MODULE 3

INTRODUCTION

According to FAO (2011), in the last few decades, growing demand for food, fresh water, timber, fiber
and fuel, have changed and degraded ecosystems more rapidly and extensively than in any comparable
previous period. Natural resources and environmental degradation can negatively affect the capacity of
ecosystems to contribute to human well-being. Valuing natural resources and the services they deliver is
crucial for informed decision making and for driving sustainable investment choices. However, valuation must
be preceded by looking into various natural resources/ ecosystem accounts at various level; municipal,
provincial and national depending on the relevance of the usage and scope of the data.
This module will go through the status of ecosystem services, ecosystem and natural resources
accounting based on framework developed for climate change commission and green growth initiative and the
process involved. Likewise, a discussion on ecosystem changes as a results of various drivers and how this
changes impact accounts.
After you have gone through this topic, you are task to identify and select one particular ecosystem in
your locality and assess the benefits derived based from your observations, from published article if there is
any and the current scenario of that particular resources.

LEARNING OUTCOMES
o Classify the benefits from ecosystem services,
o Identify the drivers and pressures in the changes of environmental services;
o Discuss the assessment and accounting framework, process, tools and methodology.

LEARNING CONTENT

Ecosystem Services Status and Benefits

According to FAO (2019) as cited in MEA
(2005), there are four main findings of the
Millennium Ecosystem Assessment, as follows:
1. Over the past 50 years, humans have changed
ecosystems more rapidly and extensively than in
any comparable period in human history, largely to
meet growing demands for food, fresh water,
timber, fiber and fuel. This has resulted in a
substantial and largely irreversible loss of
biodiversity.
2. The changes that have been made to ecosystems
have contributed to substantial net gains in human
well-being and economic development, but these
gains have been achieved at growing costs in the
form of the degradation of many ecosystem
services, increased risks of nonlinear changes, and
the exacerbation of poverty for some groups of
people. These problems, if unaddressed, will
substantially diminish the benefits that future
generations obtain from ecosystems.
3. The degradation of ecosystem services could
grow significantly worse in the first half of this
century and is a barrier to achieving the Millennium
Development Goals.
 4. The challenge of reversing the degradation of
ecosystems while meeting increasing demands for
their services can be met partially, but this requires
significant changes in policies, institutions and
practices that are not currently under way. Many
options exist to conserve or enhance specific
ecosystem services in ways that reduce negative
trade-offs or that provide positive synergies with
other ecosystem services
The MEA defines ESs as the “multiple
benefits provided by ecosystems to humans”. ESs
comprise all products and services that ecosystems
deliver to humans and contribute to human well-
being, either directly (e.g. by providing food,
materials and water) or indirectly (e.g. by ensuring
protection against hazards and mitigating climate
change)
Ecosystem services can be classified as
provisioning (i.e. providing products and materials);
regulating (i.e. regulating ecosystem processes and
the environment); and cultural (i.e. the non-
material benefits obtained from ecosystems, such
as cultural and spiritual values). A fourth category
(supporting services) includes all the underlying
structures, processes and functions that
characterize ecosystems (Review Pg. 32 - 34, FAO,
2019).
Ecosystem and Natural Resources Accounting:
Communities for Resilience (Core ) Initiative
Natural resource accounting is an
accounting system that deals with stocks and stock
changes of natural assets, comprising biota
(produced or wild), subsoil assets (proved
reserves), water and land with their aquatic and
terrestrial ecosystems (OECD, 2003). It is frequently
used in the sense of physical accounting as
distinguished from monetary (environmental)
accounting
Why is ENRA important in the Communities for
Resilience (CoRE) Initiative? In the light of the
discussion on Climate Change
As the national government pushes
towards increasing autonomy in local governance,
local government units (LGUs) are compelled to
look at its internal resources if it can support the
local economy. Compounding the pressure is the
threat of climate change hazards that pose
continuing threats to communities’ resilience.
Always, many economic production activities are
severely hampered by such calamities increasingly
degrading natural resources. It therefore imposes
upon the municipality to have continuing
information on the status of its resources, including
all forms of local capital to sustain the local
economy and strengthen community resilience.
Knowing the condition and extent of LGU’s its
natural capital will help define alternatives when
climate change hazards weaken its capacity.
Beyond organizing the information, creating the
link to local economy will help build concrete
actions. Accounting of the environment and natural
resources is essential because the productivity of
the ecosystems and its natural resources are linked
to the productivity of economic production entities.
The municipality must have an accounting of its
natural resources in order to know if its economic
activities can be sustained through local production
to meet consumption needs. The results of
accounting form the basis of every development
plan. Consequently, effective policy responses must
be exhibited at all levels of governance. As bulk of
decision making and direct control over natural
