Vli Valuing and Accounting for the Environment in the Philippines

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1 Vli Valuing and Accounting for the Environment in the Philippines Valuing and Accounting for the Environment in the Asia Region Bangkok, Thailand October 8, 2013 Rosemarie G. Edillon, PhD Assistant Director General of National Economic and Development Authority OUTLINE The Policy Dilemma Past Initiatives Some Resolutions Continuing Dilemma WAVES Philippines Policy Issues that can be addressed by WAVES Comprehensive wealth 1

2 Natural Capital is a critical component of wealth Especially for less developed countries, where it makes up a significant share (36%) of total wealth. However, its contribution is largely unaccounted for. Wealth of the Philippines ($ per capita, 2005) Comprehensive wealth Uses of Environmental Accounts WAVES Partnership Phil WAVES: Introduction Ecosystem Account in Southern Palawan Policy Dilemma(examples) Angat Dam Laguna Lake Southern Palawan Mount Kitanglad Policy Dilemma 2

3 Past NCA initiatives in the Philippines Environmental and Natural Resources Accounting Project (ENRAP) USAID funded project that adopted the Henry Peskin approach to NCA Focused on construction of national level NC accounts (forests, fisheries, minerals, soils, air and water pollution, environmental damages, direct nature services) for public policy Philippine Economic Environmental and Natural Resources Accounting (PEENRA) Project Used the SEEA framework for NCA accounting with the UN providing financial and technical support Generated, both thin physical and monetary terms, national asset accounts for five resources ( fishery, forest, minerals, land and water resources) and economic activity accounts or flow accounts of emissions for fourteen (14) subsectors Comprehensive wealth Uses of Environmental Accounts WAVES Partnership Phil WAVES: Introduction Ecosystem Account in Southern Palawan Key Policy Applications Some Resolutions i. Imposition of differential taxes between low and high lead gasoline during based on health damage from lead emissions and a ban of leaded gasoline in 1998; ii. An update and refinement of the pasture lease fee system for appropriating economic rent with discounts allowed for conservationists; iii. An exemption of community based forest management agreement holders from forest charges; iv. Development of a fee system for recreationists and commercial establishments in six natural parks/protected areas; and v. Restriction of growth in commercial fishing and polluters in Lingayen Gulf 3

4 The Dilemma persists Continuing Dilemma Goal: Inclusive Growth Allows a lot more to participate in the growth process Everybody benefits from growth Possible strategies Promote faster growth in traditional growth centers and ensure connectivity Promote new growth centers Create markets(?) Dilemma in the Mining Sector Mining is one of the sectors that have yet to maximize its contribution to growth BUT, there are conflicting interests EO 79 mentions the following claimholders Indigenous peoples Local government units State 4

5 What is WAVES? Canada United Kingdom Norway Spain Andalucia Japan Costa Rica Colombia Philippines Madagascar Botswana Australia Implement green accounting in developed & developing countries Comprehensive wealth Uses of Environmental Accounts WAVES Partnership Phil WAVES: Introduction Ecosystem Account in Southern Palawan Summary of Policy Issues for Phil WAVES Sector Economic & Social Policy Issues Environmental Concerns Mangroves Resolving competition among user groups; Increasing tourism benefits for the poor; Effective & efficient mangrove rehabilitation. Reversing degradation & scaling up conservation; Valuing mangrove protection & sustainable marine-based economy. Minerals Sustaining income from resource rents; Increasing benefits for IPs & local communities; Mitigating environmental damages; Increasing water use efficiency; Post-mining rehabilitation; Building credible data & information. Cross-cutting issues Resolving competing uses through institutional & pricing reforms; Generating employment, income & local benefits. Site case studies on Analyzing competing uses of land and coastal and marine ecosystem - Southern Palawan Ecosystem Accounting Resources and Ecosystems Assessment Case Study Reducing environmental impacts; Reducing vulnerability to climate risk & geo-hazards. Methodology development Mitigating environmental damage Increasing water use efficiency Post-mining rehabilitation Local benefit sharing Climate risk adaptation. Laguna Lake: water and habitat ecosystem; update of fee on water abstracted for consumption Water supply Cost of producing water for consumption; Other economic values associated with fisheries, recreation, waste assimilation, flood control, health impacts, habitat. 5

6 Valuing and Accounting for the Environment in the Philippines Valuing and Accounting for the Environment in the Asia Region Bangkok, Thailand October 8, 2013 Rosemarie G. Edillon, PhD Rosemarie G. Edillon, PhD Assistant Director General of National Economic and Development Authority 6