PEZA seeks IFC-WB's Eco-Industrial park certification

PEZA recently met with executives of the International Finance Corporation–World Bank (IFC-WB) to discuss the way forward for PEZA’s proposed engagement of IFC-WB’s advisory services. The collaboration seeks to develop a diagnostic report on Eco-Industrial Park (EIP) opportunities in the Philippines.

Through this technical assistance project—offered free of charge—IFC-WB will support PEZA in carrying out the following activities:

a) Benchmarking the EIP frameworks adopted by other countries within their economic zone sectors; b) Reviewing the enabling laws and regulations necessary for the possible adoption of the EIP framework in the Philippines; c) Conducting a market assessment on the potential economic, social, and environmental impacts of adopting the EIP framework in eligible Philippine economic zones, including implications for zone operators; d) Drafting a roadmap for EIP framework implementation in the Philippines, including a summary of the necessary certification requirements; and, e) Raising awareness among key stakeholders on the economic potential of EIPs in the Philippines through workshops and training programs.

Moreover, guided by IFC-WB’s EIP certification program, a global voluntary certification system will be developed to ensure transparent and comparable performance across industrial zones. This international initiative aims to boost the adoption of sustainability standards in industrial parks, freeports, and economic zones through the participation of developers and operators from various countries.

PEZA has initially identified the following pilot ecozones to participate in the IFC-WB EIP certification process: Lima Technology Center, First Philippine Industrial Park, Laguna Technopark, Light Industry and Science Park, and Carmelray Industrial Park. These zones will serve as testbeds for integrating sustainability into business strategy—helping to attract more investments amid increasing competition from countries also pursuing EIP certification for their economic zones.

According to the United Nations Industrial Development Organization (UNIDO), an eco-industrial park is “a community of businesses located on a common property in which businesses seek to achieve enhanced environmental, economic, and social performance through collaboration in managing environmental and resource issues.” This concept, known as industrial symbiosis, enables companies to gain a competitive advantage through the physical exchange of materials, energy, water, and by-products—thereby fostering inclusive and sustainable development.

UNIDO, in collaboration with the World Bank and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), promotes the global development of standardized approaches for EIP implementation. Since this collaboration began in 2015, the EIP concept has gained recognition as an effective tool to address challenges related to inclusive and sustainable industrial development, in alignment with the Sustainable Development Goals (SDGs). An increasing number of countries are now incorporating key elements of the EIP model to enhance competitiveness while supporting climate change goals.

In 2015, I had the opportunity to attend the IFC-WB forum in Seoul on EIPs and Climate-Efficient Industries. I served as one of the country reactors for the Philippine EIP model and energy-efficient ecozones, alongside representatives from India, Vietnam, Bangladesh, Pakistan, Mauritania, Egypt, and Guatemala. These economies have embraced the ecozone development strategy to drive domestic growth and job creation—following the lead of the Philippines, which is regarded as a pioneer in this field. In fact, we were second only to Taiwan in Asia to experiment with export processing zones (EPZs) as early as 1969.

As we transition to the EIP model, we are optimistic that PEZA’s 427 economic zones—and the country’s freeports—will adopt the EIP framework and green growth strategies. Our ecozones must evolve beyond being just viable locations for foreign direct investment (FDI). They must now enable industrial symbiosis, climate resilience, green infrastructure, and energy efficiency to ensure sustainable growth while upholding social responsibility, environmental stewardship, and ethical excellence.

To complement the EIP framework adoption, PEZA recently launched the Sustainability Reporting Guide for Exporters (SuRGE) in partnership with the Global Reporting Initiative (GRI), supported by the Swiss Embassy. This initiative aligns with our national commitment to embrace a green economy, reinforcing PEZA’s broader goals of creating a smarter, more sustainable business environment for investors and communities.

In addition, PEZA has partnered with Zeroboard Inc., a Tokyo-based sustainability solutions provider, to promote decarbonization in our ecozones. This collaboration aims to strengthen sustainable industrial development and global competitiveness by enabling PEZA-registered export-oriented enterprises to measure, visualize, and reduce their greenhouse gas (GHG) emissions.

The voluntary compliance of our locators with EIP Certification, the Global Reporting Initiative, and decarbonization programs will significantly bolster our efforts to promote the SDGs, ESG standards, and the EID framework as part of PEZA’s ecozone development strategy. These initiatives are pivotal in positioning the Philippines as a preferred investment destination for companies that prioritize clean and green production.

This commitment means a great deal to us in PEZA, as we are responsible for a substantial portion of the country’s FDI in manufacturing and services, contributing approximately 60% of the Philippines’ total annual exports of goods and services. Undoubtedly, these sustainability programs will enhance the competitiveness not only of PEZA but also of our valued ecozone locators and stakeholders.

All of these efforts are aligned with the Philippines’ National Adaptation Plan, championed by President Ferdinand R. Marcos Jr., which seeks to enhance adaptive capacity, promote sustainability, and reduce the impact of climate change. Climate-related risks are projected to reduce the country’s GDP by 7.6% (equivalent to PHP 1.4 trillion), potentially rising to 13.6% by 2040 if left unaddressed.

At PEZA, we are committed to achieving resilience and sustainable socio-economic development for our stakeholders. We recognize the need to mitigate our impact on vital sectors—such as water resources, health, land use and human settlements, and livelihood and industry—which are critical considerations in our development agenda. Through the above programs, we aim to position our ecozones as global benchmarks of sustainability—not only for the Philippines, but for the world.