(RECORDED MESSAGE)
DENR ENVI AGENDA; COP 27; HOW BUSINESS CAN RESHAPE ECONOMIES TO BE RESILIENT AND SUSTAINABLE

GOOD AFTERNOON AND WARM CONGRATULATIONS TO THE ENTIRE LOPEZ GROUP FOR HOLDING THIS YEAR’S LOPEZ LEARNING SYNERGY SUMMIT ON “THE GREAT RESET: SHAPING THE WAY TO A NEW FUTURE”.

IT IS AN HONOR TO BE INVITED TO SHARE THE DENR’S THOUGHTS ON HOW WE AT THE DEPARTMENT ARE WORKING TO RECAST OUR OWN ROLES, BASED NOT JUST ON OUR COUNTRY’S AND WORLD’S HISTORY OF RISK AND OPPRTUNITIY AS WE HAVE KNOWN IT, BUT ON OUR PLAUSIBLE FUTURE IN LIGHT OF THE INTERCONNECTEDNESS OF OUR SYSTEMS AND EXISTENTIAL CHALLENGES COMING FROM CLIMATE CHANGE.

WHILE THERE ARE NEW RISKS EMERGING, THERE ARE ALSO NEW WAYS OF WORKING TOGETHER. LET ME BEGIN BY SAYING THAT WHILE THE CHALLENGE TO KEEP 1.5 DEGREES ALIVE GROWS LARGER, THERE IS CONSENSUS THAT EVERY FRACTION OF A DEGREE COUNTS EVEN IF THE LIKELIHOOD IS HIGH THAT WE WILL MISS WHAT WE PROMISED TO DO BY 2030. SHARED VALUES, SYNERGY, COMMITMENT, AND COLLABORATION SHOULD BE OUR URGENT PRIORITIES AND THIS SUMS UP MY MESSAGE TODAY.

ALLOW ME TO START WITH OUR MAIN TAKEAWAYS FROM COP 27 IN EGYPT WHICH WILL CONTINUE TO EVOLVE IN CRITICAL WAYS AS WE SPEAK. IN A NUTSHELL:
WE STARTED OUT WITH A UNEP REPORT THAT SAID WE WERE WAY OFF FROM THE 1.5 DEGREE COMMITMENT IN PARIS. GLOBAL EMISSIONS NEED TO BE CUT BY 30-45% BY 2030 OR WE ARE NOW ON THE ROAD MOST LIKELY TO 2.8 DEGREES. UNITED NATIONS SECRETARY GENERAL ANTONIO GUTERRES SAID HIMSELF AT THE OPENING SUMMIT, “WE ARE ON A HIGHWAY TO CLIMATE HELL WITH OUR FOOT ON THE ACCELERATOR.”

IN A HISTORIC FIRST, LOSS AND DAMAGE WAS FINALLY PLACED ON THE AGENDA THROUGH THE EFFORTS OF THE G77, COP HOSTS, AND THE UNFCCC. THE PHILIPPINES PLAYED CRUCIAL ROLES IN ENSURING THAT IT WAS INCLUDED ON THE AGENDA FOR COP 27.

A LOSS AND DAMAGE FUND WAS AGREED TO 36 HOURS AFTER THE ORIGINAL CLOSING DEADLINE. HOWEVER, IT DID NOT COME WITHOUT A PRICE. THERE WAS NO AGREEMENT ON THE PHASE DOWN OF FOSSIL FUELS AND THIS CONTINUES TO BE A CRITICAL WEAKNESS AND THREAT TO OUR CLIMATE FUTURE.

IT IS WORTH NOTING THAT 8% OF THE 5 TRILLION BUDGET IS CLIMATE-TAGGED, HOWEVER, THERE IS MORE TO BE DONE.

