The Philippines continues to face water crises fueled by climate change, industrial misuse, and weak resource management, with the dry season bringing the sharpest strain. In a nation encircled by water, scarcity remains a recurring reality.
To ensure a reliable water supply and quality, the Philippines is laying the groundwork for the Payment for Water Ecosystem Services (P-WES) scheme among major water stakeholders. P-WES is a financing scheme in which the beneficiaries of water ecosystems pay for the management and protection of these ecosystems.
How Paying for Ecosystem Service Could Help Secure Our Water Supply
Designed as a “fairness equation,” P-WES provides incentives to communities, land managers, and other stakeholders who actively protect and maintain water-related ecosystems such as forests, watersheds, and river systems. On the other hand, beneficiaries of these ecosystem services, such as water utilities, industries, and local governments, can provide financial or non-monetary compensation to those who undertake conservation activities.
Beyond safeguarding critical water resources, P-WES also encourages sustainable land management practices and provides additional livelihood opportunities for local communities.
Institutionalizing PWES
To advance the institutionalization of P-WES in the country, the University of the Philippines Los Baños Interdisciplinary Studies Center for Integrated Natural Resources and Environment Management (UPLB-INREM) is leading the project “Advocating for the Institutionalization of Payment for Water Ecosystem Services in the Philippines,” with support coming from the Philippine Council for Agriculture, Aquatic and Natural Resources Research of the Development of the Department of Science and Technology (DOST-PCAARRD).
As part of its advocacy efforts, the project convened key individuals at the National P-WES Summit last February 2026. The Summit aimed to address the country’s growing risk of water bankruptcy or irreversible loss of water resources.
A key highlight of the summit was the official turnover of the proposed National P-WES Policy to the Representative of the 3rd District of Leyte, Rep. Ana Veloso-Tuazon. Representative Tuazon has been actively involved in climate change and sustainable development policymaking in the country.
Moving beyond the traditional policy “push” approach, the project introduced a multi-pronged pathway to institutionalization by integrating P-WES provisions into broader, existing legislative measures. This strategy aims to embed within the fabric of national law rather than being positioned as a standalone mandate.
Local government advocates P-WES
The summit also showcased successful P-WES proofs of concept across the country, where behavioral change and institutional innovation have already taken root.
In Bago City, Negros Occidental, the implementation of an Environmental Protection Fee (EPF) generates an average of P 2 million annually. These funds the City’s watershed rehabilitation initiatives.
In Rizal, Palawan, a community-based model that integrates P-WES into water billing systems directly supports Indigenous Peoples through seedling production and ‘Green Guard’ patrolling incentives.
Meanwhile, in Cagayan de Oro and Bukidnon, the local P-WES model showcases a payment-for-ecosystem-services mechanism that leverages blended finance and multi-stakeholder partnerships to protect critical headwaters.
These local experiences demonstrate that P-WES is not merely a theoretical concept but a practical, scalable, and capable of delivering measurable environmental and social returns.
Collaboration for Sustainable Development
To sustain momentum, the summit formally launched the Philippine Community of Practice for PWES (PhilWES CoP). Envisioned as the institutional glue, the CoP aims to address fragmentation among government agencies, local governments, and the private sector. By standardizing metrics and promoting peer-to-peer mentoring, it seeks to transform isolated pilots into a coherent and durable national commitment.
In closing, Dr. Juan M. Pulhin, Founding Director of UPLB-INREM, and Dr. Asa Sajise, Project Leader of the P-WES Advocacy Project, emphasized that by aligning science, policy, and market facilitation, the country can safeguard its watersheds while improving the livelihoods of the communities who protect them.
