Restoring Balance in Laguna Lake Region 2013 Ecological Footprint Report 2 3 Restoring Balance in Laguna Lake Region 2013 Ecological Footprint Report

Table of Contents

01 Message from the President of the Philippines 63 Next Steps Resource Limits in Policy 03 Foreword AusAID 67 Appendix A.i. Global Footprint Network Calculating the Ecological Footprint, Consumption, Production and Biocapacity 09 Laguna Lake Development Authority Message from the Laguna Lake Development Authority 71 Appendix A.ii. The Evolution of LLDA: A Strategic Response Multi-Regional Input-Output Analysis for the Ecological Footprint 19 Ecological Footprint, Biocapacity, and Overshoot Global Footprint Network The Global Context 75 Appendix A.iii. U.S. Office Methods for calculating Biocapacity of LLDA Region 312 Clay Street, Suite 300 25 The Philippines Oakland, California 94607-3510 USA Key Findings 77 Acknowledgements +1-510-839-8879 www.footprintnetwork.org 31 Laguna Lake Region Four Decades of Ecological Change Europe Offices Brussels, Belgium 41 Biocapacity of Laguna Lake Region Geneva, Switzerland What is Biocapacity? How Much Can Laguna Lake Region Provide Per Person?

49 Ecological Footprint of Laguna Lake Region The cover and pages of this book were What is the Ecological Footprint? The Global Hectare Metric printed on 9lives Offset paper, which is Our Ecological Footprint manufactured from 100% recycled fibre. The Consumption Land Use Matrix (CLUM) It is FSC and ISO 14001 certified. Ecological Footprint for Producing Things Message from the President

Benigno Simeon C. Aquino III President, Republic of the Philippines Chairperson, Climate Change Commission

1 2 Message from Global Footprint Network

Message from the AusAID Ecological constraints have become a significant Indeed, the Philippines is developing quickly as its determinant of economic success in the 21st century. economy shifts from agriculture to industry and The trends of each component of the food-energy- services, and its population grows. Though the climate nexus is amplified by their interconnection. UN’s Human Development Index has measured Each country is affected by these trends, but not major gains in the Philippines’ human development, equally. It matters tremendously for each country large portions of the population have yet to benefit. how it prepares itself. Therefore, it is Global Footprint Furthermore, the country has moved into a significant Network’s mission to help decision-makers to biocapacity deficit, which could reverse human address this nexus so they can choose successful development advancement, particularly as the global strategies. We do this by offering decision-tools competition for dwindling resources is accelerating that incorporate the reality of ecological limits. We want these tools to support countries in making their Yet we can sustain progress by prioritizing policies and investments most effective in this new development that works with nature’s budget. era of ecological constraints. Such development requires decision-making that focuses on strengthening natural assets, rather I am particularly thrilled with the Philippines’ than generating short-term income from liquidating commitment to sustainable development. With the them. In an ecologically constrained world, not leadership of the Office of the President’s Climate having sufficient access to natural capital can leave Change Commission and the French Agency for a country economically, politically and socially Development, in 2012 the Philippines became the vulnerable. first Southeast Asian country to adopt the Ecological Footprint. Phase I, documented in “A Measure for We are confident the Philippines can build a resilient Resilience: 2012 Report on the Ecological Footprint economy with Ecological Footprint accounting. We of the Philippines”, laid the foundation for ecological look forward to Phase III, a national sectorial analysis resource accounting in the Philippines. that will illustrate how different sectors depend on resources both within and beyond the country’s With support from AusAID in collaboration with borders– and identify where economic risks and the Laguna Lake Development Authority, this 2013 opportunities exist. As it strives to live within the report delineates Phase II, an in-depth look at means of nature, the Philippine government is forging resource availability and consumption patterns for an innovative path for other countries to follow. the Laguna Lake region. Not only does this region encompass the nation’s economic epicentre, Metro Manila, it also houses the most vulnerable provinces and municipalities to climate change and resource Dr. Mathis Wackernagel degradation. President 3 Global Footprint Network 4 Rich natural resources Rising incomes and and rapid development populations at risk

5 6 A life-giving lake and The Laguna Lake region has it all... flood-prone communities How can it restore balance?

7 8 Laguna Lake Development Authority

9 10 Message from the Laguna Lake Development Authority

The story of resource use in the Philippines has taken Authority, and Global Footprint Network, seeks on two different realities. The Philippines is endowed to determine the biocapacity of the Laguna Lake with an abundance of natural resources, which region, which is among the richest, most productive have provided for the livelihood and sustenance of natural resources in the Philippines. It provides the Filipino people. On the one hand, the country’s key stakeholders, especially local governments, development path over decades has been heavily an understanding of the Ecological Footprint resource-dependent and unsustainable. Over- approach and how their decisions can have profound extraction and over-consumption of the country’s implications to the overall health of the lake basin natural resources have made the country more and the communities who directly rely on it. vulnerable to environmental degradation and climate change-related calamities. Such vulnerability further The accounting for the biocapacity and Ecological threatens sustainable development, especially in Footprint of the Laguna Lake region marks a critical ecosystems that include highly populated paradigm shift in the country’s deeper appreciation urban centers like that of the Laguna Lake Basin. and wise utilization of its resource-rich ecosystems. With this new lens with which to view and shape The “Restoring Balance in Laguna Lake Region: policy on sustainable growth and natural resource 2013 Report on the Ecological Footprint of the management, the country can move towards not only Region”, a collaborative undertaking of the Laguna a more sustainable development track but a more Lake Development Authority, AusAID, the Climate resilient and climate-adaptive future. Change Commission, the Metro Manila Development

Secretary JR Nereus O. Acosta, Ph.D. General Manager Laguna Lake Development Authority / Presidential Adviser for Environmental Protection

11 12 Provinces & Municipalities in the Laguna Lake Region

NATIONAL CAPITAL REGION

CITIES LLDA JURISDICTION • RIZAL Manila Malabon Manila • MANILA Mandaluyong Pateros Marikina Marikina Navotas Pasig Pasig Taguig Quezon City Quezon City Valenzuela Caloocan Caloocan Las Piñas Muntinlupa LAGUNA San Juan Makati Pasay DE BAY Muntinlupa Paranaque Pateros Pasay Taguig • CAVITE • LAGUNA REGION IV A, CALABARZON • QUEZON PROVINCES LLDA JURISDICTION

• BATANGAS Batangas Municipalities: Malvar, Sto. Tomas 31 municipalities, 3 cities City: Tanauan

Cavite Municipalities: Carmona, GMA, Silang 17 municipalities, 6 cities City: Tagaytay

Laguna All 25 municipalities 25 municipalities, 5 cities All 5 cities

Quezon Municipalities: Lucban 39 municipalities, 2 cities

Rizal All 13 municipalities 13 municipalities, 1 city 1 city

13 14 The Evolution of the LLDA A Strategic Response

Recognizing the vast potentials of the lake and its agency to manage the lake amidst the multiple environs for further development and the perceived political jurisdictions in the watershed. threats from the rapidly changing character of the lake region, the political leaders of the provinces Three years after the enactment of R.A.4850, of Rizal and Laguna moved to enact in the early the LLDA was organized as a semi-government 60s a legislation that was geared towards the corporation. Presidential Decree (P.D.) 813 of management of the lake and its resources, and to 1975 further expanded LLDA’s mandate to control environmental degradation. Their initiative address environmental concerns and conflicts was intended to facilitate rational utilization of the over jurisdiction and control of the lake. This was lake resources. They envisioned that the creation followed by Executive Order (E.O.) 927 of 1983, of an “Authority” would facilitate cooperation, which further strengthened the institutional, financial coordination and pooling of resources among and administrative responsibilities of the Authority national government agencies, local governments including its regulatory functions in industrial pollution. and the private sector (Francisco 1985). Manila Development Authority, Province of Rizal, than 30 water-related government agencies, The LLDA coordinates with over 30 environment Province of Laguna, Leagues of Mayors of Rizal and non-governmental and private organizations On July 18, 1966, the Laguna Lake Development and natural resources and water-related agencies/ Laguna Provinces, private investors, and the LLDA operating in the Laguna de Bay Region, which are Authority was created through Republic Act 4850: offices and the 66 local government units (LGUs) through the General Manager as ex-officio member. not represented in the current Board, each with An Act Creating the Laguna Lake Development within the watershed, each with their policy and separately formulated and implemented policies, Authority, Prescribing Its Powers, Functions, and planning, regulation and infrastructure development, The lake watershed encompasses 66 local mandates, and programs and striving to meet Duties, Providing Funds Thereof and for Other environment and fishery-related functions. government units in five provinces, hence active relatively narrow and stand-alone goals. Purposes. As stated in the law, its mandate is coordination between the LLDA and LGUs in lake “to promote and accelerate the development and Policy Coordination Through the LLDA Board of sustainability through the representatives of the Co-Financing Arrangements balanced growth of the Laguna Lake area and the Directors. At the policy level, the LLDA Board of Mayors' Leagues of Rizal and Laguna in the Board, surrounding provinces, cities and towns…with due Directors acts as a Collegial Body for Participative Governors of Rizal and Laguna provinces and the Committed to continually espouse the sustainable regard and adequate provisions for environmental Policy Decision Making. The LLDA Board is Federation of River Basin Councils, Inc., and at the development of the Laguna de Bay basin, the management and control, preservation of the composed of representatives of the following operating level. LLDA developed the Laguna de Bay Institutional quality of human life and ecological systems, and agencies and organizations: Office of the President, Strengthening and Community Participation the prevention of undue ecological disturbances, Department of Environment and Natural Resources, However, the LLDA Board is not all-inclusive in (LISCOP) Project. Implemented since 2004, the deterioration and pollution.” It also reflects the National Economic and Development Authority, terms of representation of key players in policy project finances out of loan proceeds from the World wisdom of the lawmakers in creating a separate Department of Trade and Industry, Metropolitan and program decision-making. There are more Bank and an equivalent grant from the Netherlands

