Blue Economy Act

Senate Office of the Secretary TWENTIETH CONGRESS OF THE 25 OCT 27 P4:44 REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY: S.B. NO. 1462 Introduced by Senator Raffy T. Tulfo AN ACT ESTABLISHING A FRAMEWORK FOR BLUE ECONOMY, PROMOTING STEWARDSHIP AND SUSTAINABLE DEVELOPMENT OF COASTAL AND MARINE ECOSYSTEMS AND RESOURCES EXPLANATORY NOTE The Philippines is an archipelagic nation whose prosperity and resilience are inseparable from the health of its seas. Our coasts and marine ecosystems sustain food security, jobs, tourism, and cultural identity for millions of Filipinos. However, decades of unsustainable extraction, marine pollution, and climate impacts have placed this natural wealth under severe threat. The proposed Blue Economy Act seeks to institutionalize a science-based and inclusive governance framework to ensure the sustainable development of our ocean resources and to align economic growth with ecological integrity. According to the Philippine Statistics Authority (PSA), the country's ocean economy was valued at P962.49 billion in 2023, underscoring the significant role of marine and maritime industries in national output and employment (PSA, Philippine Ocean Economy Satellite Accounts, 2024). The same accounts show that fisheries, coastal tourism, marine transport, and offshore energy collectively drive local livelihoods in more than 60 coastal provinces. Yet, this economic engine is increasingly at risk. Bureau of Fisheries and Aquatic Resources (BFAR) data indicate that total fisheries production reached only 4.26 million metric tons in 2023, reflecting a slight decline from previous years and signaling

stress on key fishing grounds (BFAR, Fisheries Profile 2023). Declining catches, habitat loss, and overfishing threaten not only biodiversity but also the food and income security of over 1.8 million registered fisherfolk. Equally alarming is the scale of marine pollution. The World Bank estimates that the Philippines generates approximately 2.7 million metric tons of plastic waste annually, with about 20 percent leaking into rivers and oceans (World Bank, Market Study for the Philippines: Plastics Circularity Opportunities and Barriers, 2021). This waste not only damages marine ecosystems but also imposes economic losses on fisheries, coastal tourism, and public health. The Department of Environment and Natural Resources (DENR) has long identified solid waste mismanagement as one of the major sources of marine debris, and the urgency of intervention grows each year. The Philippines, situated in the Coral Triangle, is also home to some of the most biodiverse but vulnerable coral reefs on Earth. Scientific assessments reveal widespread reef degradation and coral bleaching over the last decade, driven by warming seas and destructive fishing practices (NOAA & DENR, 2022). These reefs— estimated to contribute billions annually through coastal protection and tourism-are vital to the ocean economy but face imminent collapse without stronger protection and restoration. Climate change magnifies these pressures. The PAGASA and the Climate Change Commission report that the Philippines experiences an average sea-level rise of 4.5 to 7 millimeters per year, higher than the global mean (PAGASA, State of the Philippine Climate Report, 2022). This trend threatens coastal settlements, infrastructure, and agricultural lands through erosion and saltwater intrusion. Without coordinated marine spatial planning and coastal adaptation measures, the country risks escalating disaster losses and displacement in vulnerable communities. Globally, the UN Development Programme (UNDP) and the World Bank have emphasized that poor ocean management imposes economic costs amounting to trillions of dollars in lost ecosystem services, fisheries decline, and climate-related damages. Conversely, investments in sustainable ocean governance-known collectively as the "blue economy"-can generate significant social, environmental, and economic returns through restored ecosystems, new green jobs, and resilient livelihoods.