THE PRIVATE SECTOR HAS EMERGED AS A CRITICAL ACTOR IN BRIDGING THE COST OF FINANCING CLIMATE ACTION. THIS IS ESPECIALLY TRUE FOR ENERGY TRANSITION AND THE JUST TRANSITION OF LABOR TOWARD NET ZERO. ENERGY TRANSTION COSTS ARE ESTIMATED TO BE IN TRILLIONS FOR SOME COUNTRIES AND SECTORS. STRATEGICALLY, BLOOMBERG PHILANTHROPIES AND THE UN SUSTAINABLE ENERGY TEAM HAVE INVITED THE PHILIPPINES TO BE ONE OF THREE COUNTRIES THAT WILL APPLY A METHOD OF CALCULATING THE COST OF ENERGY TRANSITION TO NET ZERO BY 2050. PRIVATE BANKS WERE THERE IN FULL FORCE.

THE ISSUE OF JUST TRANSITION OF LABOR WAS HIGHLIGHTED SPECIFICALLY FOR THE MARITIME INDUSTRY WHICH IS THE BACKBONE OF GLOBAL TRADE – IN FACT, 90% OF ALL TRADE IS OCEAN-BASED. THE PHILIPPINES WAS SINGLED OUT BECAUSE AT 26% OF THE TOTAL WORK FORCE, WE ARE THE LARGEST SOURCE OF MARITIME PROFESSIONALS GLOBALLY. OVER 1 MILLION SEAFARERS CARRY CERTIFIED SEAMAN’S BOOKS AND OVER 400,000 OF THEM ARE AT SEA AT ANY GIVEN TIME. GLOBAL SHIPPING GENERATES 3% OF GHGS ANNUALLY AND THE SECTOR IS MOVING TOWARDS NET ZERO BY 2050 THROUGH SHIFTS TOWARDS VESSEL TECHNOLOGIES USING GREEN HYDROGEN AND GREEN AMMONIA BETWEEN 2030 AND 2040. THERE IS AN URGENT NEED TO BEGIN RESKILLING AND UPSKILLING WORKERS TODAY TO MITIGATE AND, HOPEFULLY, AVOID DISPLACEMENT AND THE CASCADING IMPACTS ON GLOBAL TRADE.

FINANCING CLIMATE ACTION CONTINUES TO BE A SLOW AND INCREMENTAL PROCESS. THERE WAS MORE MONEY PLEDGED TO ADAPTATION, BUT THE FLOOR AMOUNT OF 100 BILLION US DOLLARS A YEAR PROMISED BY DEVELOPED COUTRIES IN 2020 TO DEVELOPING COUNTRIES REMAINS UNFULFILLED. AS WE AWAIT THIS, THERE ARE DISCUSSIONS ON THE NEW COMMON QUANITIFIED GOAL POST-2025. MANY DEVELOPING COUNTRIES EMPHASIZED THAT ITS BASIS MUST BE DETERMINED BY A COUNTRY’S RISK AND THAT ACCESSING FINANCING SHOULD NOT ADD TO SOVEREIGN DEBT BURDEN.

NATURE-BASED SOLUTIONS TO ADAPTATION, MITIGATION, AND DISASTER RISK REDUCTION NEEDS TO GAIN REAL TRACTION AND GLOBAL RECOGNITION. THE WORLD BANK PROVIDES ESTIMATES INDICATING THAT UP TO 37% OF MITIGATION NEEDS TO REACH 2030 TARGETS CAN BE ACHIEVED THROUGH NBS. WE ARE FAMILIAR WITH THE ECOSYSTEM SERVICES THAT PROVIDE DISASTER RISK REDUCTION AND ADAPTATION OPPRTUNITIES. COP 27 SAW NEW INITIATIVES SUCH AS THE POSITIVE CONSERVATION PARTNERSHIPS LED BY FRANCE, WHICH IS WITHIN THE FRAMEWORK OF THE HIGH AMBITION COALITION FOR NATURE AND PEOPLE. THE GLOBAL ENVIRONMENT FUND IS LAUNCHING A HIGH-LEVEL GROUP TO STUDY THE POSSIBILITY OF A BIODIVERSITY CREDITS MARKET.

A KEY ISSUE RAISED BY THE US IS THE COST OF TECHNOLOGY-BASED CARBON CAPTURE VERSUS THE COST OF NATURE-BASED SEQUESTRATION THROUGH CONSERVATION.

