About PEENRA

Implementing Rules and Regulations of EO 406

NSCB, DENR, NEDA, NSO, DTI, DA
Date: April 1, 1998

JOINT ADMINISTRATIVE ORDER NO. 1
Series of 1998

Implementing Rules and Regulations (IRR) of Executive Order No. 406 known as Institutionalizing the Philippine Economic-Environmental and Natural Resources Accounting (PEENRA) System and Creating Units Within the Organizational Structure of the Department of Environment and Natural Resources (DENR), National Economic and Development Authority (NEDA) and National Statistical Coordination Board (NSCB)

1. Rationale

Pursuant to Section 5 of the Executive Order No. 406 signed by the President of the Republic of the Philippines, His Excellency Fidel V. Ramos on March 21, 1997, the following implementing rules and regulations are hereby promulgated to implement the said Executive Order:

Statement of Policy - The Philippine Government is committed to the principles set forth in Agenda 21 which emphasizes the need to attain economic growth and equity through sustainable utilization of the country 's resources.  Towards this end, it adopted the Philippine Agenda 21 which embodies the country's overall environmental management objectives and stressed on its thrust to balance development and environmental goals by incorporating sustainable development principles in national plans and policies.  The establishment of an environmental and natural resource accounting system is viewed as one of the main strategies by which environmental concerns could effectively be integrated in socio-economic policy and decision making.  The Executive order No. 406 therefore directs the in institutionalization of the Philippine Economic-Environmental and natural Resources Accounting (PEENRA) System and creating units within the organizational structure of DENR, NEDA, NSCB and other agencies as necessary.

2. Objective

This IRR shall provide the guidelines for the implementation of the Executive Order No. 406 which aims:

1. to develop and institutionalize the PEENRA System;
2. to improve existing statistical system to address the requirements of the PEENRA compilation; and
3. to ensure the effective integration of the PEENRA results in socio-economic planning and decision making.

3. Features of the PEENRA

The PEENRA will serve as a satellite account to the Philippine System of National Accounts (PSNA).  It will adopt a framework which is harmonized with the System of National Accounts SNA) and will incorporate relevant features of other environmental and natural resources accounting frameworks.  The main features of the PEENRA are as follows: 

1. Incorporates the utilization of natural resources and environmental media in economic production and consumption;
2. Adopts an approach that allows prioritization in the development of accounts in accordance with environmental concerns and the statistical capability of the country;
3. Follows concepts and classification that are consistent with the SNA;
4. Segregates all environment-related flows and stocks of the SNA, notably environmental protection expenditures;
5. Links the physical resource accounts with monetary environmental accounts;
6. Extends the concept of capital to cover not only man-made but also natural capital;
7. Links changes in environmental quality to human capital, natural ecosystem and produced and non-produced capital; and
8. Provides estimates of environmentally adjusted indicators.

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