The Cebu Anti-Corruption Coalition (CACC) organized a lerning session on Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act (Republic Act No. 11995).

More than two years after the signing of this law, its effects are yet to be fully felt by communities especially around extractives.

Dr. Marian Delos Angeles, Chair of REECS was the resource person. STANCe was asked to present its reflection on the session. Five minutes may not be enough to express how valuable PENCAS is to those who fight for a people-centered and equitable natural resource governance. Thus, we opted to write a reflection paper on PENCAS through the political philosophy of Vaclav Havel and building on a framework based on the Laudato Si.

***

What is found in the commons belongs to the commons. This foundational axiom serves as the point of departure for a profound re-evaluation of the relationship between human economic systems and the natural world, particularly within the context of the Philippine archipelago's recent legislative evolution. The approval of Republic Act No. 11995, otherwise known as the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act, represents an ontological shift in how the state perceives and manages its environmental patrimony (and I emphasize here that the way most states appreciate ecosystem services is often patriarchal, a topic we cover in a podcast already uploaded in our website - plugging usa).1 For decades, the valuation of the Philippine landscape was largely restricted to its extractive potential—the "wealth" of the nation measured by the volume of nickel ore, timber, and fish harvested for global markets. However, the introduction of the PENCAS framework mandates a transition toward a holistic accounting of ecosystems as integral parts of heritage and national wealth.2

The discourse surrounding ecosystem valuation is often perceived as a dry, technical exercise conducted by economists and statisticians. Yet, a formative professional encounter with the Palawan State University (PSU) Wealth Accounting and Valuation of Ecosystem Services (WAVES) and Total Economic Value (TEV) document for the Berong nickel mine expansion in Quezon, Palawan, demonstrates the transformative power of this data.4 This document, produced in a region long heralded as the country's "last ecological frontier," served as a vital reference point for development planning, effectively translating abstract biological data into political and social agency for local communities.5 It highlighted the stark disparity between the short-term economic gains promised by the expansion and the long-term degradation of the "commons"—the regulating and provisioning services upon which the Tagbanua indigenous people and local coastal communities depend for survival.4

The PENCAS Act and the Mechanism of National Resource Accounting

The PENCAS Act institutionalizes a comprehensive information system and accounting framework that adheres to internationally accepted standards, specifically the System of Environmental-Economic Accounting (SEEA).3 This framework is not merely a reporting tool; it is a mechanism for monitoring the dynamic interactions between the environment, the economy, and society. By mandating the collection of officially designated statistics on the depletion, degradation, and restoration of natural capital, the law forces the state to account for the "environmental protection expenditures" and "environmental damages" that have historically been treated as externalities.1

A central feature of the PENCAS framework is the calculation of "adjusted net savings".2 This metric goes beyond the traditional Gross Domestic Product (GDP) by deducting the depletion of natural resources—such as energy, minerals, forests, and soil—as well as the damages caused by greenhouse gas emissions and pollution.3 This adjustment reveals a more accurate picture of national wealth, preventing the illusion of economic growth that is achieved through the irreversible liquidation of environmental assets.8

Translating Data into Agency in Palawan

The case of the Berong nickel project in Palawan provides a concrete illustration of how ecosystem valuation informs social acceptability. The project, managed by Berong Nickel Corporation (BNC) and involving significant stakes from DMCI Mining and Atlas Consolidated Mining and Development Corporation, has faced long-standing challenges regarding its social and environmental footprint.6 The PSU WAVES/TEV study for the Berong expansion into areas such as Long Point and the Mt. Bulanjao range brought to light the competing values at play.5 While mining proponents argued that the project would uplift the collective quality of life through jobs and taxes, the TEV assessments provided a counter-narrative by quantifying the value of the forests, the sanctity of the ancestral domains, and the critical role of the watershed in maintaining local water security.4

For the Tagbanua leaders and honey gatherers who saw their income dwindling and their communities divided by the arrival of the mining firm, the PSU documents were not just academic papers; they were tools of empowerment.4 These documents validated the indigenous claim that the land was not a vacant resource awaiting extraction but a functioning "commons" providing unquantifiable benefits.5 By giving a voice to the "cultural services" of the environment, the PENCAS framework—if applied then as it is mandated now—would have provided a legal basis to challenge the endorsement of the Palawan Council for Sustainable Development (PCSD) and the local government units (LGUs).6