resources are being exercised at the municipal
level, a municipal account serves as a tool for
decision-making and policy implementation. This
sub-topic discusses in brief detail the inadequacies
of economic growth measures, and identifies the
missing components of these indicators. This
includes explanations on:
• How depreciation measures neglect other
forms of capital such as a nations’ stock of water,
soil, air, non-renewable resources, and wildlands;
 • Natural and environmental resources as
generally not included in balance sheets;
• Failure of cleanup costs to take into
account previous environmental damages; and
• Non-trading of many environment and
natural resource goods and services in markets.
These constitute the main basis for the
development of environment and natural
resources accounting methods that are intended to
be linked to economic indicators.
The Conceptual Framework
It is recognized that economic activities use
the environment and natural resources (ENR) for
inputs in production activities, and as sink of its
byproducts. Figure 1 shows the link of
environment and natural resources to economic
and other human activities. For purposes of clarity,
ENR is disaggregated into the different major
ecosystems that provide services to these human
activities. In the context of economic activities,
ENR is distinguished from ecosystems. The former
are treated as source of natural capital, whereas
Figure 1. The schematic framework of ENRA (CCC and GGGI, 2016)
the latter provide both natural resources and
services needed not only in economic but also
other human activities. Terrestrial, aquatic, and
marine ecosystems provide renewable and non-
renewable resources to support economic activities
and also provide ecosystem services, which in most
cases are not accounted in economic valuation.
Ecosystems’ goods and services enter almost all
economic production, consumption, aesthetic,
and/or cultural needs, and are therefore essential
to sustain the well-being of communities. However,
the ability of ecosystems to sustain its inputs is
governed and influenced by natural processes,
climatic changes, extreme or natural calamities,
and by human exploitation activities.
Changes due to normal natural processes
are of less concern because its effects are regulated
and steady. Of greater concern is the exploitation
caused by economic and human activities. In the
case of renewable resources, the harvest or draw
down is replenished by natural growth, provided
that sufficient mass or growing stock of resources
remains after each event of human exploitation.
 If human exploitation of the resource
exceeds its rate of recovery, the resource stock
declines. Once the renewable resource stock
declines beyond the threshold or its ability to
recover, result is depletion. In the case of non-
renewable resources, recovery takes a longer
gestation period so that over the human horizon, it
trends towards depletion. The stock of non-
renewable resources can rapidly decline if human
exploitation intensifies and where exploitation
technologies are resource-intensive and inefficient,
thereby not maximizing the extraction of the vital
resource. Ecosystem capacity is also impacted by
byproducts and wastes of human and economic
activities, such that if waste discharges exceed its
assimilative capacity, the ability to provide inputs is
reduced. In turn, a compromised assimilative the
capacity produces negative amenity such as air,
land, and water pollution, thereby reducing human
welfare.
A forward-looking process of assessment
begins with identifying the DRIVERS (D) of changes
in ecosystems and its provision of services. These
drivers are largely dictated by population dynamics,
including migration and technological changes.
Among the many drivers are agriculture, forestry,
fisheries, mineral production, housing and
settlements, manufacturing and processing, and
urbanization coupled with transportation and
energy demands. The intensification of these
drivers increases the pressures on the ecosystems
and its services. The PRESSURES(P) come through
different means such as clearing of vegetation, land
conversion, logging, farming, infrastructure
development, water use and abstraction, waste
water discharges, release of pollutants, solid waste
discharges, reclamation, expansion of plantations,
intensified transportation, discharge of sediments
to water bodies, and the likes.
Prior in the identification of various
account, natural resources assessment must be
must be done. The key element of natural
resources assessment (CCC, 2017), is to measure
the current STATE (S) of the ecosystem and its
ability to provide ecosystem services in the face of
these pressures. The assessments also identify
IMPACT (I) indicators (i.e., declining, increasing, or
sustaining the quantity, quality, and trend) in both
physical and monetary terms to provide managers,
policy and decision makers with information to
make the appropriate RESPONSES (R) in order to
sustain or conserve the ecosystem and its services.
There are biological, physical, and monetary
accounts can now be developed through the
natural resource assessment and become the
information system that serves as basis for
solutions in terms of plans, programs, and
legislations at the local, subnational, and national
scale. The information system combines spatial
(i.e., maps, images) and time series information
(both cross section and panel data), and are
presented in appropriate scale, form, and
structure understandable for meeting economic
growth targets, climate change adaptation
measures, assessment of different aspects of
resiliency, poverty alleviation, and food security.
In CCC (2017), there are drivers and
associated pressures of ecosystem change to the
state and impacts on natural resources. As
reflected in Table 1 below are are drivers of
ecosystems changes and impacts accounts.
 Table 1. Drivers of ecosystem change and its impact accounts (ENRA-CORE Training Manual, 2017)

