Compensation and incentives for the maintenance of ecosystem services: A review of current knowledge. Ivan Bond, Sheila We...
Three summary messages <ul><li>The drivers and the causes of landuse change are well known, but they are complex, dynamic,...
Methods and the scope of our review <ul><li>Landuse change in four regions; Amazon, Congo, Miombo Woodlands and South East...
Absolute and relative landuse change
Key lessons on landuse change <ul><li>Drivers of landuse change: </li></ul><ul><ul><li>Non-timber commodity prices </li></...
A simple model for payments for ecosystem services Landuse systems Financial benefits Financial costs Current landuse Desi...
PES definitions -- between hardcore and  periphery   PES Core “ PES-like” Schemes PES Core PES Core   5 criteria Theory & ...
Sample of PES Projects <ul><li>Latin America </li></ul><ul><ul><ul><li>Noel Kempf, Bolivia </li></ul></ul></ul><ul><ul><ul...
Some constraints to lesson learning <ul><li>PES mechanisms are a relatively recent innovation </li></ul><ul><li>Scarce dat...
Characteristics of PES Schemes <ul><li>Sources of finance </li></ul><ul><ul><ul><li>Government – large schemes </li></ul><...
What are the major lessons <ul><li>Effectiveness </li></ul><ul><ul><li>Limited effectiveness to date </li></ul></ul><ul><u...
What are the major lessons <ul><li>Additionality </li></ul><ul><ul><li>Very unclear as to whether additional </li></ul></u...
Some major challenges to REDD from the PES lessons <ul><li>Is there a legal and policy framework that allows payments to l...
Recommendations for Norway’s REDD Programme <ul><li>Immediately </li></ul><ul><ul><ul><li>Start pilot initiatives at sites...
Recommendations for Norway’s REDD Programme <ul><li>Medium term </li></ul><ul><ul><li>Work to develop the right legal and ...
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Compensation and incentives for the maintenance of ecosystem services

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by Ivan Bond, Senior Researcher, International Institute for Environment and Development

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  • The emphasis given to this study by the Minister is noted.
  • Compensation and incentives for the maintenance of ecosystem services

