BFAR - The BFAR shall lead in identifying fisheries, aquaculture and mariculture projects, organizing fisherfolk into eligible enterprises, and providing technical support for business formalization; (g) TESDA - The TESDA shall be mandated to do the following: (1) Design and set standards for specific programs on Blue Economy skills training; (2) Partner with the BSP, the DTI, and other relevant agencies and stakeholders to design and prepare training modules and materials on financial literacy, credit readiness, and business development; (3) Allocate at least five per centum (5%) of scholarships for Blue Economy skills training, with special attention to small-scale and small commercial fishers; (4) Partner with national government agencies and LGUs in supporting and providing training programs and facilities for local communities based on identified community needs; and (5) Partner with non-government organizations, local schools, faith-based groups, cooperatives, and community organizations in establishing community-based training facilities for local communities, especially remote coastal areas.

(h) LGUs - The LGUs shall be responsible for the following: (I) Issue bonds, debentures, securities, collaterals, notes and other obligations pursuant to Section 299 of R.A. No. 7160, otherwise known as the "Local Government Code of 1991", as amended, and other applicable laws and regulations, for the development of enterprises related to the Blue Economy; (2) Assist small enterprises investing in the Blue Economy, including municipal and small-scale fishers, and small-scale commercial fishers as defined under R.A. No. 8550, as amended, in applying for applicable credits and incentives; (3) Provide education and capacity building for small enterprises investing in the Blue Economy, including municipal and small-scale fishers, and small-scale commercial fishers as defined under R.A. No. 8550, as amended; and (4) Provide exemptions and incentives for the benefit of small enterprises investing in the Blue Economy, including municipal and small-scale fishers, and small-scale commercial fishers.

SEC. 24. Blue Public Expenditures. - The agencies concerned shall,

in accordance with Section 15 of R.A. No. 9729, otherwise known as the "Climate Change Act of 2009," as amended, include in their respective annual budget proposals the programs, activities, and projects for the implementation of the Blue Economy, subject to existing budgeting, accounting, and auditing laws, rules, and regulations.

SEC. 25. Blue Carbon. - The DENR shall lead the formulation and

implementation of the policy framework on Blue Carbon. The framework shall identify the protection, restoration, and financing strategies to harness the carbon sequestration potential of coastal ecosystems like mangroves, seagrasses, and salt marshes. The DENR shall develop standardized protocols for quantification and certification, establish clear policies and institutional roles, and use innovative financing tools like carbon trading and payments for ecosystem services to fund projects. CHAPTER VII MARINE SCIENCE, TECHNOLOGY, AND INNOVATION (STI) AND OCEAN LITERACY

SEC. 26. Marine Scientific Research. - The State recognizes

marine science as a foundation of maritime governance, insofar as rules governing the use of coastal and marine resources must be based on the sound scientific understanding of the marine environment. In accordance with UNCLOS, the Philippines has the exclusive rights to regulate, authorize and conduct marine scientific research in the country's internal waters, archipelagic waters and territorial sea; whereas, the Philippines has

rights to regulate, authorize and conduct maritime research in the country's exclusive economic zone and continental shelf: Provided, That the marine scientific research activities shall not unjustifiably interfere with other legitimate uses of the sea and shall not constitute the legal basis for any claim to any part of the marine environment or its resources. Marine scientific research by foreign states and competent international organizations may only be conducted with the express consent of and under the conditions set forth by the Council, in accordance with the UNCLOS. The Council shall ensure a common and unified marine scientific research agenda among the national government agencies and academe to maximize available resources and achieve more impact and tangible and useful research outputs.

SEC. 27. Marine Genetic Resources Access, Benefit Sharing, and

Protection. - The State shall ensure national sovereignty, stewardship, and equitable benefit-sharing over MGR within the Philippines maritime jurisdictions by meticulously regulating all research, collection, bioprospecting, and commercial utilization activities to ensure traceability, biosafety, capacity- building, and fair Access and Benefit-Sharing, in alignment with the UNCLOS, the Convention on Biological Diversity and its supplementary Nagoya Protocol, the emerging Biodiversity Beyond National Jurisdiction regime, and the long-term conservation and sustainable use principles advocated by the International Union for Conservation of Nature.

