FOLLOWING the signing of the Philippine “Green Jobs” bill into law, the chairman of the House Committee on Labor and Employment on Wednesday said the government is expecting 1 million jobs this year.
National Unity Party Rep. Karlo Alexei Nograles of Davao City, the panel’s chairman, said the passage of Republic Act (RA) 10771, or the Philippine Green Jobs Act of 2016, is expected to attract several foreign direct investments.
“At the onset we expect to generate 1 million jobs. We are expecting more [jobs] in the coming years,” Nograles told the BusinessMirror. President Aquino signed RA 10771 on April 29.
“Specifically, but not exclusively, this includes jobs that help protect ecosystems and biodiversity, reduce energy, materials and water consumption through high-efficiency strategies, decarbonizes the economy and minimizes or altogether avoids generation of all forms of waste and pollution,” Nograles added.
Nograles, one of the main authors of the measure, said the law seeks to create job opportunities in the field of green technology to promote the protection of the environment.
He added that it also encourages the creation of green jobs that produce goods and services that benefit and preserve the environment or conserve the natural resources.
“With this law, we will see the establishment of many green investments in the country, such as those that are involved in the production of electronic vehicles, solar panels, water-recycling plants and even power companies that use renewable resources,” the lawmaker said.
Green companies are the business enterprises that are involved in the production of environment-friendly products and those that offer services to promote environmental protection and conservation.
The law also mandates the Department of Labor and Employment to formulate a National Green Jobs Human Resource Development Plan on the development, enhancement and utilization of the labor force, both in the private and public sector, which will sustain the transition into a green economy.
For his part, Sen. Juan Edgardo M. Angara, also one of the main authors, said the law aimed for cleaner environment and improved economy while decreasing the number of unemployed.
Angara, acting chairman of the Senate Committee on Labor, Employment and Human Resources Development, citing a 2011 United Nations report, said investments in “green” industries are generally more employment intensive and are a big help in the fight against climate change.
“A green-jobs boom could happen here in the Philippines—in energy, for instance, also in retrofitting buildings for energy efficiency, climate-change adaptation and sustainable resource management,” Angara said.
Under the law, the so-called green companies, or businesses that are involved in the production of environment friendly products and those that offer services to promote environmental protection and conservation, are entitled to fiscal and nonfiscal incentives that may include additional deduction of labor expense and duty free importation of capital equipment.
The law is also pushing for fiscal incentives and tax perks for individuals and enterprises that participate in the creation of green jobs, practice the use of environment-friendly technologies and produce green goods and services.
It also provides special deduction from the taxable income equivalent to the total expenses for skills training and research development expenses, which is over and above the allowable ordinary and necessary business deductions for said expenses under the National Internal Revenue Code of 1997 as amended.
“The Department of Finance is tasked to come up with an incentive scheme to encourage individuals and companies to engage in “green jobs in accordance with the National Green Jobs Human Resource Development plan to be formulated by the Department of Labor and Employment,” the law provides.
The Philippine Green Jobs Act of 2016 also mandates the Philippine Statistics Authority to maintain a database of green careers, professions and skills.
With the many perks and benefits being given to “green companies,” Nograles said the Philippines has the potential to become a veritable haven for companies that are involved in environment protection and conservation, including energy companies that uses renewable-energy sources.