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Rewards for Environmental Services in the Philippines Uplands: Constraints and Opportunities for Institutional Reform

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Rewards for Environmental Services in the Philippines Uplands: Constraints and Opportunities for Institutional Reform Rewards for Environmental Services in the Philippines Uplands: Constraints and Opportunities for Institutional Reform Rowena R. Boquiren Developing Mechanisms for Rewarding the Upland Poor in Asia for Environmental Services They Provide i Published in December 2004 Editor: F.J.C. Chandler The Program for Developing Mechanisms for Rewarding the Upland Poor in Asia for Environmental Services They Provide (RUPES) is supported by the International Fund for Agricultural Development (IFAD). Published by: World Agroforestry Centre (ICRAF) Southeast Asia Regional Office PO Box 161, Bogor 16001, Indonesia Tel: +62 251 625415, 625417; fax: +62 251 625416, email: [email protected] ICRAF SEA website: http://www.worldagroforestrycentre.org/sea Layout by: Aunul Fauzi Cover design by: Dwiati Novita Rini ii Table of Contents EXECUTIVE SUMMARY .........................................................................................................................................................................................iv LIST OF ACRONYMS...............................................................................................................................................................................................v 1 INTRODUCTION .................................................................................................................................................................................................1 1.1 Background .....................................................................................................................................................................................................1 1.2 Study Objectives............................................................................................................................................................................................1 1.3 Methodology...................................................................................................................................................................................................2 1.3.1 Analytical Framework.........................................................................................................................................................................2 1.3.2 Research Process.................................................................................................................................................................................3 1.4 Organization of the Report........................................................................................................................................................................4 2 POLICIES AND INSTITUTIONAL PLAYERS IN REWARDING ENVIRONMENTAL SERVICES IN THE PHILIPPINES .......5 2.1 Distribution of forestlands and the uplands...........................................................................................................................................5 2.2 Policies Related to Environmental Service Sectors .............................................................................................................................5 2.2.1 General Legislation..............................................................................................................................................................................5 2.2.2 Other Sectoral Laws and Supplemental Policy Issuances.........................................................................................................6 2.3 Policies for Rewarding Providers of Environmental Services ...........................................................................................................8 2.4 Institutional Players.......................................................................................................................................................................................9 2.4.1 Watershed management for water supply...................................................................................................................................9 2.4.2 Watershed management for hydroelectricity generation..................................................................................................... 10 2.4.3 Biodiversity Conservation.............................................................................................................................................................. 11 2.4.4 Landscape Beauty and Ecotourism Services.............................................................................................................................. 12 2.4.5 Carbon sequestration...................................................................................................................................................................... 12 3 POLICY AND INSTITUTIONAL MECHANISMS FOR REWARDING ENVIRONMENTAL SERVICES –ISSUES AND CONCERNS............................................................................................................................................................................................................. 15 3.1 Watershed Protection.............................................................................................................................................................................. 15 3.1.1 Rights to surface and ground water for industry, agriculture (irrigation), domestic and other uses .......................15 3.1.2 Energy sector..................................................................................................................................................................................... 16 3.1.3 Legal Basis........................................................................................................................................................................................... 16 3.1.4 Rewards, incentives and payments for watershed management – Issues and Concerns............................................. 17 3.1.5 Policy constraints in establishing markets for watershed services ..................................................................................... 24 3.1.6 Potentials for reforming the benefit sharing arrangements.................................................................................................. 25 3.2 Biodiversity Conservation........................................................................................................................................................................ 26 3.2.1 Legal basis ........................................................................................................................................................................................... 27 3.2.2 Rewards and benefits for biodiversity protection – Issues and Concerns....................................................................... 27 3.3 Ecotourism................................................................................................................................................................................................... 30 3.3.1 Legal basis ........................................................................................................................................................................................... 30 3.3.2 Rewards, incentives and payments for landscape beauty/ecotourism – Issues and Concerns................................... 30 3.3.3 Potential for improving the benefit-sharing arrangements.................................................................................................... 32 3.4 Carbon Sequestration............................................................................................................................................................................... 32 3.5 Community Based Forest Management............................................................................................................................................... 33 4 CONCLUSIONS.................................................................................................................................................................................................. 35 4.1 Critical factors in environmental service rewards, payments and incentives............................................................................ 35 4.2 Recommendations...................................................................................................................................................................................... 36 4.2.1 Policy enhancement and re-appreciation of common resources and environmental service (not an all-out reformulation process).............................................................................................................................................................................. 36 4.2.2 Capacity and capability building in ES negotiation, valuation, and protection ................................................................. 36 4.2.3 Research and advocacy on ES management and benefit sharing......................................................................................... 37 REFERENCES AND DATA SOURCES............................................................................................................................................................. 38 INTERVIEWS AND CONSULTATIONS WITH DATA SOURCES........................................................................................................ 41 APPENDIX 1. POLICIES EXAMINED IN THE STUDY..............................................................................................................................
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