In response, the Blue Economy Act provides a unified framework for marine resource governance. It establishes the National Blue Economy Council, composed of relevant government agencies, to coordinate policies, align plans, and oversee the implementation of the National Marine Spatial Planning (MSP) and Integrated Marine and Coastal Area Management (IMCAM) systems. The Act mandates the PSA to institutionalize Ocean Accounting, quantifying the true value of marine assets and the costs of degradation to inform evidence-based policymaking. It also directs the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), and government financial institutions to develop blue finance instruments, such as blue bonds and concessional credit programs, to fund sustainable fisheries, renewable ocean energy, waste management, and ecosystem rehabilitation projects. Furthermore, the Act prioritizes pollution control and circular economy mechanisms, expands marine protected areas (MPAs), and strengthens enforcement against illegal, unreported, and unregulated (IUU) fishing. Through technology integration and inter-agency coordination, it aims to protect the rights and welfare of small-scale fisherfolk while ensuring that marine ecosystems remain productive and resilient. The Act also mandates periodic policy reviews, open data reporting, and oversight by a Joint Congressional Oversight Committee, promoting transparency and accountability in ocean governance. The Philippines stands at a critical crossroads. With an ocean economy approaching P1 trillion, declining fish stocks, mounting plastic waste, and the fastest- rising seas in Southeast Asia, the time to act is now. The Blue Economy Act ensures that the nation's maritime wealth-spanning food, energy, transport, and biodiversity-is managed not as an exhaustible resource but as a shared inheritance. This measure provides the institutional, financial, and legal foundations to transform the Philippines into a true blue economy: one that is inclusive, science-driven, and anchored on sustainability for future generations. RAFFY T. TULFO Senator joy

Sellate Office of the Secretary TWENTIETH CONGRESS OF THE 25 OCT 27 P4:44 REPUBLIC OF THE PHILIPPINES First Regular Session ) RECEIVED BY: SENATE S.B. No. 1462 Introduced by Senator Raffy T. Tulfo 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 a blue economy as a framework for 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, and expand areas under protection to meet the nation's international obligations especially in refugial habitats; (c) Preserve our maritime heritage, recognize the economic, social, cultural, and historical value of our coasts and oceans, and foster public understanding and respect of 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; and use 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; (e) Exercise rights and jurisdiction, and enjoyment of freedom of the high seas, in accordance with 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-based pollution, biodiversity loss, reclamation, and climate change; Ensure a whole-of-nation approach and a comprehensive and (g) integrated framework for the stewardship of our coasts and oceans 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; and (i) Uphold the value of natural ecosystems and their irreplaceability, thereby explicitly excluding reclamation and other activities that remove, replace, or destroy coastal ecosystems as activities that advance a blue economy.

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

(a) Aquaculture refers to fishery operations involving all forms of raising and culturing fish and other fishery species in fresh, brackish, and marine water areas; (b) Aquasilviculture refers to a multi-purpose production system that allows the production of fish in a mangrove reforestation project; (c) Blue economy refers to the practical ocean-based economic model using green infrastructure and technologies, innovative financing mechanisms, 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, and reducing environmental risks and ecological scarcities; (d) Coast refers to the interface where the land meets the ocean, encompassing shoreline environments as well as adjacent coastal waters. Its components can include river deltas, coastal plains, wetlands, beaches and dunes, reefs, mangroves forests, lagoons, and other coastal features; (e) 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; (f) Environmental sustainability refers to the responsible use of coastal, marine, and freshwater resources that protects the marine ecosystem from harmful effects and degradation. Environmental sustainability includes stewardship by the government 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 biodiversity;

(g) 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 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. (h) Integrated marine and coastal area management refers to coordinated 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 and inclusive growth, support jobs and livelihood, and enhance food, energy and water security, climate resilience, and well-being; (i) Investment promotion agencies 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, or overseeing the operations of the different economic zones and freeports in accordance with their respective special laws; (j) 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;

(k) Marine resources refer to the diverse range of living and non-living components found within marine ecosystems, including oceans, seas, and coastal areas; (1) 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; (m) Maritime zones 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 (2) the respective maritime zones, as appropriate, of ail other territories over which the Philippines has sovereignty or jurisdiction, in accordance with the 1987 Constitution and international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS); (n) 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, and environmental components through specific accounting table groups and comprehensive indicators critical for informed and evidence-based decisions; (o) 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, shipbuilding and repair, port operations, marine tourism including management of

tourist resorts, communication, marine construction, maritime insurance and law enforcement, or maritime technical services; (p) Ocean-related activities refer to activities that use products from the ocean such as seafood processing, marine biotechnology, chemicals and salt production, and produce products and services for the ocean and for ocean based activities; (q) 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 and climate and its effect on humans, water, and ecosystems; (r) Reclamation refers to any project, permitted or otherwise, that dumps fill materials from another place into a coastal or marine area to form new land, thereby completely obliterating the marine habitat and changing the hydrology of the area, whether pursued for public or private purposes; and (s) Subsistence fishing refers to fishing for personal consumption or traditional/ceremonial purposes.