WITH THIS AS A CURRENT BACKDROP, WE RECALL THAT AFTER YEARS OF BEING WITHIN THE TOP 5 ON ALMOST EVERY LIST OF COUNTRIES MOST AT RISK TO THE IMPACTS OF CLIMATE CHANGE AND NATURAL HAZARDS, WE ARE NOW NUMBER 1 ON THE 2022 WORLD RISK INDEX. THE COMPOUNDED EFFECTS OF HAZARDS, EXPOSURE, AND VULNERABILITY ARE AS MUCH A RESULT OF THE ACCIDENT OF OUR GEOGRAPHY AS THEY ARE OF OUR DEVELOPMENT TRAJECTORY CHARACTERIZED BY DECADES OF UNREGULATED URBANIZATION, INEQUITIES IN SOCIAL SERVICES AND SOCIAL PROTECTION, AND THE DISREGARD FOR THE WAYS BY WHICH OUR ECOSYSTEMS SUPPORT OUR COMMUNITIES.

OUR PRESIDENT HAS SAID THAT “THE PRESERVATION OF THE ENVIRONMENT IS THE PRESERVATION OF LIFE”. THIS PRECISELY UNDERSCORES THE VALUE OF OUR ECOSYSTEMS AS OUR NATURAL LIFE SUPPORT AND HOW INTEGRATED RISK GOVERNANCE NEEDS TO BE NOT JUST A WHOLE OF GOVERNMENT ENDEAVOR, BUT A WHOLE OF SOCIETY ONE. AND IT ALSO HAS SET THE TONE FOR THE DENR’S MISSION MOVING FORWARD.

WE COLLECTIVELY, THEREFORE, ALL HAVE A STEWARDSHIP ROLE IN TERMS OF PROTECTING OUR ENVIRONMENT AND NATURAL RESOURCES TO ENSURE INCLUSIVE AND CLIMATE AND DISASTER RESILIENT DEVELOPMENT.

WHEN I FIRST ASSUMED THIS ROLE, I ENJOINED EVERYONE IN THE DEPARTMENT TO BECOME PART OF A MISSION THAT REPRESENTS: AN ETHICAL STEWARDSHIP THAT WORKS ACROSS SILOS, TO UPHOLD SHARED ENVIRONMENTAL VALUES, AND DELIVER PUBLIC SERVICE BASED ON SCIENTIFIC AND TECHNICAL EXCELLENCE. I CONTEND THAT THIS ALSO HOLDS TRUE FOR OUR PARTNERS IN THE PRIVATE SECTOR AND CIVIL SOCIETY – AND TODAY, I ASK FOR YOUR SUPPORT AS WE WORK TOGETHER TO ACHIEVE OUR GOALS.

WE NEED TO CONFRONT THE CLIMATE EMERGENCY THROUGH COMPREHENSIVE RISK MANAGEMENT THAT EMPHASIZES EVIDENCE-INFORMED PREVENTION AND PRE-DISASTER RECOVERY PLANNING OVER EMERGENCY RESPONSE.

MOREOVER, LESSONS UNLEARNED FROM TENS OF THOUSANDS OF LIVES AND NUMEROUS LIVELIHOODS LOST FROM PAST DISASTERS NEED TO BE MADE PART OF OUR SURVIVAL DNA. TO DO THIS, WE NEED TO UNDERSTAND THAT OUR ENVIRONMENT IS SHAPED BY OUR CULTURE AND MINDSETS, AND NOT JUST OUR ECONOMY – IN ORDER TO CHART THE COURSE TOWARDS RESILIENT AND SUSTAINABLE DEVELOPMENT.

FOR ALL OF YOU IN THE LOPEZ GROUP, YOU ARE EXTREMELY FORTUNATE TO HAVE HAD GENERATIONS OF LEADERS WHO HAVE INVESTED IN THIS. I KNOW FIRST-HAND HOW OML’S ENERGY AND THE SUCCESSIVE GENERATIONS HAVE INVESTED IN THIS VISION. YOU ALSO FULLY UNDERSTAND THAT THE LAST MILE – OUR COMMUNITIES AND ECOSYSTEMS THAT SUPPORT THEM – NEED TO BE THE FIRST MILE IN TERMS OF INVESTMENT AND IN TERMS OF RISK COMMUNICATION, IMPACT-BASED EARLY WARNING, AND ENVIRONMENTAL PROTECTION.

