In recent years, numerous climate-related disasters have impacted the Philippines. As a developing country, the Philippines also faces issues such as pollution and a widening wealth gap. In addition to implementing domestic policies and legislation to promote sustainability, the Philippines also seeks out international cooperation to align with the United Nations Sustainable Development Goals (SDGs).
Section:|Agency|Overview|Policies & Strategies|PH-Taiwan|International Collaboration|Table|
Agencies
- Department of Environment and Natural Resources (DENR)
- Department of Energy (DOE)
- Climate Change Commission (CCC)
- Renewable Energy Management Bureau
- National Economic and Development Authority (NEDA)
- Bangko Sentral ng Pilipinas (BSP)
- Department of Finance (DOF)
Overview
By being selected as the host country for the Climate Loss and Damage Fund in 2024, the Philippines once again drew global attention to the challenges faced by developing countries due to climate change. Located along the Pacific Ring of Fire, the Philippines is not only affected by earthquakes and volcanic disasters but also frequently impacted by typhoons and intense rainfall caused by thunderstorms. In recent years, the impact of climate-related disasters on the Philippines has grown even more severe. According to a 2023 report by the World Meteorological Organization (WMO), Asia is now the region most impacted by climate-related disasters, with floods and storms causing significant fatalities and economic losses. As such, Philippine Department of Environment and Natural Resources Secretary Maria Antonia Yulo-Loyzaga stated, “The Philippines is one of the countries most vulnerable to the impacts of climate change.”
Over the past 25 years, the Philippines has introduced various policies to join global efforts in addressing climate change while ensuring sustainable national development. For example, in the energy sector, the Philippines has further opened up to foreign investments while implementing incentives for domestic companies to develop green energy and construct renewable power infrastructure. Currently, the Philippines aims to become a front-runner in renewable energy in Southeast Asia by making 30% of the country’s power come from renewable sources by 2030. Therefore, the Philippines approved 16 offshore wind power projects in June 2024, and plans to complete its first gigawatt-scale wind farm by 2028. (Reccessary, 2024) (Reccessary, 2024)
In addition to renewable energy, the Philippines is also promoting sustainable development in finance, consumption, and production. For instance, the Philippines aims to promote domestic circular economy policies by partnering with the Asian Development Bank (ADB). By integrating the domestic agricultural sector to achieve sustainable resource utilization and enhance the value of agricultural products, the Philippines aims to leverage these approaches to boost the economy, which was adversely affected by the COVID-19 pandemic. In addition, the Philippines is further fostering sustainable development in the region by utilizing relevant frameworks to collaborate with Asia-Pacific countries.
Policies & Strategies
Philippines Energy Plan
In June 2023, the Philippine Department of Energy introduced the Phillippine Energy Plan (PEP), which outlined the framework for national energy development from 2023 to 2050 (the previous plan covered 2020 to 2040). As such, the Philippines aims to achieve at least 20 GW of installed renewable energy capacity by 2040. Additionally, the plan seeks to provide reliable, affordable, and secure electricity by developing domestic energy storage capabilities. According to the PEP, the Philippines also aims to become completely electrified by 2040. In terms of renewable energy development, the PEP also proposes accelerating the implementation of the Renewable Portfolio Standards (RPS) and the Green Energy Auction Program (GEAP). The PEP also aims to foster a favorable environment for private sector investment and renewable energy integration, which includes adopting alternative energy sources and emerging energy technologies by emphasizing policy and regulatory reforms, expanding investment opportunities, and introducing incentives.
