Financing Conservation through Ecosystem Services: Implementation in Asia. Keith Lawrence

Transcription

1 Financing Conservation through Ecosystem Services: Implementation in Asia Keith Lawrence

2 Demonstration and capture of the value of tropical biodiversity David Pearce (1996)

3 Enhanced human well-being Conservation outcomes New & sustainable financing for conservation

4 A broad definition of PES Mechanisms through which ecosystem managers are paid for good ecosystem management PES scheme Markets Improving decisionmaking, advocacy, sustainable development Government payouts, Conservation agreements... Other ES approaches

5 PES Framework Monitor Implement Run PES scheme Turn theory into practice Pilot: More details Payment mechanisms Contracts Valuation of ES Establish institutions Enact policies Management plans Regulations Governance Stakeholders Lessons learned Pilot: How ES work How & where natural resources provide ES Buyers & Sellers Property rights Potential for PES Prioritize Impact on biodiversity and people Assess Enabling Conditions

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7 A. Yujiashan Pilot PES Study Monitor Run PES scheme Payment mechanisms Contracts Valuation of ES How & where natural resources provide ES Impact on biodiversity & people Establish institutions Enact policies Management plans Regulations Governance Buyers & Sellers Property rights Potential for PES Assess Enabling Conditions

8 PES Schemes in China Existing conservation incentive programs: planned investment of ~ $100 billion: Natural Forest Conservation Program Grain to Green Program Top-down government decisions Low efficiency in ecological protection High transaction costs Little scientific justification for payment amounts Social objectives as well

9 How & where natural resources provide ES Quantity & quality of water for 28,000 people Carbon storage Biodiversity

10 Buyers & Sellers Property rights Potential for PES Threats: Changes in land-use Animal husbandry Farm chemicals/ fertilizer Firewood Sellers: Land-users / farmers in Yujiashan Buyers: Pingwu county Water users

11 Valuation of ES Vegetation regulates 1.25 million tons water p.a. Vegetation fixes 4,900 tons of carbon p.a. Forest carbon sells at $10.20 / ton $50,000 p.a. Biodiversity is an additional benefit Do not monetize Payment amounts will be set politically

12 Establish institutions Enact policies Management plans 1. Biogas systems to replace firewood as an energy source 2. Scale-up beekeeping 3. Award program for residents protecting headwater areas 4. Fund reserve management, forest guards etc.

13 Yujiashan protected area & community Quality/ quantity of water County drinking water company Ecological compensation projects Ecological compensation fund Community stakeholders County departments High-quality freshwater Water resource fees REDD? Funding from NGOs? Water users in Pingwu County

14 B. Cambodia Monitor Run PES scheme Payment mechanisms Contracts Valuation of ES How & where natural resources provide ES Impact on biodiversity and people Establish institutions Enact policies Management plans Regulations Governance Buyers & Sellers Property rights Potential for PES Assess Enabling Conditions

15 Cambodia

16 Impact on biodiversity & people Impact assessments of Areng dam Drinking water for 3,500 villages Displaced peoples Sacred forest

17 ESIA results for the Areng Valley Our EIA reported high diversity of species, including over 30 GT species, in the Areng Valley. We mapped the distribution of all habitats and species, and identified priorities. No. of species recorded in the upper Areng Valley GT species Mammals Birds Reptiles Amphibians Fish Total The EIA results indicate that the upper Areng Valley is the most biologically important sites for biological conservation in the Cardamom Mountains Corridor

18 Buyers & Sellers Property rights Potential for PES Little potential for market-based scheme or government funding Can we convince facility operators it s in their interests to invest in forest conservation? Buyer: hydropower operators Sellers: managers of upland forest areas & local communities

19 How & where natural resources provide ES Impacts of watershed management on dams profits: Energy shortfall during El Niño droughts: Assume reduction in output is twice as severe (20% instead of 10%) Assume sedimentation doubles from 0.5% p.a. to 1% p.a. Sensitivity testing Ownership passes to government after 30 years

20 Dam performance over time (averaged over year) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Without forest management Impact of forest management Excess capacity

21 8 Impact of forest management ($million p.a.) Based on dam generating 300 GWh, Sold at 6 cents / KWh = $18million p.a Dam operator Government

22 0.4 Impact of forest management ($million p.a equivalents) $1.7 million $2.6 million Dam operator Government

23 Suggested payments Operator pays up to $260,000p.a. into conservation fund: 0.09 cents per KWh 1.5% of revenue Government pay up to $170,000p.a. into fund?

24 A broad definition of PES Mechanisms through which ecosystem managers are paid for good ecosystem management PES scheme Markets Government payouts, Conservation agreements...

25 Thank You! Keith Lawrence conservation.org