Philippines Ecosystem and Natural Capital Accounting System Act

Summary

The Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act, known as Republic Act No. 11995, signifies a landmark legislative achievement by integrating ecosystem and natural capital considerations into economic and policy frameworks. The Act aims to promote sustainable development by recognizing and valuing the country’s natural assets. The PENCAS framework adopts internationally accepted environmental-economic accounting standards and provides a comprehensive array of statistics to monitor natural capital depletion, degradation, and restoration, assess pollution levels, evaluate environmental damages, and calculate adjusted net savings.

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.