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Scoping study on PES schemes Dak Nong
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This presentation by Pham Thu Thuy, Nguyen Tuan Viet and Le Ngoc Dung shows how the scoping study on PRES schemes could be designed. …

This presentation by Pham Thu Thuy, Nguyen Tuan Viet and Le Ngoc Dung shows how the scoping study on PRES schemes could be designed.

Published in Environment , Technology
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  • 1. Scoping study on PES schemes Dak Nong Pham Thu Thuy Nguyen Tuan Viet Le Ngoc Dung
  • 2. PES-readiness • Provincial Forest Protection and Development Fund in place… but very centralised with low involvement of district, commune and village level • PES has not been seen as another forest protection program rather as a part of sectoral improvement and cross-sectoral coordination • 25 staff but limited capacity in handling complex transaction and bridging buyers and sellers + compete for administration fee • Challenge in financial distribution due to out of date forest land allocation and registration data • Low understanding of PES of stakeholders • Low willingness to pay of buyers • Low willingness to pay of sellers due to high opportunity costs, limited understanding of PES and lack of alternative livelihood activities • Weak information sharing amongst stakeholders • 90% of forests are under management of State forest enterprises -- elite capture of benefit
  • 3. Option Defined ES Buyers Sellers Conditionality Payment mechanism 1 - Watershed protection - Reduce sedimentation of reservoir Hydropower plants Water supply companies - Local people - Communities Monitoring of environmental services: Unclear what are the baselines ? Monitoring of contract: incapable of current institutions Weak law enforcement Current form: Cash payment Limited investment on in- kind 2 Spawning grounds and sources of food for aquaculture activities Households or business organizations implement aquaculture activities Local authorities or hydropower plants ???? Under-developed contracts 3 Landscape beauty Tourism companies (eco- park – under construction)) Visitor - Local people - Communities - Entrance fee ? Pay for community development fund and forest protection contract ??? - Direct payment between people and companies 4 Biodiversity conservation Tourists and government; NGOs ? - Yok Don National Park and Local communities Under-developed contracts 5 Carbon sequestration - Private companies - REDD+ projects - Government agencies - Local people - Communities - State forest enterprises -Verifiers involved -Clear baseline and reference level - In kind and in cash upon negotiation
  • 4. Pros and ConsOption Pros Cons -Watershed protection -Reduce sedimentation of reservoir • regulated in national policy on PES • Institutional setting in place • Compliance of large scale and state owned companies are well-cited • SFEs controls forest land • Inequity (e.g. outsiders from other provinces access to land) • Resistance of small and private hydropower plants • Lack of forest monitoring and inventory data • Political economy influence – National Energy Spawning grounds and sources of food for aquaculture activities • Hydropower plants create huge area of reservoirs • There are households and business organisations implemented aquaculture activities on these reservoirs • Local authorities are in charge of management of these reservoirs • Lack of clear guidance • High implementation costs Landscape beauty • Landscape beauty are widely found • Strong interests from tourism companies make direct transaction between the companies and HHs • Lack of experience in this type of ES (e.g. Ta Dung Protected Area has just established in recent years) Biodiversity conservation • Biodiversity hotpot • Highly degraded area Under- developed market Rely on government funding Carbon sequestration • Strong support of government to REDD+, CDM • high potential of carbon trade (e.g. • Interest of private companies ares trong (Germany + Truong Thanh Companies) • CDM projects are proposed but there is still not actual implementation (e.g. Truong Thanh company) • Resistance from provincial authorities on complying with international auditing and verification and unclear on carbon credit allocation
  • 5. Recommendation- Short term • Ensure the effectiveness of PES scheme (e.g. Ensure 10% kept at Provincial Fund and SFEs are used for ES improvement purpose) • Promote transparency through improved information dissemination channel SMS system ? • Pilot other alternative livelihood activities (large scale avocado?) + support market access (e.g. certified coffee and PR campaign of Trung Nguyen) as in-kind payment method • Develop and pilot participatory ES monitoring to enhance the conditionality + increase the payment level + local involvement in PES • Pilot co-management between National Park and SFEs with local households in delivering ES • Multi PES schemes ? Scoping studies to compare costs vs. benefit ??? - Trade- off between political impact and PES impact >??
  • 6. Recommendations – Long term • Bundling different environmental services but how to distribute $ via Forest Protection and Development Fund ? • Baseline and database on ES current status need to be established (Dak Nong FPDF is carrying the forest area inventory – what about other ES ?) • Capacity building for both local authorities and local people on PES, ES monitoring and negotiation skills – (e.g. information exchange and networking between Son La and Dak Nong)
  • 7. THANK YOU