(A presentation made by (DENR) Department of Environment and Natural Resources, Undersecretary Analiza Rebuelta-Teh during the Roundtable Discussion on West Philippine Sea/South China Sea organized by the Philippine Council for Foreign Relations (PCFR) and Chinese People’s Institute of Foreign Affairs (CPIFA) held on 9-October-2019 at the Philippine International Convention Center (PICC)

CURRENT STATE OF THE MARINE ENVIRONMENT AND RESOURCES IN SOUTH CHINA SEA

With an estimated total reef area of 600-100 km2 (Aliño and Quibilan, 2003), the South China (SCS) hosts a rich diversity of coral reef organisms. Reef fish species diversity in the SCS ranks second among the six marine bio-geographic regions with at least 484 species (Nañola et al. 2011). This same biodiversity also has a significant contribution to food security and livelihood of coastal communities.  Coral reef fisheries contribute to around 20-25% of the total marine fish production in the country (Alcala and Russ 2002). Using estimates of reef fisheries production and the aggregate area of coral reefs in the country, Campos (2000) estimated the apparent yield from the country’s reefs to about 5-10 tons/ km2, depending on the reef area used (Licuanan and Gomez, 2000). Besides reef fisheries, about 20% of the annual commercial fisheries production in the country is reported to come from the West Philippine Sea (Aliño and Quibilan, 2003).

Based on the expedition conducted by DENR-BMB-UP-MSI last 28-April to 19-May-2017, it has been observed that SCS, in general, supports a stable, productive and resilient fish population. The initial findings of the expedition revealed that here is high reef fish species richness (species richness: number of different fish species) for all sites in the Kalayaan Island Group (KIG).

However, the South China Sea faces serious environmental challenges:

• Poor Coral Cover

Poor coral cover in the KIG reefs is an indication that without any significant intervention and with continued unregulated fishing, the high fisheries potential of the area may not be sustained.

Giant clam harvesting, dredging, and artificial island building in recent years severely damaged or destroyed over 160 square kilometers, or about 40,000 acres, of coral reefs, which were already declining by 16% per decade.

• Declining Fish Stocks

Total fish stocks in the South China Sea have been depleted by 70-95% since the 1950s and catch rates have declined by 66-75% over the last 20 years.
A $32 million project to reverse environmental degradation in the South China Sea and Gulf of Thailand, funded by the Global Environment Facility (GEF) through the United Nations Environment Program (UNEP) was implemented by the Governments of Cambodia, China, Indonesia, Malaysia, Philippines, Thailand and Vietnam.

An analysis of the state of the marine environment, prepared by the Governments which participated in the said project, in collaboration with UNEP, reveals that over 80% of the region’s coral reefs are at risk from climate change, coastal development, pollution, over-exploitation and cyanide and dynamite fishing.

Only a third of its mangrove forests remain, with around 65% lost to settlements, industrial areas or tourist resorts, chopped for woodchips or firewood, or converted into shrimp farms.  And the flow-on effects of increased sedimentation and nutrients, plus destructive fishing practices, are also being felt in the region’s other major habitat – seagrass communities – of which 20% to 50% are thought to be degraded. Two thirds of the major fish species and several of the region’s most important fishing areas are fully or over-exploited.  Many nursery areas and breeding grounds are being degraded.

UNITED NATIONS CONVENTION ON THE LAWS OF THE SEAS (UNCLOS) AND MARINE ENVIRONMENTAL PROTECTION

To ensure Marine Environmental Protection, the United Nations Convention on the Laws of the Seas (UNCLOS) provides for (1) conservation of the Living Resources; (2) duty of States to adopt with respect to their nationals measures for the conservation of the living resources of the high seas; (3) cooperation of States bordering enclosed or semi-enclosed seas.

