March 11 – 13, 2025, Cebu City – CCEF was invited as a representative for the focus group discussion on the Visayas Cluster Consultative Workshop on the Crafting of the Implementing Rules and Regulations (IRR) of the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act. Spearheaded by the Philippine Statistics Authority (PSA), together with the Department of Environment and Natural Resources (DENR), the National Economic and Development Authority (NEDA), local government units, non-government organizations (NGOs), and academic institutions, convened this workshop to engage experts in environmental management, economic planning, and resource valuation. Discussions focused on shaping the IRR to maximize the law’s positive impact on both the environment and the economy.
Enacted in May 2024, Republic Act No. 11995, or the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act, institutionalizes Natural Capital Accounting (NCA) in the country. This landmark legislation integrates the value of natural resources and ecosystems into national economic planning and decision-making, ensuring a more sustainable approach to development.
NCA is a framework that measures and reports on the economic value of natural resources and ecosystem services. It goes beyond traditional economic indicators like GDP by recognizing how environment such as forests, wetlands, coral reefs, and marine ecosystems contributes to economic and social well-being. By incorporating environmental and economic data, NCA helps policy makers and stakeholders make informed decisions that balance development with conservation.
How Can PENCAS and NCA Help Protect Marine Ecosystems?
Recognizing the True Value of Marine Ecosystems – Coastal and marine ecosystems, such as coral reefs, mangroves, and seagrass beds, provide essential services, including coastal protection, carbon sequestration, and fisheries productivity. By quantifying their economic value, the PENCAS Act ensures that these ecosystems are not overlooked in development plans.
Guiding Sustainable Coastal Development – Many economic activities, such as tourism, fishing, and infrastructure projects, impact marine environments. NCA helps assess the trade-offs between economic gains and environmental costs, guiding policies that promote sustainable use of marine resources.
Strengthening Marine Conservation Policies – Data from NCA can support the expansion and proper management of Marine Protected Areas (MPAs), ensuring that these critical habitats remain productive and resilient against climate change and human activities.
Enhancing Climate Change Adaptation – Healthy marine ecosystems act as natural buffers against storm surges and rising sea levels. By integrating ecosystem data into national policies, the PENCAS Act helps build climate-resilient coastal communities.
With the implementation of the PENCAS Act and NCA, the Philippines takes a significant step toward protecting its marine ecosystems while ensuring economic sustainability. By recognizing the immense value of our natural capital, we can preserve marine biodiversity, support coastal livelihoods, and promote a truly sustainable blue economy.
By participating in the IRR development process, CCEF strengthens its advocacy for marine and coastal resource conservation. The foundation highlights the importance of integrating ecosystem protection into national policies to ensure that marine biodiversity, coastal livelihoods, and sustainable development are at the forefront of economic planning.
The PENCAS Act represents a significant step toward recognizing the true value of nature in economic progress, paving the way for more informed, data-driven environmental policies that will benefit both present and future generations.