SEC. 28. Regulated Bioprospecting and Protection Against

Biopiracy. - Any commercial, research, and technological utilization of marine genetic and biological resources shall comply with national bioprospecting regulations, ensuring transparent permitting, fair benefit-sharing, and prevention of unauthorized extraction and exploitation (biopiracy).

SEC. 29. Marine Technology and Innovation. - The State recognizes

that science, technology, and innovation have a critical role in harnessing ocean resources for the Blue Economy while ensuring sustainability. Marine technology and innovations are needed to address technical and logistical constraints that impede the development of Philippine blue industries. Among these technologies are advanced materials, subsea engineering and technology, sensors and imaging, big data analytics, autonomous systems, biotechnology, nanotechnology, coastal and marine spatial planning, and circular Blue Economy. The government shall also support the development and adoption of locally developed marine-related technologies.

SEC. 30. Ocean Literacy Framework. - The DepEd, CHED, TESDA,

and other government agencies implementing sector-specific literacy programs, in consultation with relevant members of the Council or support agencies, shall integrate into the curricula of K-12, the Alternative Learning System, general education programs of higher education institutions, technical and vocational education and and other training, community- based training programs, the essential principles and fundamental concepts

of ocean sciences to develop the following competencies: (a) Understanding the economic, socio-cultural, spiritual, scientific and political importance or significance of the ocean to humankind in general and the Filipinos in particular; (b) Communicating about the ocean in a meaningful way; (c) Making informed and responsible decisions regarding the ocean and its resources; and (d) Identifying and incorporating traditional ecological knowledge as an important component of archipelagic ocean science and Philippine national heritage. CHAPTER VIII ROLE OF LOCAL GOVERNMENTS

SEC. 31. Role of LGUs. - Subject to the jurisdiction and authority of

national government agencies as stated in the provisions of special laws as the case may be, cities and municipalities shall continue to exercise jurisdiction over municipal waters, pursuant to R.A. No. 7160, as amended, and R.A. No. 8550, as amended. Consistent with this mandate, LGUs in coastal and marine areas shall act as the frontline agencies in the formulation, planning, and implementation of the IMCAM framework in their respective jurisdictions. The LGUs shall develop their local CMSP in accordance with the National Maritime Spatial Plan, and integrate them in their CLUP, CDP, and Annual Investment Plan. The LGUs shall also integrate coastal and marine resources conservation principles and measures in their CLUPs and zoning ordinances.

SEC. 32. Inter-LGU Cooperation. - Consistent with the provisions of

R.A. No. 7160, as amended, LGUs may group themselves and consolidate or coordinate their efforts, services, and resources for the accomplishment of the objectives of this Act. To promote greater cooperation among LGUs, the POMC, as the Council Secretariat, shall undertake the creation of a coordination plattorm, such as inter-LGU forums, to facilitate knowledge sharing and exchange of best practices for potential replication in other localities.

SEC. 33. Harmonization of Reclamation Master Plan with the

Blue Economy Framework and Strategy. - A programmatic or cumulative impact assessment shall be required for reclamation projects. The PRA shall harmonize its Reclamation Master Plan with the Blue Economy Framework and Strategy.

SEC. 36. Implementing Rules and Regulations. - Within sixty (60)

days from the approval of this Act, the Council shall issue the implementing rules and regulations: Provided, That failure to issue rules and regulations shall not in any manner affect the executory nature of the provisions of this Act.

SEC. 37. Construction. - In the implementation of this Act, any conflict

with R.A. No. 8550, as amended, shall be resolved in favor of the latter, to ensure the ecological and environmental safeguards therein and with a presumption in favor of subsistence fisherfolk.

SEC. 38. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

SEC. 39. Repealing Clause. - All other laws, presidential decrees,

executive orders, letters of instruction, proclamations, and rules and regulations that are contrary to or inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC. 40. Effectivity. - This Act shall take effect fifteen (15) days

following its publication in the Official Gazette or in a newspaper of general circulation. Approved,