Countries who are signatories to UNCLOS shall ensure through proper conservation and management measures that the maintenance of the living resources in the exclusive economic zone (EEZ) is not endangered by overexploitation. According to UNCLOS, such measures shall also be designed to maintain or restore populations of harvested species at levels, which can produce the maximum sustainable yield, as qualified by relevant environmental and economic factors, including the economic needs of coastal fishing communiti es and the special requirements of developing States, and taking into account fishing patterns, the interdependence of stocks and any generally recommended international minimum standards, whether sub-regional, regional or global.

Further, UNCLOS provides that the States shall endeavor, directly or through an appropriate regional organization, to:

• coordinate the management, conservation, exploration and exploitation of the living resources of the sea;
• coordinate the implementation of their rights and duties with respect to the protection and preservation of the marine environment;
• coordinate their scientific research policies and undertake where appropriate joint programs of scientific research in the area;
• invite, as appropriate, other interested States or international organizations to cooperate with them in furtherance of the provisions of this article.

The Permanent Court Arbitral Ruling on the South China Sea and UNCLOS.

In 2016, the application of the provisions on Marine Environmental Protection was made when the Permanent Court of Arbitration in The Hague issued its ruling regarding the Philippines’ complaint against China.

On the harm to the marine environment, the Arbitral Tribunal ruled that China violated its obligation under UNCLOS to “protect and preserve the marine environment” when China:

• Dredged and built islands on 7 reefs;
• Failed to prevent its fishermen from harvesting endangered species like sea turtles, corals, and giant clams in the Spratlys and Scarborough Shoal.

According to the Ruling, China failed to notify other coastal states regarding the massive reclamations on 7 geologic features in South China Sea. Article 123 of UNCLOS requires coastal states in semi-enclosed seas to “cooperate with each other in the exercise of their rights, and in the performance of their duties under this Convention … with respect to the protection and preservation of the marine environment.”

The Arbitral Tribunal also ruled that China “caused permanent and irreparable harm to the coral reef ecosystem.”

China reclaimed on all the seven atoll reefs it occupies in the Spratlys. China also dredged 10 other reefs for filling materials for the 7 reefs it reclaimed.

It could take as long as 30 million years for the reefs of an atoll to form. The coral reefs in the Spratlys are where fish spawn, serving as the breeding ground of fish in the South China Sea. The coral reefs in the South China Sea comprise 34% of the world’s total coral reefs, despite the South China Sea occupying only 2.5% of world’s total ocean and sea surface. Coral reefs are the single most valuable ecosystem — a hectare (about 2.5 acres) of reef can produce a potential value of about US$350,000 a year.

From 2014-2016, China deployed dozens of dredgers in the Spratlys. The rotating cutters of these dredgers pulverize the coral reef and the hard sediment on the seabed. The pulverized materials are sucked through a nozzle and siphoned through a pipe into the ship. The pulverized materials are then pushed by pressure through a floating pipe and deposited on the rim of the reef.  This kills all the coral reefs in the atoll.

According to Dr. John McManus, a marine biologist who has studied the marine life in the Spratlys, China’s reclamations are the “most rapid permanent loss of coral reef in human history. It’s a terrible, terrible thing to do this.”

Accordingly, China’s clam harvesting destroyed more coral reefs than China’s dredging to build the 7 artificial islands.

CLIMATE CHANGE IN SOUTH CHINA SEA

According to the Intergovernmental Panel on Climate Change (IPCC), the ocean is a carbon sink that absorbs 30% of the anthropogenic carbon dioxide emitted into the atmosphere. The IPCC has highlighted in its Fifth Assessment Report that climate change negatively impacts ocean health in terms of ocean warming, acidification, sea-level rise and de-oxygenation putting marine ecosystems, marine biodiversity and fisheries at risk.
Under a business-as-usual scenario, University of British Columbia researchers predict that the ocean species in the SCS will decrease by up to 59% by 2045 due to climate change. In the last three decades, fish stock has decreased by a third, while coral reefs declined at a staggering rate of 16% in the last 10 years.

China’s State Oceanic Administration Report from the First Oceanic Research Institution noted that because of ocean warming, acidification and overfishing, coral reef systems in the SCS are degrading rapidly.