Low Carbon Economy Act
In March 2023, the Philippine House of Representatives passed House Bill No. 7705, known as the Low Carbon Economy Act 2022. The Act, which aims to promote sustainable development, seeks to reduce greenhouse gas emissions and foster economic growth while reaffirming the Philippines' commitment to the Paris Climate Accords, including a target to cut greenhouse gas emissions by 75% from 2020 to 2030. The Act also introduces an emissions trading system that utilizes a market-driven approach to achieve reduction targets by allowing entities exceeding greenhouse gas emission limits to purchase allowances from entities with lower emissions. Additionally, the Act emphasizes the development and transfer of low-carbon technologies, capacity building, and sustainable finance. The Act also advocates for the participation of local government units, academia, non-governmental stakeholders, and the private sector in promoting technological innovation and resource allocation. In addition, the Act also highlights the importance of fostering international cooperation to support the Philippines in achieving its climate goals. (CCI France Philippines, 2023)
Philippine Action Plan for Sustainable Consumption and Production
In January 2023, the Philippine National Economic and Development Authority (NEDA), with assistance from the Asian Development Bank (ADB), partnered with the Philippine Council for Sustainable Development and the private sector to draft the Philippine Action Plan for Sustainable Consumption and Production (PAP4SCP). This plan aims to influence and guide sustainable practices throughout the public and private sectors. Through approaches such as the circular economy, the Plan also seeks to address the economic and environmental setbacks caused by the COVID-19 pandemic. The framework of the Plan encompasses policies, research and development, innovation, technology, infrastructure investment, as well as information and education. The Plan also prioritizes cross-sector partnerships by advancing and funding key areas, developing and disseminating innovative and green technologies, and promoting the circular economy.
The Philippine Sustainable Finance Roadmap
In February 2022, the Bangko Sentral ng Pilipinas (BSP) released the The Philippine Sustainable Roadmap, a high-level strategic action plan to promote sustainable finance. The Roadmap consists of three main themes: creating a favorable investment environment, normalizing sustainable finance (such as developing sustainable financial products and taxonomies), and developing sustainable pathways. The BSP also introduced the Philippines Sustainable Finance Guiding Principles to help stakeholders establish consensus by defining “sustainable” economic activities. The Principles consist of seven key areas: mitigating and adapting to climate change, promoting the transition to a low-carbon economy, building resilient food systems, fostering sustainable cities, and developing sustainable and resilient infrastructure while promoting inclusive growth and poverty reduction, environmental management and protection, and prohibiting harmful activities. During a 2021 conference in the Philippines, the Governor of the BSP stated that the central bank is committed to supporting businesses subject to regulations and green strategies throughout the entire financial system by guiding the financial sector, raising awareness, creating a favorable investment environment, and encouraging stakeholder participation in achieving sustainable development goals.
Green Energy Option Programme
In 2017, the Philippine Department of Energy’s Renewable Energy Management Bureau launched the Green Energy Option Programme (GEOP) under the framework of the Renewable Energy Act of 2008, and subsequently introduced an updated version in 2021. The GEOP aims to reduce corporate electricity consumption's dependence on fossil fuels by allowing eligible legal entities to procure electricity directly from renewable energy suppliers instead of distribution utilities or electric cooperatives. In addition, the GEOP includes specific standards for both green energy suppliers and applicant users, with corresponding explanations on application processes and performance requirements.
National Greening Program
In 2011, the Philippines launched the National Greening Program (NGP) under Executive Orders No. 23 and No. 26. The NGP was upgraded to the [Enhanced] National Greening Program (ENGP) in 2019 to further reduce poverty among vulnerable populations, enhance the sustainability of natural resources through conservation, and increase the value of natural materials such as food and other resources. The ENGP also seeks to mitigate climate change by expanding forests as carbon sinks, raising public awareness and understanding of forests and rivers, promoting the shared responsibility for the sustainable management of forest resources, and consolidating and coordinating sustainability efforts between the government, the public, and the private sector. The Philippines aims to achieve these goals by coordinating advocacy efforts, providing incentives, mobilizing society, and leveraging science and technology to support the implementation of the ENGP.
Climate Change Act
In October 2009, the Philippines enacted Republic Act No. 9729, also known as the Climate Change Act, to mainstream climate change into government policies. The Act established the Climate Change Commission to formulate a strategic framework and action plan to address climate change. According to the provisions of the Act, the Commission must be composed of heads of government agencies as well as representatives from both the academic and non-governmental business communities. The Commission is tasked with protecting vulnerable communities from the adverse effects of climate change by formulating a strategic framework to serve as the foundation for planning, research and development, promotion, and monitoring of climate change-related measures. This framework must also align with international agreements in terms of the vulnerabilities, specific adaptation needs, and harm reduction potential for people impacted by climate change.
