REWARDING

1

• REWARDING
• THE UPLAND POOR (in Asia)
• FOR ENVIRONMENTAL SERVICES
• That They Provide
• (R U P E S)
• Marian S. delos Angeles
• Environmental Policy Economist
• International Center for Research in Agroforestry
  (ICRAF)
• Southeast Asia Regional Programme
• Bogor, Indonesia

2

• PRESENTATION
• INRM and research and development in
  agro-forestry
• RUPES
• SETTING FOR DEVELOPING MARKETS FOR
• ENVIRONMENTAL SERVICES
• INDONESIA
• PHILIPPINES
• VIETNAM

3
2. INRM research (research on alternative
solution)
4. Tradeoffs and options

Analysis of tradeoffs and competing interests
The INRM research process -the Consultative Group
on Agricultural Research (CGIAR)

Identification of ranges of flexible adaptive
options
5. Outcomes
6. Feedback

Extrapolation

Dissemination

Policy implementation

Wide-scale adoption
4
(No Transcript)
5
(No Transcript)
6
cloud interception
rainfall
canopy water evaporation
Forest
transpiration
surface evaporation
through-fall
stem-flow

infiltration
quick- flow
recharge
lateral outflow
uptake
base flow
percolation
7
(No Transcript)
8
(No Transcript)
9
(No Transcript)
10
WHY Programme RUPES?

• Benefits and costs of conservation are borne
  unevenly
• beneficiaries do not pay
• providers do not get compensated
• costs are borne by disadvantaged groups
• in cases where payments are made, they do not
  reach the poor providers

11
Evolving Consortium

• Center for Intl Forestry Research (CIFOR)
• World Resources Institute (WRI)
• World Conservation Union (IUCN)
• Winrock International
• Conservation International
• Economy and Environment Program for Southeast
  Asia (EEPSEA), IDRC
• Food and Agriculture Organization (FAO)
• national level partners
• other investors

12
OUTPUTS

• identification of ES in a range of settings
• costs and benefits
• distribution
• land use options
• an array of mechanisms developed and tested with
  poor communities that will reward them for ES
  supplied
• transparent enabling institutional environment
• supported at various levels
• awareness to enhance ES raised among government
  officials, producers and consumers of these
  services
• effective partnerships among consortium members
  and regional, national and local organizations

13
WHICH ENVIRONMENTAL SERVICES?

• watershed protection services
• ( WPS)
• biodiversity conservation (BCS)
• carbon sequestration and storage (CSS)

14
WHAT SERVICES?

• watershed protection services ( WPS)
• hydrological functions
• How much water?
• When?
• Where?
• What quality?
• Upstream and downstream users
• Transboundary

15
WHAT SERVICES?

• biodiversity conservation (BC)
• anthropogenic value, or human-centered
• use value
• consumption and production
• recreation, amenity
• option
• non-use value
• existence
• bequest
• intrinsic value
• local and non-locals

16
WHAT SERVICES?

• carbon sequestration and storage (CSS)
• stocks
• flows
• mostly global

17
WHICH REWARD MECHANISMS for watershed protection?

• market-based
• tradable water rights, marketable permits
• development of property rights
• bilateral agreements between providers and users
• revenue share from surrogate markets
• electricity pricing
• water tariffs
• irrigation service fees
• social recognition
• public investments

18
WHICH REWARD MECHANISMS for biodiversity
conservation?

• share from bioprospecting/royalty fees
• concessionary finance
• DEBT FOR NATURE SWAP (FPE)
• DEVPT. ASSISTANCE (SIBP)
• revenue from eco-tourism fees
• direct payments for conservation easements
• increased market access - eco-labeling
• allocation from trust funds
• tax breaks

19
WHICH REWARDMECHANISMS for carbon
sequestration and storage?

• revenue from payments for carbon credits/offsets
• budget allocation from carbon taxes

20
WHICH GENERAL MECHANISMS?

• Tenure security
• Trust funds
• general
• specific
• Cross compliance mechanisms

21
RESEARCH QUESTIONS

• How can these services and their benefits be
  quantified?
• amounts provided and how?
• WPS
• streamflows and water quality
• erosion and sediment transport
• impacts of changes in land-use
• BCS
• indices and scale
• levels and interactions
• CSS
• net impact over-all land-use

22
RESEARCH QUESTIONS

• How are/will be the rewards made to the
  providers?
• Who are the providers?
• economic costs of supplying these services
• financial and opportunity costs
• bundle rewards for jointly provided services?
• property rights
• What are the amounts to be collected from the
  beneficiaries, if any?
• Who are the gainers and how much?
• valuation of benefits from using these services

23
DEVELOPMENT QUESTIONS

• What form and manner of collection and reward?
• mechanisms for payments
• mechanisms for receiving the reward
• forging agreements and NSS
• monitoring of services, payments and transfers
• What are the institutional requirements?
• policies
• types and levels of stakeholders
• reducing transactions costs
• (information, contracting, enforcement)
• forging partnerships
• establishing national facility ?

