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A study was conducted to understand the perspectives of buyers on environmental services (ES) markets in the Philippines. A total of 25 companies involved in various ES markets served as respondents. Of these, 56 percent were from government-owned companies and 44 percent from privately-owned companies. The majority of these companies, mostly government-owned, are engaged in water services. Privately-owned companies are primarily engaged in biodiversity and provision of landscape beauty. Most companies or buyers are compelled to pay for ES by the mandate of law, or for regulatory compliance. Some companies view ES from a business perspective and are therefore motivated by the business case in ES markets, as well as some ethical values. A total of 84% of the respondent companies are convinced about the business case of the concept of Payments for Environmental Services (PES), but have differently interpreted this concept. On the buyers’ side, a growing demand for ES is an important precondition in ES markets. Some ES beneficiaries perceived payments as a generous way of showing environmental awareness and advocacy. There are ES markets that have strong economic potential, and commoditization is seen as a viable approach to encourage them. A means to commoditize some environmental services to liberate ES markets is proposed in this study.

Buyers' perspectives on Environmental Services (ES) and commoditization as an approach to liberate ES markets in the Philippines ICRAF Working Paper no. 51