ENVIRONMENTAL USERS FEE (EUF) SYSTEM

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The LLDA launched the Environmental User’s Fee in 1997, a pioneering water pollution charge system in the country. It emphasizes on the use of economic incentives to address the environmental problems and issues.

The EUF System is a market-based instrument that encourages companies to invest and operate pollution prevention and/or abatement systems within their establishments. This applies the “Polluters Pay Principle”. The environmental user fee is paid for the amount of pollution discharged into the tributary rivers within the Laguna de Bay Region consisting of a fixed fee and a variable fee. Since the implementation of the EUFS in 1997, the LLDA observed decreasing annual BOD loadings from 5, 402 MT in 1997 to 193 MT in 2004 generated by 222 firms.