AT THE DENR, WE ARE ADVANCING THE MINDSET THAT WE LIVE IN A MULTI-HAZARD ENVIRONMENT AND AN INTERCONNECTED WORLD. SINCE THE RISKS WE FACE ARE COMPLEX, DYNAMIC, AND SYSTEMIC, THESE COMPOUND AND CASCADE ACROSS SECTORS AND SCALES.

THE INTERVENTIONS WE NEED TO DESIGN TO CONFRONT THIS COMPLEXITY MUST THEREFORE BE TRANSDISCIPLINAL, TIME-SENSITIVE, AND SPATIALLY-TARGETED – IN ORDER FOR THEM TO BE TRANSFORMATIONAL.

THE FOLLOWING IS A PERSPECTIVE I HAVE SHARED WITH MANY PARTNERS IN THE PRVATE SECTOR, CIVIL SOCIETY, ACADEME, AND OUR POLITICAL LEADERSHIP:

IN OUR VIEW, TRANSFORMATION FOR RESILIENCE NEEDS TO INVOLVE THE FOLLOWING:

THE ESTABLISHMENT OF A NATIONAL RISK RESGISTRY. THIS WILL ENTAIL A MULTISTAKEHOLDER HORIZON SCANNING EXERCISE TO ENSURE WE HAVE A SHARED UNDERSTANDING OF RISKS TO CLIMATE-RELATED AS WELL AS OTHER HAZARDS, AND THEN WE MUST FRAME AND PRIORITIZE OUR INVESTMENTS.

SECONDLY, A NATIONAL NATURAL RESOURCE GEOSPATIAL DATABASE MUST BE CREATED. WE NEED BASELINE INVENTORIES AND VALUATIONS OF WHAT THE NATURAL RESOURCES WE ARE WORKING WITH AS BOTH STOCK AND FLOW. WE HAVE STARTED THIS PROCESS INTERNALLY BUT WE WILL NEED YOUR SUPPORT TO POPULATE AND VALIDATE DATA.

RELATED TO THIS, WE NEED TO UNDERSTAND THE HUMAN, SCIENTIFIC AND TECHNOLOGICAL RESOURCES NEEDED TO RESPONSIBLY USE THESE RESOURCES TODAY FOR SUCCEEDING GENERATIONS TO NOT ONLY SURVIVE, BUT THRIVE GIVEN THE UNCERTAIN FUTURE.

THE THIRD STEP WOULD THEN BE TO INTERSECT ONE AND TWO AS THE BASIS FOR SCENARIO-BASED PLANNING AND THE DEVELOPMENT OF STRATEGIES, LAWS, POLICIES, AND ACTIONS TO RESPOND TO THESE. IN THIS CONTEXT, THE DENR HAS COMMITTED TO REVIEW OUR ENVIRONMENTAL LAWS, SOME OF WHICH ARE 20 YEARS OLD, AND THEIR ATTENDANT POLICIES AND PROGRAMS.

ON THE PART OF THE PRIVATE SECTOR, WE ARE COMMITTED TO WORKING WITH YOU AS YOU CONTINUOUSLY ADOPT CLIMATE AND DISASTER RESILIENCE INTO YOUR CORE BUSINESS CYCLES. THIS IS ALREADY MAINSTREAMED WITHIN THE LOPEZ GROUP AND THIS FORUM IS JUST ONE OF THE PROOFS OF THIS.

YOUR INVESTMENT STRATEGIES, ENTERPRISE RISK MANAGEMENT, AND INTEGRATED ESG PROGRAMS HAVE ALL BEEN CAREFULLY SYNERGIZED TO ACHIEVE UNITY OF PURPOSE. THE DENR’S ROLE WOULD BE TO CONTINUE TO SUPPORT AREA-BASED APPROACHES TO RISK PREVENTION, PREPAREDNESS, RESPONSE, AND RECOVERY THAT GOES BEYOND COMPANY FENCELINES. WE ALSO HOPE TO WORK WITH YOU ON INNOVATIVE APPROACHES SUCH AS THE ADOPTION OF SPATIAL FINANCE AND SEEK YOUR SUPPORT, NOT JUST FOR GOALS OF THE TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES, BUT ALSO FOR THE EMERGING WORK OF THE TASK FORCE ON NATURE-RELATED FINANCIAL DISCLOSURES.

