28 May 2014: The World Bank has approved a $700,615 grant to support the development and institutionalization of natural capital accounting (NCA) in the Philippines. The Philippine Wealth Accounting and Valuation of Ecosystems (Phil-WAVES) project will build capacity and generate data and indicators for the sustainable management of minerals and mangroves, and promote the integration of sustainable development principles in the country’s policies and programs.

World Bank Philippines Country Director, Motoo Konishi, explained the relevance of NCA for fighting poverty in communities that depend on natural resources for their livelihoods, saying that the “lack of valuation of mangroves and their role in protecting the coastlines can lead to conversion to shrimp farms and other uses.”

An internationally accepted framework called the 2012 System of Environmental and Economic Accounting (SEEA) will help generate data and indicators on the country’s natural wealth, which will be used to determine its contribution to the national gross domestic product (GDP). The grant will support the recruitment of four staff to the Philippine Statistics Authority (PSA) to implement the work.

A second $800,000 grant administered by the World Bank will complement the project with policy analysis based on the natural capital accounts generated for mangroves and minerals. The Philippines is one five core countries of the WAVES Global Partnership Program. [World Bank Press Release] [Phil-WAVES website] [IISD RS Policy & Practice story on WAVES Country Reports]