Blue Economy in The Philippines: The Present and The Future

Introduction

ActionClima Pilipinas hosted an online learning session on the Blue Economy in The Philippines on April 21, 2025, in commemoration of Earth Day (April 22).
The session aimed to discuss the significance of the blue economy to the environment, economic development, social well-being, and national sustainable development of The Philippines.
The Philippines, as an archipelago with over 7,600 islands, has its identity closely linked to its oceans, coasts, and seas.
The blue economy approach requires addressing challenges related to climate and the environment involving all stakeholders.
The year 2025 is a critical year for ecological actions in The Philippines, marked by numerous policy milestones.

Speakers and Representatives

The session included speakers from government and non-government sectors.
Representatives from the Department of Environment and Natural Resources (DENR), Biodiversity Management Bureau (BMB), Ecosystems Research and Development Bureau (ERDB), and the Island Garden City of Samal were present.
Faith-based groups and NGOs working with local communities across The Philippines were also in attendance.

National State of the Oceans and Coast (NSOC) Report

Kim Cyrus Miranda from the Coastal and Marine Division of the Biodiversity Management Bureau (DENR-BMB) presented a preliminary preview of the National State of the Oceans and Coast (NSOC) report.
The team for the report: "Transitioning to Sustainable, Climate-Smart, and Inclusive Development through Blue Economy."
The data presented was not yet finalized and should not be quoted or used for official purposes until the final report is adopted in 2025.

Philippine Context

The Philippines has 7,641 islands and one of the longest coastlines in the world with approximately 37,000 kilometers.
It is at the apex of the Coral Triangle region and is one of the 36 biodiversity hotspots globally.
82% of its exclusive economic zone is water, emphasizing the need for conservation efforts.

Timeline for NSOC Report Development

The development and updating of the NSOC report are part of the Sustainable Development Strategy for the Seas of East Asia (SDS-SEA) implementation.
The report is updated regularly every five years with assistance from the UNTP and PEMC resource facility.
The Biodiversity Management Bureau through the Coastal and Marine Division and the DENR, foreign assisted and special projects are leading the development of the report.
National technical working groups were formalized in November 2023, including representatives from various national government agencies (e.g., BFR, PSA, DOF, DFA, NEDA) and other stakeholders.
A final national technical working group workshop presented the second draft of the report in July, with participation from governmental and non-governmental organizations.
The Philippine ENSOC report is expected to be launched in 2025.

Definition of Blue Economy

Blue Economy is defined as a practical ocean-based economy model that uses green infrastructure and technologies, innovative financing mechanisms, and proactive institutional arrangements.
The Changwon Declaration in 2032 led to the adoption of the five-year SDSC implementation plan, embracing the blue economy paradigm with Integrated Coastal Management (ICM) as the management framework.
The framework involves environmentally sound and innovative infrastructure, technologies, and practices, and includes specific actions on climate change, disaster risk reduction, biodiversity conservation, water quality protection, food security, and investments in green industry technology and practices.

Key Areas of the ENSOC Report

Highlights blue economy developments, biodiversity protection, pollution reduction, circular economy, and climate transition initiatives in The Philippines from 2019 to 2024.
The report updates the 2018 report and provides information on the ocean, socioeconomic, and natural features of the country, including the status of the ocean economy and health, pressures, challenges, responses, and governance measures.

Ocean Wealth: Ecosystems and Capital

Blue ecosystems include mangroves (311,400 hectares as of 2020), seagrass (less than 500,000 hectares), coral reefs (1,200,000 hectares), and mudflats (approximately 200 hectares).
The Blue Carbon program aims to enhance the conservation and management of blue carbon ecosystems.
In 2022, the gross value added of ocean industries was $857,000,000,000$ , contributing 3.9% of the GDP and providing jobs to $2,220,000$ people (4.7% of total employment).
More than $578,000$ overseas sea-based Filipino workers contributed $6,850,000,000$ in remittances to the gross national income in 2023.
Human and social capital in the ocean economy include education, skills, experience, health, and maritime cultural heritage.

State of the Blue Economy in The Philippines

Coastal and marine tourism employs over 900,000 people.
Fisheries and aquaculture contribute approximately $215,000,000,000$ pesos in gross value added.
Sea-based transportation contributes approximately $125,000,000,000$ pesos.
Emerging industries include marine biotechnology (research on medicinal properties of marine resources), green ports and ships, and marine-related services.

