Experiences and Lessons in Payment for Ecosystem Services

This resource book provides an account of the pioneering efforts of a coastal municipality in establishing payment of ecosystem services (PES) as a sustainable financing mechanism to protect and manage its marine resources.

It will be available for download after its launching on 28 November 2017.

Experiences and Lessons in PES

Chapter 1 of the resource book introduces the reader to Taytay, a municipality in northern Palawan, and provides a glimpse of the many tourist attractions it can offer. It also explains the concept of PES and the purpose for adopting this scheme.

Chapter 2 describes the results of the benchmarking assessments (status of marine resources including economic valuation, socio-demographic characteristics of households, institutional/political profile of the study barangays or villages, and status of tourism), which informed the design of the PES scheme and its basic features.


Chapter 3 describes the PES scheme adopted in Taytay Bay, namely, the establishment of coral and giant clam gardens (CGCGs) as a means of coral reef restoration and protection. It details the process of how the ecosystem service (ES) was defined, how the CGCG was conceptualized, and how the ES buyers and sellers were identified.

It also describes the establishment and monitoring of the underwater gardens, as well as the training provided to the fishermen who were involved in these activities. Lastly, it outlines the findings of the willingness-to-pay (WTP) study, whose results provided the basis for determining some of the proposed tourism fees.

Chapter 4 describes the structuring of the CGCG–PES deal and the crafting of the Memorandum of Understanding (MOU) for the project. It also outlines the proposed tourism fees and revenue sharing system.

Chapter 5 focuses on the establishment of a conservation and sustainable tourism development fund and its importance, as well as the process of drafting the ordinance creating the fund.

Chapter 6 summarizes the Taytay stakeholders’ experience and the lessons they learned in the course of establishing their CGCG-PES project, and identifies remaining issues that need to be addressed going forward.