Drivers of ENR Pressure Accounts State Accounts Data Impact Accounts Data Needs, Tools
and Ecosystem Needs, Tools and (Ecosystem Services, and Techniques
Changes Techniques Condition, Capacity)
Terrestrial/ Land-based Drivers (Upland and Lowland Ecosystems)
Clearing of vegetation
Land cover change, Land cover map,
(Logging, slash and Land cover extent
siltation two periods
burn, cultivation)
Monocropping Pesticide residues Acids soils and pollution Land use map
Sedimentation, Water balance,
Irrigation systems and Water and soil
eutrophication, water water quality
discharges resources
deficits assessment
Water balance,
Large-scale agriculture
Water resources Algal bloom, etc. water quality
discharges
assessment
Anaerobic conditions
Small-scale farming Soil erosion/surface
reduce oxygen level,
erosion run-off
leading to fish kills;
Increasing alkalinity,
Nutrient and
thereby promoting
sediment deposits
anaerobic conditions
Forestry Timber and non- Land cover change
Land cover map;
Logging: clearing and timber resources;
Timber and non-
erosion Land cover and soil Rising methane, nitrates,
timber assessment
erosion control phosphates
Slash and burn(Kaingin): Remote sense
Land cover and soil Shallowing of water
Clearing and concreting data, FGD’s, and
erosion bodies
of open areas HH surveys
Infrastructure: Clearing Water bodies-level rise Remote sense
Soil erosion, flooding,
and concreting of open resulting to flooding of data. FGDs, site
sediment transport
areas coastal settlements visits, and surveys
Hydrologic
Flooding of coastal modelling,
settlements precipitation, and
other climate data
Locations of
Clearing and concreting Reduction of population of
Sediment load settlements; land
of uplands and lowlands aquatic life
use maps
Supply and use
Seasonal volume of Increase in population of data on water
Abstraction of water
surface water species(invasive species) ( supply and use
accounts)
Waste water/effluent Chemical deposits in Field surveys, and
discharges water bodies remote sensing
Land development with Volume of solid Land use maps,
infrastructures and wastes field surveys, and
 discharge systems household surveys
Soil erosion/surface Sediment
run-off modelling
Livestock and Bio-chemical Sources and
Reduction in water
poultry Waste water discharges composition of water production; ES
quality/eutrophication
bodies used
Depth of water Shallowing of water
Solid wastes
bodies bodies bed
Reduction of water bodies
Increasing alkalinity
biodiversity and wildlife
Mining Open-pit mining:
Sources and
Clearing and soil
Sediment loads High concentration Production; ES
erosion, sediment
used
transport
Monitoring reports
Discharge of mine Chemical deposits
on discharges
tailings in water bodies
Services Waste water Chemical deposits
discharges in water bodies
Transport Chemical deposits
intensification in water bodies
Air and water pollution
Expansion of Air and water
impacting health and
commercial centers quality
work hours
Energy
Land cover change, Air and water
Drilling, release of toxic Air and water erosion and quality sampling,
chemicals quality sedimentation, air and soil erosion and
water quality sedimentation
modelling
Manufacturing Extraction of Air and water
Land cover change,
and Processing natural resource Air, soil and water quality sampling,
erosion and
inputs, release of quality, and land soil erosion, and
sedimentation, air and
byproducts to air, productivity sedimentation
water quality
soil, and water modelling
Transportation Vehicle discharges;
Chemical deposits Air and water pollution, Air and water
Intensified road
in water bodies congestion quality sampling
infrastructures
Tourism Construction of
infrastructure for Solid wastes
resorts
Waste water/ Easements and
effluent discharges flood regulation
Urbanization Clearing and concreting
of uplands: Rapid water Soil erosion
Sedimentation
flow and sediment control
discharges
Reclamation Rate of sediment Shallowing of some Bathymetry
programs and flows areas
projects: Landscape
change, water
 bodies area
reduction
Waste water Chemical deposits in
discharges disposal water bodies
Intensified
infrastructures,
highways bordering
water bodies
Fishery Uncontrolled open-
capture fishery and Fishery species
extensive use of stock
efficient gears
Expansion of cage
Habitat quality
culture
Excess feeds deposition Fish kills
Mangrove Mangrove extent decline
Expansion of Mangrove
Conversional and
mariculture mapping
cover change
Navigation/ Intensified
Transportation transportation:
Habitat quality
Congestion and habitat
disturbance
Transportation Water quality
infrastructure:
Landscape change
Waste water discharges Chemical deposits
Expansion of Foreshore
coastal infrastructure
settlements development
Clearing of
coastal/mangrove
vegetation
Introduction of
exotic species
Introduction of
Fish composition
invasive species
Natural Drivers
Precipitation Flooding Water level,
Loss of productive
inundated areas
areas
and duration
Sea Level Rise Tidal intrusion and Water level, Loss of habitat, reduced
salinization of farms inundated areas productivity
and duration;
habitat condition
Storm Surge Tide intrusion and
flooding
Drought Reduced water
availability
Others
The Processes in an Environment And Natural
Resources Accounting
Environmental and natural resource
accounting (ENRA) deals with measuring and
valuing the stocks and stock changes of natural
assets comprising biotic and abiotic resources,
including subsoil assets, water and land with its
aquatic and terrestrial ecosystems. Valuation in
natural resources and its capital is emphasized in
order to be linked to indicators of economic growth
in order to support policy and decisions at the
national and local level.
Overview of the process.
The process of developing ENRA spins from
the conceptual framework of the economy and
environment linkage. The conceptual framework
Figure 2. Simplified environment and natural resources accounting process ( p. 26, CCC, 2017)
provides the main rational for the valuation
method and natural resource accounting. The tools
used in developing the environment and natural
resources accounts at the municipal level includes
focus group discussions, key informant interviews,
household surveys, map analyses, and modelling of
natural resource processes. Applying these tools
require expertise from physical, biological, and
social science disciplines working on forest,
agriculture, coastal and marine, and water sector.
Data collection requires field surveys, sampling,
discussions with local managers and planners,
conduct of workshops, household interviews, and
analyses of remote sensing data and mapping.
Figure 2 below summarizes the processes of
environment and natural resources accounting,
which is similar in many ways with ecosystem
accounting processes.
ADDITIONAL LEARNINGS
o Valuing forest ecosystem services: a training manual for planners and project developers (Pg. 29-35).
http://www.fao.org/3/ca2886en/CA2886EN.pdf
o Forest resources and forest-based ecosystem services in Bangadesh(Pg. 42-44)
http://www.fao.org/3/ca2886en/CA2886EN.pdf
o Environment and Natural Resources Accounting ( ENRA). 2017. Climate Change Commission.