FIFTH, WHICH I BELIEVE TO BE AMONG THE CLOSEST TO YOUR CHAIRMAN’S HEART IS, THE NEED TO PRIORITIZE AND ACCELERATE THE ADOPTION OF NATURE-BASED SOLUTIONS THAT RESULT IN CO-BENEFITS TO CLIMATE ACTION. TERRESTIAL FORESTS, WETLANDS, MANGROVES, AND SEA GRASS PROVIDE FOOD, WATER AND ENERGY SECURITY, FLOOD MANAGEMENT, SOIL EROSION CONTROL, STORM SURGE PROTECTION, BIODIVERSITY PROTECTION, AND SUPPORT FOR HABITATS SUITABLE FOR HUMAN SETTLEMENT. WE ARE SLOWLY BUILDING TEAMS WHO ARE TRANSDISCIPLINAL AND ABLE TO TRANSLATE SCIENCE INTO POLICY AND PRACTICE.

WE NEED TO WORK TOGETHER TO INVEST IN EDUCATION, TRAINING, AND CAPACITY BUILDING IN ORDER TO DEVELOP, UPSKILL, AND RESKILL A WORK FORCE ABLE TO COMPETE IN A COMPLEX AND DIGITALLY-INTECONNECTED WORLD.

LASTLY, WE NEED TO BUILD GEO-STRATEGIC AWARENESS OF REGIONAL AND GLOBAL FACTORS THAT WILL REDUCE OUR RANGE OF ADAPTATION, MITIGATION, AND DISASTER RISK REDUCTION OPTIONS. WE HAVE ALL WITNESSED HOW THE WAR IN UKRAINE HAS HAD CASCADING EFFECTS ON FOOD AND ENERGY PRICES; DROUGHTS IN TAIWAN THREATENED SEMICONDUCTOR SUPPLY WHICH IN TURN THREATENS MANY INDUSTRIAL AND DIGITAL PROCESSES; FLOODS IN THAILAND HAVE INTERRUPTED SUPPLY CHAINS OF THE AUTOMOBILE INDUSTRY. THESE HAVE IMPACTS ON ENERGY SECURITY, ENERGY TRANSITION PATHWAYS TO LOW-CARBON FUTURES, AND DEFENSE CAPABILITIES.

TO ADDRESS THESE CHALLENGES AND RESPOND EFFECTIVELY TO VOLATILITY AND UNCERTAINTY, THE DENR HAS EMBARKED ON A CONSULTATIVE PROCESS THAT LOOKS BEYOND STRATEGIC ENGAGEMENT IN ORDER TO JOINTLY ACHIEVE SHARED SOCIO-ECOLOGICAL VALUES AND IMPACTS.

YOUR CHAIRMAN JOINED US ON OUR FIRST MAJOR ACTIVITY – A MULTISTAKEHOLDER CONFERENCE. IT WAS DESIGNED SPECIFICALLY FOR US TO SIMPLY LISTEN, PROCESS, CALIBRATE, AND REDIRECT OUR WAY AHEAD AS A DEPARTMENT.

AS A DEPARTMENT WE ARE FACED WTH A SEEMINGLY CONFLICTED DUAL MANDATE – THE PROTECTION AND ENHANCEMENT OF OUR NATURAL RESOURCES AND THEIR OPTIMIZATION FOR ECONOMIC DEVELOPMENT THROUGH EXTRACTION.

THIS NECESSARILY MEANS THAT OUR RELATIONSHIPS SPAN THE SPECTRUM FROM PARTNER OR ENABLER TO REGULATOR AND THE REGULATED.

