Title
Philippine Ecosystem and Natural Capital Accounting
Law
Republic Act No. 11995
Decision Date
May 22, 2024
The Philippine Ecosystem and Natural Capital Accounting System Act institutionalizes a comprehensive framework for integrating natural capital into policy and decision-making, designating responsible agencies and mandating the use of environmental-economic accounting to promote ecological balance and sustainable development.
A

Key Definitions

  • Adjusted net savings: National savings adjusted for education and depleted natural resources and pollutants.
  • Ecosystem: All living organisms and their interactions with the abiotic environment.
  • Ecosystem accounting: Framework integrating ecosystem measures with economic and human activities.
  • Ecosystem services: Benefits from ecosystems categorized into provisioning, regulating and maintenance, and cultural services.
  • Environmental indicators: Selected statistical measures representing complex environmental phenomena.
  • Natural capital: Stocks of renewable and non-renewable natural resources that provide benefits, including ecosystem services.
  • Natural Capital Accounting (NCA): Systematic measurement and reporting of natural capital stocks and flows.
  • System of Environmental-Economic Accounting (SEEA): Integrated economic and environmental data framework reflecting interrelationships and asset stock changes.
  • Valuation: Physical and economic appraisal of natural capital and ecosystem services at national and subnational levels.

Philippine Ecosystem and Natural Capital Accounting System (PENCAS)

  • Institutionalized within government agencies and mandated to comply with international environmental-economic accounting frameworks.
  • Framework covers statistics on depletion, degradation, restoration of natural capital, environmental expenditures, pollution, environmental damages, and adjusted net savings.

Objectives of PENCAS

  • Support policies related to economic, environmental, and health sectors.
  • Develop systems for collecting and compiling physical and natural capital accounts aiding planning and decision-making.
  • Serve as comprehensive data framework for natural capital statistics integration into macroeconomic indicators.
  • Provide tools for ecosystem protection, conservation, and restoration.
  • Enable valuation of ecosystem services including provisioning, regulating, maintenance, and cultural aspects.

Institutional Arrangements

  • PSA Board oversees PENCAS implementation.
  • Interagency Committees under PSA Board address methodologies, data duplication, gaps, and system improvements.
  • Interagency Committee on Environment and Natural Resources Statistics (IACENRS) supports data generation and roadmap implementation.
  • Technical Working Group (TWG) on NCA, chaired by PSA and including DENR, NEDA, DA, with specific roles in coordination, problem-solving, methodology enhancement, output prioritization, and reporting.

Specific Government Functions

  • PSA: Overall responsibility, data compilation, technical coordination, creation of ENREAS service.
  • DENR: Data provider, leads ecosystem account establishment, strengthens environmental impact assessment, and staff capacity.
  • NEDA: Incorporates NCA in development priorities and policy guidance.
  • DA: Supports agricultural and fisheries data generation, coordinates with DENR, strengthens related bureaus.
  • DILG: Consolidates LGU data and ensures local application of NCA.
  • Education and Professional Bodies (DepEd, CHED, TESDA, SUCs, PRC): Incorporate NCA into curricula and professional education.
  • DOF: Integrates NCA into fiscal policies and creates investment incentives.
  • DOE and DHSUD: Integrate NCA into respective mandates and planning.

Participation of Specific Bureaus

  • Inclusion of various bureaus within DENR, DA, DOST, and other agencies for data collection and analysis.

Other Stakeholders

  • Engagement of private sector, NGOs, indigenous peoples, and local communities for data provision and PENCAS utilization.
  • Mandatory public disclosure of NCA information, subject to security concerns.

Legal Application and Penalties

  • Application of Anti-Red Tape Act, Ease of Doing Business Act, and Philippine Statistical Act provisions and penalties to PENCAS implementation.

Citizen Participation and Remedies

  • Establishment of consultative and collaborative mechanisms for public awareness and participation.
  • Citizens’ rights to access PENCAS data, compel agency compliance, and seek explanations for neglect.
  • Release of major PENCAS data alongside economic indicators like GDP and GNI to highlight nature’s economic contributions.

Rights of Nature

  • Affirmation that nature’s intrinsic and inherent value is recognized beyond economic valuation.
  • Emphasis on sustainability and acknowledgement of natural ecosystem limits and regenerative capacities.

Budgetary Provisions

  • Initial funding charged to current agency appropriations.
  • Subsequent funding to be included in annual General Appropriations Act budgets of concerned agencies.

Implementation Rules

  • PSA to establish interagency working group within one year to formulate implementing rules.
  • Incorporation of international best practices and SEEA integration.
  • Rules to cover data collection, renewal, and review protocols.

Separability Clause

  • Invalidity of any provision does not affect other provisions’ validity.

Repealing Clause

  • Repeals laws, orders, or regulations inconsistent with this Act.

Effectivity

  • Effectivity fifteen days after publication in Official Gazette or newspaper of general circulation.

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