Ballroom b day 1  trung pfes vietnam 2.5.2014
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Ballroom b day 1  trung pfes vietnam 2.5.2014 Ballroom b day 1 trung pfes vietnam 2.5.2014 Presentation Transcript

  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development IMPLEMENTATION 0F PAYMENT FOR FOREST ENVIRONMENTAL SERVICES IN VIET NAM Pham Van Trung Trung.fssp@hn.vnn.vn Vietnam Forest Protection and Development Fund (VNFF) Ministry of Agriculture and Rural Development (MARD) Jakarta, May 2014
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development  Background;  Mobilization of the PFES payments;  Utilization of the Fund;  Current status, equity & challenges; CONTENT
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development 14/01/2008 Degree 05, on the Forest Protection and Development Fund (FPDF) 10/04/2008 Decision 380, on payments for forest environmental services (Piloted in Lam Dong & Son La) 24/09/2010 Degree 99, on policies for payments for forest environmental services (nationwide) Background 05/02/2007 Viet Nam Forestry Development Strategy 2006-2020 Vietnam is the first country in Asia to initiate a nationwide PFES scheme
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Background Relation PFES Policy Forest Authorities 2 Controlling / management of forest quantity and quality FUNDs 3 M&E and supervising PFES implementation 4 Entrusted contracts of PFES (applies to indirect payment) Ecosystem USERs Forest Owners 1 FES buyers/users & sellers/providers (applies to direct payment)
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Mobilization of the PFES payments Carbon sequestration, Aquaculture… Hydropower Water supply Tourism Industrial production 40 VND/m3 20 VND/Kw H 1% - 2% Annual income …ongoing …ongoing ~ 98% ~ 2 % ~ 0.1 % User of the EcosystemPayment sources
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Year Hydropower Clean water Tourism Total (USD) 2009 5,950,302 327,655 14,535 6,292,492 2010 3,323,580 530,120 17,242 3,870,942 2011 12,728,523 689,514 31,708 13,449,745 2012 54,889,864 803,547 41,431 55,734,842 2013 49,574,948 1,136,482 52,234 50,763,664 2014 (QI) 17,323,580 PFES Revenue Mobilization of the PFES payments
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Utilization of the Fund PFES SUPPLIERS (FOREST OWNERS) HOUSEHOLDS, INDIVIDUALS (can use 100% of received amount) ORGANIZATIONS (deduct 10% for administration costs) PFES Users 100% VNFF (Keep 0.5% administration costs) 99.5% Provincial FPDFs (Keep maximum 10% administration costs + 5% contingency)85% Utilization procedure 100%
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Current status, equity & challenges Economic impacts: • Implementation of the PFES policy = increasing the contributions of the forest sector in the national economy; • Signed 281 entrusted contracts with hydropower plants (190), water suppliers (51) and tourism facilities (40); • 35 funds are established; • Annual revenue above 50 million USD. Impacts
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Current status, equity & challenges (cont) Environmental impacts: - Violation cases of forest management and protection have been reduced 40%. Violations 2008 2009 2010 2011 2012 2013 Cases 42,429 40,841 33,821 29,551 28,565 25,776 Violated area (ha) 3,172 2,072 1,747 2,186 1,164 694 - Above 4.1 million ha was determined to implement PFES, in there around 3.6 million ha was contracted for forest protection. Indicators 2008 2009 2010 2011 2012 Forest area (million ha) 12,84 12,90 13,03 13,14 13,46 Forest coverage (%) 38,70 39,10 39,50 39,70 39,90 Impacts
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Current status, equity & challenges (cont) Total payment to forest owner per year = Average unit payment per ha of forest * Forest area managed for services * K-coefficient (K = K1*K2*K3*K4 ) K1 – Forest volume status: 1.00 (rich); 0.95 (medium); 0.90 (poor & rehabilitated); K2 – Forest function: 1,00 (special use); 0,95 (protection); 0,90 (production); K3 – Forest origination: 1,00 (natural forest); 0,90 (plantation); K4 – Difficulty of forest protection: 1,00 (very difficult); 0,95 (difficult); 0,90 (less difficult). Equity
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Current status, equity & challenges (cont) K-coefficient application People’s Committees of province will base on the specific conditions of their provinces & cities to specify number of the sub K factors applicable to their respective provinces. (Circular no 80/2011/TT-BNNPTNT dated 23/11/2011 on methods to determine for PFES, issued by MARD).  K-coefficients have not fully applied due to lack of forest inventory data;  Provinces have just applied K2 & K3-coefficient; applying K=1 in some provinces. Equity
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Current status, equity & challenges (cont)  Using different K-coefficients is appropriate, but it is difficult to explain the system to communities & can provoke conflicts between community members;  Due to lack of forest inventory data, so local communities have not agreed on the value of the K-coefficients. Equity - Occasional Paper Recommendations: “For PFES to have outcomes that are effective, efficient and equitable, however, policy makers must also work toward developing a functional M&E system with an accessible grievance mechanism, to ensure transparency & accountability in the distribution of PFES revenues from central to local levels…”
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Current status, equity & challenges (cont) No Indicator 2008 2009 2010 2011 2012 2013 1 Electricity price (VND/kwh) 890 948,5 1.058 1.242 1.437 1.508 2 The payment rate of hydropower plants compared to the electricity selling price (%) 2,25 2,11 1,89 1,61 1,39 1,32 Equity Annual inflation, electricity selling price increased but the payments of buyers have been unchanged
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Current status, equity & challenges (cont) Equity  The average level of payment of the amount determined forest area for PFES in VN (2013) is around 10,6 USD/ha/year;  Too different levels of payments among basins in some provinces such as Gia Lai, Yen Bai, Dak Nong, Kon Tum… Different levels of payments for forest owners: Province Payment level/ha/year (USD) Lam Dong 14- 21 Gia Lai 0.1 - 10 Yen Bai 1 - 22
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Current status, equity & challenges (cont) Equity - Solution  Implement the “national forest inventory program period 2013-2016”, one of the important objective of the program is supporting to PFES payments;  Propose to revise the Degree no 99 on policies for PFES;  Strengthen capacity for government officers & improve communication related to PFES to local communities;  Finalize guidelines / policies related to carbon sequestration, aquaculture, water for industrial zones & factories;  Improve the M&E system.
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Current status, equity & challenges (cont) Challenges  Direction for PFES implementation is not timely;  Mechanisms, levels of payments for forest owners are not realistic;  Payments of hydropower plants are still delayed;  Lack of guidelines for aquaculture, carbon sequestration, Industrial production facilities;
  • Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development Many thanks! Pham Van Trung Trung.fssp@hn.vnn.vn Vietnam Forest Protection and Development Fund (VNFF) Ministry of Agriculture and Rural Development (MARD)