[{"bbox": [96, 153, 1133, 206], "category": "Text", "text": "support of CSO initiatives. In parallel, it will provide opportunities for EU businesses, experts, researchers and municipalities to partner with other ASEAN countries spearheading green transformation in the region."}, {"bbox": [96, 231, 1133, 551], "category": "Text", "text": "The action will build and expand on the results of the ongoing FPI regional project 'Reducing Plastic Waste and Marine Litter in East and South-East Asia - supporting a transition to a circular economy in the region' ²⁰ EU-funded with a EUR 1 million contribution from DE/BMZ. Other relevant regional programmes include SIDA's 'SEA Circular' project managed by UNEP, the DE/BMZ-funded ASEAN project 'Reduce, Reuse, Recycle to Protect the Marine Environment and Coral Reefs' and the UNDP 'Accelerating NDC through Circular Economy in Cities' project and pipeline future collaborations on circular economy projects that will foster recycling in Cebu City and other 11 localities in the Philippines. There are also opportunities for the proposed intervention to build on the EIB's current plans to expand its Clean Ocean Initiative (COI) to Asia, being implemented by the EIB in partnership with AFD, KfW, EBRD, the Italian National Promotional Institution and Financial Institution for Development Cooperation (Cassa Depositi e Prestiti - CDP), and ICO, the Spanish Promotional Bank. There will be coordination of the action with the ASEAN Team Europe Initiative EU-ASEAN Green Deal and dialogue with the E-READI facility and the EU-ASEAN Dialogue on Environment and Climate Change platform."}, {"bbox": [85, 611, 340, 642], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 663, 1135, 744], "category": "Text", "text": "The Philippines is struggling under the consequences of a linear economic model which produces large amounts of waste. The country generates about 2.7 million tons of plastic waste each year, and an estimated 20% ends up in the ocean. Below is a brief overview of some underlying challenges the country faces:"}, {"bbox": [96, 781, 1135, 862], "category": "Text", "text": "**There are unclear mandates, roles and limited budget:** Many actors and decision makers are not familiar with the economic value that circular economy can create. Additionally, the roles of all actors in the economic transition remain unclear with limited power and budgets."}, {"bbox": [96, 867, 1136, 1080], "category": "Text", "text": "**Responsibilities of actors not well implemented:** the private and public sectors' responsibilities have been implemented in an inefficient manner. When waste becomes municipal solid waste, it becomes responsibility of Local Government Units. However, waste has not yet been prioritised in LGU public budgets and/or spending targets to have an environmental system of collection, sorting, and treatment of plastic and waste, or to stimulate markets to innovate on materials with waste/plastic. For producers, an Extended Producer Responsibility is under preparation in the Philippines. There is a foreign ownership rule of 40/60 which hampers technology and knowledge transfer in an area that needs innovation. National governance also creates difficulties for formal businesses to get waste feedstocks."}, {"bbox": [96, 1086, 1136, 1246], "category": "Text", "text": "**Market failure:** there is an insufficient accounting for externalities, with the cost of plastic waste to the environment and society being more than 10 times higher than its market price paid by primary plastic producers. Sustainable market creation and innovation is still in early stages. There is a general lack of awareness about circular business opportunities and innovations, impeding the transition towards a circular economy. Although environmental education has been integrated into all subject areas, there is a lack of integrated policies and programmes that address green economy employment, green entrepreneurship, and social welfare."}, {"bbox": [96, 1251, 1136, 1543], "category": "Text", "text": "**Environmental & Climate Change dimension & Energy:** the environment and natural capital suffer the negative consequences of not having a proper waste management, poorly managed dumpsites, and pollution with harmful chemicals (Persistent Organic Pollutants). The presence of marine litter and microplastics on oceans and marine food chains and waste ending in the ocean, or land, contribute to the degradation of natural ecosystems. Given the country is prone to disasters, the Philippines has a high level of political and institutional awareness on disaster risk management, but technical expertise is limited. After disasters, significant waste is generated. In terms of climate change, plastic production releases greenhouse gas emissions contributing to global warming. In regard to energy, the circular economy is linked to renewable energy development and will become more important as renewable energy equipment (PV panels, inverters, and battery storage systems, electric vehicles etc.) reach end-of-life. To prevent pollution from heavy metals and toxins contained in the equipment, end-of-life renewable energy equipment requires appropriate collection, recycling, and disposal systems. However, there is a lack of"}, {"bbox": [85, 1622, 550, 1645], "category": "Footnote", "text": "²⁰ Partnership Instrument AAP 2018 Annex 1 (2018/041-560)"}, {"bbox": [1038, 1681, 1142, 1705], "category": "Page-footer", "text": "Page 7 of 31"}]