15 16 Stakeholders of Laguna de Bay

government. With this initiative, the LLDA optimizes since March 2004 and will close in April 2014. the level of interaction of the environmental, economic, and institutional dimensions of resource LLDA’s Ecological Footprint project in partnership

use and management, through a combination the with Global Footprint Network, funded by AusAID, REGULATORS following strategic interventions, which also form the is a natural evolution of these efforts to manage and integral components of the LISCOP. These are a) co- protect the natural assets of the Laguna Lake region. managed investments for watershed development Through use of the Ecological Footprint, LLDA will (component 1); and b) strengthening institutions and continue to work with its multi-stakeholders – from instruments (component 2). The end-goal is to secure numerous natural resources agencies, to local sustainability in effective basin water resources government units, to communities and households POLICY MAKERS RESOURCE USERS management, institutional building, and poverty within the region – to bring resource limits to the core alleviation in the area. The project has been effective of our policy and investment decisions. INFORMAL STAKEHOLDERS Stakeholders of the Laguna de Bay LAGUNA watershed are grouped into the following categories: (i) regulators; DE BAY (ii) policy makers, planners and REGION coordinators; (iii) developers LGUs (land and water) including those PLANNERS into infrastructure development and provision of basic services; & COORDINATORS research (iv) research and development & development institutions; (v) resource users; (vi) LGUs; and (vii) informal stakeholders.

Santos-Borja, Adelina and Dolora Nepomuceno. Laguna Lake Brief: Experience and Lessons Learned Sharing, World Bank-ILEC: 2004 LLDA. Integrated Policy and Institutional Framework for the Laguna de Bay Region. 2003. LLDA-Tetra Tech EM, Inc. Institutional Re-engineering Studies Report. 2001. DEVELOPERS Nepomuceno, Dolora. River Basin Study Visit in Spain: Discussion Paper for the Laguna de Bay Basin, 2010. Palma, A., Diamante, A. and Pol, R. (1997) Stock assessment of the major fishery resources of the Laguna de Bay. Bureau of Fisheries and Aquatic Resources, Tanay, Rizal, Philippines. Jaraula C.M.B. (2001) Changes in Slinity and Sediment Supply in Laguna de Bay During the Past 6,000 years. Master's Thesis. College of Science. niversity of the Philippines.

17 18 Ecological Footprint, Biocapacity, and Overshoot 19 20 The Global Context Biocapacity Biological capacity, the ability of an ecosystem to regenerate and provide services that compete for In 2012, Global Footprint Network and the Climate achieved. That is why it is in the self-interest of 12 billion ha. This is equal to 12 billion gha since space. This includes producing useful biological materials and absorbing waste such as carbon dioxide Change Commission of the Philippines released “A nations to take action by placing resource limits at global hectares represent world average hectares. At emissions from fossil fuel. Measure for Resilience”, a report on the Ecological the core of their decision-making. This requires tools the same time, humanity’s Ecological Footprint was, Footprint of the country. The most recent data to track and manage valuable natural assets. according to Global Footprint Network’s calculations, at the time reflected a stark reality: At the global over 17.6 billion gha, more than 1.5 times the planet’s level, humanity’s demand was exceeding what the The Ecological Footprint can help us live within our capacity to keep up with this demand. Biocapacity Deficit The difference between the Ecological Footprint and Earth could renewably provide. This is what we ecological budget. It measures the biologically biocapacity of a region or country. An ecological deficit call “ecological overshoot” – a situation humanity productive land and marine area required, using This means that biological resources were being occurs when the Footprint of a population exceeds the has been in year after year since the 1970s. prevailing technology and resource management harvested faster than they could be regenerated, biocapacity of the area available to that population. Unfortunately, this year is no different. practices, to provide the renewable resources— and that carbon was being emitted faster than plants food, fiber and timber—that a population consumes, could remove it from the atmosphere. From deforestation to climate change, physical to absorb its emitted wastes (particularly carbon Ecological Footprint symptoms of overshoot continue to increase in dioxide emissions from fossil fuel use), and to Ecological Footprint accounts are based on A measure of how much area of biologically productive frequency and magnitude. Why? Because we can locate its infrastructure. This demand in turn can be international statistics from the United Nations, the land and water an individual, population or activity only live in ecological overshoot for so long before compared with the productive area available, or the International Energy Agency, and other sources, requires to produce all the resources it consumes and to sequester its waste. Because of data limitations, the we see signs of collapse. There are only so many Earth’s biocapacity. using about 6000 data points per country and year. main waste included in the presented national Footprint fish we can harvest, so many trees we can cut down, They begin in 1961, when humanity’s Footprint was calculations is carbon dioxide from fossil fuel burning. Both Ecological Footprint and biocapacity results are and so many tonnes of CO2 we can emit before the Different types of area-- forest, fisheries, cropland only about two-thirds of the planet’s biocapacity. To Earth’s ecosystems can no longer keep up. We have and grazing land—vary in their inherent productivity. date, Global Footprint Network has the Ecological expressed in a globally comparable, standardized unit called “global hectare” - hectare of biologically long reached that point. Within each type, some areas are more productive Footprint and biocapacity trends of 241 countries. productive land or sea area with world average or higher yielding than others. After adjusting While global biocapacity has been growing slowly, bioproductivity in a given year. In a finite world, overshoot means greater for these differences, a hectare with world largely due to increasing agricultural yields, competition for limited resources. If a country is low- average productivity, or global hectare (gha), is humanity’s Footprint has been growing much more income and running an ecological deficit, it will be used to measure both the Ecological Footprint rapidly, primarily as a result of an expanding world more challenging to secure resources from the world, and biocapacity. This unit is similar to using a population and increasing per capita consumption Ecological Overshoot and more likely that the world will secure resources standardized monetary unit, such as the U.S. dollar in some regions. Around 1970, humanity’s Footprint When a population’s demand on an ecosystem exceeds from it. Sadly, the most vulnerable populations will or Philippine peso, for financial accounts. began exceeding global biocapacity, and this the capacity of that ecosystem to regenerate the be impacted the most: Without adequate access overshoot has been increasing ever since. demand. Overshoot results in ecological assets being diminished, including carbon waste being accumulated to resources for basic needs such as food, shelter In 2009, the last year for which data are currently in the atmosphere. and clothing, sustainable development cannot be available, the Earth’s biocapacity was almost

21 22 C = P + I E The Ecological Footprint can be applied to human Figure 1. EF EF (EF - EF ) GLOBAL TRENDS activity at different scales. At the national level, it is assumed that everything that is produced built up land grazing land FISHING GROUND cropland in a country is consumed in that country, less forest land cARBON FOOTPRINT that which is exported plus what is imported. one planet biocapacity Ecological Ecological Net Ecological That Ecological Footprint of Consumption is the most commonly reported part of the Footprint Footprint Footprint Footprint calculation, and is commonly referred to as “The of Consumption of Production of Trade Ecological Footprint” or “The Footprint”. National biocapacity, in turn, is based on the yield-adjusted The Ecological Footprint of The Ecological Footprint The Ecological Footprint of resource productivity of the forest, fisheries, consumption indicates the of production indicates the imports and exports indicate the cropland, grazing land and built-up areas within consumption of biocapacity by a consumption of biocapacity resulting use of biocapacity within country’s inhabitants. from production processes within international trade. the country’s borders.

