PAYMENT FOR ECOSYSTEM SERVICES (PES) in FISHERIES & AQUACULTURE

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1 PAYMENT FOR ECOSYSTEM SERVICES (PES) in FISHERIES & AQUACULTURE Forthcoming FAO publication Special session on PES Aberdeen th July 2016 IIFET Conference Daniela Ottaviani - FAO consultant Cassandra de Young - FAO Fisheries policy analyst

2 FREQUENTLY ASKED QUESTIONS How do we define PES? Are there example of PES in the fishery sector? How PES can be used together with other management tools? What is the added value of PES?

3 INTERLINKED NATURE OF ES Food, Raw material Water Medicinal resources Fuel and energy Provisioning Cultural Recreation Tourism Education & research Aestethic appreciation, spiritual experience Regulating WHAT ARE ES? Maintenance of biodiversity Primary production Nutrient cycling Habitat for species Global climate regulation Water flow regulation Waste water treatment Erosion prevention & coastal protection Disease control

4 PES ARE USED FOR THE MAINTENANCE OR INCREASE OF Single Ecosystem Services Bundle of Ecosystem Services Regulating ES Provisioning Cultural PES and ECOSYSTEM SERVICES Supporting ES Cultural ES ES for which there is no established market mechanism in place Regulating A bundle of ES including provisioning ES

5 PES DEFINITION HOW DO WE DEFINE PES? ES provider any stakeholder able to positively (or negatively) influence ES delivery In-cash or in-kind payment Formal or informal agreement Increase or maintenance of ES ES buyer any stakeholder who voluntary makes a payment to the ES provider to secure ES delivery a voluntary transaction whereby a welldefined ES is bought by a minimum of one ES buyer from a minimum of one ES provider if and only if the ES provider continually secures the ES provision (Wunder, 2005)

6 PES-like INITIATIVES PES & PES-like DEFINITIONS Self-organized Completely voluntary Direct payment to ES provider Benefit to the ES buyer Monitoring of ES provision Performance-based payment Policy driven incentive Partially involuntary for the ES buyer Benefit to society Transfer of positive incentives to ES provider Monitoring of adopted practices Effort-based payment

7 EXAMPLES OF PES IN THE FISHERIES SECTOR Increasing the surveillance system of coral reef to discourage illegal fishing in Batbitim Island, Indonesia

8 MECHANISM in place EXAMPLES OF PES IN THE FISHERIES SECTOR Coral reef Source area Illegal & Blast fishers Regulations Bundled ES Local fishing community (ES providers) Use area Increased coral-reef surveillance Tourist resort & NGOSs (ES buyers)

9 EXAMPLES OF PES IN THE FISHERIES SECTOR Promoting a sustainable harvest of the Pirarucu (Arapaima spp.) in the Lower Amazon Basin based on the assessment of its actual population size

10 MECHANISM in place EXAMPLES OF PES IN THE FISHERIES SECTOR Piracucu breeding sites Source area Small-scale piracucu fishers (ES provider) Regulations Piracucu population Use area Government (ES buyer) Payment for monitoring of Piracucu fish stocks

11 EXAMPLE PES & PES-like OF DEFINITIONS THE FISHERIES SECTOR Compensating fishers for fishing restrictions imposed by Hilsa (Tenualosa illisha) fishery management in Bangladesh

12 MECHANISM in place EXAMPLES OF PES IN THE FISHERIES SECTOR Hilsa reproductive sites Source area Hilsa fishers (ES provider) Regulations Hilsa population Use area Government (ES buyer) In-kind payment and creation of alternative livelihood opportunities

13 EXAMPLE OF PES IN THE FISHERIES SECTOR Small scale artisanal fishers and the semi-industrial commercial trawlers establishing sustainable harvest of white shrimp (Litopenaeus spp.) in Costa Rica

14 MECHANISM in place EXAMPLES OF PES IN THE FISHERIES SECTOR White shrimp reproductive sites Source area Small-scale shrimp fishers (ES provider) Regulations White shrimp population Use area Semi-industrial shrimp fishers (ES buyer) In kind payment as buffer zone of fishing restriction

15 ELEMENTS FOR PES AND PES-LIKE INITIATIVES PES & PES-like DEFINITIONS Self-organized Completely voluntary Benefit to the buyer Direct payment to ES provider Monitoring of ES provision Performance-based payment Policy driven incentive Partially involuntary for the ES buyer Benefit to society Transfer of positive incentives to ES provider Monitoring of adopted practices Effort-based payment

16 Can the following be considered PES-like schemes? Self-organized or policy driven Ecolabelling & ecocertification Conservation agreements ITQ Buy back vessel programmes Biodiversity off-sets Voluntary or partly involuntary for the ES buyer PES & PES-like DEFINITIONS Benefit to the ES buyer or to society Direct payment or transfer of positive incentive to the ES provider Monitoring of ES provision or of adopted practices Performance based or effort based payment No No No No No No No

17 WHAT IS THE ADDED VALUE OF PES? Governance Environmental Economic Social ADDED VALUE OF PES Enabling legal framework Institutional overseen body Multiple ES delivery Trade-off minimization in multiple ES delivery Additionality Avoidance of leakage Long-term economic viability Social cohesion Stewardship of natural resources Improved or alternative livelihood Knowledge and capacity building

18 THANK YOU! Forthcoming FAO publication Contacts: Daniela Ottaviani FAO consultant Cassandra de Young FAO Fisheries policy analyst