Governance Gaps and the Need for LGU Capacity Building

The implementation of PENCAS faces a significant hurdle at the local level. While the national government, through the Philippine Statistics Authority (PSA) and the Department of Environment and Natural Resources (DENR), handles the macro-level data, the "frontline" of environmental management is the LGU.1 Current governance structures often suffer from a lack of technical capacity to integrate Natural Capital Accounting (NCA) into their primary development instruments: the Comprehensive Land Use Plan (CLUP), the Local Climate Change Action Plan (LCCAP), and the Local Disaster Risk Reduction and Management Plan (LDRRMP).1

The PENCAS Act addresses this gap by tasking the Department of the Interior and Local Government (DILG) with the "mainstreaming" of NCA into local policies and programs.9 However, "mainstreaming" is a complex process that requires more than just administrative circulars. It necessitates a fundamental change in the planning logic of local officials who have traditionally viewed land as a commodity for zoning rather than a nexus of ecosystem services.12 The integration of PENCAS data into the CLUP allows for "precision zoning," where areas of high regulating value (such as flood zones or carbon sinks) are protected from infrastructure development.2 Similarly, the LCCAP and LDRRMP can be significantly improved by utilizing data on "environmental damages" and "loss and damage associated with disasters" to build more resilient communities.8

The Role of Citizens and People's Councils

The democratization of environmental data is perhaps the most revolutionary aspect of RA 11995. Section 11 grants every citizen the "standing to compel the performance of any of the mandates under this Act".8 This legal standing is crucial for the functionality of People’s Councils in the local planning process. When a community, organized through a People’s Council, has access to the PENCAS accounts of their municipality, they can demand that the LGU justify any decision that contradicts the ecological data.2

In many Philippine provinces, including Palawan and Cebu, the lack of "social acceptability" is often the result of "elite capture" of the planning process, where mining endorsements are granted by local boards despite community opposition.13 The PENCAS Act interrupts this cycle by ensuring that major accounts are released alongside national economic data, making the ecological "cost" of such decisions visible to the public.8 This transparency serves as a foundation for a more participatory form of governance, where the "supply" of bureaucratic space meets the "demand" of public participation in harmony.15

Sibonga’s Three-Decade Struggle and the Invisibility of Capitals

The history of Sibonga, Cebu, offers a tragic case study in the failure of the traditional market-capital framework to value the "commons." For over thirty years, the residents of Sibonga and the surrounding mountains of Naga City have been entangled in a struggle against large-scale extractive industries, specifically those related to limestone and cement production.12 The United Sibonga Residents for Environmental Protection and Development have consistently highlighted the "governance gaps" that allowed mining corporations to operate with little regard for the social and environmental capitals of the area.16

The 2018 landslide in Naga City, which killed over 70 people, was a peak manifestation of this neglect.12 For decades, the subsidiaries of global conglomerates carried out extractive practices that transformed a landscape of familial stories and intergenerational connections into a "place of extractive violence".12 The "rule of law" in this context functioned to erase the "lived experiences" of the residents, as courts focused purely on material damage and land ownership rather than the holistic value of the ecosystem.12 This "murder of knowledges" is what PENCAS seeks to rectify by providing a formal, state-sanctioned language to quantify the very things that the residents of Sibonga have been fighting to protect.3

In the absence of a system like PENCAS, the resistance in Sibonga was often dismissed as a "cause without action".12 The governance framework prioritized the "monetary asset accounts" of the mining firms over the "ecosystem asset accounts" of the people.7 By institutionalizing the valuation of these "invisibles," the state finally admits that the mountain is not just a pile of limestone to be crushed for cement but a vital infrastructure for the "integral salvation" of the community.12

