Payment for Ecosystem Services:

ENHANCING RESILIENCE AND PRODUCTIVITY OF WATERSHEDS

IN THE PHILIPPINES AMID CLIMATE CHANGE
What is PES?
“Voluntary transactions in
which a well-defined
ecosystem service is
bought by a
buyer/beneficiary from
a seller/provider if and
only if the provider
continuously secures the
provision of the service”

Source: Wunder (CIFOR), 2005

PES Objectives:

• Maintain environmental integrity

• Generate financial resources for conservation
• Promote equity/reduce poverty
Ecosystem services:
Watershed Carbon Biodiversity
Cultural services
management sequestration services

• Improved water • Reduction of • Aesthetic and • Habitat

quality and greenhouse gases non-material restoration
quantity benefits • Species
• Flood risk associated with conservation
mitigation healthy • Reduction of
• Reduced ecosystems biodiversity
sedimentation impacts
associated with
farming and
infrastructure
development
Case No. 1. The “Sacred Customary Compact” Between the
Upland IPs and Unifrutti Plantation, Lantapan, Bukidnon

IRRIGATION
PROTECTION OF WATERSHED WATER

SERVICES

PAYMENT OF PhP 1,000 PER HECTARE PER YEAR AS

SELLER PAYMENT TO OFFSET WATER USED FOR IRRIGATION
BUYER
Case No. 2. The Cagayan de Oro River Basin - MILALITTRA PES
Awarding of cash incentives to the MILALITTRA Tribal Association
Case No. 3. The Watershed Trust Fund of San Carlos Development
Board, San Carlos City, Negros Occidental

• Enacted Ordinance No. 37, Series of 2004

• Php 0.75/m³
2004

• Implementation of the Ordinance No. 37,

Series of 2004
2005 • MOU between SCDBI and LGU

• Ordinance No. 08 - 10, Series of 2008

• Increased the water levy to one peso (Php
2008 1.00/m³)
* The San Carlos Development Board Inc. administers the PES
implementation
Case No. 4. The Production Assessment Charge of
Bacolod City Water District, Bacolod City

RATIONALE
LEGAL BASIS: PRODUCTION
ASSESSMENT CHARGE (PAC) Sec. 39 of
• To generate funds for the
PD 198 states:
watershed management,
protection, and development. EIA
Campaign
In the event the Board of a district finds, after
Watershed
20% notice and hearing, that the production of
Mgt.
groundwater by other entities within the district for
• To ensure sustainable 60%
Administrative
Cost commercial or industrial uses is injuring or
production of groundwater 20%
reducing the district’s financial condition, the
Board may adopt and levy a groundwater
production assessment to compensate for such
• To conserve water and protect loss.
water quality.
DEEP WELLS IN BACOLOD COVERED BY PES
Case No. 5. The Rewards for Sustainable Land Practices in Libona,
Bukidnon through Municipal Ordinance No. 114

RUPES (Rewarding the Upland Poor for

Environmental Services) Collaborative Initiative to
Develop a Mechanism for Rewarding the Upland
Communities of the Manupali Watershed for the
Environmental Services They Provide

Features:
• Municipal Ordinance No. 114 outlines the incentive
mechanism to encourage smallholder investments in
Sustainable Farming Systems.
• Support for agricultural development is provided as an
incentive to individuals and groups that meet the
criteria for sustainable agriculture and agroforestry
systems, resulting in increased productivity,
profitability and sustained ES

* NO CONTOUR NO ASSISTANCE