Department of Environment and Natural Resources (DENR) · DAO 2026-33
Operationalizing Payment for Ecosystem Services (PES) Framework in the Philippines
DENR Administrative Order No. 2026-33
Subject: Operationalizing the Payment for Ecosystem Services (PES) Framework in the Philippines
Signed: June 30, 2026; Published: The Manila Times, August 4, 2026; Acknowledged: ONAR, UP Law Center, August 5, 2026
Legal Basis
The 1987 Constitution; RA 7586 as amended by RA 11038 (E-NIPAS); RA 7160 (Local Government Code); RA 8371 (IPRA); RA 11995 (PENCAS Act); RA 11032; PD 705 as amended; Executive Order No. 192; EO 263 s. 1995 (Community-Based Forest Management); EO 318 s. 2004 (Sustainable Forest Management); and related joint circulars.
Objectives
- Define the roles of DENR and other PES actors and the institutional mechanism for the framework
- Provide mechanisms to establish, develop, implement, monitor, and evaluate PES programs and schemes
- Set standards and methodologies for identifying, valuing, and pricing ecosystem services, including payment modalities
- Develop financing, fund management, and reinvestment mechanisms for PES sustainability
- Implement safeguards
Scope
All ecosystem services, including those from terrestrial, coastal and marine, inland water and wetland, cave, riparian, urban, and freshwater ecosystems.
PES Initiatives and Schemes
PES progresses from a PES Initiative to a PES Scheme. Initiatives may be undertaken by DENR, other government agencies, LGUs, Indigenous Cultural Communities/Indigenous Peoples, and local communities. Prerequisites include a voluntary or negotiated transaction in which buyers and sellers mutually agree to exchange a clearly defined ecosystem service.
Institutional Mechanism
PES, as an application of Natural Capital Accounting (NCA), operates within the DENR NCA governance structure established under DAO 2025-07. The NCA Steering Committee provides policy direction and oversight; the NCA Technical Working Group provides technical support on valuation, safeguards, and alignment with PENCAS. Monitoring involves LGUs and the academe.
Relevance to Project Proponents
The framework creates a formal pathway for companies whose operations depend on ecosystem services, such as watersheds supplying hydropower or water utilities, to structure payments to service providers.
Effectivity
Takes effect fifteen (15) days after publication and upon filing with ONAR, UP Law Center.
Signed by Secretary Atty. Juan Miguel Cuna. Source: official DENR issuance (DAO-2026-33).
Important Notice
EnviSynergy exercises due diligence in researching and summarizing this policy. This summary is provided for general reference only and does not constitute legal advice or an official interpretation of the issuance. The policy may have been amended, superseded, or clarified after publication, and this summary may not capture every provision of the original text. For the complete, accurate, and most current version, users are advised to consult the Department of Environment and Natural Resources (DENR) or the relevant issuing agency directly before making any compliance or project decision.
Policy Details
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