26-27 July 2018 | Novotel, Quezon City CLIMATE SMART INDUSTRIES AND SERVICES National Climate Change Action Plan Roundtable Discussion on Mainstreaming Urban Issues in the NCCAP and NDCs 26-27 July 2018 | Novotel, Quezon City

Adaptation Context Key Risks Issues Climatic Drivers Logistics Disruptions in the supply chain and distribution network (retail industry) Failure to meet contracts for delivery; loss of cargo (logistics companies) Physical assets and business premises Physical assets will be at risk of damage from extreme weather events or sea level rise. Competition over resources Competition over scarce resources can lead to conflicts and undermine a company’s “social license to operate” or the acceptance and approval of the communities in which they operate. Workforce Health and safety risks may increase where business operations are prone to extreme weather events. Loss of biodiversity Changing weather patterns and rising ocean temperatures are additional stressors threatening species vital to business operations. (According to World Risk Report 2011) As the third country most vulnerable to disasters, with a state of the economy described as “unsatisfactory and needs to be improved” and “falling short of its true potential”, a strategic orientation is required to ensure that the Philippines is able to address both issues in a manner that facilitates just transition of communities and enterprises and the labor force. After all, climate change is a development issue, as the impacts of climate change affect economic activity at varying degrees given the other drivers of the economy, as illustrated in the table below.

Adaptation Prospects Establish compliance mechanisms for business sector on DRR standards. Strengthen implementation of or reform existing laws on land-use and related laws such as building code for disaster-resilient industry and service sectors. Assess the level of DRR awareness and activities among the private sector and disseminate information, education and campaign (IEC) materials on DRR to ensure their support, participation and cooperation Develop and operate innovative financing schemes to secure sustainable financing for programs on climate change Design and implement DRR and CCA measures for mining companies. Areas suitable for mineral resources development shall be defined based on scientific information on climate change risks and vulnerability of ecosystems and communities. Develop synergy between small, medium and large-scale mining operations taking climate change and prudent mineral resources development into consideration.

Development Context Philippine Development Plan 2011-2016 Integrated Objectives Tree of the Plan Making the NCCAP compliant to National development plans

Development Context Chapter 9: Expanding Economic Opportunities in Industry and Services through Trabaho and Negosyo Chapter 14: Vigorously Advancing Science, Technology, and Innovation Chapter 20: Ensuring Ecological Integrity, Clean and Healthy Environment

Systems of Interest

Contribution to Adaptation Adaptive Capacity Adaptation Action Sustainable Development Increased economic opportunities in industries and services through development and promotion of climate-smart industries and services

Theory of Change Ultimate Outcome Successful transition towards climate-smart development Intermediate Outcome Climate-resilient, eco-efficient and environment-friendly industries and services developed, promoted and sustained Immediate Outcome CSIS promoted, developed and sustained Sustainable livelihood and jobs created from climate smart industries and services Green cities and municipalities developed, promoted and sustained Enabling policy and institutional environment for the emergence and viability of these climate-smart industries and services are created eco-efficient production by these sectors are adopted CC-focused knowledge and capability development programs are strengthened Climate-smart driven labor force supply-demand matching is implemented M&E system for green job creation and employment developed Innovative financing mechanisms for livelihoods and rural enterprises in CC vulnerable areas of the country are made available Public infrastructure are climate-proofed CC-adaptive housing and land use is implemented ecological waste management is fully implemented Intervention Fields Green Industries Green Jobs Green Cities and Municipalities

DATA GATHERED Employed Persons by Major Industry Group (figures in thousands) Sector 2012 2013 2014 2015 2016 Agriculture (Agriculture, Hunting and Forestry Fishing) 12,092 11,836 11,801 11,294 11,064 Industry Mining and Quarrying Manufacturing Electricity, Gas, Steam and Air Conditioning Supply Water Supply; Sewerage, Waste Management and Remediation Activities 5,742 5,936 6,166 6,275 7,159 Services Retail, Transport and storage, accommodation, information and communication, human health and social work, education, administrative and support services, other service activities. 19,764 20,345 20,682 21,172 22,775