ECOLOGICAL FOOTPRINT IN NUMBER OF PLANETS a given geographic area, such as a In order to assess the total domestic country or region. Embedded in trade between The Ecological Footprint enables governments to demand for resources and countries is a use of biocapacity, identify risks and opportunities associated with ecological services of a population, It is the sum of all the bioproductive the net Ecological Footprint of trade we use the Ecological Footprint of areas within a country necessary (the Ecological Footprint of imports their population’s resource consumption, and consumption (EFc). EFc accounts for supporting the actual harvest minus the Ecological Footprint of allows them to base policies and investments for both the export of national of primary products (cropland, exports). If the Ecological Footprint embodied in exports is higher than on this key data. It also allows them to track and Humanity’s Ecological Footprint by land area, 1961- resources and ecological services pasture land, forestland and fishing for use in other countries, and the grounds), the country’s built-up area that of imports, then a country is a manage resources over time, helping to ensure 2008. The largest component of humanity’s Ecological import of resources and ecological (roads, factories, cities), and the net exporter of renewable resources Footprint today is the carbon Footprint (55 percent). the stability of their economies, and the well-being services for domestic consumption. area needed to absorb all fossil fuel and ecological services. of their people. This component represents more than half the carbon emissions generated within Ecological Footprint for one-quarter of the countries EFc is most amenable to change by the country. Conversely, a country whose tracked, and it is the largest component for nearly half individuals through changes in their Footprint of imports is higher than of the 241 countries, regions and territories assessed consumption behavior This measure mirrors the gross that embodied in exports depends by the National Footprint Accounts. domestic product (GDP), which on the renewable resources and represents the sum of the values of ecological services generated by all goods and services produced ecological assets from outside its within a country’s borders. geographical boundaries.

23 24 The Philippines: Key Findings

25 26 Composition of the Ecological Footprint in the Philippines

Since the 1960s, the Philippines’ total Ecological Figure 2. GLOBAL ECOLOGICAL FOOTPRINT OF CONSUMPTION Footprint has nearly tripled. AND BIOCAPACITY

TOTAL ECOLOGICAL FOOTPRINT OF CONSUMPTION In 2009, the last year for which data are currently BIOCAPACITY 24% 35% available, the nation demanded more than twice what it had in available capacity.

8% The average Footprint of people in the Asia-Pacific region is 1.6 global hectares per person. The Ecological Footprint of the average Philippines resident was 1.2 gha in 2009, within the limits of the world average available biocapacity of 1.8 gha. 5% GLOBAL HECTARES (IN b ILLIONS) GLOBAL HECTARES However, there was only 0.6 gha of biocapacity available per resident, meaning that the average citizen’s demands exceeded what the country’s Figure 4. ecosystem could provide for them. cropland grazing land built up land CARBON Figure 3. forest land FISHING GROUND PHILIPPINE ECOLOGICAL FOOTPRINT OF CONSUMPTION The largest component of the country’s Ecological AND BIOCAPACITY 22%

Footprint is cropland (35 percent); followed by fishing TOTAL ECOLOGICAL FOOTPRINT OF CONSUMPTION BIOCAPACITY grounds (24 percent), carbon (22 percent), forest land (8 percent) and built-up land (5 percent). economy, this growing dependence poses risks in a population – those who cannot afford to pay higher resource-constrained world. prices – who will suffer the most. The Philippines is a country that is facing rapid change, with an economy that has shifted – and For example, other results show that food is a major Without adequate resources, any progress in human continues to shift – from agriculture to industry and component of the average household’s ecological development or the economy cannot last. As the services. This change, along with the needs of a budget in the Philippines. Since food is directly linked Philippines strives toward increasing economic GLOBAL HECTARES (IN b ILLIONS) GLOBAL HECTARES growing population, means that the country is more to world food prices and is exposed to volatility, security and improving lives of its residents, dependent on biocapacity from other countries than this creates a food security risk for the nation. In incorporating environmental realities in all its ever before. While this is not uncommon in a global these situations, it is the most vulnerable among the planning will help ensure continued success.

27 28 Biocapacity Deficit What does it mean for the Philippines?

1 1

2

3

4 1.8 gha/capita 1.6 gha/capita

5

Figure 5.

ecological footprint biocapacity BIOCAPACITY AVAILABLE PER PERSON

PHILIPPINE AVERAGE 0.6 gha/capita In 2009, the last year for which data are currently available, the nation gha/capita demanded more than twice what it 1.2 had in available capacity.

29 30 Laguna Lake Region: Four Decades of Ecological Change

31 32 The Laguna Lake Region is one of the most for food security and food self-sufficiency target important and dynamic natural resource in the considerations. And urban expansion has to be country. The region, which more or less corresponds rationalized and regulated in terms of minimizing to the basin, is among the fastest growing economic the random leapfrogging behavior of residential and bases in the Philippines. Because of its unique other urban activities (LLDA Spatial Development features, multiplicity of uses and strategic location, Masterplan for the Laguna de Bay Basin, 2011). economic activities, population increase, rapid industrialization and urbanization have led to Implications to Water Quality changes in the ecological milieu of the lake and its surrounding region over the past decades. Increased sedimentation from denuded uplands, contaminants from agricultural activities, domestic Land Use Changes wastes, industrial discharges, effluents from dumpsites and intensification of fish production take their toll on During the last 30 years, the Laguna Lake watershed the water quality of the lake. There are no treatment has experienced land-use changes characterized systems for domestic waste and most industries and by rapid deforestation and urbanization. Large agricultural operations do not have adequate pollution areas of the watershed were converted to industrial, abatement systems. Until recently most of solid wastes commercial and residential uses as a result of collected by LGUs end up in open dumpsites whose peri-urban expansion of Manila. In rural areas, effluents flow into the lake. The observed levels of water population pressure and lack of alternative livelihood quality parameters confirmed the present condition of opportunities led to the cleaning and cultivation the lake as polluted and stressed aquatic ecosystem. of uplands and over harvesting of forest products This poor water quality has severely diminished Laguna (e.g. subsistence logging, firewood gathering and Lake’s potential for transport and recreational uses and charcoal production), causing denudation of the as source for domestic water. The lake water quality is lake’s micro watersheds. The need is quite evident currently classified as Class C or fit for fishing, but not to reforest the denuded forest lands and the for swimming and contact recreation (Class B). With steeply sloping grasslands. There is also a need appropriate technologies, the lake water may be treated to maintain at least the remaining agricultural lands for drinking.

33 34 Laguna de Bay

• MANILA • RIZAL

SURFACE WATER 2,250 million m3 WATERSHED • CAVITE Its surface waters The lake can hold up The lake is replenished every eight • LAGUNA cover approximately to 2,250 million cubic months by waters flowing through a 900 square kilometers. meters of water. watershed area of around 282 square kilometers, clearly delineating three QUEZON • distinct bays: West Bay, Central Bay • BATANGAS and East Bay. 1.3%

LAND AREA PROVINCES RIVERS & STREAMS The total land area of the The watershed is occupied Roughly 100 rivers and streams drain lake region (administrative by the provinces of Rizal into the lake. jurisdiction) is 3,880 km2, and Laguna and partly by which is approximately the National Capital Region, Over one-third of the lake waters 1.3% of the country's land and the provinces of Cavite, come from the Pagsanjan-Lumban area of 300,000 km2. Batangas and Quezon, River, 18-20% from the Sta. Cruz consisting of 8 cities and 49 River, and half from the remaining municipalities. tributaries.

The lake’s only outlet is the Napindan Channel, which links the Pasig and Marikina Rivers. The Pasig River connects the lake to Manila Bay.

35 36 Biodiversity and Fishery Laguna de Bay is classified as a Class C inland water, which means it is suitable for fishery. In Laguna de Bay, there were 23 species of fish A few years after the introduction of aquaculture in belonging to 16 families and 19 genera. The most the early seventies, the population of catfish started dominant and important species were Therapon to increase. It has slowly increased its population plumbeus and Glossogobius giurus (white goby) mostly near the fish pen areas where they seek (Delmendo and Bustillo 1968). Most of the stock were shelter. The decline in population in the previous migratory species but scarce in distribution due to the years could be more due to habitat destruction than pollution of the Pasig River, suggesting high mortality the decline in the snail population (Santos-Borja and of migrating fry. Stocking the lake with milkfish was Nepomuceno, 2004). reported to be in practice since 1959. This was one of the reasons for the accidental introduction of Aquaculture remained a very lucrative business in other species. The practice went on since milkfish the lake and this encouraged the culture of other command a higher price in the market (Santos-Borja species like tilapia and the bighead carp. The stock and Nepomuceno, 2004). assessment of major fishery resources done by 1960s Palma and Pol (1997) showed that the open water Rampant dredging to sustain the duck industry causes a During the same period, there was a significant catch was composed of 13 species, including the decrease in snail population. decrease in snail population due to rampant dredging shrimp commonly found in the lake. Of the fish Connected with this industry to sustain the duck industry notably in the eastern species, the most commonly caught were Tilapia sp., is the making of “balut,” a towns of Rizal Province. Connected with this industry H. nobilis and A. manilensis. native delicacy of boiled is the making of “balut,” a native delicacy of boiled unhatched duck embryo. unhatched duck embryo. Almost twenty years after, At present, there are no recorded endemic species in there was a tremendous decrease in the number of Laguna de Bay, probably because it is a very young duck farms. Snail dredging was also one cause of the lake, formed some 6,000 years ago (Jaraula, 2001). 1970s alarming decline in the population of the sea catfish Likewise, its link to Manila Bay and the introduction The introduction of aquaculture (Arius manilensis) which used to constitute the fishery of non-native species could have contributed to this leads to the increase in the of Laguna de Bay. phenomenon. population of catfish.