Renewable Energy Act
In December 2008, the Philippine Department of Energy enacted Republic Act No. 9513, also known as the Renewable Energy Act, to create relevant standards on subsidies, portfolios, incentives, exemptions, investment opportunities, and eligible entities for green energy development within the Philippines. The 2008 Renewable Energy Act originally stipulated that only Filipino citizens or eligible entities could engage in the exploration, development, and utilization of renewable energy sources such as solar, wind, hydropower, and ocean or tidal energy. In November 2022, the Philippines amended the Renewable Energy Act, which now permits foreign entities to hold 100% ownership in the exploration, development, and utilization of renewable energy resources. (ASEAN Briefing, 2022)
Collaboration: Taiwan and Philippines
National Science and Technology Council (NSTC)
Science and Technology Innovation Center for Taiwan-Philippines Indigenous Knowledge, Local Knowledge, and Sustainable Studies (CTPILS) | Project Duration: 2021/09/01 - 2024/08/31
With support from the Ministry of Science and Technology (now the NSTC), National Chengchi University launched CTPILS at the end of 2018. In July 2019, the CTPILS office opened on the Lamut campus of Ifugao State University in the Philippines.
Science and Technology Innovation Center for Taiwan-Philippines Indigenous Knowledge, Local Knowledge and Sustainable Studies (CTPILS) Logo
CTPILS is jointly operated by National Chengchi University (NCCU), Ifugao State University (IFSU), and the Save the Ifugao Rice Terraces Movement (SITMo). In addition, CTPILS receives support from NCCU's Department of Ethnology and international partners such as UCLA and the University of Hawai’i at Mānoa. By facilitating exchanges and cooperation between the institutions of different countries, CTPILS conducts international comparative studies of indigenous knowledge. In addition, CTPILS aims to achieve sustainable development goals by leveraging cross-border cooperation and becoming a platform that connects to even more international organizations.
Ministry of Education (MoE)
In September 2024, National Dong Hwa University (NDHU), which has been committed to environmental and ecological conservation for many years, received funding from the Ministry of Education under the Enhancing Cooperation and Exchange with ASEAN and South Asian Countries Program – Sustainable Agriculture Exchange and Marketing Expansion Plan. Following this, NDHU strengthened industry-academia cooperation with the Philippines by visiting the University of the Philippines, Diliman, University of Santo Tomas, The University of the Philippines, Los Baños, the Asian Development Bank (ADB), the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), and the ASEAN Centre for Biodiversity (ACB). In addition, NDHU also explored potential future partnerships in sustainable agriculture, disaster resilience, and ecological conservation. During the visit, NDHU co-hosted the 2024 Joint UST–NDHU International Symposium on “THE Environment and Sustainability” with the University of Santo Tomas. In addition, NDHU engaged in discussions with other institutions to plan future collaborative initiatives. (CNA, 2024)
Energy Administration, Ministry of Economic Affairs (MOEAEA)
In April 2024, the Taiwan Recycling Energy Development Association hosted the “Sustainable Hydrogen Energy Technology” Asia-Pacific Cooperation Launch – Signing Ceremony for the Taiwan-Philippines Hydrogen Power Cooperation Memorandum of Understanding. By bringing together representatives from industry, government, and academia, the event aimed to establish an Asia-Pacific cooperation mechanism, promote Taiwan-Philippines agreements, and introduce Taiwan's hydrogen energy technology to the international community. Royal Global Business Center CEO David Huang stated that Taiwan’s industrial and research teams have overcome various hurdles to turn Taiwan into a pivotal player in global hydrogen energy technology by transforming pollution into a sustainable industry. Through Taiwan-Philippines bilateral collaboration, Taiwan’s technology will facilitate the establishment of hydrogen-powered energy communities in the Philippines. The organizers of the event emphasized that future hydrogen energy system projects in the Philippines will promote bilateral exchanges and mutual benefit. These initiatives are expected to support the Philippine government in promoting national and regional infrastructure development by enhancing sustainable energy outcomes. (MOEAEA, 2024)
International Collaboration
Multilateral Cooperation
In the Philippines, both the public and private sectors maintain close ties and cooperation with neighboring countries on sustainable development initiatives. In April 2024, representatives from the public and private sectors of the Philippines, Indonesia, Malaysia, and Thailand met in Bangkok to discuss the potential implementation of mandatory Green Public Procurement (GPP) to promote Sustainable Consumption and Production (SCP) in Southeast Asia.