REVIEW QUESTION

1. In your own understanding, environment and natural resources is the same as ecosystem? If not, give
examples to distinguish the difference between the two ( 20 %).

LEARNING ACITIVITY 1

Direction: This should be submitted two weeks after this assignment had been given, answer in a bond
paper and handwritten (60%)
1. Make a list of the major ecosystems present in your province.
2. Select at least one of these (YOUR EXAMPLE IN MODULE 1) and identify all the ESs it provides. Estimate
the state of each identified ES in the range of 1–5 (where 1 = extremely poor ; 2= poor; 3 = moderate; 4=
good; and 5 = extremely good).
3. Indicate the regional trend – decreasing, stable or increasing – for each identified ES over the previous
ten years (or another timespan, as defined by you). Indicate the drivers that resulted to this changes.
4. Summarize in tabular form that it could be easily understood and with my presumption that your
output undergone an analysis.
LEARNING ACITIVITY 2

1. In Figure 6, p.34, FA0 (2009), common international classification of ecosystem services hierarchical
system, fill up the unfilled boxes bases on the services provided by the ecosystem identified in Learning
Activity 1 ( 20%).
REFERENCES

1. Masiero, M., Pettenella, D., Boscolo, M., Barua, S.K, Animon, I. & Matta, J.R. 2019. Valuing forest
ecosystem services: a training manual for planners and project developers. Forestry Working Paper No.
11. Rome, FAO. 216 pp. Licence: CC BY-NC-SA 3.0 IGOValuing forest ecosystem services. 2019.
http://www.fao.org/3/ca2886en/CA2886EN.pdf
2. Module on Environment and Natural Resources Accounting for Trainers [electronic resource]/
Published by the Climate Change Commission – Manila and the Global Green Growth Institute – Seoul:
2017.
3. Glossary of terms. OECD .2003. https://stats.oecd.org/glossary/detail.asp?ID=1739#:~:text=Natural
%20resource%20accounting%20is%20an,their%20aquatic%20and%20terrestrial%20ecosystems.