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Legal and Policy Framework for Payment for Ecosystem Services (PES) in Thailand

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This presentation was given by Orapan Nabangchang on the “Regional workshop on Payment for Environmental Services” on November 20 2014 in Hanoi, Vietnam. The overall aim of the workshop was to enhance the understanding and capacity of policy makers, PES practioners, and researcher communities on the topic of payments for ecosystem services and ecosystem-based approaches and also to increase dialogue between them on latest lessons learned and recommendations for effective, efficient and equitable implementation of PES.

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Legal and Policy Framework for Payment for Ecosystem Services (PES) in Thailand

  1. 1. Legal and Policy Framework for Payment for Ecosystem Services (PES) in Thailand Orapan Nabangchang Presented by Radda Larpnun Regional workshop on Payment for Environmental Services Hanoi, Vietnam 24-25 November 2014
  2. 2. Outline of presentation • The experience of date • On-going PES Projects in Thailand • 20 Steps in the design and implementation process • Legal aspects of PES in Thailand • Conclusion 2
  3. 3. The experience to date • Most of the funding for natural resources conservation is primarily CSR investments that result in producing ecosystems services. • Villagers involved in conservation activities are more like wageworkers and not quite fitting the definition of service providers. • Challenge is to demonstrate the direct and indirect benefits of ecosystems services so as to create real demands for the provision of ecosystems services which will be more difficult than fund raising for wildlife • Inpaeng community project has all the components of a PES project That is, there are services providers involved in reforestation and sellers and there are baselines from which to measure the ‘additionally’. But why did this experience never take off elsewhere? • Thailand doesn’t really have a ‘PES’ project 3
  4. 4. 16 PES projects at the design stage 4 BEDO(ThungJo–water stream) CBFCM(MaeSa) CATSPA(Doi Intanon National Park) CATSPA (Klong-lanNational Park) CATSPA (Huai KhaKhanengWildlife Sanctuary) BEDO–KlongPrasong, Krabi province(Man- groveForest) CATSPA (TarutaoNational Park) ECOBEST CBFCMProject (KohPhangnan) BEDO–Chumporn province(Mangrove Forest) CBFCMProject – (ThaChinRiver) CATSPA(EasternForest) BEDO(AngReaNai WildlifeSanctuary) ECOBEST(Dong Phayayen-KhaoYai) CBFCMProject (LamSeBai)UbonRatchathani province NakornPathom& SamutsakornProvincet THAILAND’S NATIONALPARKS, WILDLIFESANCTUARIES ANDNON-HUNTINGAREAS NationalPark WildlifeSanctuary MarineNationalPark Non-HuntingArea MapDesign&Artwork©DavidUnkovich1999 Modif edfromaRoyalForest Departement Map
  5. 5. On-going PES Projects in Thailand (DNP) Area Legal concerns Ecosystems services Project Proponent Initial Source of Funding Catalyzing Sustainability of Thailand’s Protected Area System Watershed forest about 300,000 rai in 3 villages (Mae Ga-Luang, Pa Morn, Khun Klang), Chiang Mai Site located in protected area (Doi Inthanon National Park) Watershed DNP UNDP-GEF Nakhon Sawan Site located in Klong Lan National Park and Huey Kha Kaeng Wildlife Sanctuary Wildlife habitat DNP UNDP-GEF Mae Wong National Park Wildlife habitat Watershed DNP UNDP-GEF Satun Province: Southern Region Tarutao Marine National Park Eco-tourism and recreational value DNP UNDP-GEF Eastern Forest Complex 3 Wildlife Sanctuaries and 5 National Parks Wildlife habitat and watershed DNP UNDP-GEF 5
  6. 6. On-going PES Projects in Thailand (REO) Area Legal concerns Ecosystems services Project Proponent Initial Source of Funding Community Forestry Based Catchment Management Mae Sa watershed, Chiang Mai Protected Area Watershed Recreation REO UNDP-GEF Lam Sebai Community Forest, Northeast Thailand Community Forest, Water supply and water purification functions REO UNDP-GEF Tha Chin river outlet, Central Thailand Private land Water quality improvement Mangroves’ coastal protection function; fish spawning ground and habitat REO UNDP-GEF Phangan Island, Southern Thailand Site located in Marine National Park Mangroves Coral reefs REO UNDP-GEF 6
  7. 7. On-going PES Projects in Thailand (BEDO) 7 Area Legal concerns Ecosystems services Project Proponent Initial Source of Funding Ang Rue Nai Wildlife Sanctuary (ARNWS) Site located in wildlife sanctuary therefore has high level of restriction regarding access Wildlife habitat Biodiversity- Economy-Based Development Organization (BEDO) Not yet identified Klong prasom: Krabi Property rights unclear Mangroves BEDO Local villagers who benefit Thung Jor, Chiang Mai Site located in wildlife sanctuary therefore has high level of restriction regarding access Watershed BEDO Provincial Water Work Pathiu district, Chumphon Property rights unclear Mangroves BEDO CPF a subsidiary of CP Santisuk district, Nan Province Property rights unclear BEDO CPF a subsidiary of CP
  8. 8. On-going PES Projects in Thailand (ECO-BEST) 8 Area Legal concerns Ecosystems services Project Proponent Initial Source of Funding Dong Phayayen- Khao Yai Complex Site locate Protected Area therefore has high level of restriction regarding access Watershed ECO-BEST EU, German Government, RTG, Helmholtz university Klong Nadi, Nakhon Sri Thammarat Property rights unclear Watershed ECO-BEST EU, German Government, RTG, Helmholtz university