1990s Aquaculture encourages the culture of tilapia and bighead carp. 37 38 Water Quality than 9 mg/L) than the 5 mg/L Class C criterion. The current state of the lake is eutrophic. Several Laguna de Bay is classified as a Class C inland water factors contributed to this present condition: (DENR 1990), which means it is suitable for fishery. population pressures, industries mostly found in Critical levels of pollution were already detected in the densely populated west bay area, and intensive 1973 (SOGREAH 1974). About 5,000 tons of nitrogen agriculture and land-use conversion, which increased were estimated to have entered the lake, 26 percent sediment loading in the lake. of which was domestic, 36 percent from livestock and poultry, 5 percent from industrial sources, 11 History of Flood Disasters percent from fertilizers and 22 percent from the Pasig River backflow. In 1995, of about 66,305 tons/ Because of its location and ecological challenges, year of BOD loading, estimates show that the main the Laguna Lake Region is among the most source had shifted from industrial (21 percent) to vulnerable to natural disasters in the country. There domestic (65 percent), while the contributions from were historical records of flood disasters occurring in agricultural sources (13 percent) and forest areas (1 the lake region for many years. The most recent and percent) did not manifest significant changes. This most damaging flood events were typhoon Milenyo trend continued into the next decade such that in (September 2006), typhoon Ondoy (September 2000, out of 74,300 metric tons/year of BOD loading, 2009), typhoon Pepeng (October 2009), and typhoon around 69 percent came from domestic and 19 Santi (October 2009). Overall, the damages and percent from industrial sources, while agriculture losses inflicted by these typhoons in 2006 and 2009 translate to roughly 3 to 24 percent of greater Metro As LLDA celebrates 44 years of existence, it is manifested slightly lower loading (11.5 percent) and in the Laguna Lake Region were 1,233 dead, injured Manila and Laguna Lake Region’s Gross Domestic mindful of the four decades of human activities that forest areas (1 percent) the same level (LLDA-DSS and missing, 318,055 damaged residences, PhP 2.12 Product (GDP). have changed and shaped the landscape of this 2005). In 2010, calculated 81,701 metric tons/year of billion damage to agriculture (PDNA, 2009). region. It remains committed to restoring ecological BOD loading into the Laguna Lake was contributed A 2010 synthesis report of the World Bank (WB), The report notes that flooding in Metro Manila is balance to the lake, the region and its people, by domestic sources (about 78 percent) ,industrial Asian Development Bank (ADB), and Japan caused by the limited capacity of most upstream and transforming this all-important resource as a sources 11 percent, agricultural sources 10 percent International Cooperation Agency (JICA) estimates river channels draining into the Laguna Lake to focal center of climate-resilient and sustainable and 1 percent from denuded forest (LLDA-DSS 2012; that the costs of flooding ranged from PhP 15 billion confine floodwaters, the slow-flow capacity of development for the region and the country as a LISCOP M&E Report). On the other hand, for the ($337 million without climate change, 1-in-10-year the outlet channel from the Laguna Lake, and the whole. The Ecological Footprint will play a major role same period (1995-2010) dissolved oxygen levels floods) to PhP 111 billion ($2.5 billion with climate declining capacity of the Laguna Lake itself to serve in these efforts, now, and well into the future. have consistently been much better (from 7 to more change, 1-in-100-year floods.) These impacts as a detention reservoir for floodwaters.

39 40 Biocapacity of Laguna Lake Region

41 42 Biocapacity What is it?

FISHING GROUNDS* The area of marine and inland waters used to harvest fish and other seafood.

GRAZING LAND CROPLAND FOREST LAND BUILT-UP LAND The area of grassland used, in addition The area required to produce food and FOR PRODUCTS FOR SEQUESTRATION The biologically productive areas to crop feeds, to raise livestock for fiber for human consumption, feed for The area of forest required to support The forest area required to covered by human infrastructure, meat, dairy, hide and wool products. livestock, oil crops and rubber. the harvest of fuel wood, pulp and sequester human-produced including transportation, housing and

timber products. CO2 emissions, primarily from industrial structure. fossil fuels burning, that are not absorbed by oceans.

Biocapacity is a measure of the amount of Overuse can also degrade biocapacity. Per capita demand six to seven times more from nature than are fuelled by depleting the planet’s ecological biologically productive land and sea area available biocapacity, or the amount of biocapacity available their ecosystems can provide. China demands assets—a strategy that cannot last. Cities and to provide the ecosystem services humanity uses. per person, declines as populations increase. For 2.4 times more ecological resources and services countries trapped in energy- and resource-intensive We could call it “the supply side of our ecological centuries, we have treated biocapacity as a provider than China's ecosystems regenerate. In a world of infrastructure and economic activities will become budget.” It is nature’s regenerative capacity. of an essentially limitless flow. Today, though, growing ecological overshoot—when humanity’s fragile. If they cannot minimize their dependence, (See appendix for methodology.) The amount humanity’s demand for biocapacity outstrips global demands for nature’s products and services exceed they will not be able to adapt in time to meet of biocapacity varies over time. This is driven supply by 50 percent. In the Asia-Pacific region, the planet’s ability to renew them—this dependence emerging challenges. by changes in managing practices, agricultural demands on biocapacity now exceed the region’s on external biocapacity becomes a significant inputs, water supply, climate and soil conditions. supply by 90 percent. Japan and South Korea risk. It means that humanity’s economic activities

* These calculations did not take biocapacity from fishing grounds into account due to insufficient data.

43 44 How Much Can Laguna Lake Region Provide Per Person? 14%

Figure 6. The Philippines household Footprint by Consumption Land Use categories

cropland built up land 37% The Laguna Lake region spans 370,000 hectares. occupied by infrastructure, and thus not available for forest land But because these hectares are biologically far more other use. The second largest portion was cropland grazing land productive than world average, they correspond to at 34 percent; followed by grazing land at 15 percent, 810,000 global hectares (gha). On average, hectares and forest land at 14 percent (FIG.6).1 15% in the Laguna Lake region are even 10 percent more productive than the rest of the country. More While Laguna province is an ecological powerhouse, than half (53 percent) of this biocapacity comes and the region is more productive than the rest of from Laguna province, which has 390,000 gha of the country, its biocapacity is insufficient to meet biocapacity. This is because it is both a large portion the needs of the region’s growing population, which of the region, and contains fertile land close to the was 14,600,000 in 2009. Biocapacity per capita in Laguna Lake. In comparison, Rizal province, with Laguna Lake region is 0.06 gha, only one-twelfth of the second highest biocapacity in the region, has the average biocapacity per person for a Philippine 180,000 gha. resident (FIG.7).

In 2009, the most recent year for which data were When looking at the biocapacity breakdown for available, built-up land was the largest portion (37 Laguna Lake region, the 0.06 gha per person 34% percent) of Laguna Lake region’s total biocapacity – translates to approximately: 0.02 gha of cropland; Figure 7. a reflection of the rapid development in the region, 0.008 gha of grazing land; 0.008 gha of forest land; particularly in Metro Manila. Built-up land includes and built-up land. Imagine if these 0.02 gha of WORLD PHILIPPINES LLDA METRO MANILA biologically productive areas covered by human cropland were dedicated to only growing rice; if the infrastructure. It is counted proportional to its grazing portion of the individual’s biocapacity only agricultural potential – not for what it is producing provided beef, and if the forest land only produced now. These areas are considered exclusively timber.

TOTAL BIOCAPACITY TOTAL BIOCAPACITY TOTAL BIOCAPACITY TOTAL BIOCAPACITY 12,000,000,000 gha 52,000,000 810,000 140,000

POPULATION (2009) POPULATION (2009) POPULATION (2009) POPULATION (2009) 6,800,000,000 85,000,000 14,600,000 8,600,000

BIOCAPACITY / CAPITA BIOCAPACITY / CAPITA BIOCAPACITY / CAPITA BIOCAPACITY / CAPITA 1 These calculations did not take biocapacity from fishing grounds into account due to insufficient data. 1.76 gha/person 0.61 0.06 gha/person 0.02 45 46 What can 0.06 gha provide per person in Laguna Lake Region – compared to what is available in other regions and the world?

