A recent study by the Philippine Institute for Development Studies (PIDS) highlights the potential of streamlining local development plans, networking, and cascading mandates of the foundations of payment for ecosystem services (PES) schemes to improve the capacity of the government and stakeholders to address socio-ecological issues.
A United Nations report indicates that ecosystems are deteriorating globally, with the size and quality of the world’s ecosystems declining by 47 percent. This trend is predicted to continue by at least four percent per decade. Meanwhile, human activities have severely altered 75 percent of terrestrial environments since 2019. The Philippines ranked highest in the 2022 World Risk Report, which assessed the disaster risk of 193 countries.
PIDS recently conducted a study on how PES as an approach can support sustainable development and ecological integrity efforts in the Philippines. PES schemes encourage individuals or communities to protect and enhance vital environmental services, such as carbon sequestration, watershed conservation, and the preservation of biodiversity. It assigns economic value to the environment, addressing a gap the market fails to recognize. Despite the significant economic value of the environment, the full contribution of natural capital, such as forests, wetlands, and agricultural lands, is not adequately captured in standard economic measures.
Institutionalizing PES in the country faces challenges such as unclear policy links, arbitrary methodology, weak sustainability measures, and limited capacity and resources. While national policies contain provisions that support PES, these do not ensure the necessary resources and support for the projects. The success of PES relies on effective collaboration among stakeholders, necessitating clear and well-organized communication of the process and benefits involved.
The study recommends (1) capitalizing on the evolving PES definition and the government’s interest in addressing these barriers; (2) augmenting accounting and auditing rules to reflect PES and natural capital accounts; (3) pursuing a legal platform; and (4) instituting transparency platforms and data management.
Moreover, a holistic approach is required to ensure the success of a national PES program. The integration and linkage of monetary and resource data would enable more accurate and timely insights into environmental protection expenditures, industry value added, employment, and population, national planning, and adherence to international commitments.
Reference: Philippine Institute for Development Studies. (24, January 2023). Payment for ecosystem schemes ‘promising’ for sustainable development – PIDS Study. Retrieved September 4, 2024, from https://www.pids.gov.ph/details/news/press-releases/payment-for-ecosystem-schemes-promising-for-sustainable-dev-t-pids-study
