DESIGNING AND IMPLEMENTING PAYMENTS FOR ENVIRONMENTAL SERVICES: THE PHILIPPINE EXPERIENCE
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1 DESIGNING AND IMPLEMENTING PAYMENTS FOR ENVIRONMENTAL SERVICES: THE PHILIPPINE EXPERIENCE Janet Arlene R. Amponin IWLEARN Regional Workshop on Payments for Environmental Services Melia Hanoi Hotel, Hanoi,Vietnam 3-5 April 2008
2 DESIGNING PES
3 THE STUDY SITE: PENABLANCA PROTECTED LANDSCAPE AND SEASCAPE Pinacanauan Watershed 65,099 hectares (under study) home to a diverse and unique species of plants, rare and endangered species of fauna, marine species 200+ cave system a high priority for conservation in the Philippine Biogeographic Conservation Priority Program (PBCPP) Farming is the major source of income
4 MAJOR THREATS Poverty Unsustainable use of forest resources Water problems Deforestation and degradation (timber poaching, slash and burn, charcoal making and firewood gathering) Other human disturbances on the environment (wildlife hunting, destructive fishing practices) Insufficient funds to support the management of the protected area
5 CONCEPTUAL APPROACH TO DESIGNING PES SCIENCE land-water or upstream-downstream linkages ECONOMICS valuation INSTITUTIONS laws, policies, property rights, development plans, stakeholders PES Structure Benefit-Cost Analysis/ Multi-Criteria Analysis
6 THE PES STRUCTURE Upland farmers Watershed Protection services Domestic water users Lowland rice farmers Adventure tourists Regular tourists Others Environmental funds for watershed conservation and protection Environment payments Village Council or NGO Private Foundation (Intermediary/ fund manager) Water District Irrigation Association Tour operators Others
7 PES DESIGN PLAYERS Environmental Service: Water flow/quality Providers: Upstream farmers Beneficiaries: Households Farmers with irrigated lands Tourists and tour operators Intermediary: Private foundation/institution
8 LESSONS LEARNED: DESIGNING PES Proper site scoping and selection Conditions: Fairly good and stable watershed Well-defined environmental services Strong institutional capacity to implement payment system
9 LESSONS LEARNED: DESIGNING PES Multi-dimensional character of PES Science, economics and institutions elements are equally important Land use environmental service linkage Demand for environmental service Social interactions/supportive institutions
10 LESSONS LEARNED: DESIGNING PES Multi-stakeholder character of PES Importance of stakeholders analysis to identify possible players of PES
11 LESSONS LEARNED: DESIGNING PES Poverty-environment link Poverty dimensions of the service providers must be investigated in greater depth
12 INITIATING PES
13 INITIATING PES: Preparing the Stakeholders 2 upstream villages With varied local conditions Involvement with destructive forest activities Opportunity costs Previous experience with external assistance Dole-out mentality Trust issues Various potential buyers and intermediaries
14 INITIATING PES: Preparing the Stakeholders Capability building Training on sustainable farming and forest harvesting technologies Establishment of nurseries/agroforestry farms Providing livelihood support Livelihood trainings Livelihood establishment
15 INITIATING PES: Preparing the Stakeholders Strengthening community-based forest patrolling and monitoring Paralegal training Assistance to forest managers Aggressive IEC
16 INITIATING PES: Negotiating with the Stakeholders Regular consultations with stakeholders upstream farmers potential buyers potential intermediaries
17 LESSONS LEARNED: INITIATING PES PES not a cure-all to country s environment problems Complemented with other reforms/ instruments Involvement of stakeholders/ communities is essential
18 LESSONS LEARNED: INITIATING PES Long-term process Political willingness Public relations among key people Capacity development/strengthening of institutions Communication and education to increase PES awareness is vital Reliance on negotiations and trust among the participants
19 LESSONS LEARNED: INITIATING PES Negotiating agreements Binding contract to avoid potential problems Clear and assured incentives and commitments for buyer/seller Fair contractual arrangement Appropriate monitoring mechanism Education is a key complementary tool
20 LESSONS LEARNED: INITIATING PES Negotiating agreements Appropriate/credible intermediary is integral Forming an entity with one representative help facilitate negotiations Local dynamics/politics could hamper smooth/speedy negotiations
21 CHALLENGES TO PES Perception on water and environmental protection: WATER: Right for everybody ENVIRONMENTAL PROTECTION: The right thing to do Poverty state of upland farmers Lack of livelihood opportunities High dependence on forest resources Weak institutions Local dynamics and politics
22 IMPLEMENTING PES: Memorandum of Agreement 1-year agreement BUYER: Tour operator Provide funding for trainings SELLER: Multi-purpose cooperative Plant trees and maintain agroforestry farms INTERMEDIARY: REECS Facilitate trainings Monitor agroforestry farms FORM OF PAYMENT: Trainings
23 IMPLEMENTING PES: Memorandum of Agreement 10 upland farmers (multipurpose cooperative) Sustainable water flow Adventure/regular tourists Trainings (livelihood) Voluntary payments/ donations REECS (intermediary) Training Funds Tour operator (Adventures and Expeditions Phils)
24 CURRENT STATUS OF PES Implementation of the MOA Exploring opportunities for scaling-up Wider coverage of PES implementation Increase in the number of service providers Increase in the number of service beneficiaries
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