DEVELOPED countries should consult developing countries such as the Philippines to develop global sustainability rules to prepare these markets for the impact of strict regulations that could hamper global trade, according to a United Nations official.

“Many European Union regulations are being published, the (EU) deforestation regulation is one example. But we also have a directive on corporate sustainability due diligence that was adopted earlier this year,” Surya Deva, UN special rapporteur on the right to development, told reporters on the sidelines of the 16th Investment Policy Forum held on Wednesday in Pasay City.

“I think some of these regulations have good intentions, but the difficulty I see is in the process: whether countries, say, in the South or Asia, have been consulted properly before these regulations are implemented. pushed by the European Union? » Deva pointed out.

In the case of the Philippines, Deva said, “The Philippines certainly has the technical expertise, the people and the human capital are certainly very advanced in this area. But then, (the) Philippines is part of a global ecosystem, right? So we need to ensure that the global rules are also in place to ensure that the Philippine government is able to promote this type of sustainability.

Otherwise, the UN official stressed that by adhering to the same set of rules in terms of sustainability, “markets may not be ready to support this type of sustainable development model.”

Moving forward, the UN official said that in developing more global rules, “these rules need to be developed in a more participatory way, rather than being imposed by the European Union or by an economy particular developed. »

Still, Deva said he believes the Philippine government can adapt to these regulations. However, he noted that the country “can be proactive in terms of preparation, be ready in terms of the economy and how these regulations are going to impact local businesses and others.”

The UN official also noted that the Philippine government can work with governments in Asia so that they can “better benefit from the negotiations.”

According to an international study cited recently by the Philippine Exporters Confederation, Inc. (Philexport), the Philippines was among 12 countries that have a “low” level of overall preparedness to meet the EU’s upcoming sustainability requirements, small and medium-sized enterprises (SMEs) particularly vulnerable to the new requirements, as their ability to understand, prioritize and respond to sustainability requirements appears “limited”.

“In light of this, the study highlights the need for support measures to prepare businesses for increased demands, enabling local businesses to better benefit from upcoming opportunities and ensuring that EU businesses meet their growth targets. ‘impact on the supply chain’, says the document entitled ‘ESG in Emerging Markets: The effects of European sustainability regulations on non-European companies.

Furthermore, in the case of the Philippines, it was found that in terms of awareness and priority, “Filipino companies are among the least aware of EU ESG legislation, with 72% of companies reporting not being aware all European legislations listed. .”

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