Rachel Carson and the Web of Intergenerational Equity

The ecological crisis is fundamentally a crisis of connection. Rachel Carson, in her pioneering work, famously reminded humanity that "in nature nothing stands alone".18 This scientific and ethical truth is the core of the PENCAS mandate to measure the "dynamic interaction and intersections" of the environment and society.3 When a nickel mine expands in Palawan, it does not just remove soil; it disrupts the "web of life"—from the pollination of crops to the filtration of water and the sequestering of carbon.3

This interconnectedness extends across time, raising the critical issue of intergenerational equity. The current generation acts as a "temporary" steward of the commons, yet the extraction of minerals and the depletion of forests are irreversible acts that "impoverish, diminish, and destroy" the lives of those yet to be born.20 The PENCAS Act, by calculating "adjusted net savings" and monitoring the "restoration of natural capital," provides the mathematical basis for an "appeal for intergenerational equity".1

The youth play a pivotal role in this struggle. They are the ones who will inherit the "depleted mineral resources" and the "altered climate" mentioned by Vaclav Havel in his 1995 Harvard Address.20 The PENCAS Act recognizes this by mandating the Department of Education (DepEd) and other educational agencies to capacitate the citizenry—especially the youth—to use these participatory mechanisms.9 By educating the youth on how to read the "ledger of nature," the state provides them with the tools to demand a "code of mutual coexistence" that values the future over the immediate gratification of the present.20

Vaclav Havel and the Power of the Powerless in the Market

Vaclav Havel’s analysis of the "post-totalitarian" system in his 1978 essay, The Power of the Powerless, provides a stunningly accurate critique of the modern market-capital framework that treats the environment as a passive resource.22 Havel argued that authoritarian systems are sustained not just by force, but by a "labyrinth of influence, repression, fear, and self-censorship" where individuals participate in a "collective performance" of a lie.23 In the context of resource governance, the "lie" is the belief that infinite economic growth is possible on a finite planet and that the market is the sole "incarnation of the People's will".25

Havel’s "greengrocer"—the ordinary citizen who displays a regime slogan to be left in peace—is mirrored today by the local official who signs a mining endorsement or the citizen who accepts a small "social development" check from a mining company despite the destruction of their watershed.24 These acts represent a "capitulation to the status quo" and a "trivialization of human existence".29

PENCAS, however, serves as a tool for "Living in Truth".24 When the PENCAS data reveals that a development project has a negative "adjusted net saving," it strips away the "ideological veil" behind which extractive interests hide.3 It allows the powerless citizen to point to a state-sanctioned fact and say: "This is the reality of our environment." By positioning PENCAS as a tool for dissent, we move beyond "reactive opposition" and toward a "politics of refusal" where the community rejects the false narrative of progress at the expense of the commons.30

Theological Synthesis: The Majestic and Nurturing God in Nature

The transition from the secular critique of Havel to the spiritual vision of the Canticle of Brother Sun and Laudato Si is essential for a complete understanding of the commons. In his 1995 Harvard Address, Havel spoke of the need to rediscover a "respect for what transcends us"—for the universe, for the earth, and for reality.20 He warned against the "egotistical anthropocentrism" of those who act as "masters of the universe," arguing instead that our actions become part of the "eternal memory of being" where they are judged.21

This "memory of being" resonates deeply with the Franciscan tradition. In the Canticle of Brother Sun, St. Francis of Assisi does not view nature as a collection of resources but as a "cosmic family".19 Nature personifies God as majestic, beautiful, nurturing, and redeeming. Brother Sun and Sister Moon are not mere celestial bodies but siblings in a divine household; Mother Earth is not a "land asset" but a nurturing mother who sustains and governs us.19

Pope Francis, in Laudato Si, brings this vision into the modern era by emphasizing the "integral ecology"—the idea that the "cry of the earth" and the "cry of the poor" are one and the same.34 The violence in the human heart is manifested in the "symptoms of illness" we see in the ground, the water, and the air.34 Laudato Si calls for an "ecological conversion," where the encounter with the Divine leads to a "total conversion of the person" that opens up to a "community conversion".34

Proposing an Environmental Witnessing Framework for the Archdiocese

Based on the principle of "integral salvation"—the Catholic Social Teaching (CST) that salvation is for the "whole person and all people"—the Archdiocese of Cebu (and by extension, the Church in Palawan) is called to a "missionary and structural reform".35 The Church must lead in "witnessing to the truth" in the digital and physical commons.37

The following Environmental Witnessing Framework (EWF) is proposed for implementation across all parishes, integrating the PENCAS data-agency model with the spiritual mandate of Laudato Si.

