TEAM. María Cristina Torres - Director. Pablo Trejo Ecological economy. Vanessa Fierro - Coordinator. Guido Tamayo Environmental issues

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2 TEAM María Cristina Torres - Director Vanessa Fierro - Coordinator Pablo Trejo Ecological economy Guido Tamayo Environmental issues Sebastián Páez - Hydrology Manuel Narváez - Hydraulics Robert Cazco Legal issues Marcelo Ruiz - Hydraulics Nancy Moscoso Social issues Carmen López- Research assistant María Isabel Carrera - Economy Diego Espinel - Research assistant

3 CONTENTS Overview TEEB objectives Watershed importance Legal Environment Context, Ecosystem Services & Scenarios Proposal of Public Policies Identifying Issues Methodology Biophysical modelling Valuation Approach Opportunities Results Biophysical Economical Challenges 3

4 General Objective: To inform policy makers how investing in natural capital supports the transformation of the country s productive and energy matrix. (Incentive Nationwide Programs Socio Bosque - Forest Partner) 4

5 Ecuador COCA WATERSHED ECUADORIAN AMAZON Privileged area (high biodiversity and abundant water resources) Cuenca delríococa Strategic area for projects related with the new energy matrix. 22 hydropower projects (operation, construction & studies) 30 % of the national energy demand (actual) 5 Dic, 2016 TEEB- CUENCA DEL RÍO COCA

6 SPECIFIC OBJECTIVES Biophysical Modelling To analyze the changes in ecosystem service provisioning under various scenarios of incentive programs for ecosystem restoration, conservation and sustainable use Valuation Approach To demonstrate the HCCS s dependence on hydrological services (economic benefits)

7 WATERSHED STATE Flows of Ecosystem Services are economically invisible ES are not considered in public and private decisions Inefficient control of extensive livestock (main economic activity) Changes in the use of natural resources (land, water & energy) 7

8 Supported by LEGAL ENVIRONMENT CONTEXT 2030 Agenda Sustainable Development National Plan of Good Living CURRENT LEGAL FRAMEWORK National Policy for the Governance of Natural Heritage Political Constitution of Ecuador Organic Law of Water Resources National Plan of Incentives Forestry Law Socio Bosque (Forest Partner) Incentive Program 8

9 POLICES ECOSYSTEM SERVICES Study Zone Ecosystem Service Indicator Parameter Valuation approach Upper & middle Coca Watershed Water regulation Sediment regulation Quantity, spatial distribution & temporality Soil loss Flow discharges Sediment discharges Hydroelectric power yield Dredging costs 9

10 LAND USE CHANGE SCENARIOS Biophysical and socioeconomic characteristics Ecosystem Services Legal Framework SCENARIOS DEFINITION 10

11 LAND USE CHANGE SCENARIOS 11

12 LAND USE CHANGE SCENARIOS 12

13 LAND USE CHANGE SCENARIOS 13

14 LAND USE CHANGE SCENARIOS 14

15 BIOPHYSICAL MODELING Water regulation Hydrological modeling Discharges by scenario Sediment regulation Sediment Rating curve Sediment yield by scenario 15

16 VALUATION APPROACH Water regulation Discharges by scenario Income [USD/year] Sediment regulation Sediment yield by scenario Cost [USD/year] 16

17 BIOPHYSIC Scenario Land Use & Cover Change (2014 POR) Water Regulation Temporal Distribution Sediment Regulation Forest Moorland Pasture Base flow Peak flow Amount of Sediment 1 Current Trend 11 % 0,68 % 66 % 2 Strengthening Socio Bosque 7,5 % 0,66 % 47 % 3 Nacional Plan of Incentives 6,6 % 40 % 4 Degradation 17 % 4 % 108 % 17

18 VALUATION APPROACH Point of Reference Current Trend Scenario Scenario Water Regulation Hydroelectric power yield Sediment Regulación Dredging costs 1 Current Trend 2 3 Strengthening Socio Bosque Nacional Plan of Incentives 4 Degradation 18

19 PROPOSAL Incentive Application Watershed Organism Institutional Coordination (MAE-SENAGUA-MAGAP & Others) Projects (Public & Private) Program Implementation Planning Compensation for environmental services Restoration Generation MAE (already stablished) Application MAE-SENAGUA (charge mechanism) 19 Die, 2016

20 IDENTIFYING ISSUES To apply ecosystem approach in Ecuador, it is necessary to improve conditions: Compatibility between development objectives (traditional structures of natural resource exploitation) and conservation of natural heritage. Sustained financing for conservation programs Support for TEEB structure process (Inter-ministerial co-ordination) Existing policies are not well instrumented in order to apply conservation actions transversally, they need: Effective citizen participation Enable institutional articulation and coordination 20

21 OPPORTUNITIES Better understanding of the area and the ecosystem hydropower service. Problem identification: Need of Watershed Organization Laws in force lack of tools for its application Proposal of legal reforms necessary to achieve cross-cutting effects. 21

22 CHALLENGES Replicate methodologies Generate new conservation, restoration and sustainable production mechanisms. Organizing collaborative watershed information systems Use this study to influence the creation of new public policies related with suitable water resources management. Study another ES Getting articulated stakeholder participation (incentives) 22

23 Ma. Cristina Torres Guerrón Docente EPN-FICA/Directora Proyecto Oficina 101-Edificio de Hidráulica (10) (593) Ext skype: ma.cristorres Quito - Ecuador

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