Economic Costs of Natural Hazards and Climate Change

From 1990 to 2006, the estimated cost of damages to agriculture and fisheries averaged 12.43 billion pesos annually.
70.3% of the damages were caused by typhoons, 17.9% by droughts, and 5% by floods.
Extreme weather events impair the ability of fisheries to operate, reducing fishing days and threatening livelihoods and food security.
CRED recorded 186 significant natural disasters in The Philippines from 2017 to 2016, causing approximately 16,000 deaths, 168,000 injuries, and affecting over 100 million individuals, with socioeconomic damages estimated at $19,160,000,000$ USD.
The Philippines could lose 6% of its GDP every year if it disregards climate change risks.
Investing in climate change mitigation measures by 2020 could reduce losses by up to 4% by 2025.

Transitionary Initiatives and Programs for Blue Economy

Coastal and Ocean Governance: Integrated Coastal Management (ICM), Philippine Ecosystem and Natural Capital Accounting (PENCAS), and maritime zones.
ICM is being mainstreamed into local governments' land use and development plans.
The signing of the Philippine Ecosystem and Natural Capital Accounting Act supports the ocean accounting system.
Habitat Restoration, Protection, and Management: Aiming to conserve 15.9% (3.525 million hectares) of marine areas by 2040, as reflected in the Philippine biodiversity strategy and action plan.
Marine protected areas currently cover 1.6% of the total sea area.
Restored 76,505 hectares of mangrove areas through the national greening program.
Watershed, Wastewater, and Solid Waste Management: Includes the national sewerage management program and the Extended Producer Responsibility (EPR) Act.
Developing a policy on marine litter management and reduction.
Climate Change Adaptation: Nature-based solutions, climate-proofing development projects, green ports, sustainable shipping, and sustainable tourism.
Capacity building for DNR personnel on climate change planning for the coastal and marine environment.
Sustainable Fisheries and Aquaculture, Food Security, and Livelihood: Closed and open seasons for sardines and small pelagic fishes, MPAs and fish sanctuaries, community fish landing centers, and provision of alternative livelihoods for fisherfolk.
Ocean and Climate Financing: Blue bonds, sustainability bonds, catastrophe bonds, climate risk insurances, people survival fund, and climate change expenditure targeting.
Marine Renewable Energy: Awarded contracts for offshore wind energy, wind farms becoming tourist attractions, ocean energy contracts with a potential capacity of 34 million megawatts, and floating solar energy contracts with a potential capacity of 4,843 megawatts.

Ten Action Agenda for Blue Economy Drivers

Archaeological perspective and new economic opportunities.
Climate change mitigation through decarbonization and innovative technologies.
Improving fisheries and aquaculture using the Ecosystem Approach to Fisheries Management (EAFM).
Advancing connectivity and trade through green ports, shipping, and digitalization.
Reducing pollution and threats to human and ocean health.
Creating nature-based solutions, livelihood capacity building, and equitable access to financing.
Driving innovations, research, and application of ocean science and frontier technologies.
Promoting gender equality and social inclusion.
Focusing on ocean environments through the DNR's ocean environment task force.
Taking forward sustainable ocean financing mechanisms.

Oceana Philippines on Blue Economy

Oceana is the largest international advocacy organization focused on ocean conservation.
The Philippines' maritime domain is critical, with its land area being one-third of its maritime waters.
Municipal waters are diverse and provide livelihoods and food to millions.
The blue economy is defined as the sustainable use of ocean resources for economic growth, livelihoods, and ecosystem health.
A healthy ocean supports livelihoods, communities, and economies.
The ocean economy is valued at $24 trillion, comparable to the world's seventh largest economy.
Approximately 3 billion people depend on the ocean for their livelihoods and ocean-based industries are valued at $3 trillion annually.

Challenges and Opportunities

Rapid degradation of marine biodiversity due to overfishing, pollution, climate change, and habitat loss.
Key marine species face a high risk of extinction.
Current discussions on blue economy often ignore food security, human rights, and artisanal fishers.
Blue bonds can raise funds for ocean-friendly projects benefiting small-scale fishers.
Tools for environmental conservation include debt-for-nature swaps and blue carbon initiatives.
Critical ecosystems such as mangroves, tidal marshes, and seagrasses are essential for climate change mitigation.

Blue Economy Act

Seeks to establish a national framework for green economy development, ensure conservation and restoration of coastal and marine resources, promote inclusivity, address climate change impacts through nature-based solutions, and integrate science and traditional knowledge.
Identifies ocean-based economic activities such as fisheries, aquaculture, marine and coastal tourism, environmentally appropriate reclamation, shipping, and renewable energy production.
Extractive industries are still included as ocean-based economic activities.

