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Fiscal Mechanism to Boost Conservation in the Philippines

The Philippines, renowned for its rich biodiversity and unique flora and fauna, is facing a significant challenge: deforestation. In 2010, the country had 13.1 million hectares of natural forest, covering 62% of its land area. However, by 2023, it had lost 32.4 thousand hectares of natural forest, equivalent to a staggering 25.6 million metric tons of CO2 emissions. Despite contributing only 0.48% to global carbon emissions, the Philippines is highly vulnerable to the impacts of global warming.


The Philippine government has undertaken several key initiatives to address deforestation. One of the major programs is the National Greening Programme (NGP), which aims to plant 1.5 billion trees across 1.5 million hectares of land by 2028. This initiative not only contributes to reforestation but also generates employment opportunities in the forestry sector. Another significant effort is the Community-Based Forest Management (CBFM), a national strategy overseen by the Department of Environment and Natural Resources. This program involves local communities in forest management and conservation efforts. By granting rights to People’s Organizations (POs), it has successfully reduced deforestation rates and promoted sustainable practices.


Local communities play a pivotal role in forest conservation through various initiatives. Recognizing the importance of sustainable livelihoods for forest communities, efforts include simplifying resource use permits, exploring organic farming systems, and creating a digital CBFM marketplace. Engaging communities, NGOs, and academic institutions fosters collaboration and ensures responsive policies and regulations.


The action in the Philippines also echoed in Indonesia, a country with diverse ecosystems facing similar challenges. This led to cross-sectoral and public-private collaboration for sustainable land use practices, particularly in forest-rich areas like Jambi Province in Sumatra, Indonesia.


Public-Private Collaboration and Community Engagement


Komunitas Konservasi Indonesia Warsi (KKI-Warsi), a non-profit organization dedicated to environmental conservation, focuses on education, advocacy, and land restoration has conducted activities with the community to restore and conserve peatlands. This include sustainable coffee cultivation, eco-fishery, peatland edu-eco-tourism, and the Pohon Asuh (foster tree) initiative. Warsi also uses these initiatives to provide an additional livelihood to the community while promoting sustainable land use. On the other hand, the activities done by Warsi are often used as proof points on the impact of restoration efforts to curb carbon emissions and, therefore, should be supported.


Warsi, alongside the Indonesian government and the local community, has also initiated an edu-eco-tourism project in the peat forest of Pematang Rahim village by rebuilding infrastructure such as trekking paths, gates, and gazebos. In collaboration with the community, Warsi is working to revive ecotourism, which suffered during the COVID-19 pandemic. With financial support from various organizations, including the local and national governments, Warsi is enhancing the visitor experience and providing education about the peat ecosystem. Additionally, this initiative emphasizes the importance of forest management in preventing fires, particularly during the dry season, and highlights the community's crucial role in protecting the forest from external threats.


In addition to large-scale projects like eco-tourism, Warsi invites public participation through its Pohon Asuh (Foster Tree) program. This crowdfunding initiative allows individuals to contribute Rp200,000 (USD12.5) annually to adopt a tree with a diameter of 60cm or more. Managed by local communities, the program ensures tree growth and prevents illegal logging through forest patrols, bolstering the local economy and encouraging community forest stewardship.


Apart from ecotourism, Warsi along with the community in degraded peatland areas are cultivating liberica coffee. The activities have provided a sustainable farming alternative to Indonesia's fragile peatlands. The yield of coffee beans can be enhanced by adding lime or manure, directly increasing farmers' income. To reduce emissions further Warsi and the community also using the coffee cherry residue as compost, ensuring soil fertility and supporting sustainable farming. This approach not only preserves the delicate peatland ecosystem but also boosts the economic well-being of local communities. 


The success of Warsi’s initiatives can provide more examples for the Philippines or other ASEAN countries to adopt. By adopting similar public-private collaboration efforts to create a fiscal mechanism that could empower the community while at the same time protecting the environment. In the long term, complementing this effort with other incentives and promoting sustainable land use can improve Southeast Asian countries' ability to combat deforestation and climate change. 

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