Figure 8. CROPLAND GRAZING LAND FORESTS

REGION LAND AREA TOTAL FOOD TOTAL FOOD LAND AREA IF ONLY TIMBER ENERGY1 ENERGY2 WAS GROWN3 (SQM) (KCAL/PERSON/DAY) (SQM) (CM)

METRO MANILA 1 7 1 1 0.03 LAGUNA LAKE REGION 60 300 20 67 2 PHILIPPINES 1100 6000 36 800 20 WORLD 1700 9200 500 6400 160

1 If only rice were grown (kcal/person/day) 2 If only beef were raised (kcal/person/day) 3 length of a 2”x4” piece of wood per day per person (in cm) 0.06 gha

For example, there is about 1 sq. meter of cropland in the Metro Manila area per person. This area, if dedicated entirely to rice production, would provide on average 7 kcal of rice per day (or about 65 grains of rice).

Of course, most regions do not depend solely on those who cannot afford to pay the higher prices natural resources from within their own borders, for basic needs such as food, shelter, clothing – will though many, such as Laguna Lake region, provide suffer the most. resources to other regions. So the question is: Do they, in net terms, need more than what they have? Laguna Lake region, rich in biocapacity, has an To compensate for their biocapacity deficit, residents opportunity to seek development that works from Laguna Lake region must depend more on with nature’s budget, rather than overextending resources outside the region, as well as beyond the themselves and liquidating nature. If this balance can Philippines. However, as resources become more be achieved, advances in human development, and scarce and the world more crowded, it will become economic progress can be sustained. more difficult to do so; and the most vulnerable –

47 48 Ecological Footprint of Laguna Lake Region

49 50 The Ecological Footprint

crop LAND

FOREST LAND carbon

built-up land GRAZING LAND

fishING GROUND

While biocapacity measures the supply of ecological management practices. (Due to constraints in assets, the Ecological Footprint measures humanity’s globally consistent data, national calculations only assets exceeds the country’s supply, that country liquidating its own ecological assets, or turning to

demand on them. More specifically, the Ecological take CO2 into account when looking at waste.) A is running a biocapacity deficit. Conversely, when the global commons. In contrast to biocapacity Footprint is an accounting tool that measures the population’s Ecological Footprint can be compared demand for ecological assets is less than the deficits at the national scale, the global biocapacity amount of biologically productive land and sea with the biocapacity that is available—domestically biocapacity available within a country’s borders, deficit cannot be compensated for through trade or area required to produce the renewable resources or globally—to support that population, just as the country has a biocapacity reserve. A national using distant commons. Global biocapacity deficits a population (or an activity) consumes and to expenditure is compared with income in financial biocapacity deficit means that the country is either therefore are by definition the same as “overshoot.” absorb its waste, using prevailing technology and assessments. If a population’s demand for ecological importing embedded biocapacity through trade,

51 52 The Global Hectare Metric

Figure 9.

As mentioned earlier in this report, both Ecological Conversely, a larger physical area in grazing land Earth cannot sustain such levels of overshoot. For a Footprint and biocapacity results are expressed would be needed to provide the same biocapacity as limited time, overshoot is possible, but at the cost of in global hectares (gha)—standardized hectares the same physical area of cropland. Because world depletion and degradation. Weaker natural capital 2 gha of productive area with world average biological bioproductivity varies slightly over time, the value of stocks erode economic opportunities and increase 1 ha productivity of a given year. This makes hectares a global hectare changes from year to year. social pressure, as already experienced in a number globally comparable. Actual areas of different land of lower income countries. Examples include Egypt, use types (in hectares) are converted into their Using global hectares as a unit to measure El Salvador, and Pakistan, all facing severe economic global hectare equivalents by using yield factors and biocapacity is similar to using a standardized burdens imposed by their biocapacity deficits. If a hectare of, for example, cropland is equivalence factors as explained in the appendix. monetary unit, such as the U.S. dollar or Philippine twice as productive as a world average peso, for financial accounting. Signs of decline can be seen today through carbon biologically productive hectare, it is Different types of area—forest, fisheries, cropland accumulation in the atmosphere, depleted fisheries, worth 2 gha. and grazing land— vary in their biological As mentioned previously, since the 1970s, humanity deforestation, and soaring food costs. This means productivity. In general, croplands occupy the most has been in ecological overshoot, meaning that its that costs of everyday inputs such as food and water productive areas: They are typically flat, endowed annual demand on ecosystems exceeds what Earth will increase, while the value of economic assets that with good soils, and have access to sufficient water. is able to provide in any given year. Before, individual depend on cheap resource inputs (such as airplanes Global Footprint Network assessments estimate cities and countries ran biocapacity deficits. But now and airports, hotels in distant locations, aluminium world average biological productivity for each area humanity’s aggregate demand exceeds what Earth smelters, or artificially heated spas) will decline as they type. Yields also differ widely within each area type. can renew. are over-proportionally more expensive to operate. 1 ha For example, some forests—such as a tropical 0.5 gha forest—are highly productive, while other forests According to Global Footprint Network’s most Fossil fuel use is now a prominent driver. Today, can be very low in productivity—such as a tundra recent National Footprint Accounts, an ecological the largest component of humanity’s Ecological If a particular hectare of, for example, where trees grow very slowly and winters are harsh, accounting data set that tracks global resource and Footprint—55 percent—is the carbon Footprint. In grazing land is half as productive as a or forests on the edge of savannas with sparse trees consumption trends, in 2008 humanity consumed contrast, the carbon component was only 35 percent world average biologically productive and dry conditions. Global hectares therefore adjust ecological resources and services 1.5 times faster of humanity’s total Footprint in 1961. For all the world’s hectare, it is worth half a gha. the physical hectare for its productivity. For example, than Earth could renew them—a 100 percent jump technological gains, development in energy efficiency a hectare of fertile cropland would represent more from 1961, when people used approximately three has not kept pace with the growth in population global hectares than one hectare of grazing land, quarters of the planet’s biocapacity. If trends follow and the increase of demand for energy used in since cropland is able to generate and renew more even the more moderate projections of UN agencies, transportation, electricity, heating and cooling. biological activity than is typical grazing land. humanity would require the resources of almost three Earths by mid-century.

53 54 Our Ecological Footprint: How much nature it takes to renew what we consume

Figure 10. Figure 11. TOTAL ECOLOGICAL FOOTPRINT FOR LAGUNA LAKE region (GHA) laguna lake region's tOTAL ECOLOGICAL FOOTPRINT of consumption BUILT UP LAND by land type METRO MANILA GRAZING LAND The Laguna Lake region is home to 14.5 million REST OF laguna lake REGION cropland forest products CARBON FOREST LAND people. In 2009, their total Ecological Footprint for built up land grazing land FISHING GROUND

CARBON Laguna Lake region was 24,200,000 gha. This is the 5% area needed to renew everything they consume, FISHING GROUND 6% absorb the CO they emit, and to provide space cropland 2 for urban infrastructure. But the local ecosystems 7% 35% contain far less biocapacity: 813,000 gha. This 65% means that it currently requires the biocapacity of METRO MANILA 30 Laguna Lake regions to meet the demand of its population. Resource demands from Metro Manila 24,200,000 15,730,000 alone make up more than half – 65 percent – of 23% Laguna Lake region’s total Ecological Footprint. The 35% largest component of the Footprint was cropland (35 percent); followed by fishing grounds (24 percent);

carbon (23 percent); forest land (7 percent); grazing 24% land (6 percent); and built-up land (5 percent). The Ecological Footprint of consumption shows the demand on ecological services by an individual or population. It includes local Per capita, the average resident of Laguna Lake demand and what is imported. region had an Ecological Footprint of nearly 1.7 This biocapacity deficit of 1.65 gha per resident percent of the Philippines’ GDP. But the function of gha. This is higher than the national average of 1.2 was met through the use of global commons, such Laguna Lake region’s economy is highly dependent

gha per person, but just within the world average as emitting CO2 from fossil-fuel burning beyond on both the availability of ecological assets outside available biocapacity of 1.8 gha. This means that if local sequestration capacity, consuming imported its borders and its ability to pay for access to the everyone on the planet lived like the average person resources such as food, fiber, forest products and resources and services they produce. Financial in Laguna Lake region, there would just about be embodied energy from outside the region, and assessments may underestimate the importance of sufficient biocapacity globally to support this total overuse of one’s own ecosystems. biocapacity because agricultural products continue demand (to give wild species a chance to survive, a to be undervalued by the market. This blinds us from good portion of the world’s biocapacity would need This widening gap between demand and supply is the reality that lack of resources seriously stifles to be left aside for those species). As explained particularly significant, given Laguna Lake region’s economies’ ability to operate. In other words, Laguna above, these 1.7 gha per person were met by only unique role in the country (particularly that of Metro Lake region’s biocapacity deficit poses economic 0.05 gha biocapacity per person in the region. Manila). Laguna Lake region makes up more than 60 risks that can have a ripple effect across the nation.

