IN a resounding call for environmental stewardship and responsible development, the House of Representatives recently introduced House Bill 8443, also known as the Philippine Ecosystem and Natural Capital Accounting System (Pencas).
Spearheaded by Committee on Natural Resources Chairman Elpidio Barzaga Jr. and Negros Occidental Rep. Francisco Benitez, this groundbreaking legislation aims to revolutionize the way the Philippines perceives and utilizes its natural resources.
The importance of House Bill 8443 cannot be overstated as it will safeguard the country’s national patrimony, and ensure that children and future generations will benefit from the abundance of nature, according to the authors of the bill.
The House version of Pencas consolidates the efforts of several principal authors, including Reps. Antonio Legarda Jr., Luis Raymund Villafuerte, Tsuyoshi Anthony Horibata, Brian Raymund Yamsuan and Brother Eddie Villanueva. Notably, it also finds resonance in the Senate with a counterpart bill, Senate Bill 9, filed by Senate President Pro Tempore Loren Legarda.
“House Bill 8443 represents a crucial step towards safeguarding our natural resources for future generations. It will help us account for the true value of our environment and make sustainable development a reality,” said Benitez.
“The Pencas will bridge the gap between economic planning and environmental conservation. It’s a vital tool for meeting international commitments on climate change and preserving our natural heritage,” added Benitez.
In the race to the bottom to increase production and accelerate business growth, Benitez said people exploit the country’s natural environment for raw materials and forget that nature provides people “invisible,” life-sustaining services, such as air filtration, groundwater recharge, carbon sequestration—“benefits that are lost when we shave our forests, when we mine and poison our rivers and oceans, when we destroy wildlife.”
The authors of the bill shared that at the core of this legislation is the recognition that unchecked development and resource exploitation have far-reaching consequences.
Their proposed law highlights the often invisible yet life-sustaining services nature provides, such as air purification, groundwater replenishment, and carbon sequestration, saying these services are easily overlooked amidst the relentless drive for economic growth.
In a world where industrialization has allowed humanity to harness the power of nature for its own purposes, the lawmakers said House Bill 8443 serves as a wake-up call.
Pencas: data-driven mechanism
One of the bill’s most transformative aspects is the establishment of the Pencas, defined as a framework that takes into account the country’s natural capital and its impact on the economy.
Pencas is a data-driven mechanism that evaluates the value of the country’s natural resources and environmental assets, including ecosystem services. This comprehensive approach factors in the cost of environmental degradation and the depletion of natural ecosystems. These values will be integrated into macroeconomic analyses, providing a clearer picture of the nation’s economic health and fostering a more harmonious relationship between development and nature.
Natural capital accounting, as advocated by this bill, aligns with the Philippine Development Plan 2023–2028’s goal of building a resilient economy. It bridges the gap between current economic planning methods and the urgent need to conserve and manage natural resources.
“We acknowledge that solid data is crucial in preserving and developing our natural capital, and with this proposed legislation, we hope to provide tools and measures that can contribute to the protection, conservation and restoration of ecosystems,” Speaker Ferdinand Martin Romualdez said.
“This bill also intends to provide a framework for the generation of natural capital statistics and accounts toward their progressive integration in macroeconomic indicators. That is why the Philippine Statistics Authority (PSA), the Interagency Committee on Environment and Natural Resources Statistics (IACENRS), the Department of Environment and Natural Resources (DENR), and the National Economic and Development Authority (Neda) shall work hand-in-hand in the implementation of the measure,” Romualdez added.
Under HB 8443, the PSA will have overall responsibility for the institutionalization and progressive implementation of Pencas following the System of Environmental and Economic Accounting (SEEA) framework.
This refers to a framework that integrates both economic and environmental data to provide a more comprehensive and multipurpose view of the interrelationships among the economy, the environment and ecosystems, as well as the stocks and changes in stocks of natural assets as they bring benefits to humanity.
The bill also provides participatory mechanisms and citizen remedies wherein any citizen will have the right to information on any account generated under the measure, to have the standing to compel the performance of any of the mandates under the proposed law, and to seek justification from any government agency that may have ignored or neglected Pencas data in their policy or decision-making.
The bill requires Neda approval before commencing any development projects involving Pencas, which are proposed to be undertaken by the national government, national government agencies, government-owned and controlled corporations, LGUs and private investors.
Image credits: Alexey Kornylyev | Dreamstime.com