Over the past decade, several countries have introduced GPP-related policies, but their non-mandatory nature has limited their effectiveness. The goal of mandatory GPP is to encourage manufacturers to produce greener products and improve production processes while motivating consumers to purchase environmentally friendly products. During the meeting, representatives from each country presented an overview of their national GPP-related policies and held joint discussions on potential approaches for implementing green procurement in the future. (German Cooperation, 2024)
In June 2024, the Philippine’s INQUIRER, Malaysia's Star Media Group, and Indonesia's KG Media jointly hosted the inaugural Asia ESG Positive Impact Consortium (A-Epic). Malaysian Prime Minister YAB Dato' Seri Anwar bin Ibrahim attended the consortium's launch ceremony to express his support. The consortium is committed to creating a future with sustainable development as a core value. Furthermore, the consortium aims to achieve these strategies focused on education, engagement, and the establishment of collaborative networks. (ANN 2024)
Indonesia
In January 2024, the ministers of the Philippine Department of Energy and the Indonesian Ministry of Energy and Mineral Resources signed an energy cooperation agreement. The agreement focuses on fostering cooperation in areas such as energy transition, renewable energy, demand-side management, electric vehicles, and alternative fuels, including hydrogen, ammonia, and biofuels. Philippine Energy Secretary Raphael P.M. Lotilla stated that even though Indonesia and the Philippines rank second and third globally in terms of the number of geothermal power plants, both countries remain heavily reliant on coal-fired power generation. Although both countries also share the goal of developing green energy, transitioning and achieving national energy security through clean energy still requires transitional fuels capable of providing baseload power to bridge the gap as existing coal plants are phased out. As a suitable transitional fuel, the Philippines will encourage private sector investment in natural gas, including liquified natural gas, to address the variability of increased renewable energy capacity while ensuring the reliability and security of the power system. (Department of Energy, 2024) (Solar Quarter, 2024)
Thailand
In March 2017, former Philippine President Rodrigo R. Duterte visited Thailand and expressed interest in promoting cooperation and exchanges between the Philippines and Thailand on sustainable development. The proposed areas included irrigation, artificial rainmaking, livestock and fisheries, and technology applications in sustainable soil and water conservation. (MOE, 2017)
In 2023, Philippine DENR Secretary Maria A. Y. Loyzaga met with Thai Ambassador to the Philippines Tull Traisorat. Both parties expressed their willingness to further collaborate on projects related to sustainable development, urban greening in highly urbanized areas, capacity building, and knowledge sharing in regional and natural resource conservation. They also emphasized the desire to cooperate to improve the livelihoods of local communities, enhance climate change adaptation through nature-based solutions, and reduce plastic pollution by promoting resource efficiency and circular practices. (DENR, 2023)
In July 2024, the Foreign Affairs Minister of Thailand visited the Philippines to commemorate the 75th anniversary of the establishment of Thailand-Philippines diplomatic relations. At the event, the Philippine side expressed its intention to create more opportunities for Thai businesses to invest in the country, particularly in sectors such as electric vehicles, information technology, and digital infrastructure. The Thai side noted that domestic investors have made significant contributions to the Philippines in areas such as food security and renewable energy and affirmed their commitment to further deepening investment relations with the Philippines in the future. (MOE, 2024)
Vietnam
In January 2024, Vietnamese Prime Minister Phạm Minh Chính stated that in accordance with national regulations, the Vietnamese government is committed to supporting and creating favorable conditions for Philippine businesses to establish themselves, develop sustainably, and make long-term investments in Vietnam. Philippine President Ferdinand R. Marcos Jr. proposed that both countries continue to develop cooperation in traditional economic and trade sectors as well as in non-traditional fields such as mining, green technology, transportation, and science and technology. Regarding potential collaboration, Vietnamese businesses expressed interest in working with their Philippine counterparts in areas such as digital transformation, green transition, high-tech industries, and food processing.
