The restoration of natural capital and the development of payments for ecosystem services in South Africa: An opportunity for sustainable natural resource management and use?
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The restoration of natural capital and the development of payments for ecosystem services in South Africa: An opportunity for sustainable natural resource management and use?

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Christo Marais, Head: Operations Support - Working For Water - South Africa

Christo Marais, Head: Operations Support - Working For Water - South Africa

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    The restoration of natural capital and the development of payments for ecosystem services in South Africa: An opportunity for sustainable natural resource management and use? The restoration of natural capital and the development of payments for ecosystem services in South Africa: An opportunity for sustainable natural resource management and use? Presentation Transcript

    • The restoration of natural capital and the development of payments for ecosystem services in South Africa: An opportunity for sustainable natural resource management and use? Christo Marais Department of Water Affairs and Forestry, South Africa
    • The market for ecosystem services relevant to the Southern African context
      • Water regulation and supply
      2. Carbon sequestration and maintenance 3. Natural landscapes (biodiversity) for recreation and bequest value.
    • Environmental and Social Cluster of the Expanded Public Works - Promoting Socio-Economic Development and Improved Livelihoods
      • Working for Water - manages invasive alien plants to enhance the sustainable use and conservation of our natural resources
      2. Working for Wetlands - champions the protection, rehabilitation and sustainable use of South Africa's wetlands 3. Working on Fire - enhance the sustainability and protection of life, livelihoods, ecosystem services and natural processes through integrated fire management 4. Working for Woodlands - regain woodland composition, structure and function.
    • The Opportunities in the Water Sector
      • Yield (utilizable water),
      • Retention (maximize low flows),
      • Water quality (minimize the loss of top soil, siltation of water infrastructure, damage to water services and human health risks) and
      • Risk (minimize impacts of floods and droughts).
    • The Water Pricing Strategy - Clearing of Invasive Alien Plants (IAP’s)
      • The full cost of control of certain IAP’s may be charged to affected water users.
      • … . in consultation with affected stakeholders, … the control of IAPs is the best and most cost effective action possible to increase long term water security and availability.
      • Once agreement is reached …, the total cost of control must be communicated to all affected stakeholder organisations. These costs may be supported by subsidy where available and appropriate.
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    • Photograph courtesy: Ms. Terry Everson Impact of Sedimentation on the Siltation of Dams and Water Quality
    • Photograph: Courtesy Prof. Rudi van Aarde
    • Photograph: Courtesy Prof. Rudi van Aarde
    • Photograph: Courtesy Prof. Rudi van Aarde
    • Dry Season
    • Dry Season
    • Opportunities in the Carbon Market: Working for Woodlands in the Eastern Cape Thicket Restoration Programme
    • Degradation of Albany Thicket Biome
    • The good - 300,000 ha Semiarid solid thicket (characterized by a dense canopy of tall shrubs and a Portulacaria afra Jacq. component)
    • The bad - 600,000 ha Moderately degraded by injudicious goat-farming
    • The ugly - 800,000 ha Severely degraded by injudicious goat-farming
    • Comparing Carbon storage in Semi-arid and Arid Systems with Lilliputian (Rain) forest Lechmere-Oertel et. al. (2006) Austral Ecology
    • Above ground 40 ± 3 7 ± 1 Litter 11 ± 1 1 ± 0.4 Roots 25 ± 1.3 11 ± 0.7 Soil 133 ± 27 95 ± 15 and falling? Total 209 ± 28 114 ± 14 t C ha -1 Mills et. al. (2005) Austral Ecology
    • Krompoort (MAP 300 mm yr -1 ) 27 years growth 4.2 ± 0.08 t C ha -1 yr -1 = 15.4 t CO 2 ha -1 yr -1 Mills & Cowling (2006) Restoration Ecology
      • Financial overview
      • Goat farming $7 – $30 income ha -1 yr -1
      • Spekboom farming
      • Implementation costs: $400 – $700 ha -1
      • - based on large-scale DWAF project in Baviaanskloof
      • Potential turnover (inclusive of transaction costs):
      • @ $3 $30 ha -1 yr -1
      • @ $20 per credit $200 ha -1 yr -1
      • present carbon price: $5-$10
      • - 2006 high: approximately $ 40 (energy credits)
      10 t CO 2 ha -1 yr -1 - conservative Mills & Cowling (2006) Restoration Ecology: 15.4 t CO 2 ha -1 yr -1
      • Large-scale project scenario
      • 20, 000 hectares
      • 417 people employed over 10 years
      • Total cost: $26 million
      • Potential annual earnings:
      • @ $3 per credit $600,000
      • @ $20 per credit $4 million
      • The Proviso
      • There is no free lunch.
      • Sellers must be capacitated to enter the market.
      • There is money to be made but it needs proper regulation.
      • A long term view
      • Transaction costs can be a deal breaker!
    • Opportunities in Water, Carbon & Biodiversity: Integrated Veld and Forest Fire Management
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    • Impacts of Fire on Biodiversity, Ecosystem Processes and Services
      • Sprouting – a large proportion of plants in fire-prone areas have the ability to sprout after fire,
      • Serotiny – some plants (for exam ple, proteas) hold their seeds in “fire-proof capsules” built from the remains of the flowers.
      • Smoke-stimulated germination – the seeds of many plant species are stimulated to germinate by the chemical cocktails contained in smoke.
      • Fire-stimulated flowering – many species are stimulated to flower, following fires, offering the best opportunity for seed production and germination of these plants.
      • Flammability – “killing their neighbours”, and creating space for their own progeny to thrive.
      • Dependence on fire-induced nutrient flushes - Some animals, such as Roan antelope, calve in the middle of the dry season, when green grass is scarce. The females need the protein flush that follows a fire to provide enough milk for their calves.
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    • Two Major Impacts on Soil Movement and Related Ecosystem Services
      • Fire (rotation and season)
      • Unsustainable use (overgrazing and “nutrient mining”)
    • Land Use & Management Options Unsustainable Fire Regimes
    • Conclusion
      • There is potential for the development of a Payments for Ecosystem Services (PES) Market in South Africa
      • The two most promising options at the moment are water regulation and carbon .
      • It has the potential to have significant socio-economic benefits to the rural poor where up to 80% of the population are unemployed.
      • Restoring Natural Capital and the development of PES could make significant contributions to the alleviation of poverty in developing countries all over the world.
    • Thank You!