Key Components of the Act

Blue Economy Framework: ICM serves as a management pillar.
National Blue Economy Council: Aimed at policy making and implementation.
Sustainable Livelihoods: Emphasis on sustainability and resource protection.
Ocean Accounting: Focuses on accounting for ocean resources.
Integrated Marine and Coastal Area Management: Serves as a management framework.
Development Planning: Integration of Blue Economy into national and local development plans.
Blue Financing: Raises resources for sustainable management.
Marine Biodiversity Conservation: Focuses on protection and conservation.
Blue Carbon Ecosystems: Integrates blue carbon ecosystems like mangroves.
Research and Innovation: Supports related activities.
Ocean Literacy: Emphasizes broad knowledge.
Local Governance: Highlights community participation.

Concerns and Discussions

The champion of the Blue Economy bill is Senator Legarda.
Concerns exist regarding the dilution of the bill due to the inclusion of extractive industries.
The bill is currently under discussion at the bicameral committee level.

Opportunities for Civil Society

Influence discussions around blue economy.
Active participation in consultations.
Provide expert technical support and coordinate with the government.
Identify potentials for co-management and community-based blue economy initiatives.
Advocate for transparency, equity, and accountability.

Role of Blue Carbon in Climate and Environmental Action in The Philippines (Conservation International)

Blue carbon refers to carbon sequestered in the ocean, particularly by mangroves, seagrasses, and salt marshes.
These ecosystems have a high rate of carbon sequestration, adaptation, biodiversity, and livelihood benefits, but they face high rates of loss and degradation.

Benefits of Blue Carbon Ecosystems

Mapping of recoverable carbon ecosystems shows that many of the ecosystems in The Philippines are blue carbon.
These ecosystems overlap with high biodiversity areas.
Opportunities include the inclusion of these ecosystems in climate and biodiversity commitments.
Mangroves and seagrass offer coastal protection and livelihoods for coastal communities besides, providing opportunities for nature-based solutions for coastal resilience.

Challenges for Blue Carbon Ecosystems

Coastal development (e.g., reclamation) threatens blue carbon ecosystem areas.
Legal and tenure overlaps exist, particularly with abandoned fishponds (AUUs).
There needs capacity to map and assess the full extent of all blue carbon ecosystems.
Addressing the underlying issues regarding the needs of coastal communities who are the primary stewards is a very important part of the move forward.

Blue Carbon Projects Considerations

High-Quality Blue Carbon Principles and Guidance have been developed.
The projects should have outcomes with high fidelity, integrity, and resilience.
Provide pathways for communities to equitably participate and benefit from the carbon market.
Safeguard nature, empower people, use the best information, and intervention methods, operate locally, and mobilize high integrity capital.

High-Quality Blue Carbon Principles

Safeguard Nature: Achieve ecosystem and nature-based outcomes.
Empower People: Integrate community rights and livelihoods.
Best Practices: Use the best available scientific knowledge.
Local Operations: Consider local contexts.
Mobilize Capital: Capital should be sourced from organizations/investors seeking climate and nature solutions.

Non-Carbon Market Approaches to Finance Ecosystems

Many mangrove or seagrass projects do not fit into the traditional carbon market framework.
The spectrum of benefits has to expand not only to climate, but also to the general livelihood of the stewards.
Developing guidance on non-carbon market approaches, to finance ecosystems is important.

Philippines National Blue Carbon Action Partnership (ZSL)

A collaborative, global effort led by the World Economic Forum, Ocean Action Agenda, and funded by the UK government.
Brings together stakeholders from different sectors to address challenges in the conservation and restoration of blue carbon ecosystems.
The Zoological Society of London (ZSL) Philippines serves as the secretariat; the project is led by the Department of Environment and Natural Resources.
The goal is to bring together efforts and developments in science policy and funding to scale blue carbon ecosystems.

Goal

Advance conversations within partners to facilitate the growth of equitable growth of high quality conservation and restoration
Support the creation of localized strategies and open up means for financing of the blue carbon ecosystems.

Philippine NBCAP Milestones

Establishment and convening of Philippines NBCAP leadership steering committee and technical working group (scientists, etc.)
Develop relevant road map through identified policy collabs and investment needs
Implement road map with expertise with global BCAP partners

Action Road Map Outline

Vision: a strategic framework
Have a vision to achieve through
Legal Policy Developments:
Ensure sustainable finance program.
Address needs of local communities

Open Forum

Topics: Offshore wind, community development, government funding etc.