The SCS is an unavoidably a hotspot for climate change and a major concern for the international climate change regime.

The default international legal instrument to address the overlapping claims in the SCS is the UN Convention on the Law of the Sea (UNCLOS). UNCLOS incorporates environmental protection clauses for the marine environment. However, climate change is not originally within the contemplation of the said legal instrument.  Hence, this is an area that Philippines and China can discuss further to address impact of climate change in the SCS.

To address the issue on Climate Change and take a pro-active approach, Philippines and China with the concerned countries in SCS can pursue collaboration through the Ocean Pathway Initiative. The Ocean Pathway Initiative supports the goals of the Paris Agreement by increasing the role of ocean considerations in the UN negotiations and by incubating and accelerating climate action involving the ocean.

Considering that all ASEAN member states and China are committed to achieving international climate policy goals, there is considerable opportunity to pursue joint regional climate policy formulation and action in the SCS. Notably, ASEAN has been instrumental in promoting cooperation and integration among its member countries on climate policy.

Since 2007, ASEAN Summits have repeatedly identified climate change as a priority concern that can be tackled through regional cooperation. Established in 2009, the ASEAN Working Group on Climate Change recognizes the need for cross-sectoral coordination and a global partnership to address climate change.

EXISTING MECHANISMS FOR COOPERATION BETWEEN THE PHILIPPINES AND THE PEOPLE’S REPUBLIC OF CHINA

• Code of Conduct (COC) in South China Sea

As early as 1992, ASEAN officially committed to addressing the SCS problem with the ASEAN Declaration on the SCS. It took another decade to reach a non-binding Declaration on the Conduct of Parties in the SCS with China in 2002. This laid the groundwork for further consultations on a Code of Conduct in the SCS, which gained momentum after the arbitration ruling in favor of the Philippines in 2016.

The COC is a set of rules outlining the norms, rules, responsibilities or proper practices of ASEAN countries and China in the South China Sea. ASEAN member states committed to “exercise self-restraint” in the conduct of activities in the disputed waters and to avoid actions that may further complicate the situation. Both parties agree to continue discussions on confidence-building measures to increase mutual trust and confidence and to exercise self-restraint in the conduct of activities in the South China Sea that would complicate or escalate disputes and affect peace and stability.

• Bilateral Consultation Mechanism (BCM)

A BCM was also agreed upon between Philippines and China wherein they will meet regularly on current and other issues of concern to either side on the South China Sea. Both sides also agree to explore other areas of cooperation.

As agreed by both Philippines and China, the First Meeting of the Philippines-China Bilateral Consultation Mechanism (BCM) on the South China Sea (BCM) was held in Guiyang, Guizhou Province, China on 19-May-2017. During the meeting, it was agreed that the BCM should be a platform for confidence-building measures and for promoting maritime cooperation and maritime security. The BCM is comprised of equivalent officials from the respective foreign ministries and relevant maritime affairs agencies, and will meet alternately in the Philippines and China once every six months.

Both sides reviewed their experiences on the South China Sea issue. They exchanged views on current and other issues of concern to either side, and agreed to further discuss mutually acceptable approaches. They also held discussions on issues including promotion of next-step practical maritime cooperation and possible establishment of relevant technical working groups.

AREAS OF COOPERATION ON MARINE ENVIRONMENTAL PROTECTION

The alarming state of the environment in SCS indicates the urgency for enhancing cooperation among countries concerned.  Effective governance of the marine environment, which is being shared by countries, is beyond the capacity of any individual country. Areas of collaboration pursuant to both the UN Sustainable Development Goals and UNCLOS include protection of marine environment and biodiversity and sustainable use of marine resources and collective response to threats to the seas.