Pillar 1: The Parish as an Ecological Sanctuary

The parish must no longer be seen as just a building for worship but as a site of "integral ecology." Every parish territory is part of the "commons" that must be protected.

• Parish Natural Capital Ledgers: Parishes should work with local scientists and community leaders to document the "natural capital" within their boundaries, using the PENCAS framework to identify "cultural and provisioning services".2

• Sacramental Stewardship: Integrating ecological conversion into the sacraments. For example, the use of locally-sourced, sustainably-produced elements for the Eucharist, emphasizing the "work of human hands" in harmony with the Earth.34

Pillar 2: The Ministry of Dissent and Parallel Structures

Following Havel’s call to "live in truth," the Church must provide the moral and intellectual "parallel structures" where citizens can organize.24

• Ecclesial Support for People’s Councils: Parishes should host and support the formation of local People’s Councils, providing them with the PENCAS data necessary to challenge "opaque, non-accountable grey power" in local governance.9

• Prophetic Advocacy: The Archdiocese must maintain a "holy indignation" for the abuses and injustices against the helpless, using the PENCAS "adjusted net savings" data to publicize the true cost of extractive projects.17

Pillar 3: Intergenerational Mentorship and Youth Agency

The youth are the "tiptoe" of creation, waiting for action.19 The framework prioritizes their role in the "governance of all."

• Youth Eco-Apostolate: Mobilizing youth groups to monitor local environmental indicators—such as water quality and forest cover—and translating this into "digital nonviolence" and advocacy on social media.26

• Integral Education Modules: Following Section 7(f) of RA 11995, parishes and Catholic schools will develop modules that blend the "common language of science" with the "mysterious tissue" of spiritual reality.9

Pillar 4: The Liturgy of the Commons

Environmental witnessing must be woven into the prayer life of the faithful, ensuring that the "cry of the earth" is heard at every Mass.

• Canticle Commemorations: Regular liturgical celebrations of the "Canticle of Brother Sun," emphasizing the personification of God in nature and our responsibility as "protectors of God's work".33

• Final Prayer of Laudato Si: Mandating the communal recitation of the "Prayer for Our Earth" and "A Christian Prayer in Union with Creation" as a regular part of parish life, moving the congregation toward a "new and universal solidarity".34

Conclusion: Redemption through the Restoration of the Commons

The integration of the Philippine Ecosystem and Natural Capital Accounting System with the philosophical dissent of Vaclav Havel and the theological vision of Laudato Si offers a comprehensive path toward national and spiritual renewal. The "rage" of the disenfranchised residents in Sibonga and the "discontent" of the indigenous people in Palawan can be channeled into "grace"—the positive transformation of society through collective action.15

By acknowledging that "what is found in the commons, belongs to the commons," we move away from the "masters of the universe" mindset that has led to the current ecological crisis.21 We embrace instead a "memory of being" that values the "uniquely human dimensions" of existence and the "mysterious tissue" of the cosmic order.21 PENCAS is the tool; the People’s Councils are the hands; and the Church is the soul of this new movement.

In the final analysis, the "integral salvation" of the Filipino people depends on the "protection, conservation, and restoration" of the ecosystems that provide our life-blood.1 As we work to build the "Kingdom of God on this earth," we must ensure that our progress is measured not by the depth of our mines, but by the health of our watersheds, the beauty of our forests, and the dignity of the poorest and most abandoned among us.17 Nature, in all its majesty and suffering, remains the primary reveal of the Divine, and in protecting it, we participate in the very act of God's redemption.

The PENCAS Act is a milestone, but its success will be written in the "memory of being" by the citizens who choose to live in truth, the youth who demand intergenerational equity, and the Church that stands as a witness to the sacredness of the common home.2 Together, these forces can transform the "existential distress" of the current age into a "spirit of joy and gladness" under the gracious care of the Lord our God.38

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