You are on page 1of 3

ISSUE MEMO

WHETHER PRECAUTIONARY PRINCIPLE SHOULD APPLY TO


THE GRANT OF PEOPLE’S SURVIVAL FUND (RA 10174) TO THE
LOCAL GOVERNMENT UNIT

WHAT IS PSF
The People’s Survival Fund (PSF) is a special fund in the National Treasury
for the financing of adaptation programs and projects based on the National
Strategic Framework.1 The law provides an annual budget of at least one billion
pesos (Php 1,000,000,000.00) for the purpose of funding the proposed prevention
and mitigation projects of the local government units (LGUs) and accredited civil
society organizations. As part of the guidelines in the accessed of funds, the LGU
must submit a letter of intent, project proposal with the attached any of the
following Local Climate Change Action Plan, Enhanced Climate Change
Adaptation (CCA) and Disaster Risk Reduction (DRR) Comprehensive Land Use
Plans (CLUPs) or Comprehensive Development Plans (CDPs), Risk and
Vulnerability Assessment, Climate and Disaster Risk Assessment, and Climate
Change Studies.2

INTENT OF PSF LAW


President Benigno Aquino III signed the RA 10174 into law on August 16,
2012. According to Senator Loren Legarda, Chair of Senate Committee on Climate
Change, "There is a pressing need to financially support disaster prevention efforts
of local government units. The President's approval of the PSF affirms our nation's
commitment to building communities' resilience to disasters." "The degradation of
our environment, coupled with the effects of climate change, such as heavy
monsoon rains, prolonged droughts, and other extreme weather events, places us
on a highly precarious position and endangers the lives of our citizens. The PSF
will help local governments' adaptation activities, such as in the areas of land and
water resources management, agriculture and fisheries, health, infrastructure
development, and natural ecosystems," Legarda added.3

PROBLEM
According to the Institute for Climate and Sustainable Cities,4 during the 7th
PSF Board meeting, of the 52 proposals, 46 were returned, only 2 were approved
and 4 were still at the pipeline. This only shows that LGUs experience difficulties
in accomplishing all the requirements and guidelines promulgated by the PSF
board. And even if the requirements are completed it has to undergo 3 stages
before approval of the board. As indicated in the PSF Checklist, the LGU has the
Issue Memo – PSF LAW, Page 1
burden of proof to show that their proposal will mitigate or adapt to the effects of
climate change. As such they must cite disaster or climate researches or studies
related to their proposal. Failure to do so will result in the return of their proposal
for content refinements or identification of new projects. To aggravate the
problem, majority of the LGUs do not know what PSF is or even if they were aware,
the requirements and its process prevent them from the access of the funds.

ISSUE
Since the LGU has to establish that there proposal will in effect adapt or
mitigate the effect of climate change being the purpose of the PSF Law, the main
issue is:
WHETHER OR NOT PRECAUTIONARY PRINCIPLE SHOULD APPLY IN THE
GRANT OF PEOPLE’S SURVIVAL FUND TO THE LOCAL GOVERNMENT UNIT.

RECOMMENDATION
The Precautionary Principle states that where there warnings of serious or
irreversible damage, lack of full scientific certainty shall not be used as a reason for
postponing cost-effective measures to prevent environmental degradation. 5
The PSF Technical Evaluation Committee must relax its rules and adopt the
precautionary principle to determine whether or not the proposed project has meet
the criteria which is adaptation and mitigation to climate change effects. The
constitutional right of the People to a balanced and healthful ecology shall be given
the benefit of the doubt.6
RA 10174 provides that the State adopts the principle of protecting the
climate system for the benefit of humankind, on the basis of climate justice or
common but differentiated responsibilities and the Precautionary Principle to
guide decision-making in climate risk management7 (emphasis supplied).
Climate risk management is always incorporated by the LGUs in the formulations
of their Disaster Risk Reduction and Management Plan or Climate Change
Adaptation Plan. Since the PSF Law adheres to the Precautionary Principle, it
should follow that the mere inclusion of the projects to the abovementioned LGU
plans is sufficient to warrant the release of PSF to the LGUs. By requiring the
proposals of the LGU to undergo screening or review of the PSF Secretariat, to PSF
Technical Evaluation Committee, to Climate Change Commission, then approval
by the PSF Board will cause delay or discouragement of the LGU in availing of such
funds considering that since its enactment to law in 2012, only a handful of LGUs
have passed the strict guidelines of the PSF Board.
The Philippines being a party to the Paris Agreement must make climate
finance flows consistent with a pathway towards low greenhouse gas emissions and

Issue Memo – PSF LAW, Page 2


climate resilient development.8 Financial resources should aim to achieve a
balance adaptation and mitigation, taking into account country-driven strategies
and prioritized needs especially those that are particularly vulnerable to the
adverse effects of climate change and have significant capacity constraints, such as
the least developed countries and small island developing States, considering the
need for public and grant – based resources for adaptation.9
The PSF Board by denying the LGUs of immediate and easy access due to
the requirements and process as evidenced by only few LGUs who benefited on the
said fund, the state is likewise not utilizing its climate finance as mandated by the
Paris Agreement.
Hence it is recommended that there is a need to revisit and
simplify the guidelines to enable the LGU for the immediate access of
the PSF.

FOOTNOTES

1. RA 10174 – An act establishing the People’s Survival Fund


2. PSF LGU Document Checklist
3. https://www.rappler.com/nation/11107-new-law-allots-p1-b-climate-
change-survival-fund
4. NGO Member of the PSF Board
5. Principle 15 of the Rio Declaration
6. Section 1, par. 2, Rule 20, Rules of Procedure for Environmental Cases
7. Section 2, RA 10174
8. Par. 1(c), Article 2, Paris Agreement
9. Par. 4, Article 9, Paris Agreement

Issue Memo – PSF LAW, Page 3

You might also like