Sec. 4. Scope of Application. - For purposes of this Act, the Philippines shall, in

accordance with international law, exercise sovereignty, sovereign rights, and jurisdiction, as appropriate, in internal waters, archipelagic waters, the territorial sea, contiguous zone, EEZ, and continental shelf, herein collectively referred to as "coastal and marine zones", including its seabed and subsoil, and any and all maritime features within the maritime zones now known or to be known in the future. CHAPTER II BLUE ECONOMY COUNCIL

Sec. 5. Blue Economy Council. - The Blue Economy Council, herein referred to as

the Council, is hereby established to formulate an integrated strategy to strengthen, grow, and sustain the Philippines' blue economy, integrated marine and coastal area management, and ecosystem-based management of coastal and marine resources.

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

(a) The Executive Secretary as chairperson;

(b) The Secretary of Environment and Natural Resources as co-vice chairperson; (c) The Secretary of Economy, Planning, and Development as co-vice chairperson; (d) The Secretary of National Defense as member; (e) The Secretary of Foreign Affairs as member; (f) The Secretary of Justice as member; (g) The Secretary of the Interior and Local Government as member; (h) The Secretary of Agriculture as member; (i) The Secretary of Tourism as member; (i) The Secretary of Transportation as member; (k) The Secretary of Trade and Industry as member; (1) The Secretary of Energy as member; (m) The Secretary of Science and Technology as member; (n) The Secretary of Finance as member; and (0) The Secretary of Public Works and Highways as member. 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, if applicable, to sit in a permanent capacity, and whose acts shall be considered the acts of his or her principal. Majority of the members shall constitute a quorum.

Sec. 7. Mandates, Powers, and Functions of the Blue Economy Council. - The

Council shall be responsible for formulating a clear, coherent, and comprehensive policy framework and strategic action plan on blue economy. It shall; (a) Develop the country's policy framework and strategic vision for the growth and sustainable development of the country's blue economy; (b) Institutionalize an integrated marine and coastal management; (c) Enhance the country's ecosystem-based management of coastal and marine resources;

(d) Align Integrated Coastal Management (ICM) plans, fisheries management plans, coastal resource management plans, climate action plans, and marine spatial plans to determine zones, and designate allowed, regulated, and restricted activities; (e) Strengthen economic and environmental regulations within our coastal and marine areas 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; (g) Ensure an enabling environment for the growth and development of sustainable investment and finance; (h) Identify priority blue economy sectors; (i) Institutionalize regular coastal and ocean monitoring and accounting; (i) Coordinate the development of marine spatial plans; (k) Coordinate with various sectors and agencies to promote policy and program coherence; (1) Coordinate and cooperate with the Maritime Industry Authority (MARINA) to ensure that the framework shall be in harmony and not overlap with the maritime industry development plan; (m) Coordinate with the Inter-Agency Coordinating Committee to Facilitate the Ratification and Accession to and implementation of Maritime Conventions (ICCFRAIMC) and ensure that it will aid in the implementation thereof; (n) Conduct, support, fund, engage, collaborate, and/or coordinate research and development in blue economy; (o) 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 civil society organizations;

(p) Review, update, and disseminate the policy framework and strategic action plan on blue economy; and (q) Perform other functions as may be necessary for the implementation of this Act.

