Philippines Ecosystem and Natural Capital Accounting System Act

Summary

In June 2024, the national government of the Philippines adopted the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act, also known as Republic Act No. 11995, which initiates the adoption and integration of internationally accepted environmental economic accounting frameworks into the country’s resource management. The law also established a mechanism for monitoring and reporting that will contribute to the protection, conservation, and restoration of Philippine ecosystems and environmental resources. The motivation behind this legislation is that institutionalization of national resource accounting will protect and promote ecological balance and advance climate resilience of the Philippines.

The PENCAS Act framework mandates officially designated statistics on the depletion, degradation, and restoration of natural capital, environmental protection expenditures, pollution levels, environmental damages, quality of lands, air, and water, and adjusted net savings. These datasets will be the basis for national decision-making processes on economic, environmental, and health policy developments.

The Act aims to promote sustainable development by recognizing and valuing the country’s natural assets. Key objectives of the PENCAS Act include enhancing policy development through informed decision-making, establishing systematic data collection and analysis methods for natural capital, and integrating these statistics into macroeconomic indicators. The Act also mandates the development of tools and measures for ecosystem protection, conservation, and restoration, and requires valuations of various ecosystem services. It guarantees citizens the right to access PENCAS data and demand accountability from government agencies. Furthermore, major PENCAS accounts will be published alongside national economic data to highlight the economic contributions of natural resources and ecosystems. The Act underscores the intrinsic value of nature, beyond its economic utility, and sets a global benchmark for environmental stewardship and sustainable economic growth.