BUILDING, BUNDLING AND NEGOTIATING ECOSYSTEM SERVICES FOR SMALL-SCALE FARMERS IN RURAL LANDSCAPES Grace B. Villamor (ZEF, University of Bonn & ICRAF) and David Huberman (IUCN)

Payments/Rewards for Ecosystem Services Wunder’s definition: Voluntary transaction Well-defined ES Bought by ES buyer Conditionality Conditionality – the business-like principle only to pay if the service is actually delivered (Wunder, 2005) Photos: B. Belcher, C. Cossalter, & S. Wunder

Wunder’s definition:

Voluntary transaction

Well-defined ES

Bought by ES buyer

Conditionality

Conditionality – the business-like principle only to pay if the service is actually delivered (Wunder, 2005)

Quality control for P/RES (Source: van Noordwijk, et al 2007) Criteria Sub-criteria A. Effective, efficient and sustainability: - Realistic Shared common perspective of the issue Value to beneficiaries is substantial Opportunity costs can be covered and access to resources improved Threats can be monitored and evaluated - Voluntary Legitimacy at individual level Free and prior consent applied Adaptiveness of mechanism - Conditional Trust is enhanced Sanctions exist Environmental changed is taken into account B. Equity - Pro-poor Aligned with MDGs and SD objectives Rewards reduce vulnerabilities of the poor

Shared common perspective of the issue

Value to beneficiaries is substantial

Opportunity costs can be covered and access to resources improved

Threats can be monitored and evaluated

Legitimacy at individual level

Free and prior consent applied

Adaptiveness of mechanism

Trust is enhanced

Sanctions exist

Environmental changed is taken into account

Aligned with MDGs and SD objectives

Rewards reduce vulnerabilities of the poor

P/RES Scheme Popular PES scheme: Clean Development Mechanism (receiving most attention and investments) Weak in achieving the high hopes of the farmers ITTO and RUPES projects experience: (Published: ITTO's Tropical Forests Update Online Newsletter, Issue 18 No. 3 2008) www.worldagroforestrycentre.org/Sea/Networks/RUPES/ Don’t lose sight of the broader picture…. “bundle”…

Popular PES scheme: Clean Development Mechanism (receiving most attention and investments)

Weak in achieving the high hopes of the farmers

ITTO and RUPES projects experience:

Integrating PES through ‘bundling’ Forest Carbon Markets and REDD RISEMP Landscape Labeling IPES

Forest Carbon Markets and REDD

RISEMP

Landscape Labeling

IPES

Integrating PES through ‘bundling’ REDD and forest carbon standards Ex. Voluntary Carbon Standard (VCS) tool: - Afforestation, Reforestation, and Revegetation Agricultural Land Management Improved Forest Management Reducing Emissions from Deforestation and Degradation

REDD and forest carbon standards

Ex. Voluntary Carbon Standard (VCS) tool:

- Afforestation, Reforestation, and Revegetation

Agricultural Land Management

Improved Forest Management

Reducing Emissions from Deforestation and Degradation

Integrating PES through ‘bundling’ Regional Integrated Silvopastoral Management Projects (RISEMP) Source: Pagiola, et al 2004

Regional Integrated Silvopastoral Management Projects (RISEMP)

Source: Pagiola, et al 2004

Integrating PES through ‘bundling’ Landscape Labels (Ghazoul et al., 2009) - New approach that seeks to overcome problems on PES - Combining PES and product certification principles applied at a landscape scale benefits realized at the community level - Award managed rural landscape delivering valuable ecosystem services – “landscape label” Towards integrated PES systems Watersheds as fundamental building blocks Source: Brauman et al., 2007

Landscape Labels (Ghazoul et al., 2009)

- New approach that seeks to overcome problems on PES

- Combining PES and product certification principles applied at a landscape scale benefits realized at the community level

- Award managed rural landscape delivering valuable ecosystem services – “landscape label”

Towards integrated PES systems

Watersheds as fundamental building blocks

Source: Brauman et al., 2007

Integrating PES through ‘bundling’ IPES

IPES

Case Studies/Projects and Interventions Case Studies Bundling Schemes Tools for negotiation Diversifying ES markets in Kalahan landscape, Philippines (RUPES) Agro-biodiversity markets (e.g. food processing) ( established ) Voluntary carbon market using improved forest management; Proposed mini-hydro; Proposed bird migration scheme Rapid Agro-Biodiversity Appraisal (RABA); Rapid Carbon Stock Assessment (RaCSA); Rapid Hydrological Assessment (RHA); RABA

Agro-biodiversity markets (e.g. food processing) ( established )

Voluntary carbon market using improved forest management;

Proposed mini-hydro;

Proposed bird migration scheme

Rapid Agro-Biodiversity

Appraisal (RABA);

Rapid Carbon Stock Assessment (RaCSA);

Rapid Hydrological Assessment (RHA);

RABA

Case Studies/Projects and Interventions Cocoa- agroforest Cattle ranching Case Studies Bundling Schemes Tools for negotiation Reforestation and Protection of Lachua, Eco-Region, Guatemala (IUCN) Reforestation of degraded lands for carbon and wildlife corridors Protection of Eco-region (3 Natural reserves & 4 areas of communal forest reservoirs) Project Idea Note (PIN) development Landscape labelling approach

Reforestation of degraded lands for carbon and wildlife corridors

Protection of Eco-region (3 Natural reserves & 4 areas of communal forest reservoirs)

Project Idea Note (PIN) development

Landscape labelling approach

Case Studies/Projects and Interventions Case Studies Bundling Schemes Tools for negotiation Niger Basin: Wetland Carbon, Guinea (IUCN) Based on watershed management PES model as basis Basic upstream-downstream PES model as a platform Project Idea Note (PIN) development Soil retention function of forests for ensuring the productivity of Hydroelectric power (Dabola)

Based on watershed management PES model as basis

Basic upstream-downstream PES model as a platform

Project Idea Note (PIN) development

Soil retention function of forests for ensuring the productivity of Hydroelectric power (Dabola)

Some important considerations: P/RES is not desirable everywhere. Keep payment options broad (not just cash!) There are likely to be tradeoffs Sensitive to context specific realities (tools are available) Carbon finance should be considered as a means to an end – not an end in itself Outreach and awareness raising are integral to the establishment of P/RES systems

P/RES is not desirable everywhere.

Keep payment options broad (not just cash!)

There are likely to be tradeoffs

Sensitive to context specific realities (tools are available)

Carbon finance should be considered as a means to an end – not an end in itself

Outreach and awareness raising are integral to the establishment of P/RES systems

For more information: RUPES website: www.worldagroforestrycentre.org/Sea/Networks/RUPES/ IUCN Economics website: www.iucn.org/economics Thank you [email_address]

For more information:

RUPES website:

www.worldagroforestrycentre.org/Sea/Networks/RUPES/

IUCN Economics website:

www.iucn.org/economics