Sec. 8. Secretariat. - A Secretariat to the Council shall be established within the

Department of Economy, Planning, and Development (DEPDev), to be headed by an Executive Director III (Salary Grade 28) who shall be appointed by the President of the Philippines. The Secretariat shall be under the control and supervision of the DEPDev Secretary. The Executive Director III shall have at least seven (7) years of experience and practice in the fields of marine science and research, blue economy and ecosystem- based management of coastal and marine resources, environmental economics, environmental accounts, and financial analysis. The initial staffing structure and complement of the Secretariat shall be submitted by the DEPDev to the Department of Budget and Management (DBM) for funding. The DEPDev shall constitute an interim Secretariat within one (1) month from the effectivity of this Act, through the temporary detail of personnel from its member agencies. The 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 experts 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, civil society organizations, 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. 9. Support Agencies. - The following agencies shall provide material or

technical support to the Council, as may be necessary: (a) Climate Change Commission (CCC); (b) Bangko Sentral ng Pilipinas (BSP); (c) Board of Investments (BOI); (d) Securities and Exchange Commission (SEC); (e) Philippine Statistics Authority (PSA); (f) National Mapping and Resources Information Authority (NAMRIA); (g) Environmental Management Bureau (EMB); (h) Biodiversity Management Bureau (BMB); (i) Bureau of Fisheries and Aquatic Resources (BFAR); (j) National Fisheries Research and Development Institute (NFRDI); (k) Philippine Fisheries Development Authority (PFDA); (1) Philippine Council for Agriculture and Fisheries (PCAF); (m) MARINA; (n) Philippine Ports Authority (PPA); (o) Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD); (p) Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA); (q) Department of Foreign Affairs (DFA); (r) Philippine Coast Guard (PCG); (s) Philippine National Police - Maritime Group (PNP-MG); (t) Philippine Navy (PN); (u) National Museum - Maritime and Underwater Cultural Heritage Division (NM-MUCHD); (v) Commission on Higher Education (CHED); (w) Relevant institutions and components of the University of the Philippines (UP); and

(x) Investment promotion agencies. 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 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. 10. 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 and sustainable ocean economy in a manner that provides long-term economic and social benefits while building resilience to climate change and without compromising the safety of our marine ecosystems. The Framework shall be subject to mandatory review and modification every five (5) years.

Sec. 11. Components of the Policy Framework on Blue Economy. - The Framework

shall include the following components: (a) Review of all existing policies, plans, programs, projects, rules, and regulations on ocean-based and ocean related activities; (b) Adherence to international maritime laws; (c) Analysis of current and emerging trends and changes in demography, consumption, trade, energy, technology, environmental quality, and climate that show the interaction between the economy and the environment, present and future threats and pressures on coastal and marine environments, and damage estimation; (d) Environmental-economic accounting of coastal and marine assets, living and non-living resources, and ecosystem services from coastal and marine environments, including assessment of losses due to degradation or major pollution events such as oil spills;

(e) The Integrated Marine and Coastal Area Management (IMCAM) framework to 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 for stakeholders, at both national and local levels, to apply relevant policy instruments to address legal issues, institutionalize participatory processes, and develop strategies to promote multidisciplinary and multisectoral ecosystem-based management of coastal and marine environments; (2) Protection of coastal and marine environments from negative impacts, such as: i. Alteration and destruction of coastal and marine habitats, particularly areas important for reproduction, coral reef systems, sea grass areas, and the sea bed; ii. Marine and land-based pollution; ili. Improper coastal land use, and the mismanagement of watersheds; iv. Illegal, unreported, and unregulated fishing, by-catch especially of threatened species; and (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; (t) Priority strategic and sustainable ocean-based and ocean-related economic activities, which may include: (1) Fisheries, including commercial fishing, seafood processing, and commercial research and development, with preference to

subsistence fisheries, as mandated under Section 7, Article XIII of the Constitution; (2) Aquaculture, mariculture, and aquasilviculture; (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; (8) Bioremediation, marine biotechnology, and bioprospecting; (9) Desalination; and (10) Underwater cultural heritage and maritime archaeology; (g) Guiding framework for IMCAM; (h) Guiding framework for blue finance; (i) Priority research and development agenda that maximizes opportunities created for pollution control, remediation, used water economics, and other industries that address threats; (i) Promotion of ocean literacy and social responsibility towards the protection of coastal and marine environments; (k) Enhancement of the capability of the relevant agencies to enforce laws, rules, and regulations to protect our marine wealth; (l) 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 marine protected areas (MPAs) 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 on marine litter and microplastics;