55 56 The Consumption Land Use Matrix (CLUM) Which part is used for what?

3.00 Figure 12. ECOLOGICAL FOOTPRINT BY FINAL DEMAND BY REGION (GHA PER CAPITA)

2.50 Figure 13. LAGUNA LAKE REGION CLUM (CONSUMPTION LAND USED MATRIX) 0.53 GFCF GOVERNMENT -1 HH (SUBTOTAL) (gha person ) CROPLAND GRAZING FOREST FISHING BUILT-UP CARBON TOTAL 2.00 0.18 LAND LAND GROUNDS LAND 0.12 0.05 0.12 FOOD 0.41 0.05 0.01 0.34 0.02 0.03 0.85 1.50 0.05 HOUSING 0.00 0.00 0.01 0.00 0.01 0.10 0.12 0.12 TRANSPORTATION 0.05 0.02 0.02 0.03 0.02 0.11 0.25 0.05 1.00 GOODS 0.08 0.02 0.02 0.01 0.01 0.04 0.18 SERVICES 0.01 0.00 0.01 0.01 0.01 0.03 0.09 HH (SUBTOTAL) 0.55 0.09 0.08 0.39 0.07 0.31 1.49 0.50 1.87 1.02 1.49 1.65 GOVERNMENT 0.01 0.00 0.01 0.00 0.01 0.02 0.05 GFCF 0.02 0.01 0.03 0.00 0.01 0.05 0.12 0.00 TOTAL 0.58 0.11 0.11 0.39 0.09 0.38 1.55 WORLD PHILIPPINES LAGUNA LAKE REGION METRO MANILA

By making ecological limits central to decision- Footprint results into activity-based Ecological Footprint. This indicates that residents’ daily Ecological Footprint by household consumption is making, local governments within the region have the Footprint results. This is called the Consumption Land- decisions significantly impact regional (and, broken down further into five major domains: food, opportunity to develop strategies and policies that Use Matrix, or “CLUM”. These final demand categories subsequently, national) Footprint trends. housing, transport, and goods and services. The address the challenging twin trajectories of shrinking include: 1) consumables paid for by households (HH); figure above shows that food Footprint is by far resource supply, and the growing demands on them. 2) consumables paid for by government (GOV), such While the direct consumption by government is only the largest component of Laguna Lake Region’s as school supplies in public schools, police equipment, 3 percent of Laguna Lake region’s consumption household-driven Footprint (57 percent of the total), Attributing the overall demand on nature to particular paper for public administration; and 3) lasting goods Footprint, decisions made by the government followed by its transportation Footprint (17 percent). human activities requires an additional analytical step and assets, or “gross fixed capital formation” (GFCF), have a large impact on how we build cities and The consumption of food by household is primarily beyond basic Ecological Footprint accounting. such as construction of buildings, roads, factories and infrastructure, which strongly influences household linked to two land types: cropland (48 percent), and Since statistical offices track how households, its equipment. consumption patterns. fishing (40 percent). government and industry spend their money, we can The direct consumption by households accounts for use these estimates to translate land-based Ecological 90 percent of Laguna Lake region’s consumption

57 58 Figure 14. ECOLOGICAL FOOTPRINT BY CONSUMPTION (GHA PER CAPITA)

0.13 SERVICES GOODS 0.29 TRANSPORTATION 0.09 HOUSING FOOD 0.09 0.19 0.18 0.37 0.29 0.08 0.25 0.16 0.06 0.14 0.47 0.13 0.12 0.19 0.14 0.09 0.07

0.67 0.62 0.85 0.93 .72

WORLD PHILIPPINES LAGUNA LAKE REGION METRO MANILA IVA

The figure above shows that the food Footprint for as resources become scarcer, food supply could the Philippines is equivalent to the world average of pose a national security issue (as was witnessed in 0.61 gha, and that both the Laguna Lake region and the 2008 rice crisis throughout Asia). Residents of Metro Manila have higher food Footprints than the Laguna Lake region, and the country as a whole, are national average and the world average. This is likely growing more dependent on imported biocapacity due to the fact that these populations have relatively for food, and thus access is directly linked to world higher incomes than the national average. However, food prices.

59 60 Ecological Footprint for Producing Things

Figure 15.

RESOURCE INTENSITY PHILIPPINES MANILA + METRO MANILA CALABARZON (Global Hectares/Million Peso) CALABARZON

I. AGRI, HUNTING, FORESTRY & FISHING 58.0 65.6 45.7 67.3 II. INDUSTRY SECTOR 5.6 4.3 5.6 3.5 III. SERVICE SECTOR 1.5 1.3 1.2 1.8 TOTAL 9.8 3.8 2.1 7.2

This table shows how much biocapacity in global hectares is needed to generate 1,000 Philippine pesos. It shows that agriculture requires the most biocapacity per pesos, which could also indicate that agriculture gets undervalued by markets. We assume that resource intensity for Metro Manila is the same as the National Capital Region (NCR), and the one for LLDA is the same as one for NCR plus Calabarzon due to data limitations.

As the Ecological Footprint can track the resource production Footprint measures a country’s direct in the agricultural sector is the highest per peso, up capital) cannot exist without natural capital. demand for consumption, it can also be used to harvest of its own biocapacity. both in the Philippines as a whole, as well as in the Therefore, low resource prices should not be analyze the economy from the production end. LLDA region. interpreted as lack of importance, but rather as a While the consumption Footprint indicates how Assessing the Footprint from all these perspectives distortion of value, where agricultural production is much it takes to support a resident’s consumption, offers useful and complementary insights. There One could conclude that the service industry is poorly compensated, and food security can become the production Footprint measures how much are also various methods of calculating each. One the most efficient way to produce value. But this a serious and potentially surprising risk. biocapacity is needed as input to produce all the approach that is increasing in use is based on Input- may be a dangerous interpretation because it may value added of an economy. It is also possible to Output analysis. Global Footprint Network performed suggest that agriculture is not important. Another If agricultural production is grossly undervalued, calculate the production Footprint minus its demands a preliminary assessment of the production Footprint interpretation is that agriculture, even though it is it can lead easily to its liquidation. This distortion

on the global commons (for example, CO2 emissions of some areas within the Laguna Lake region. Due fundamental necessity, gets a very small portion poses major risks, as, ultimately, natural capital to the atmosphere, since the demands placed on to its early research phase, the results will be made of the value added of an economy. As a result we cannot be substituted and is at the bottom of every the environment by a country through the emission available in a research paper. underinvest into the capital that is most significant, value chain and one of the key factors for maintaining of carbon dioxide are mostly dispersed throughout and is disappearing the fastest. Natural capital can food security. the globe). This gives us the direct demand of a Among the key findings of the production Footprint exist without human capital, but human capital country on its own ecosystems. In other words, the for the Laguna Lake region is that resource intensity (including social capital, intangible assets, built-

61 62 Next Steps

63 64 Resource Limits in Policy

A climate-resilient country with healthy, safe, The Climate Change Commission, which led in the issues that needed to be confronted in the context to track and manage our resources, and to use the data prosperous and self-reliant communities, and thriving formulation of the national vision in the face of the of the country’s quest for resilience. Providing and information in our policy-making duties. and productive ecosystems: this is the people’s climate change challenge and in embarking on this the Philippines with a new framework to measure vision for the Philippines. In keeping its eyes on critical national exercise of ecological accounting, resilience, the report was endorsed by President With the national vision firmly fixed in our sights, we the goal, the country endeavors to put its best foot takes pleasure in seeing the Ecological Footprint Benigno S. Aquino III and formally adopted by the aim to bring the success of the Ecological Footprint forward and in doing so has embraced the Ecological being embraced by institutions at the sub-national Cabinet Cluster on Climate Change Adaptation and approach to a higher level with its Phase 3, which Footprint as a primary means to understand the key level, in particular by the Laguna Lake Development Mitigation, which works to ensure the integrity of is intended to marshal the most in-depth Footprint elements that would prove fundamental in pursuing Authority and the Metro Manila Development the environment by promoting sustainable natural analysis that we will embark on with Global Footprint this ideal in the face of the complex web of crises Authority in their respective jurisdictions. The resource utilization and climate change adaptation Network. Together, we will map the flow of the that we confront as a nation, and as a planet. importance of the Footprint approach for local and mitigation strategies and measures as part of Ecological Footprint between industry sectors and government units cannot be overemphasized as the key result areas of the President’s social contract link this flow to consumer final demand. This analysis Looking at the larger context within which we situate their decisions can have a major impact on resource with the Filipino people. will help direct more targeted outreach about ourselves in, the international community’s current consumption and on building resilience to climate resource use and waste generation to households efforts to address climate change indicate that we impacts. Such impacts can have far-reaching Resource accounting is an idea whose time has come and consumers, while also helping the national may be likely in for a 4 degrees Celsius warmer implications not just for the local communities but and has immense value at the sub-national level – government understand the ecological impacts of world, a catastrophic scenario no less, with profound for the country as a whole and this is especially true regions, provinces, cities, and municipalities – where industrial sectors. Guided with the resultant findings, impacts on food, water, natural ecosystems, human for the Laguna Lake region, which encompasses land-use decisions can have a ripple effect on the this next phase will also include a scenario analysis security, and spawning irreversible changes. There is the main economic nucleus of the Philippines that economy and society. The Ecological Footprint is not and a plan for action. no doubt that climate change would deepen poverty is characterized by both vast potentials and serious a tool that is meant to curtail development and growth, and widen the chasm between rich and poor, thereby sustainability problems. but rather, it is intended to help governments in making Our work has been cut out for us. The commitment posing a tremendous challenge to social and human development decisions that promote sustainable towards sustainable development is an everlasting development. And the headlines that we see in the The Commission is acutely cognizant of the need for economies and ensure well-being of the people. ideal. In other words, the work is really just news every day are by no means reassuring. Just in all government agencies and instrumentalities, from beginning. The objective is to continue to incorporate

