1. Country Environmental Analysis: The Philippines PEP 13: Manila June 9, 2008 Jan Bojö World Bank

2. 2 Outline CEA objective & approach The process Preview of results Take home messages

3. 3 Objective & Approach To assist rational decision-making to enhance the environment by: Building on best quantitative analysis Synthesizing in accessible, credible, consistent format Capturing economic magnitudes of problems Proposing priority interventions Fitting into institutional framework Wrapping into consultative process

4. 4 Scoping Priority Problems Assess environmental damage in $ –Human health: establish exposure, impact –Monetary translation: loss of income, treatment costs, premature death –Loss of ecosystem productivity: net income impact on crops, forests, marine life…

5. 5 Finding Priority Solutions For each major problem area, selective: Cost-benefit or cost-efficiency analysis Effectiveness Administrative cost & feasibility Political acceptability

6. 6 The Process (1) Launch January 2008 Seven studies underway: –Environmental institutions –Environmental management success stories –Environmental health –Coastal & marine ecosystems –Forestry –Land Management –Climate change

7. 7 The Process (2) 1st workshop, Manila June 16-17 Discovery Suites, Contact: mvillaluz@worldbank.org 2nd workshop October Delivery layered outputs: January 2009

8. 8 General Caveats Preview of preliminary results from consultant studies, under peer review Not official World Bank estimates Considerable simplification necessary here Interventions identified, but cost-benefit analysis not completed

9. 9 Preview of Results (1) Water & Sanitation: Strong disease links, particularly diarrhea Income loss + treatment costs + premature death = about $0.6 billion/year Source: Adapted from Arcenas (2008)

10. 10 Preview of Results (2) Air pollution costs: Indoor: $300 m/year Outdoor: $30 m/year Source: Adapted from Arcenas (2008)

11. 11 Preview of Results (3) Coastal & marine life: Estimates gross value of ecosystems Distributional analysis Degradation cost = $0.6 bn (2006) –Potential less actual fish yld. (80%) –Coastal development opp. cost & reclam. (15%) –Marine pollution (4%) –Climate change: minimal cost so far Source: Adapted from Padilla (2008)

12. 12 Preview of Results (4) Re-thinking environmental institutions: Comprehensive policy & legislation in place Bias towards economic growth The key environment dept. should realign to sustainability mandate Local Gov. Units role should expand Enhance public information, participation & access to justice Source: Adapted from La Vina (2008)

13. 13 Preview of Results (5) Climate change: Highly vulnerable – esp. typhoons Increase in temperature Changing precipitation Sea level rise

14. 14 Climate Change Responses Strong institutional & legislative response on mitigation Weaker response to adaptation, but new GEF project Way forward: mainstreaming of adaptation Source: Adapted from Garcia-Rincon & Virtucio

15. 15 Take Home Messages The CEA aims to make an economic case for the environment Damages to human health and productivity of ecosystems are significant Cost-effective solutions are available It pays to take care of the environment!