LAWMAKERS are pushing for the passage of the proposed Blue Economy Act, a measure that mandates the establishment of an integrated and science-based framework for the protection, sustainable development, and management of the Philippines’ vast marine and coastal resources while creating long-term economic opportunities for future generations.
Majority Leader Sandro Marcos of Ilocos Norte, one of the principal authors, said the bill recognizes the country’s identity as a maritime nation, anchored on the constitutional definition of the Philippine archipelago and its internal waters.
‘The maritime character of the Philippine State underscores the integral role of our marine domain in upholding national sovereignty, asserting jurisdiction, promoting ecological security, and advancing sustainable economic development,’ Marcos said.
He noted that the Philippines, endowed with rich marine biodiversity and a strong maritime workforce, must now adopt a ‘coordinated, science-based, and future-resilient approach’ to address resource degradation, climate change, and geopolitical tensions.
The measure institutionalizes the Blue Economy as a national development agenda-anchored on sustainability, inclusivity, and intergenerational equity. It aims to consolidate all existing marine-related initiatives under one coherent framework that promotes a whole-of-nation approach to the management and preservation of the country’s maritime and coastal resources.
The measure adopts the version of the Blue Economy bill approved on third reading by the House of Representatives on December 7, 2023, with 254 affirmative votes during the 19th Congress.
Negros Occidental Rep. Javier Miguel Benitez, also an author, highlighted the Philippines’ immense potential as a blue economy, given that it is the world’s second-largest archipelagic state.
‘Our maritime domains, including our exclusive economic zone, have a total area of 2.2 million square kilometers and compose 88 percent of our national territory. Almost 60 percent of our people live in coastal communities-proof that the sea is central to our history, culture, and identity,’ Benitez said.
He cited the Philippines’ rich marine biodiversity, being at the heart of the Coral Triangle and home to the Verde Island Passage, which harbors nearly 60 percent of the world’s known fish species. The country is also among the top 11 fish-producing nations globally, according to the Food and Agriculture Organization.
Beyond fisheries, Benitez emphasized that maritime freight, marine energy, and coastal and marine tourism are also vital pillars of the country’s maritime economy, which generated $11.9 billion, or about 6.96 percent of GDP, in 2016 and employed around 2.2 million workers.
‘The challenge now is to transform our ocean-based industries into sustainable activities. In the face of growing threats from climate change, we need to act now to shift toward a low-carbon, blue economy,’ he said.
Benitez also called for the establishment of a marine and coastal resource accounting system to assign monetary value to the ocean’s ecosystem services, such as carbon sequestration and other natural processes, to better guide policy and management.
Support
THE Bangko Sentral (BSP) on Tuesday, meanwhile backed efforts to promote the country’s emerging ‘blue economy’ through sustainable finance but opposed proposals to impose mandatory loan quotas for banks to support small-scale fishers and ocean-based enterprises.
During the House Committee on Economic Affairs’ deliberation on several Blue Economy measures-House Bills 2250, 2480, 4791, 4855, and 5116-the BSP Deputy Director Cherryl Ofracia said it supports creating an enabling regulatory environment that promotes the ‘new economy’ in line with sustainable finance frameworks and international best practices.
‘The BSP shall provide an enabling regulatory environment to promote the development of the country’s new economy,’ Ofracia said, emphasizing that this approach aligns with the central bank’s sustainable finance policy and allows flexibility for government financial institutions (GFIs) like the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP).
Instead of mandating that a portion of LBP and DBP lending portfolios be dedicated to ocean-based projects, the BSP proposed that the measure simply encourage these banks to integrate sustainability principles into their lending programs and consider ocean-based enterprises as part of their strategic sectors for financing.
The central bank also noted that loans extended to strategic and sustainable ocean-based activities may already fall within the definition of sustainable finance under the mandatory agriculture, fisheries, and rural development (AFRD) financing law, and thus may serve as an eligible form of compliance.
Lawmakers raised the possibility of requiring financial institutions with agriculture loan portfolios to allocate a portion specifically for small-scale fishers.
However, the BSP maintained that credit decisions should be based on banks’ overall strategic direction and risk management, not quotas imposed by law.
The central bank instead proposed offering incentives to encourage private banks to finance blue economy projects, saying such loans could be recognized as alternative compliance with the Agri-Agra Reform Credit Act requirements.
The BSP also underscored the importance of integrating digital finance strategies within the blue economy framework.
‘Recent innovations in digital payments and financial technology offer significant potential to promote financial inclusion and expand access to funding sources,’ Ofracia said, adding that digitalization can help unlock scalable, sustainable financing solutions that advance both environmental and economic goals.
The BSP’s position came as other agencies-such as the Climate Change Commission (CCC), the Department of Agriculture (DA) through the Bureau of Fisheries and Aquatic Resources (Bfar), and the Department of Environment and Natural Resources (DENR)-expressed support for the passage of the Blue Economy bills.