(0) Integration of Climate Change Adaptation and Mitigation (CCAM) strategies to help operationalize the country's Nationally Determined Contributions (NDC); and (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. CHAPTER IV OCEAN ACCOUNTING

Sec. 12. Ocean Accounting. - The PSA shall undertake environmental-economic

accounting of the ocean, maritime ecosystems, and resources, based on the United Nations System of Environmental-Economic Accounting and in accordance with Republic Act No. 11995, otherwise known as the "Philippine Ecosystem and Natural Capital 14 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. CHAPTER V DEVELOPMENT PLANNING

Sec. 13. Marine Spatial Planning. - The Council shall undertake a nationwide

Marine Spatial Planning (MSP) 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; rehabilitate dead zones or non- attainment areas, if any; reduce wastage and ensure efficiency in marine supply chains; preserve ecosystem services with the national MSP providing the guiding principles and overarching delineations, 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; and encourage and support the development of regional and local MSPs, 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.

Sec. 14. Blue Economic Zones. - Investment promotion agencies shall encourage

4 the establishment of blue economic zones (BEZs) and the transformation of existing special economic zones into BEZs. Registered business enterprises engaged in ocean- based or ocean related activities as listed under the Strategic Investment Priority Plan (SIPP) shall enjoy the privileges, benefits, advantages, or exemptions granted to economic zones and freeports in accordance with their respective special laws. Republic 9 Act No. 11534 or the "Corporate Recovery and Tax Incentives for Enterprises Act (CREATE)", and other applicable laws, rules, and regulations. In addition, registered business enterprises operating within BEZs may also qualify for financing under Republic Act No. 11293 or the "Philippine Innovation Act", as applicable.

Sec. 15. Promotion of Sustainable Livelihoods and Employment. - The Council

shall, in consultation with the Department of Labor and Employment (DOLE), the Department of Agriculture-BFAR, and other concerned agencies and stakeholders, 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 Republic Act No. 10771 or the "Philippine Green Jobs Act of 2016" CHAPTER VI BLUE FINANCE

Sec. 16. Role of the Bangko Sentral ng Pilipinas. - 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.

Sec. 17. Role of Securities and Exchange Commission. - The SEC shall encourage

the issuance of blue bonds, the proceeds of which will be exclusively applied to finance

or refinance, in part or in full, eligible blue Programs, Activities, and Projects (PAPs) in accordance with SEC 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 blue PAPs 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, 8 where feasible, quantified by the corporation that will issue the blue bonds. The eligibility of these blue PAPs shall be subject to the guidelines to be issued by the SEC.

Sec. 18. Role of Government Financial Institutions. - The Land Bank of the

Philippines and the Development Bank of the Philippines shall provide credit to enterprises engaged in strategic and sustainable ocean-based or ocean related activities. CHAPTER VII PROTECTION AND CONSERVATION OF COASTAL AND MARINE RESOURCES

Sec. 19. Protection of Endangered Species. - The Council shall monitor,

coordinate, and ensure the conservation, protection, and rehabilitation of rare, threatened, and endangered aquatic species as it may determine, including their habitats and migratory routes, in coordination with BFAR and in accordance with existing laws, rules, and regulations. It shall recommend to the President and Congress the designation of coastal and marine areas as protected areas under Republic Act No. 11038 or the "Expanded National Integrated Protected Areas System Act of 2018", or sanctuaries of local conservation areas under Republic Act No. 8550 or "The Philippine Fisheries Code of 1998" ", as amended, and Republic Act No. 7160 or the "Local Government Code of 1991", as amended, and in compliance with the relevant provisions of international treaties and agreements, such as the UNCLOS, the Convention on Biological Diversity, the Convention on the Conservation of Migratory Species of Wild Animals, and the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

