OECD study: Cebu must raise income sources to help achieve “green growth”

CEBU, Philippines - Raising revenue sources like real properties tax, environmental fees and other charges is among the strategies seen to help in financing "green growth" in Cebu.

The Organization for Economic Cooperation and Development (OECD) made the recommendation following its initial findings from in-depth urban level green growth study entitled "Urban Green Growth in Dynamic Asia (UGGiDA). Findings of Cebu's OECD study, which is set to be finished in December this year, will be benchmarked against studies of other cities.

Tadashi Matsumoto, project manager of the Public Governance and Territorial Division of OECD, said Cebu has to make use of its local revenue sources for policy making, which is vital in attaining a sustainable urban green growth province.

"Why don't you explore on this king of option? It's a powerful mechanism. Financing is very important," he said.

Matsumoto presented updates of the study before the members of Metro Cebu Development and Coordinating Board (MCDCB) during their second quarter meeting last week.

 Green growth, Matsumoto said, is a matter of both economic policy and sustainable development policy. It tackles two key imperatives together, such as the continued inclusive economic growth needed by developing countries to reduce poverty and improve wellbeing; and improved environmental management needed to tackle resource scarcities and climate change.

To do this, it must catalyze investment and innovation which will "underpin sustained growth and give rise to new economic opportunities," he said.

Aside from raising revenue sources, he said, Cebu has to enhance its public-private partnership capa-city at the national level and get support from the national government.

Based on the study, only 0.2 percent of environment-related official development finance in the country went to Cebu from 2002 to 2013.

On innovative policy instruments, Matsumoto cite mainstreaming urban green growth and incorporating resilient policies into economic development frameworks; advancing the use of information and communications technology; and making use of the demand-side policies like imposing charges for groundwater extraction, among others.

Cebu is the first in the country and the fifth in Asia to be included in the project study. The project will complement the recently concluded "Roadmap Study for Sustainable Urban Development in Metro Cebu" undertaken by the Japan International Cooperation Agency (JICA).

Although it's Cebu City that was chosen as one of five case study areas in Southeast Asia for the UGGiDA project, OECD said the entire Cebu Province will benefit from it.

 Matsumoto said Asia presents a great opportunity to study rapid urbanization alongside environmental sustainability and economic growth.

"The study will help in creating a sustainable and resilient Cebu in the context of rapid urbanization and economic growth," he said.

Matsumoto said Cebu was chosen for its fast-growing population and economy. The focused study areas in Cebu are land use, water management and metropolitan governance.

The project is a study that examines ways to promote greening and competitiveness in a fast-growing economy; to improve environmental performance in cities and urban quality of life; and to increase the institutional capacity to achieve green growth.

The OECD started conducting studies on green growth and sustainability in its member countries in 2010.

In 2013, the group expanded their studies to other non-member countries, including those in the Asian region.

At present, OECD has 34 member countries all over the world. The study is done in partnership with MCDCB and the Ramon Aboitiz Foundation, Inc.-Eduardo Aboitiz Development Studies Center (RAFI-EADSC). (FREEMAN)