THE DICHOTOMY IS MORE APPARENT THAN REAL. THE CRITICAL ISSUE OF OUR TIME IS HOW WE MAY SURVIVE AND THRIVE IN THE FACE OF MUTIPLE RISKS AND UNCERTAIN TIMES. THIS FOCUS PROVIDES THE IMPERATIVE – WE MUST REALIZE THE INSTERSECTIONALITY OF OUR VULNERABILITIES AND DISTILL OUR RELATIONSHIPS TO CO-CREATE A CLIMATE AND DISASTER RESILIENT SOCIETY.

ON WAYS FORWARD, THE LOPEZ GROUP HAS ALREADY ADOPTED THE MITIGATION HEIRARCHY’S PRINCIPLES OF AVOID, MINIMIZE, REHABILITATE, AND COMPENSATE ACROSS MANY OF YOUR PROJECTS AND PROGRAMS. I WOULD URGE YOU FIRST TO SPREAD THE WORD.

TOGETHER WE CAN CHANGE THE MINDSET THAT WE ARE IN A ZERO-SUM GAME WHERE ECONOMIC DEVELOPMENT ALWAYS COMES AT THE PRICE OF ENVIRONMENTAL DESTRUCTION. THERE IS A SHIFT TOWARDS ADVANCING FINANCIAL GAINS WHILE LEAVING NO COMMUNITY AND ECOSYSTEM BEHIND WHICH IS BASED ON SOCIAL EQUITY AND ENVIRONMENTAL SUSTAINABILITY. IT IS HOW ESG CAN TRULY BECOME “ESG+R”. LET US CONTINUE TO THINK, INVEST, AND ACT BEYOND OUR FENCELINES WILL CONTRIBUTE TO KEEPING US ALIVE WITHIN 1.5 DEGREES AND ACHIEVING THE SDGS.

THE CHOICES AND DECISIONS WE MAKE TODAY WILL DETERMINE THE FUTURE WE WANT. WE MUST ALL RECOGNIZE THAT WE HAVE A UNIQUE BUT TIME-BOUND OPPORTUNITY TO INVEST IN THE RESILIENCE OF NATURAL, HUMAN, AND ENGINEERED SYSTEMS WHICH COULD BE VITAL TO THE SURVIVAL OF THE COMMUNITIES AND ECOSYSTEMS WITHIN WHICH WE WORK.

WHILE COMMITMENTS TO EMISSIONS TARGETS ARE SET BY GOVERNMENTS, THE PRIVATE SECTOR HAS A LARGER ROLE AND RESPONSIBILITY TO MOVE BEYOND MERE COMPLIANCE.

WE WISH TO COMMEND THE LOPEZ GROUP FOR THE TRANSFORMATIONAL STEPS IT HAS ALREADY TAKEN IN THIS DIRECTION. YOU ARE ALREADY LEADERS BY HAVING ACCELERATED SHIFTS TO RENEWABLE ENERGY SOURCES, SUPPORTING THE PROTECTION AND ENHANCEMENT OF OUR FORESTS AND HIGH- BIODIVERSITY AREAS, INVESTING IN CLIMATE AND DISASTER RESILIENT INFRASTRUCTURE AND BUILDINGS, AND IN PROVIDING EMERGENCY RESPONSE, EDUCATION, AND LIVELIHOOD FOR COMMUNITIES.

I WILL END BY SAYING THAT THERE ARE MORE OPPORTUNITIES FOR REAL CHANGE IN FRONT OF US, IF WE CAN JOURNEY TOGETHER. IT IS MY HOPE THAT MOVING FORWARD, WE WILL CONTINUE TO WORK TOGETHER ON BATTLING THE PRESSURES FROM TRANSACTIONAL POLITICS AND GEOPOLITICAL FORCES SO THAT WE MAY CHART A NEW, EQUITABLE, AND EVIDENCE-INFORMED DEVELOPMENT TRAJECTORY FOR OUR COUNTRY.

ON A PERSONAL NOTE, I WISH TO THANK THE OML FAMILY, ESPECIALLY CEDIE, PIKI, AND RINA FOR THEIR FRIENDSHIP AND SUPPORT AND FOR THEIR GENERATIONS OF COMMITMENT TO THE DEVELOPMENT OF OUR COUNTRY.

THANK YOU VERY MUCH AND GOOD AFTERNOON. ###