On the other hand, the Philippines sought cooperation with Vietnam in sectors such as electric vehicle production, infrastructure, telecommunications, energy, food, pharmaceuticals, agriculture, and retail. In addition, the two countries engaged in discussions on agriculture because Vietnam is the largest supplier of rice imports to the Philippines. Therefore, while deepening agricultural cooperation with the Philippines, Vietnam aims to position itself as a transparent, responsible, and sustainable food supplier in the near future. (Vietnam Plus, 2024) (Hanoi Times, 2024)
Singapore
In August 2024, during Singaporean President Tharman Shanmugaratnam's state visit to the Philippines, the two countries signed a memorandum of cooperation aimed at reducing carbon emissions. This partnership seeks to jointly work towards achieving each country’s respective national climate goals while promoting sustainable development. (The Embassy of the Philippines, Singapore, 2024)
Philippine DENR Secretary Maria Antonia Yulo-Loyzaga and the Singaporean government discussed the strengthening of bilateral cooperation in sustainable development. By focusing on areas such as water resource management, biodiversity conservation, energy transition, and reforestation, the two countries aim to identify innovative solutions for inclusive and climate-adaptive development.
The Philippine Department of Environment and Natural Resources outlined the water resource management initiatives of its Geospatial Database Office (GDO), showcasing efforts to map the country's natural resources, including bodies of water, forests, and mangroves. Secretary Loyzaga also stated that the Philippines and Singapore will work together to achieve tangible results in addressing the impacts of climate change. Additionally, the partnership aims to establish scientific benchmarks for bilateral and public-private cooperation in environmental management. (DENR, 2024)
Australia
Australia and the Philippines started cooperating in sustainability in the early 2000s. Between 2006 and 2007, Australia provided at least AUD$70 million in aid to alleviate poverty in the Philippines, which increased to AUD$100.6 million between 2007 and 2008. (Australian Embassy, The Philippines)
Since 2022, Australia has provided assistance to the Philippines across various aspects of sustainable development. The estimated amount of aid is predicted to reach at least US$424.7 million by 2025. (DFAT)
In 2023, the Philippines and Australia engaged in discussions on cooperation in areas related to sustainability, including renewable energy, infrastructure, and sustainable mining. Regarding sustainable mining, the two countries explored potential cooperative models that address the rehabilitation of mines and land, as well as the sustainable development of surrounding communities after mining operations. (Embassy of the Philippines, Australia, 2023)
At the ASEAN-Australia Special Summit in March 2024, Philippine President Ferdinand R. Marcos Jr. invited Australia to establish a strategic partnership in tackling climate change efforts and developing renewable energy. President Marcos also welcomed Australia's initiatives in clean energy trade and investment within ASEAN. In addition, President Marcos urged Australia to continue supporting the ASEAN Centre for Biodiversity (ACB) beyond 2024, highlighting the center's work in integrating biodiversity frameworks into ASEAN and ongoing One Health capacity building initiatives led by the UN Food and Agriculture Organization (FAO) and Australia. (Solar Quarter, 2024)
In April 2024, the Philippine Department of Trade and Industry (DTI), through its subsidiary, the National Development Company (NDC), partnered with Australian startup Cyclion to secure a $3 million investment for a waste-to-energy project. The investment agreement was facilitated by the Philippine Trade and Investment Center (PTIC) in Sydney, which serves as DTI's trade and investment promotion office in Australia. Cyclion will establish its first plant in Manila, utilizing technology that converts organic waste into green fuel. The facility is expected to process approximately 900 tons of waste per day and is scheduled to begin operations by the end of 2024. (DTI, 2024)
New Zealand
New Zealand and the Philippines have been collaborating in the energy sector since the 1970s, with New Zealand playing a significant role as a partner in the development of geothermal energy in the Philippines. The two countries have a geothermal development cooperation agreement, which was renewed in 2021. (MFAT, 2022)
