Piloting Ecosystem Accounts in Palawan

2. Ecosystem Accounts for Southern Palawan 2WAVES © 2016 ECOSYSTEM-defined • Ecosystems are a dynamic complex of plant, animal and micro- organism communities and their non-living environment interacting as a functional unit - Convention on Biological Diversity (2003). Article 2. Use of Terms • Ecosystem may be identified at different spatial scales and are commonly nested and overlapping. Consequently, for accounting purposes, ecosystem assets are defined through the delineation of specific and mutually exclusive spatial areas

5. Ecosystem Accounts for Southern Palawan 5WAVES © 2016 Wealth Accounting and the Valuation of Ecosystem Services www.wavespartnership.org Ecosystem Accounts for Southern Palawan SP Technical Working Group 02 February 2017

7. Ecosystem Accounts for Southern Palawan 7WAVES © 2016 Southern Palawan Accounts Southern Palawan Sofronio Espanola Pulot Watershed LAND ACCOUNT  Land cover class for 2003, 2010, 2014  Land cover change matrices CARBON ACCOUNT  Carbon sequestration, carbon stock, and changes in stocks for 2003,2010, and 2014 ECOSYSTEM CONDITION ACCOUNT  Pollution loading: heavy metal concentration, TSS  Coastal condition: Coral reef, seagrass, and mangrove condition ECOSYSTEM SERVICE SUPPLY AND USE ACCOUNT  Crop production: rice, corn, coconut and oil palm  Water regulation by forest  Fishery production ECOSYSTEM ASSET ACCOUNT  NPV Cropland: Irrigated paddy fields and coconut plantations

9. Ecosystem Accounts for Southern Palawan 10WAVES © 2016 Key Findings 2: Southern Palawan Forests can contribute to mitigating Climate Change because they act as carbon sink • Carbon stock decreased between 2003-2010 from16 million ton C to 9.2 million ton C • Carbon stock increased between 2010-2010 from 9.2 million ton C to 9.4 million ton C • Carbon sequestration service is 1.9 million ton CO2 in 2014 valued at PHP2.59 Billion (The methodology has been applied at the national scale by FMB)

10. Ecosystem Accounts for Southern Palawan 11WAVES © 2016WAVES © 2016 Key Findings 3: Water Provisioning and Sediment Retention Services Accounting Unit: Pulot Watershed • Pulot watershed provides water to the 500 ha irrigation scheme (deficit with 40% not irrigated) • Sedimentation is clogging up the irrigation reservoir (loss in forest would result to 745 KiloTon of sediments; 20% reduction in rice production)

11. Ecosystem Accounts for Southern Palawan 14WAVES © 2016 Key Findings 4: Contribution of ecosystems to crop production Analyzed are: Paddy Corn Coconut Oil palm Pulot watershed shows a large increase in oil palm plantations – which has involved land conversion in upper parts of the watershed

12. Ecosystem Accounts for Southern Palawan 15WAVES © 2016 Increase in Area of Agricultural and High Value Crops between 2010 and 2014 (in hectares) 0 500 1000 1500 2000 2500 3000 3500 2010 2014 Net Expansion 530 608 78 1,315 1,455 140 901 1316 415 Rice Coconut Oil Palm Extent of paddy rice, coconut and oil palm plantation in 2014

13. Ecosystem Accounts for Southern Palawan 16WAVES © 2016 Value of ecosystem services used in the production of rice, corn, coconut and oil palm (20,000.00) - 20,000.00 40,000.00 60,000.00 80,000.00 100,000.00 120,000.00 140,000.00 160,000.00 180,000.00 Php/hectare/year Resource Rent Cost of Production + Return on Fixed Capital 20142010

14. Ecosystem Accounts for Southern Palawan 17WAVES © 2016 1. CORAL REEF Coral Reef Ecosystem Condition, % Change in Live Coral Cover, Municipality of S. Espanola, Palawan, Philippines 2001 and 2010 (PCSD, 2011) KEY FINDINGS 5: COASTAL EXTENT AND CONDITION

15. Ecosystem Accounts for Southern Palawan 18WAVES © 2016 1. CORAL REEF Coral Reef Ecosystem Condition, % Change in Live Coral Cover, Municipality of S. Espanola, Palawan, Philippines 2001 and 2010 (PCSD, 2011) KEY FINDINGS 5: COASTAL EXTENT AND CONDITION

16. Ecosystem Accounts for Southern Palawan 19WAVES © 2016 2. MANGROVE 2005 (PCSD) 2010 (NAMRIA) 2014 (NAMRIA) EXTENT (Hectares) 1,776 1,092 1,073 VOLUME (Cubic meters) 337,053 189,652 EXTENT AND VOLUME

18. Ecosystem Accounts for Southern Palawan 21WAVES © 2016 There are important trade-offs in ecosystem management in Palawan… Ecosystem accounts help to make these trade-offs clear and inform decision making

19. Ecosystem Accounts for Southern Palawan 22WAVES © 2016 Additional oil palm plantation? • Accounts provide the basis for land use planning • For instance, they show that in Pulot Watershed, Palawan, there is insufficient water to irrigate oil palm (2,000,000) (1,000,000) - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Surplus Oil palm Paddy Domestic (2,000,000) (1,000,000) - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 Surplus Oil palm Paddy Domestic Normal rainfall Dry year (2006)

20. Ecosystem Accounts for Southern Palawan 23WAVES © 2016 A scenario analysis was done to assess the impact of coral reef degradation on fisheries • Fishing effort Coral reef condition (% live coral) 0 50000 100000 150000 200000 250000 300000 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Fishing effort (Horsepower boats) fishing effort - 5 10 15 20 25 30 35 40 45 50 20002001200220032004200520062007200820092010201120122013

21. Ecosystem Accounts for Southern Palawan 24WAVES © 2016 Forecast fish harvests Palawan • Coral reef destruction (dynamite and cyanide) will lead to loss of fisheries of coral dependent species by ~ 2030 even with increasing fishing efforts 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 Fish harvest 8 species, Palawan Modeled Data (PSA)

22. Ecosystem Accounts for Southern Palawan 25WAVES © 2016 Decline of mangrove forests was attributed to their use for other purposes due to the issuance of policy instruments such as private titles (based on cadastral survey), CLOAs, CADC, and etc. Certain mangrove areas have also been converted into fishponds Provide information to review implementation of national and local land use policies

23. Ecosystem Accounts for Southern Palawan 26WAVES © 2016 Carbon sequestration PHP2.59 Billion (2014) Sediment retention 745 KiloTons/yr (2014) Water regulation Crop Production (Resource Rent) PHP35 Million/ha/yr (2014) Fishery production (Resource Rent) PHP70 Million/yr (2015) PULOT WATERSHED

Piloting Ecosystem Accounts in Palawan

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Piloting Ecosystem Accounts in Palawan

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