The speakers for the session, “Building Indonesia’s Green Finance Architecture: From Macro-Fiscal Policy to Inclusive Grassroots Benefit Sharing”.
Protecting nature could become a powerful way to build rural wealth, with a restorative economy offering the Philippines opportunities to strengthen farm incomes, secure water supplies and create businesses that help damaged ecosystems recover.
The approach puts forests, watersheds and biodiversity at the center of economic development. Instead of treating restoration solely as an expense, it links environmental recovery with productive activities that can sustain livelihoods over time.
For Filipino communities whose earnings depend on healthy land and reliable water, the benefits could be substantial. Restoring these resources can help protect the foundations of agriculture and local enterprise while strengthening resilience to climate disruptions.
That opportunity took center stage at Bangkok Climate Action Week 2026, where Indonesian research institutions, civil society organizations and local leaders explored how Southeast Asia could make restoration part of mainstream economic policy.
Research by the Center of Economic and Law Studies (CELIOS) projects that restorative economic practices could generate Rp2,208 trillion, or approximately US$140 billion, in Indonesian economic output over 25 years. The study also projects a 15% reduction in income inequality.
The estimates are specific to Indonesia, but they offer a regional argument for investing in economic activities that replenish natural resources and distribute benefits more widely.
For the Philippines, the question is how to translate that approach into practical gains for farmers, local enterprises and communities exposed to climate risks.
One pathway is agroforestry, which integrates trees with crop production. Done sustainably, it can connect agricultural earnings with landscape recovery, allowing communities to build livelihoods around the resources they help restore.
During discussions led by Cendekia Iklim Indonesia (CII), coffee and macadamia agroforestry in Doi Tung illustrated how commercial farming can form part of a wider strategy for restoration and community development.
The model points to an opportunity for rural producers to participate in environmental recovery through income-generating work. Its long-term value depends on maintaining productive landscapes and connecting farmers with markets.
Water security is another major benefit.
Healthy watersheds sustain the water systems on which households, farms and businesses rely. CII’s program examined how regenerating these landscapes through sustainable agroforestry can support ecological recovery alongside rural livelihoods.
For the Philippines, investing in watershed health could therefore serve both environmental and economic priorities. Protecting the resources that support production can help strengthen the communities and enterprises that depend on them.
But restoration cannot become a durable livelihood strategy without funding that reaches the people doing the work.
At an October 5 session, CELIOS and its partners examined ecological fiscal transfers, ecological taxes and windfall profit taxes as mechanisms for directing resources toward environmental priorities and local economies.
Indonesia’s use of ecological fiscal transfers across 43 subnational governments provided an example of how fiscal policy can link public funding with environmental performance and local development.
Transparent benefit-sharing was a central concern, particularly for communities on the frontline of the transition.
“We must elevate the nature-based economy beyond basic conservation and position it at the center of national economic strategy,” said CELIOS Executive Director Bhima Yudhistira.
“Through equitable fiscal mechanisms and transparent benefit-sharing, we can attract capital while ensuring transition dividends directly enrich local communities on the frontline.”
The Nature-Based Economy Pavilion, organized by Koalisi Ekonomi Membumi (KEM) at Lumpini Park from October 5 to 7, explored how those ideas could become viable ventures. It brought together social entrepreneurs, impact investors, researchers and policymakers to connect local production with financing and supportive policies.
“Climate action strategies cannot operate in isolation; they require active, cross-sector collaboration,” said KEM Executive Director Fito Rahdianto.
For the Philippines, a restorative economy offers a development opportunity built around a clear incentive: communities should benefit economically from keeping their natural resources healthy.
Making that work will require viable businesses, dependable financing and fair access to returns. If those conditions are met, restoring forests and watersheds could become a source of lasting rural prosperity—supporting incomes today while protecting the resources future growth will need.