In April 2024, during New Zealand Prime Minister Christopher Luxon's visit to the Philippines, the leaders of both countries announced plans to elevate their relations to a comprehensive partnership by 2026. Due to the impacts of climate change, officials from both countries are drafting a memorandum of understanding on renewable energy cooperation. Recognizing the challenges the Philippines may face in developing renewable energy, New Zealand has committed to providing technical and financial assistance to support these efforts. Between 2021 and 2024, New Zealand allocated NZD$31.1 million to the Philippines for climate and economic resilience as well as knowledge and skills development. In addition, New Zealand is providing NZD$19.4 million through the Asian Development Bank's Energy Transition Mechanism to further assist the Philippines in its energy transition initiatives. (NZG, 2024)
Philippines' Policy on Energy & Sustainability
Agency | Policy, Strategy, Project & Initiative |
---|---|
National Economic and Development Authority (NEDA) |
Philippine Action Plan for Sustainable Consumption and Production (PAP4SCP) |
Bangko Sentral ng Pilipinas (BSP) | |
Department of Finance (DOF) | |
Department of Energy (DOE) | |
Climate Change Commission (CCC) | |
Department of Environment and Natural Resources (DENR) | |
Renewable Energy Management Bureau | |
House of Representatives | |
National Science and Technology Council (NSTC), Taiwan
National Chengchi University (NCCU), Taiwan Ifugao State University (IFSU), Philippines University of Hawai'i at Mānoa (UH Mānoa), United States University of California (UCLA), United States |
|
Ministry of Education (MoE), Taiwan | Enhancing Cooperation and Exchange with ASEAN and South Asian Countries Program - Sustainable Agriculture Exchange and Marketing Expansion Plan |
Keywords: #Philippines #Energy #Sustainability
Reference/Sources:Philippines' Sources
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Department of Environment and Natural Resources [Enhanced] National Greening Program
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Presidential Communications Office, Office of the President of the Philippines (2024.08) Philippines and Singapore to bring relations to new trajectory
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Department of Environment and Natural Resources (2024.08) PH, Singapore eye stronger environmental collaboration
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Department of Trade and Industry (2024.04) DTI leads Philippines-Australia green energy venture with innovative Waste-to-Energy Project
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Ministry of Foreign Affairs, Kingdom of Thailand (2024.07) Minister of Foreign Affairs of Thailand paid an Official Visit to the Republic of the Philippines to commemorate the 75th Anniversary of the establishment of Thailand – Philippines Diplomatic Relations
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German Cooperation (2024.04) Indonesia, Malaysia, the Philippines and Thailand discuss making green public procurement mandatory
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Australian Embassy, The Philippines AUSTRALIA-PHILIPPINES DEVELOPMENT COOPERATION PROGRAM GROWS TO P3.96 BILLION FOR 07-08
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Asia Network (2024.06) Philippines’ Inquirer, Malaysia’s Star Media Group, Indonesia’s KG Media launch Asia’s first A-EPIC
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Solar Quarter (2024.01) Renewable Energy Focus: Philippines And Indonesia Elevate Energy Collaboration
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GMA News (2024.01) Philippines, Indonesia ink pact on energy cooperation
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CCI France Phillipines (2023.03) Legislating a Sustainable Future: The Low Carbon Economy Act of 2022
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ASEAN Briefing (2023.01) Philippines Opens Renewable Energy to Full Foreign Ownership
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GreenDev Solutions (2022.07) Complete List of all Environmental Laws and Policies in the Philippines
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Green Finance Platform (2022.02) Philippine Sustainable Finance Roadmap and Guiding Principles
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Green Finance Platform (2022) Sustainable Finance Framework of the Republic of Philippines for debt instruments
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