• Framework for Cooperation

Philippines and China Cooperation on Marine Environmental Protection should aim to:

• • Establish policies to manage a more productive coastal and marine environment for the benefit of both countries;
  • Identify areas with different priorities for sustainable use;
  • Manage and regulate destructive and pollutive activities; and
  • Establish as haven for migratory species, locally and nationally important marine species.
• Areas of Cooperation

The Philippines and the People’s Republic of China should build consensus on:

• • Effective protection and conservation of the critical coastal and marine habitats;
  • Improvement of fish biomass through Sustainable Fishery Program that is eco-system based;
  • Reduction of threat and risks on coastal and marine habitat from marine pollution through implementation of Port Safety, Health and
  • Environmental Management System (PSHEMS) in key ports and increasing compliance to the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78);
  • Establishment of strong and sustainable sensitive sealane areas to decrease chances of destruction of critical habitats from maritime accidents.
• Protocol on Marine Environmental Protection

Philippines and China should endeavor to develop the Protocol on Marine Environmental Protection, which may include the following:

• • Environmental Impact Assessment (in accordance to China’s EIA Law and Philippines’ PD 1586;
  • Conservation of SCS Flora and Fauna;
  • Waste Disposal and Waste Management;
  • Marine Pollution;
  • Establishment of Marine Protected Area and Network of MPAs.

NETWORK OF MARINE PROTECTED AREAS (MPAs)

Individual MPAs may not be enough to sufficiently protect species, especially with large natural ranges or territories, and critical habitats because of their size, design or even management effectiveness.

• Why MPA?

Establishing Marine Managed Areas / Marine Protected Areas in the SCS will help in the conservation of biodiversity, protection of its ecological function and integrity which contributes to the following:

• • Conservation and protection of critical habitats of threatened species;
  • Protection of attractive species and habitats for sustainable tourism;
  • Increase in productivity of fisheries;
  • Contribute to increased knowledge of marine and environmental sciences;
  • Protection of genetic diversity of heavily exploited populations; and
  • Protection of cultural diversity.

Main objective of establishing an MPA is to protect the existing biodiversity and the integrity of the marine ecosystem in the area.

Creating a marine park should be explored by both countries to allow what is left of the coral reefs and the marine species to slowly recuperate, and for the endangered species to have a fighting chance against extinction. This will help to ecologically preserve the area and sustainably benefit from the fisheries and other aquatic resources in the area.

• Need for Synergy and Convergence via Network of MPAs.

By establishing a Network of MPAs, collaboration among the concerned countries will be enhanced to address common challenges and trans-boundary environmental issues. Such will demonstrate that acting in a coordinated manner can lead to synergies and improved efficiency.

Philippines and China can also explore formulating clear, effective and efficient working arrangements and operational protocols to deliver clear benefits to both countries, such as on following activities:

• • Building effective functional networks of all stakeholders on various MPAs in the countries and enhancing coordination through regular/periodic monitoring, reporting and feedback/communication mechanism;
  • Capacitation on MPA and MPA Network management: assessment, information management, analysis, monitoring and reporting;
  • Bio-physical and socio-economic assessments;
  • Promotion of effective enforcement of existing fisheries and environmental laws and policies.

WAY FORWARD

Beyond claims of sovereignty, territory and maritime entitlements, the SCS faces serious sustainability challenges, particularly from the threats of climate and ocean change. Undeniably, the SCS narrative is not just about contestation. Philippines and China and other concerned countries can help reframe the SCS narrative from one of contestation to consensus-building and cooperation.

A possible way of managing the marine environment of the South China Sea cannot be based primarily on the overlapping territorial and maritime claims to which the aquatic organisms pay no attention. Instead it must be built around the entire marine ecosystem, particularly the reef systems on which much marine life depends.

Cooperation for Marine Environmental Protection between Philippines and China, that is genuine and serious is the most significant and critical step towards sustainable development of the marine ecosystem and resources in South China Sea.

WORKS CITED:

• Coral Triangle Initiative. “Draft Strategic Action Plan for a Network of Marine Protected Areas in West Philippine Seascape (2013-2025).”
• Carpio, Antonio T. “South China Sea Dispute: Philippine Sovereign Rights and Jurisdiction in the West Philippine Sea.” 2017.
• Biodiversity Management Bureau. “Discussion Notes on West Philippine Sea / South China Sea.” 2019.