MINERVA BC NEWMAN
CEBU CITY – The Cebu Chamber of Commerce and Industry (CCCI) and the ASEAN Circular Economy Business Alliance (ACEBA) signed a memorandum of understanding (MOU) and conducted an inaugural workshop on February 28 at Waterfront Hotel Cebu to introduce ACEBA, discuss the importance of the circular economy in Southeast Asia and formalize the adoption of the circular economy initiative in Cebu and in the Philippines.
Thomas THOMAS, Co-convener of ACEBA; Chairman of ARAIBA Sdn Bhd and senior expert, SWITCH-Asia, in his opening remarks introduced ACEBA as an initiative of ARAIBA Sdn Bhd, a purpose-driven, not-for-profit business organization that fosters inclusive and responsible business in ASEAN that was launched on July 22, 2024 in Jakarta, Indonesia, with the endorsement of the ASEAN Secretariat, the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME), the European Union Delegation to ASEAN, and the ASEAN Business Advisory Council (ASEAN-BAC).
“ACEBA is working towards building business leadership and guiding action for circular economy adoption by Southeast Asian businesses and positioning it as a regional agenda for responsible and inclusive business promotion and action, supporting evidence-based public and policy dialogue and knowledge sharing on the circular economy and related issues and concerns,” THOMAS shared.
THOMAS bared that the CCCI and ACEBA agree to develop a 3-year collaboration on circular economy initiatives with ACEBA’s role in sustainable waste management and the potential for ASEAN collaboration while the CCCI pushes to engage with its member companies to identify and showcase business cases for circular economy.
Part of the agreement is for CCCI and ASEBA to organize learning activities and provide guidance on circular economy for the business sector in Cebu while the Chamber engages with its members and other government agencies, both local and national for the need of innovative funding and the importance of continuous collaboration.
“There is a need on the global adoption of circular economy principles and the role of government in fostering sustainability. The economic and technological viability in the circular economy is very important because of the political nature of waste and its regionalization,” says Dr. Rene Van Berkel, Co-convenor, ACEBA;senior expert, SWITCH-Asia PSC, in a huddle with media after the CE information workshop.
Van Berkel noted the lack of a common understanding of the circular economy and the need for capacity building and operational tools for businesses for the cost savings and technical opportunities in the circular economy, citing examples of innovations in India and Indonesia that apply circular economy principles.
Challenges and opportunities in implementing circular economy in PH
There is a need for long-term contracts with local governments for waste treatment facilities which is the critical cost-benefit analysis required for full circularity. The challenge of monetizing waste, noting that only 5-10 percent of waste can be easily monetized.
ASEBA’s role in sustainable waste management is an enabler for the circular economy, but not synonymous with it, Van Berkel said and stressed the importance of designing products and services to reduce waste, mentioning the role of local governments in waste collection and the need for consumer responsibility.
According to Regan Rex King, CCCI VP for Cebu Business Mobilization and president of Ecothink Waste Solutions, Inc. that the Cebu Chamber representing 800 members can work closely with local governments and ACEBA for finding innovative funding solutions for startups, the importance of small wins to encourage community and financial institutions and the need to collect cases to identify enablers and impediments for businesses.
King said that there is a greater need for the Cebu Chamber to collaborate and align with government agencies’ circular economy programs like the Department of Trade and Industry (DTI), the Department of Science and Technology (DOST), the Department of Environment and Natural Resources (DENR) and the various local government units specifically in the discussion on the potential for ASEAN collaboration on standardizing waste.
Wendel Ganhinhin, CCCI-VP for finance/admin services and managing partner, P&A Grant Thorton mentioned that there is an ongoing discussion on the creation of the national framework for adopting the circular economy in the Philippines and on Article 6.2 in the low carbon economy bill with emphasis on the need for government incentives and standards to support the circular economy.
Gahinhin talked about the lack of maturity of the Filipino economy and the need for a non-regulated approach and the crucial role of the private sector innovation in sustaining the circular economy. The impact of consumer behavior on waste generation, adding the high turnover rate of clothing items among millennials.
“There is really a need to talk about the cost savings and business opportunities in the circular economy; the importance of sustainability in the EU Green Deal and sustainable procurement and for the momentum to drive the transition to a circular economy,” Ganhinhin said.
Market forces and ASEAN/global participation in circular economy
THOMAS mentions the critical role of governments in promoting sustainability and the compulsory sustainability reporting for listed companies in Southeast Asia and the impact of the Paris Agreement on government commitments.
“We look at the importance of trailblazers in setting sustainability norms and the crucial role of government in providing data for legislators to participate in the discussions on the myriad concerns in the circular economy adoption and implementation in many countries,” THOMAS said.
THOMAS bared that ASEAN countries are already in the circular economy and ACEBA’s focus on ASEAN and the expansion to all members for the global adoption of circular economy action plans. Various countries have different approaches to circular economy policies and the need for collaboration and learning across different regions.
Aldie Garcia, CCCI-VP for business advocacy and policy mentioned that industry participation in the Philippines in the circular economy is still wanting and the need for documentation of businesses adopting circular economy practices, the challenges of identifying genuine circular economy practices and the importance of businesses doing the right thing for sustainability.
CCCI plans, efforts and next steps for the circular economy
“The MOU with ACEBA for a three-year commitment is the next step in the right direction,” Regan King said. The Chamber will engage with businesses and suggest innovations especially for business cases and learning activities in the circular economy.
King mentioned the role of the Cebu Chamber in promoting obligatory enterprise practices and promote the learning process especially in the continuity of flagship projects and the importance of sustainability.
The value of the relationship between the Cebu Chamber and ACEBA promotes optimism about the future of the circular economy, highlighting the historical significance of Cebu in the circular economy movement, Aldie Garcia noted.
The CCCI-ACEBA partnership hopes to encourage business leadership and setting inspirational examples on the importance of innovation, with examples of innovative startups in biotechnology and their potential to contribute to the circular economy through new materials and recycling technologies,” Garcia added.