the first half of 2013, CO2 levels in the atmosphere national to the grassroots, to work together closely in The implementation of the Footprint in the Laguna Footprint accounting and resource limits into public has breached the dangerous 400ppm threshold. order to internalize the issue of resource limits into the Lake region in this second phase also marked discourse and policy-making in perpetuity -- for a governance culture and in decision-making processes. the capacity-building stage where participating truly sustainable, resilient Philippines. We likewise confront the sobering fact that every government institutions acquired the necessary living system in the world today is in decline, In the first phase of this endeavor, the country know-how regarding the accounting methodology of compounded with resource scarcity, energy deficits, produced “A Measure for Resilience: 2012 Report the Ecological Footprint. This heralds a new era in the steep biodiversity decline, and heightened risk to on the Ecological Footprint of the Philippines,” country’s capacity to take control of its future as from climate change and disasters. which brought to the fore an abundance of key here on out, we have effectively built the local expertise Naderev M. Saño Commissioner Climate Change Commission

65 66 Appendix A.i Calculating the Ecological Footprint, Consumption, Production and Biocapacity

The National Footprint Accounts track countries’ methodological changes to incorporate the latest defined as hectares of bioproductive area with Figure 16. global footprint trend according to use of ecological services and resources, as well as research and available data may also affect the world average bioproductivity. By expressing all footprint account editions the biocapacity available in each country. As with results, but no significant methodological changes results in a common unit, biocapacity and Footprints NFA 2011 NFA 2012 any resource accounts, they are static, quantitative were made in the NFA 2012 Edition. can be directly compared across land use types descriptions of outcomes, for any given year in the and countries. Demand for resource production past for which data exist. The detailed calculation Differences in the Ecological Footprint and waste assimilation are translated into global methodology of the most updated Accounts— hectares by dividing the total amount of a resource the National Footprint Accounts 2012 Edition—is The National Footprint Accounts 2012 Edition consumed by the yield per hectare, or dividing described in Borucke et al. (2013). The National track human demand for resources and ecological the waste emitted by the absorptive capacity per Footprint Accounts 2012 Edition calculates the services in terms of six major land-use types hectare. Yields are calculated based on various

Ecological Footprint and biocapacity for over 200 (cropland, grazing land, forest land, carbon, fishing international statistics, primarily those from the in number of planets countries and regions, from 1961 to 2009. grounds, and built-up land). The Ecological Footprint United Nations Food and Agriculture Organization of each major land-use type is calculated by (FAO ResourceSTAT statistical databases). Yields For each annual Edition of the National Footprint summing the contributions of a variety of specific are mutually exclusive: If two crops are grown at Accounts, the most current data for the entire time products. Built-up land reflects the bioproductivity the same time on the same hectare, one portion series is downloaded, forming the basis of all the compromised by infrastructure and hydropower. of the hectare is assigned to one crop, and the updated calculations. Some factors and values Forest land can either provide forest products, or remainder to the other. This avoids double counting. taken from scientific literature are also updated it can serve for carbon dioxide uptake. In the latter This follows the same logic as measuring the size where possible. New data can cause changes case, it represents the carbon absorptive capacity of a farm: Each hectare is only counted once, in results between NFA Editions for the same of a world average hectare of forest needed to even though it might provide multiple services.

years. Furthermore, in the NFA 2011 Edition, an absorb anthropogenic CO2 emissions, after having The Ecological Footprint, in its most basic form, is Intertemporal Yield Factor (IYF) was introduced to considered the ocean sequestration capacity (also calculated by the following equation: allow better comparability between the results for called the carbon Footprint). The Ecological Footprint each year within an NFA Edition. Further detail is calculates the combined demand for ecological EF = D/Y available in Boruke et al. (2013). By definition, the resources and services wherever they are located IYF changes base years in each NFA Edition, which and presents them as the global average area where D is the annual demand of a product and Y is causes a change in the way the results appear needed to support a specific human activity. This the annual yield of the same product (Monfreda et al., between NFA Editions. In some NFA Editions, quantity is expressed in units of global hectares, 2004; Galli et al., 2007). Yield is expressed in global

67 68 hectares. In practice, global hectares are estimated factor is the ratio of national-to-world-average with the help of two factors: The yield factors (that yields. It is calculated as the annual availability of compare national average yield per hectare to world usable products and varies by country and year. average yield within the same land category) and Equivalence factors translate the area supplied or the equivalence factors (which capture the relative demanded of a specific land use type (e.g., world productivity across the various land and sea area average cropland, grazing land, etc.) into units of types). Therefore, the formula of the Ecological world average biologically productive area (global Footprint becomes: hectares) and vary by land-use type and year. Annual demand for manufactured or derivative products EF = (P/YN)*YF*EQF (e.g., flour or wood pulp), is converted into primary product equivalents (e.g., wheat or roundwood) where P is the amount of a product harvested or through the use of extraction rates. These quantities waste emitted (equal to D above), YN is the national of primary product equivalents are then translated average yield for P, and YF and EQF are the yield into an Ecological Footprint. The Ecological factor and equivalence factor, respectively, for the Footprint also embodies the energy required for the country and land use type in question. The yield manufacturing process.

69 70 Appendix A.ii Multi-Regional Input-Output Analysis for the Ecological Footprint

WHY EE-MRIO APPROACH IS NECESSARY utilized for material and energy flow accounting and Distinction of 57 products / sectors in each country. The Results in the EF-MRIO Model: land-use accounting to forecast trends and measure Ecological Footprint by Final Demand The Ecological Footprint has become an influential eco-efficiency. Environmentally extended input- Direct Footprint Intensity The Ecological Footprint of consumption is measure of global demand for biological capital. output analysis for the Ecological Footprint requires redistributed into three final demand categories by However, the current National Footprint Accounts three key calculations: (1) Leontief inverse, (2) direct To build the EF-MRIO Global Footprint Network multiplying total Footprint intensity by domestic (NFA) provide disaggregation only according to Footprint intensity, and (3) total Footprint intensity requires an Environmental Satellite Account, which final demand, which is expressed as household land-use types, limiting their utility to government is the Ecological Footprint of Production (EFp) as consumption, government consumption, and gross and private sector decision-makers. The information Leontief Inverse taken directly from the NFA, restructured into the fixed capital formation. provided by the NFAs is extended by utilizing GTAP 57 sector format. In MRIO lingo, the work Environmentally Extended Multi-Regional Input The Leontief inverse calculation provides the direct of restructuring the EFp data from the NFA into the Household Consumption (HH): Short-lived Output analysis (EE-MRIO) through the Global and indirect requirements of any industry supplied above format is called Initial Allocation (see sample consumption by households (food, housing Trade Analysis Project (GTAP) published by Purdue by other industries to deliver one unit of output for table below). maintenance, goods and services paid for and University. The EE-MRIO approach provides final demand. For generation of the Leontief inverse, consumed within a fiscal year); Government Ecological Footprint results for 57 industrial sectors, Global Footprint Network utilizes the Global Trade The direct Footprint intensity is calculated by dividing Consumption (GOV): Short-lived consumption by three types of final demand, and a Consumption Analysis Project (GTAP) 8 database (https://www. the Ecological Footprint production of each land governments (public services, schools, policing, Land Used Matrix (CLUM) for 129 world regions, as gtap.agecon.purdue.edu/default.asp). type by the total output for final demand, including defense, etc.); Gross Fixed Capital Formation (GFCF): well as trade data. imports. This represents the direct required Footprint Long-lived assets, purchased by households (e.g. GTAP8 provides coverage of 129 regions (countries). per unit of currency spent. new houses, white goods), firms (e.g. machinery), Calculation methodology for EE-MRIO at National Since GTAP does not cover all the countries in the and governments (e.g. transport infrastructure). Level: NFA, concordance matrices are used to aggregate/ Total Footprint Intensity disaggregate some GTAP regions (e.g. “Sub-Saharan Short-lived consumption by business is not a Monetary input-output tables were first proposed Africa”) into the constituent countries in NFA. The total Footprint intensity provides the direct and final demand category input-output analysis; it is by Wassily Leontief in the early 20th century. The indirect Footprints of industrial sectors to provide intermediate demand. To accurately calculate the use of input-output analysis to support physical Economic structure for 2004 and 2007. If one assumes one unit of production to final demand—including total EFc for a business, the first step is to prepare flow accounting gained early acceptance for energy the economic structure does not change annually, it the entire supply chain. This total Footprint intensity a final demand vector itemizing that business’s and pollution analysis in the 1970s. Environmentally is possible to use the EF-MRIO to calculate results for is calculated by multiplying the direct Footprint purchases, then use that final demand vector in a Extended Input-Output (EEIO) models have been any other year covered in the NFA. intensity by the Leontief inverse. Leontief demand-pull model to calculate the total