Sec. 20. Policy Coordination. - The Council shall harmonize the rules and

regulations of all agencies responsible for the implementation and enforcement of laws

to prevent and eliminate illegal, unreported, and unregulated fishing under Republic Act No. 8550, as amended, setting strategic and measurable targets and ensuring the best use of technology such as vehicle monitoring system. Further, the Council shall act as the coordinating and monitoring arm of the government in ensuring other government agencies' compliance with these laws. CHAPTER VIII ROLE OF LOCAL GOVERNMENTS

Sec. 21. Role of Local Government Units (LGUs). - Cities and municipalities shall

9 continue to exercise jurisdiction over municipal waters, pursuant to Republic Act No. 7160, as amended, and Republic Act 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 Marine Spatial Plan in accordance with the National Maritime Spatial Plan, and integrate them in their Comprehensive Land Use Plan, Comprehensive Development Plan, and Annual Investment Plan, ICM or Coastal Resource Management Plan, Climate Change Action Plan, and Disaster Risk Reduction and Management Plan, and opportunities such as the National Sewage and Septage Management Plan and the funds under the Republic Act No. 9275 or the "Philippine Clean Water Act of 2004".

Sec. 22. Inter-LGU Cooperation. - Consistent with the provisions of Republic Act

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.

Sec. 23. Local Government Power to Undertake Reclamation. - Notwithstanding

the provisions of Presidential Decree No. 1899 and Republic Act No. 7160, as amended, there shall be a presumption against the power of the local governments to reclaim land from the foreshore, or oceans and coasts unless such reclamation is planned for the purposes as defined under Presidential Decree No. 1899. Such presumption can only be overturned if: (a) There is an overriding public need and the reclaimed land is not for private or exclusive development;

(b) The public need is cogent and convincing; (c) There is no other means to meet the public need, other alternatives having been analyzed in the Environmental Impact Assessment (EIA) as required under Presidential Decree No. 1151; (d) No private sale of lands is included unless it is to fund the project with an overriding public need and buyers are required to continuously and regularly pay to the municipality the ecosystem services from the marine ecosystem lost to the reclamation; and (e) Adjacent LUs express no objection to the project. SEC. 24. Ecosystem Services. - The LGUs that satisfy the acceptability requirements in the foregoing section 19 shall pass the necessary ordinances and cause the necessary annotations to the titles of all lands privately acquired to ensure collection of the payments required under Section 23(d) of this Act. CHAPTER IX FINAL PROVISIONS

Sec. 24. Joint Congressional Oversight Committee. - There shall be a Joint

Congressional Oversight Committee on Blue Economy (JCOC-BE). The President of the Senate and the Speaker of the House of Representatives shall designate five (5) Senators and five (5) Members of the House of Representatives, respectively, as members of the JCOC-BE: Provided, That the minority in the Senate and the House of Representatives shall each have at least one (1) seat in the JCOC-BE. The JCOC-BE shall be jointly chaired by the Chairpersons of the Senate Committee on Economic Affairs and the House Committee on Economic Affairs. The JCOC-BE shall conduct a semi-annual hearing to oversee, monitor, and evaluate the implementation of this Act and identify other necessary legislation.

Sec. 25. Appropriations. - The initial implementation of this Act shall be charged

against the current year's appropriations of the departments or agencies concerned. Thereafter, the amount necessary for its continued implementation shall be included in

the respective budgets of the concerned departments and agencies in the annual General 2 Appropriations Act.

Sec. 26. 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. 27. Construction. - In the implementation of this Act, any conflict with the

8 Republic Act No. 8550, as amended, shall be resolved in favor of the latter, to ensure the 9 ecological and environmental safeguards therein and with a presumption in favor of subsistence fisherfolk.

Sec. 28. 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. 29. Repealing Clause. - All laws, presidential decrees, executive orders, letters

of instruction, proclamations, or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly: Provided, that any inconsistency with Republic Act No. 8550, as amended, shall be construed in favor of the said law unless there is a cogent ecological rationale for resolving the inconsistency in favor of this Act.

Sec. 30. Effectivity. - This Act shall take effect fifteen (15) days following its

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