    1. 1. Compensation and incentives for the maintenance of ecosystem services: A review of current knowledge. Ivan Bond, Sheila Wertz Kanounnikoff and Peter Hazlewood Funded by the Ministry of Foreign Affairs (Norway)
    2. 2. Three summary messages <ul><li>The drivers and the causes of landuse change are well known, but they are complex, dynamic, varying over time and space </li></ul><ul><li>Payments for ecosystem services are new, but largely unproven tools </li></ul><ul><li>Resolving rights is a necessary but not sufficient step for the management of forests and woodlands </li></ul>
    3. 3. Methods and the scope of our review <ul><li>Landuse change in four regions; Amazon, Congo, Miombo Woodlands and South East Asia </li></ul><ul><li>Lessons from payments for ecosystem services </li></ul><ul><li>Cross cutting technical issues </li></ul>
    4. 4. Absolute and relative landuse change
    5. 5. Key lessons on landuse change <ul><li>Drivers of landuse change: </li></ul><ul><ul><li>Non-timber commodity prices </li></ul></ul><ul><ul><li>Timber prices (logging, legal & illegal) </li></ul></ul><ul><ul><li>Limited off-farm opportunities and poor economic growth </li></ul></ul><ul><li>Causes: </li></ul><ul><ul><li>Infrastructure (roads) </li></ul></ul><ul><ul><li>Public policies </li></ul></ul><ul><ul><li>Weak regulation / governance </li></ul></ul><ul><li>Both drivers and causes vary over time and space. </li></ul><ul><li>Economic drivers assuming dominance </li></ul>
    6. 6. A simple model for payments for ecosystem services Landuse systems Financial benefits Financial costs Current landuse Desired land-uses <ul><li>Carbon </li></ul><ul><li>Watershed services </li></ul><ul><li>Bio-diversity </li></ul>Source: Engel et al. 2008 Review extended beyond Wunder’s definition
    7. 7. PES definitions -- between hardcore and periphery PES Core “ PES-like” Schemes PES Core PES Core 5 criteria Theory & some private PES “ PES-like” Schemes: Some of 5 criteria Public agro-environmental schemes; eco-labels (e.g. ecotourism), etc. Other Economic Incentives: Any “payment” for any “environmental service” by “anybody” ICDPs, park-ranger salaries, reforestation subsidies, etc. Source: Sven Wunder, 2008 Other Economic Incentives “ PES-like” Schemes PES Core
    8. 8. Sample of PES Projects <ul><li>Latin America </li></ul><ul><ul><ul><li>Noel Kempf, Bolivia </li></ul></ul></ul><ul><ul><ul><li>PSA-H, Mexico </li></ul></ul></ul><ul><li>Congo </li></ul><ul><ul><ul><li>Ibi Bateke Carbon Sink, DRC </li></ul></ul></ul><ul><li>Miombo </li></ul><ul><ul><ul><li>Communal land conservancies, Namibia </li></ul></ul></ul><ul><ul><ul><li>CB Forest Management (Tanzania) </li></ul></ul></ul><ul><li>South-east Asia </li></ul><ul><ul><ul><li>Singkarak, Indonesia </li></ul></ul></ul><ul><ul><ul><li>Ulu Masen, Indonesia </li></ul></ul></ul>
    9. 9. Some constraints to lesson learning <ul><li>PES mechanisms are a relatively recent innovation </li></ul><ul><li>Scarce data and very little strictly comparable data </li></ul><ul><li>Major regional differences </li></ul><ul><li>Definitional issues </li></ul>
    10. 10. Characteristics of PES Schemes <ul><li>Sources of finance </li></ul><ul><ul><ul><li>Government – large schemes </li></ul></ul></ul><ul><ul><ul><li>User-funded – smaller pilot projects </li></ul></ul></ul><ul><ul><ul><li>Mixed funding – users, governments, donors </li></ul></ul></ul><ul><li>Payments </li></ul><ul><ul><ul><li>Cash </li></ul></ul></ul><ul><ul><ul><li>Kind </li></ul></ul></ul><ul><ul><ul><li>Allocation of Rights </li></ul></ul></ul><ul><li>Price discovery </li></ul><ul><ul><ul><li>Payments not markets (except CBNRM) </li></ul></ul></ul>
    11. 11. What are the major lessons <ul><li>Effectiveness </li></ul><ul><ul><li>Limited effectiveness to date </li></ul></ul><ul><ul><li>Challenges of the underlying / basic science </li></ul></ul><ul><ul><li>Design / data problems </li></ul></ul><ul><li>Efficiency </li></ul><ul><ul><li>Generally non market, not efficient </li></ul></ul><ul><ul><li>Targeting is rare </li></ul></ul><ul><ul><li>Transaction costs </li></ul></ul>
    12. 12. What are the major lessons <ul><li>Additionality </li></ul><ul><ul><li>Very unclear as to whether additional </li></ul></ul><ul><ul><li>Very unclear as to permanence </li></ul></ul><ul><li>Equity </li></ul><ul><ul><li>Livelihood impact low </li></ul></ul><ul><ul><li>Not harmful though </li></ul></ul>
    13. 13. Some major challenges to REDD from the PES lessons <ul><li>Is there a legal and policy framework that allows payments to landholders / managers or to other agents of landuse change? </li></ul><ul><li>Are there community organisations who are ready to receive, use and/or disburse payments? </li></ul><ul><li>What are the main drivers and causes of landuse change in the region or area? </li></ul><ul><li>What is the role of government at national and local levels? </li></ul><ul><li>Are there strong technical support agencies with experience in this kind of work? </li></ul>
    14. 14. Recommendations for Norway’s REDD Programme <ul><li>Immediately </li></ul><ul><ul><ul><li>Start pilot initiatives at sites where there is existing community architecture </li></ul></ul></ul><ul><ul><ul><li>Develop robust M&E systems so that we reduce the dependence on case studies and anecdotes </li></ul></ul></ul><ul><ul><ul><li>Ensure that the science is right </li></ul></ul></ul><ul><ul><ul><li>Target areas of high rates of landuse change </li></ul></ul></ul>
    15. 15. Recommendations for Norway’s REDD Programme <ul><li>Medium term </li></ul><ul><ul><li>Work to develop the right legal and policy frameworks </li></ul></ul><ul><ul><li>Build the capacity of government, civil society and community based organisations </li></ul></ul><ul><ul><li>Organisational innovation (new stakeholders) </li></ul></ul><ul><ul><li>Work to eliminate perverse policies </li></ul></ul><ul><ul><li>Improve governance </li></ul></ul><ul><ul><li>Conditionality can be negotiated, but then must be applied </li></ul></ul>

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