24
STRATEGY QUESTIONS

• Which services, where?
• Current ICRAF sites
• Current IFAD sites
• Sites of collaborators
• What levels of engagement?
• Collaboration with partners site level policy
• international IUCN, WRI, Winrock Intl, CFI,
  CI
• national NARS governments donors lenders
• local communities, lgus, ngos, civil society
• four years 2002-2006
• sites in Asia
• Phil, Indonesia, Vietnam (tentative, level 1)
• Thailand, China (tentative, level 2
• Nepal, India, etc. (tentative, level 3)

25
ENVIRONMENTAL TRANSFER MECHANISMS

• Two aspects
• PAYMENT FOR ENVIRONMENTAL SERVICES BY
  BENEFICIARIES
• REWARD TO PROVIDERS OF ENVIRONMENTAL SERVICES

26
RUPES Site Development Processes
Number of action pilot sites for environmental
services agreements Year 1 2 3 4 5 Total Level
A sites for Implementation 3 3 . . 6 Level
B sites for Assessment 6 assessed 3
selected 4 assessed 3 selected . . . 10

No. of sites contingent on relevance,
funding, partnerships
27
Application Domain
How can we increase the likelihood of impacts
for many of the upland poor? Where should we
start -- with the most likely winners?
28
RUPES initial work
Environmental service market development for
Indonesia, the Philippines and
Vietnam potentials
29
RUPES likely location of initial work

Key Statistics INDONESIA PHILIPPINES
Viet Nam Population (million) 212.092
75.65 78.137 Land area Imillion
has) 181.157 29.817 32.549 Pop. density
(persons/ha) 1.17 2.54 2.40 Forest
2000 (million ha) 104.99 5.79 9.82
change,1990-2000 (mil ha/yr) (1.31) (0.09) 0.05
in per cent (1.17) (1.42) 0.54
Protection forest (mil has) 20 1 5.7
30
W.Coastal Mountain Piedmont Peneplain Swamp
Ecological zones of Sumatra Indonesia
Alternatives to Slash and Burn benchmark areas
Jambi
Lampung
31
Sumberjaya, South Sumatra, Indonesia
Landsat MSS 1973
SPOT 1999
32

• the use of fire for large scale oil palm
  establishment
• as a weapon both by large-scale companies and
  smallholders in conflict
• Slash-and-burn techniques used by smallholders
  for the establishment of rubber plantation
• ten sites collaboration with CIFOR and EU
  assisted

33
Rubber seedlings can be transplanted into gaps in
existing agroforests Sisipan
34
Clonal planting material successfully established
with limited weeding in a system post slash burn
35
fully segregated landscape
fully integrated landscape
0 1 2 3
4 5
Why?
36
Time-averaged carbon stocks for Sumatra Natural
forest 254 Mg ha-1 Rubber agroforest
116 Oil palm plantation 91 Cassava/Imperata
39 rotation
Initial loss 220 Mg ha-1
Potential gain 75 Mg ha-1
37
Plant species richness (spp/standard plot)
Natural forest
Rubber agroforest
CRAS improved (uncertain data)
PRAS improved (no data)
Oil-palm monoculture (limited data)
Approximate domain for smallholder agroforestry
/ha
Profitability at social prices June 1997
38
NEGOTIATION SUPPORT SYSTEM (NSS) in Indonesia
Bringing science and knowledge to the table
39
NEGOTIATION SUPPORT SYSTEM for Indonesia

• Decentralization process and regional autonomy,
  particularly related to the distribution of NRM
  authorities in government levels.
• Localized negotiation efforts to capture local
  contexts
• State forest land delineation
• Recognition of Adat Rights
• Socialized Forest Community Management

40
(No Transcript)
41
PHILIPPINE SETTING

• Sites with entitlements
• Community-based forest management
• secondary forests
• Social Forestry in agrarian reform areas
• Protected Areas, although delineation slow
• lands of indigenous peoples
• with Certificate of Ancestral Domain Title
• on-going process

42
PHILIPPINE SETTING

• Economic Instruments
• Potential Directions for Refinement
• various resource user fees in Protected Areas
• devise mechanism for allocating revenues from the
  Integrated Protected Area Fund
• hydropower fees for watershed protection,
• recently passed Power Sector Reform Act
• ensure upland providers share in revenues
• on going formulation of bioprospecting fees,
  royalties and sharing mechanisms

43
CHAIN OF PROVIDERS (Sellers) International
Agencies (GEF, WB, USAID, etc.,) providing
development assistance Public Sector Investment
in Environment (DENR, LGU, SCU) Private/
Business Sector (Water Districts, Hydropower
Plants, Water Bottling Co., etc)
UPLAND POOR
Phil Setting from H. Francisco(2002)
44
VIETNAM

• Social Capital COMMUNES
• Increasing Market Orientation
• 20 hectare, 50 year contracts forest agl
  lands
• tradeable
• irrigation fees, auctions for aquaculture
• Land-use options flexibility
• tree plantations grains
• aquaculture vegetables
• horticulture animal husbandry
• North Vietnam Red River catchment
• tributary to Mekong River hill tribes

45
VIETNAM
Dong Cao (Hoa Binh) Watershed protection vs
crop production Food security WaNuLCAS
subcatchment models, AKT PRA, FFS Cho Don
Upland Dissemination of new soil conservation
techniques ToT, extension school,
landcare Ha Giang Remote upland Extension of
upland development FFS and landcare
46
WRI ICRAF