The Senate on Wednesday, November 22 approved on third and final reading the bill that seeks to establish the proposed Philippine Ecosystem and Natural Capital Accounting System (PENCAS) law.

At least 23 senators in favor of Senate Bill No. 2439, with zero negative votes and zero abstention.

Sen. Grace Poe, chairperson of the Committee on Economic Affairs, lauded Senate President Pro Tempore Loren Legarda for leading the deliberations and passage of the PENCAS bill, which aims to establish proper accounting of the country’s natural resources, a major driving force in the Philippine economy.

“As Chair of the Committee on Economic Affairs, we are guided by the principle that economic development must go hand-in-hand with environmental sustainability. Hence, we need a clear and reliable accounting system like PENCAS to steer our economic policies towards the right, sustainable direction,” Poe said in a statement.

“We also appreciate the bill’s emphasis on data transparency and accountability, including the people’s right to information on the accounts generated through PENCAS,” she added.

“The Government and its people are partners in economic growth and environmental conservation, and our citizens can only participate meaningfully if data is made available to them,” the senator added.

Hopefully, Poe said the measure is a bellwether for increased transparency in the government, including the legislation of a more comprehensive Freedom of Information (FOI) measure.

Sen. Pia Cayetano, chair of the Senate Committee on Sustainable Development Goals, Innovation Futures Thinking, also welcomed the Senate’s approval of the measure into final reading.

“We need to ensure that the concepts of sustainability do not remain just concepts. They need to be embodied in every important agency in our government, particularly the finance agencies, the budgeting agencies, and it needs to be something that all our accountants, all our technical staff understand,” Cayetano said.

“It will take time for many of us to understand every detail of what is intended to be achieved here but this is a step in the right direction,” she added.

During her sponsorship of the measure, Legarda said the PENCAS bill will help the country establish clear directives from government agencies to have the data to assess the physical and monetary worth of ecosystems, including forests, watersheds, and coastal and marine areas.

"It's a data-driven approach that will inform policy making, allocate resources efficiently, raise public awareness, and align with global sustainability goals, solidifying the importance of preserving these invaluable natural assets for economic and environmental well-being,” Legarda said.

The bill defines “natural capital” as the "stock of renewable and non-renewable resources, including plants, animals, air, water, soils, ores, and minerals, that provide a flow of benefits to people and living things."

It also includes, but not limited to, ecosystem services such as air and water filtration, flood protection, carbon sequestration, pollination of crops, and habitats for wildlife.