Project Overview

Background and Rationale

Implementing PES mechanisms as an approach towards sustainability is a relatively novel approach in environmental conservation. PES mechanisms create a market for ecosystem services by making users/beneficiaries pay for the services while compensating conservation activities of service providers. These compensations are often based on the estimate of the provider’s forgone income from foregoing extractive uses (Nabangchang, 2014). PES ensures improvements in the ES through sustaining market driven incentives for conservation.

While the mechanism has already been implemented in several areas in the country, this action research is needed to design a PES-mechanism that is specific to the needs and context of the Barobbob watershed stakeholders to be successful and contribute to the enrichment of the PES experience in the Philippines.

The results of this study are envisioned to provide inputs to a national policy on PES. A national policy may stimulate the establishment of PES mechanisms across the country, boosting efforts for sustainability and contribute to the Department of Science and Technology’s 2021-2022 Policy Agenda on the institutionalization of sustainable conservation financing mechanisms.

Objectives

General: Develop and pilot a payment for ecosystem service (PES) mechanism for improved water supply in Barobbob watershed.

Specific:

1. Establish the stakeholders’ profile for effective design and implementation of PES;
2. Determine baseline water supply capacity of the watershed and resource rents from its provision;
3. Assess the beneficiaries’ willingness to pay for improved water supply and the factors affecting it;
4. Estimate the foregone income from conservation activities of ecosystem service providers;
5. Develop institutional mechanism for payment collection and sharing of incentives;
6. Establish implementation and monitoring mechanisms for PES;
7. Draw lessons that could be inputs for national policy on PES; and
8. Document the process of PES design and implementation

Target beneficiaries

• LGUs and the local community
• Academe, students, and researchers
• Policy makers

Expected benefits

• Economic: Appropriate valuation and pricing of water for various stakeholders, efficient use of water resources, and watershed conservation.
• Social: Sustainable livelihood and more equitable sharing of costs and benefits of environmental conservation.

References

Carig, E. 2016. Prospects of payment for watershed services scheme in Barobbob watershed, Nueva Vizcaya, Philippines. The Upland Farm Journal. 24(1). pp. 54-59

Combalicer, E., Perez, M.R., Sangjun, I., Combalicer, M., and Sujung A. 2007. Forest Science and Technology. 3(2). pp.117-122.

Cruz, R.V.O. 2012.  Watershed Management and Governance in a Changing Climate.  SEARCA Knowledge Center on Climate Change Vol. 2No. 6. ISSN-2225-9694.

Nabangchang, O. 2014. A review of the legal and policy framework for payments for ecosystem services (PES) in Thailand. Working Paper 148. Bogor, Indonesia: CIFOR.

Postel, S. and Thompson, B. 2005. Watershed protection: Capturing the benefits of nature’s water supply services. Natural Resources Forum. 29 (2005). pp. 98-108