3rd Mekong Forum on Water, Food & Energy 2013. Presentation from Sessions 3 &5: Extending the benefits of hydropower: Clever suggestion or realistic goal?

1. Payments for Ecosystem Services in Vietnam:
Market-based Incentives or State Control of Resources?
Diana Suhardiman, Dennis Wichelns, Guillaume Lestrelin, Chu Thai Hoanh
Diana Suhardiman, International Water Management Institute
Mekong Forum, Hanoi, 19-21 November 2013

2. Structure of the presentation
• PES in natural resource management
• Theory and practice
• PES program design and implementation
• Institutional arrangements in PES
Hanoi, 19-21 November 2013
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3. PES as an innovative approach in natural
resource management
• watershed protection,
• carbon sequestration,
• landscape planning.
“PES program design should incorporate: a voluntary transaction in which a
well-defined environmental service (or a land use likely to secure that service)
is bought by a minimum of one buyer from a minimum of one provider, if and
only if the provider continuously secures the provision of the service
conditionality.”
(Wunder, 2005)
Hanoi, 19-21 November 2013
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4. Observation
PES programs often are implemented using
donor funds or as part of governmentsubsidized compensation program.
Hanoi, 19-21 November 2013
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5. Pilot PFES in Lam Dong and Son La provinces
• Challenges in program implementation:
• Equal payment for all does not encourage
people to improve forest quality;
• unequal revenue generation across
basins;
• no monitoring of impacts.
Hanoi, 19-21 November 2013
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6. PES as a means to collect additional revenue
for forest protection
• watershed protection,
• carbon sequestration,
• landscape planning.
“With the implementation of the Decree no. 99/2010/ND-CP on the policy for
payment for forest environmental services, gross output value of services will
increase from VND 662 billion to 1,440 billion during 2011-2015”
(FOMIS report 2010: 73 )
Hanoi, 19-21 November 2013
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7. Main research findings
• PES program implementation in Vietnam and
the idea of privatization
• GoV’s ability to secure sufficient funds and
ensure environmental protection
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8. Linking PES program with hydropower
development
How to prevent PES controversy?
Hanoi, 19-21 November 2013
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9. Conclusion
Understanding the governance structure to
increase program significance.
Hanoi, 19-21 November 2013
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10. Thank you
for your attention
Diana Suhardiman
d.suhardiman@cgiar.com
Mekong Forum, Hanoi, 19-21 November 2013