Philippines Poverty Environment Initiative: Environment and Natural Resources Revenues and Benefits for Poverty Reduction and Environmental Sustainability

What is the project about?

minersMining and other extractive industries in the Philippines can be a source of development and revenues, but can also negatively impact the lives of local communities and cause conflicts if not managed properly and inclusively. (Photo: DENR Mines and Geosciences Bureau)

Poverty and environmental integrity are closely linked; people utilize environment and natural resources (ENR) to mitigate poverty but in doing so the resources are exploited that may aggravate poverty. The Philippine Poverty-Environment Initiative focuses on poverty reduction and sustainable development by integrating pro-poor agenda and environmental concerns into development planning and decision-making process. It aims at demonstrating that, if managed properly and sustainably, natural resources can propel the country to a path of an inclusive and sustainable development.

The PPEI operates at national and local levels, providing a better enabling environment for national and local government to ensure that ENR revenues are equitably shared by the communities and re-invested to preserve social and natural capital. It seeks to influence institutions, policies and investments to harness the potential of the country’s natural resources to achieve a greener and more inclusive development path.

Further, PPEI’s objectives are consistent with the government push for good governance as it is a clear and strong manifestation of transparency and accountability especially in the management of the country’s natural resources.

PPEI Phase 2 Development Agenda and Key Activities:
PPEI Phase 2 (CYs 2013-2015) upscales the results from Phase 1 (CYs 2011-2012) and focuses on improving the poverty benefits of large scale mining and limiting its environmental impacts; improve the regulatory aspects of small scale mining; encourage the switch of LGUs towards more environmentally friendly renewable energy sources; and full installation of the Extractive Industry Transparency Initiative (EITI). The PPEI Phase 2 has five outputs with the DILG and the DENR as implementing partners:

  1. Timely Release of Environment and Natural Resource Revenues to Local Government Units;
  2. Improved Utilization of Natural Resource Revenues for Social Services Delivery, Poverty Reduction and Environmental Sustainability through Mainstreaming Poverty-Environment Linkages in the Planning and Budgeting System of LGUs;
  3. Developed National and Local Government Capacities on Linking Poverty-Environment Concerns;
  4. Transparent Collection of Natural Resource Revenues Applied through the Introduction of the Extractive Industries Transparency Initiative (EITI); and
  5. Improved Regulatory Framework for Small Scale Mining for an Optimized Contribution to Sustainable Development.

Expected Results:
PPEI is critically designed to deliver Outcome 2 of United Nations Development Assistance Framework (UNDAF) which states that “More men and women will have decent and productive employment for sustainable, inclusive and greener growth”. It also helps to achieve the Millennium Development Goals 1 (Eradicate extreme poverty and hunger) and 7 (Ensure environmental sustainability).

By 2015, the following are the expected results of the project:

  1. Strengthened capacities of local communities including LGUs to access and manage assets and revenues from ENR for local economic development;
  2. Increased budget allocation and level of spending for poverty-environment measures in lead agencies, sectoral departments and LGUs;
  3. Improved capacity of LGUs to integrate pro-poor and environmental concerns into the design and implementation of local development plans and programs;
  4. More efficient processes on the distribution of National Wealth (NW) between national government and LGUs through policy reforms and systems improvement;
  5. Full public disclosure of ENR revenues collection and payment, and its utilization by LGUs;
  6. Increased number of people gaining employment and/or venturing into productive enterprises from sustainable management of ENR, especially from resource extraction activities such as mining, oil and gas, geothermal, etc., and
  7. More LGUs adopted green growth strategy through shift into renewable energy (RE) sources and clean development mechanisms (all LGUs with RE resources map and energy plans integrated in their Comprehensive Development Plan (CDP), and improved access of local communities to RE resources).

What have we accomplished so far?

The first phase of PPEI catalysed the effort of the Government of the Philippines (GoP) and the UN system programmes to achieve foundational outputs that serve as guide for continuing concrete actions to directly link ENR management to poverty reduction. Through the project’s research and activities, PPEI progresses significantly on providing policy support on the collection, distribution and utilization of revenues from ENR for poverty reduction and environmental sustainability. In 2012, several knowledge products (policy, manual, handbook, instrument, appraisal framework, baseline information, etc.) were produced.

The following are the key accomplishments of the project:

  • Reviewed existing procedures and practices on the computation and collection of ENR revenues and the release of the share of LGUs from National Wealth;
  • Reviewed budget allocation and spending for ENR concerns and advocated for increase resources for poverty alleviation and environmental protection;
  • Advocated for data-sharing and transparency in the collection, distribution and utilization of ENR revenues which led to the Philippines pronouncement to implement Extractive Industries Transparency Initiative (EITI);
  • Developed guidelines, tools and methodologies on mainstreaming poverty-environment linkages in LGU planning, programming and budgeting system, and
  • Conducted capacity building activities on P-E development linkage planning and management for LGUs, and valuation of mineral products for MGB personnel.


Donor name Amount contributed
UNDP USD 170,000.00
UNDP USD   70,000.00
UNEP (PEI Fund) USD   50,000.00


2012 USD  86,073.46

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