The water that we drink everyday comes from bodies of water surrounded by patches of land called watersheds. How would you feel if one day you will be paying for the services that these watersheds provide?

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According to Dr. Tonie Balangue1, EPWS is a system which charges beneficiaries for the watershed services they enjoy. Upland and coastal dwellers, the poorest among the Filipino population, are usually the ones working to restore watersheds. EPWS has worked successfully in other countries such as Costa Rica, Thailand, and Vietnam. The more pressing question now would be: is the Philippines ready for EPWS?

Since all Philippine watersheds have communities nearby, a community-based EPWS may be a good option. This would make rehabilitation, protection and management activities easier due to ready manpower. However, there is a need for intermediaries to facilitate community organizing, financing, research among many others. This is where government agencies and non-government organizations (NGOs) come in. Intermediaries play a crucial role in especially in monitoring such system.

Assuming that an efficient EPWS is in place, the offshoots are indeed laudable. It can potentially reduce upland poverty through management interventions providing alternative livelihoods to upland dwellers. Such interventions may include deep well construction and integrated upland farming system.

It can also increase biofuel sources by establishing biofuel plantations to reduce impact of household charcoal making and fuel wood gathering – which are prevalent in watershed communities.

EPWS may be used as a strategy to mitigate climate change impacts because watershed protection goes hand in hand with the conservation of forest cover and diversification of upland farms for production of high-value crops. Lastly, EPWS can guarantee a sustainable supply of raw water since the watershed is being conserved and its usage being regulated in order to meet the needs of all stakeholders.

Watershed remains to be a public good and the provision of payment for the services it provides poses a number of concerns. But it cannot be denied that the potential of EPWS in generating investments for upland farmers is indeed very high.

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¹Resources Environment and Economic Cluster Center for Studies of FASPO-DENR and Speaker, Agriculture and Development Seminar Series (ADSS) 15 April 2008