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

DETERIORATING CONDITION OF COASTAL ECOSYSTEM MANGROVE ECOSYSTEM CORAL REEF ECOSYSTEM SEAGRASS ECOSYSTEM

Ecosystem Accounts for Southern Palawan SP Technical Working Group 02 February 2017

PULOT WATERSHED Carbon sequestration $ Sediment retention Water regulation Crop Production $ Fishery production $

Southern Palawan Accounts 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

Key Findings 1: Land Cover Change in Southern Palawan Closed Forest Open Forest Perennial Crop 2003 2010 2014 Key Findings 1: Land Cover Change in Southern Palawan The Land Cover account points to the major deforestation that took place in the period 2003 – 2010, when the closed forest cover decreased from some 130,000 ha to around 28,000 ha. The loss of closed forest cover seems to have halted in the period 2010-2014, when there was an increase from 28,000 to 33,000 ha. The Land cover account also show the large growth in plantation crops, in particular coconut and oil palm plantations.

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)

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)

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

Increase in Area of Agricultural and High Value Crops between 2010 and 2014 (in hectares) Extent of paddy rice, coconut and oil palm plantation in 2014

Value of ecosystem services used in the production of rice, corn, coconut and oil palm

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

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

2. MANGROVE EXTENT AND VOLUME 2005 (PCSD) 2010 (NAMRIA) 2014 (NAMRIA) EXTENT (Hectares) 1,776 1,092 1,073 VOLUME (Cubic meters) 337,053 189,652 EXTENT AND VOLUME

3. SEAGRASS Seagrass Ecosystem Condition, % Cover, Municipality of S Espanola, Palawan, Philippines, 2001 and 2010

There are important trade-offs in ecosystem management in Palawan… Ecosystem accounts help to make these trade-offs clear and inform decision making

Additional oil palm plantation? Normal rainfall 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 Dry year (2006)

A scenario analysis was done to assess the impact of coral reef degradation on fisheries Fishing effort Coral reef condition (% live coral)

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

Provide information to review implementation of national and local land use policies 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

PULOT WATERSHED Carbon sequestration PHP2.59 Billion (2014) Sediment retention 745 KiloTons/yr (2014) PULOT WATERSHED Water regulation Crop Production (Resource Rent) PHP35 Million/ha/yr (2014) Fishery production (Resource Rent) PHP70 Million/yr (2015)

MARAMING SALAMAT!