  9. 9. A detailed look at one of the pilot sites under CBFCM : MAESA Pilot Project 9 Target area and justification Watershed area in Pong Yang district which is the watershed of Mae Sa river  Area is rich in biodiversity  High risk of forest encroachment  High risk of forest fires  Intensifying problems of water contamination from agricultural chemicals in the upstream area and from elephant sanctuary located in the midstream area  Increasing competition for water use for agriculture, tourism and households Ecosystems Services Watershed functions Recreation-ecotourism Activity  Forest patrol to reduce rate of encroachment  Making and maintaining forest fire lines  Restoring watershed forests  Increase efficiency in water usage (reduce water shortage downstream) Indicator  Reduced incidences of forest fire  Increasing biodiversity  Reduced area of degraded forests Services Provider Local communities in Pong Yang Sub-district Beneficiaries of ES (potential buyers) Water users in the midstream and downstream area (households, tourism sector) Information gap There is inadequate baseline information on the status quo situation:  Rate of deforestation  Statistics on the incidences of forest fires  Biodiversity resources  Water flow  Water quality  Volume of water uses among different users Economic Analysis of ES Needs to be undertaken both the benefits of ecosystems services as well as the costs, i.e., costs for undertaking conservation activities and opportunity costs for land use changes or changes in agricultural practices Capacity Building Needs  Technical skills in undertaking conservation activities  Technical skills in collecting, compiling and analyzing the scientific information  Training on economic valuation  Management skills Legal and Institutional issues Site is located in a Protected Area (Doi Suthep Pui National Park) and hence the issue of legitimacy of occupants and entitlement to be receiving reward and/or compensation
  10. 10. The 20 steps in the design and implementation process Step The progress 1 Selecting the geographical area 2 Cataloging the ES to be supplied 3 Identifying the sources of ES demand 4 Identifying potential ES supply 5 Defining the type and degree of agent 6 Selecting the ES buyers 7 Securing funds to pay for the ES 8 Determining the types of returns to ES suppliers 9 Bio-physical modeling 10 Estimating marginal benefits of supply 10Source: Jeff Bennett. Crawford School Australian National University
  11. 11. The 20 steps (continued) 11 Step The progress 11 Estimating individual marginal cost 12 Developing the payment system 13 Selecting the ES suppliers 14 Determining the payments from buyer 15 Establishing the payment transfer mechanism 16 Determining the supplier measure 17 Establishing a monitoring 18 Establishing a penalty non-compliance 19 Contracting the ES 20 Assessing the PES scheme Source: Jeff Bennett. Crawford School Australian National University
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  13. 13. Legal aspects of PES in Thailand • There is at present, no legal framework that directly concerns PES. • There are laws that are relevant to the specific types of land, which are likely to be PES sites. • Almost all of the PES and PES-like projects are located in public land which are covered by different pieces of legislation and varying levels of protection • Existing legal framework is not ‘enabling’ by nature. • Some amendments or exemptions will have to be made to allow service providers to carry out measures in public areas where there are ‘legal’ entry restrictions. 13
  14. 14. • If the starting point is to pass a law, then it will be a long and drawn out process. • However, the policy framework is supportive and there are laws which recognizes the role of local communities in natural resources management which can be used as references for ‘relaxing’ the restrictions imposed by the laws that aim first and foremost to protect the natural resources. 14 Legal aspects of PES in Thailand
  15. 15. Conclusion • Though lagging behind other countries in this Region, Thailand has benefited from the PES experiences of other countries. • The on-going projects, though in their very earlier stages, demonstrated the complexities involved and stakeholders are already starting their learning processes. 15
  16. 16. • Some of the projects discussed in this report, though called PES projects are essentially a modified form of CSR. There is nothing wrong with CSR projects, do not address missing markets, nor create incentives to undertake conservation measures on a sustainable basis. • The existing legal framework though not explicitly endorsing the concept of creating incentives for service providers (particularly local communities), can be relaxed in specific cases if this would enable the implementation of pilot projects. • Anticipating criticisms that PES can be used as a tool for legitimizing occupants in Protected Area, it must be made clear that payment is: • conditional, • Involvement does not in increase entitlement to property rights to land, or rights of access to natural resources. 16 Conclusion
  17. 17. • There is critical need for target group specific capacity building from the national level down to local communities. Of critical need appears to be training needs for those who are involved as counterparts in both CATSPA and CBFCM projects • One of the major challenges is to create recognition of the benefits from ecosystems service. • There is a need for a formal institutional framework to create tangible incentives for the private sectors. • Without strategic and innovative approaches to involve the private sectors, CSR investments is most likely to be spread so thin and serving publicity purposes of private companies with little tangible outcome in improving the environment. 17 Conclusion
  18. 18. • there is high potential for poverty alleviation with estimated number of forest-dependent people being between 1 to 2 million people • All PES sites were selected primarily on considerations over the biophysical conditions of the sites. • Although poverty alleviation was not the determining factor for sites selection, income effect is an expected outcome of all projects 18 Conclusion
  19. 19. • There is potential as well as need to use PES as a tool for biodiversity conservation. – At present, biodiversity conservation in Thailand relies heavily on legal measures. Without effective control measures, various pieces of legislations cited earlier have their limitations. 19 Conclusion
  20. 20. Khob Khun Ka : Thank You : Ca’m O’n radda.Larpnun@undp.org orapann@gmail.com

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