71 72 environmental inputs required to satisfy that final their influence and voice to change their “societal demand bundle. The final demand bundle used in the footprint” i.e. the portions of final demand over EF-MRIO is that of “final” demand, i.e. purchases of which they do not have direct control, such as goods for the ultimate use before disposal. government buying and government / business capital expenditure. Consumption Land Use Matrix (CLUM) Calculation methodology for Sub-Regional CLUM: The household component is then redistributed to Sub-national CLUMs are developed through scaling household consumption categories using a sector- procedures that take household expenditures (HHE) COICOP matrix. This matrix was created by linking for the nation and each region and adjust them by data from the Environmental Impacts of consumer price index (CPI) and energy efficiency Products (EIPRO) project and Classification of data (the percentage of carbon dioxide emissions Individual Consumption According to Purpose per unit of energy produced). (COICOP). As shown above, a Consumption Land Use Matrix (CLUM) can be created by combining National CLUM “Scaling Procedure” Sub-national the Ecological Footprint of household consumption, CLUM Ecological Footprint by government government consumption, and gross fixed capital by consumption and gross fixed capital formation in land-use type. each region are allocated the same as the national average due to data limitations and vague definitions Classification of Individual of some national government spending and Consumption According to Purpose investment allocated to each prefecture. (COCICOP)

A CLUM can be used to inform policymaking and consumer choices. For example, households can directly influence their Footprint by changing their consumption pattern. They can also use

73 74 Appendix A.iii Methods for Calculating Biocapacity of LLDA Region

Biocapacity is defined as the capacity of ecosystems themselves do not use for respiration. to produce useful biological materials (to humans) The equation used for biocapacity for sub-regional and to absorb waste materials generated by humans, LLDA is the national biocapacity modified by an NPP using current management schemes and extraction factor (ratio of NPP sub-national to NPP national), technologies. Global Footprint Network calculates which scales the national biocapacity to the sub- biocapacity for every country in the world for every national level. year from 1961 to 2009 (the latest year for which data is available); it is calculated as the area assigned We were provided with a higher resolution map for to a particular human use, multiplied by yield and the LLDA region and a lower resolution map for equivalence factors. The equation for biocapacity is: the Philippines. We compared the lower resolution Country map (2002) to the area data reported by BCi = Ai * YFi * EQFi FAOSTAT (2009) to determine accuracy with the map. We determined that the higher resolution land use where A is the area of a country dedicated to map was more accurate than the lower resolution land-type (i),YF is the yield factor (ratio of national map for the LLDA region, so this map was used for yield to world yield) for land-type (i) and EQF is the the area values. However the lower resolution map equivalence factor for landtype (i), which relates the was used to calculate the NPP factor for each land productivity of the six land types track by the Global type in each province since the higher resolution Footprint Network to a common unit—the global map coverage did not include the entire Philippines. hectare. The total biocapacity is the sum of the biocapacity of all land types. Caveats to Calculation

To calculate the biocapacity of a sub-national The area for the Low Resolution Land Use map was region such as LLDA, our methodology consisted not the same as the High Resolution Land Use map. of making use of land-use maps of the LLDA region We used land use area values from the low resolution (provided by the LLDA authority itself), and satellite map- the only map for with coverage for the entire images of values known as net primary productivity Philippines. However, these area values do not (NPP). NPP values are a measure of the biological match the values from the FAOSTAT database. material produced by photosynthesis, which plants

75 76 Acknowledgements

AusAID Metro Manila Development Authority The Australian Agency for International Development Special thanks to the Australian Government for supporting Chairman Francis N. Tolentino The Australian Agency for International Development (AusAID) is an executive agency within the Foreign Affairs and Trade the Ecological Footprint collaboration for the Laguna Lake Aristidy Correa portfolio. Final responsibility for the operation and performance of AusAID rests with the Director General who reports directly region, which includes publication of this report, a technical Maria Luwalhati C. Dorotan to the Minister for Foreign Affairs and Trade and the Minister for International Development on all aspects of aid policy and training to build in-country capacity, and a policy workshop Reynaldo Estipona operations. to ensure resource accounting in policymaking. Jo Faulan Marvelous S. Libril The fundamental purpose of Australian aid is to help people overcome poverty. This also serves Australia’s national interests Global Footprint Network Emma Quiambao by promoting stability and prosperity both in our region and beyond. We focus our effort in areas where Australia can make a Pati Poblete Joaquin Antonio M. Santos difference and where our resources can most effectively and efficiently be deployed. Mathis Wackernagel, Ph.D. Alex Umagat www.ausaid.gov.au Michael Borucke Katsunori Iha Office of the Presidential Adviser Global Footprint Network Haley Smith Kingsland for Environmental Protection In 2003, Global Footprint Network, a 501(c)(3) nonprofit organization, was established to enable a sustainable future where all Elias Lazarus Phillip Fullon people have the opportunity to live satisfying lives within the means of one planet. That is why our work aims to accelerate Dharashree Panda Jenica Dizon the use of the Ecological Footprint – a resource accounting tool that measures how much nature we have, how much we use, Melissa Lavente and who uses what. Laguna Lake Development Authority J.R. Nereus O. Acosta, Ph.D. Data Sources (External) The Ecological Footprint is a data-driven metric that tells us how close we are to the goal of sustainable living. Footprint Dolora N. Nepomuceno National Statistical Coordination Board accounts work like bank statements, documenting whether we are living within our ecological budget or consuming nature's Adelina C. Santos-Borja National Statistics Office resources faster than the planet can renew them. Jocelyn G. Sta. Ana National Economic and Development Authority www.footprintnetwork.org Rowena J. Pagdingalan Department of Energy Maristel C. Espiritu Mario Marasigan Laguna Lake Development Authority Charisse V. Lopez Jess Tamang The LLDA was organized by virtue of Republic Act No. 4850 as a quasi-government agency with regulatory and proprietary Leonor A. Poserio functions. Through Presidential Decree 813 in 1975, and Executive Order 927 in 1983, its powers and functions were further Maureen S. Tolentino Photographs strengthened to include environmental protection and jurisdiction over the lake basin’s surface water. Eduardo L. Torres/John Andrew de Guzman Pictures were contributed by the following LLDA offices/units: The Laguna Lake Development Authority envisions a Laguna Lake Region with a balanced ecology, maintained through a Alvin A. Faraon Public Information Unit - Office of the General Manger science-based approach in monitoring, management and maintenance of the ecosystem. It aims to make the Laguna Lake Adelio D. Rico Office of the Assistant General Manager Region a model of environmental governance in Asia and the focal area of sustainable development for the region and the Irish I. Hormachuelos Project Development, Monitoring & Evaluation Division Maria Carolane P. Gonzales whole country. Jeffrey Delfin/UNWFP Marigold M. Del Prado www.llda.gov.ph Beniaflor Ada Design Ireneo G. Bongco Metropolitan Manila Development Authority Tink Tank Studio The role of the Metropolitan Manila Development Authority is to assist the 17 political units within Metro Manila in crafting Climate Change Commission and implementing an integrated development plan characterized by unity of purpose, innovation, resiliency, sustainability, Commissioner Lucille Sering adaptability and creativity in meeting the challenges of transport decongestion, climate change, waste management, and Commissioner Naderev Saño disaster prevention among others, in order to achieve a decent quality of life for Metro Manilians. Desiree Llanos Dee www.mmda.gov.ph

77 78