Kandyan forest gardens provide important ecosystem services but are threatened by deforestation and degradation. Payment for Ecosystem Services (PES) could be an effective way to conserve these forests by compensating landowners for maintaining the natural habitats and services they provide. The document discusses how PES works, identifying key ecosystem services of Kandyan forests like water provision, soil protection, and biodiversity habitat. Specific projects are proposed like beekeeping and ecotourism. While PES shows promise, its impacts on livelihoods and equity need monitoring to avoid unintended consequences. Designing PES with explicit poverty reduction goals could help ensure benefits reach vulnerable groups.

1. Payment for Ecosystem
Services (PES) for Kandyan
Forest Garden Conservation
W.K.A.M.D.S. Aththanayake
PGIA/2012/115
Post Graduate Institute of Agriculture

2. Content
• Introduction
• Problem identification
• Methodology
• Discussion
• Suggestion/solutions
• Conclusion

3. Sri Lanka
Total area 65,610 km2.
The land area is 64,740 km2
Water is 870 km2.
Coastline 1,340 km
The highest point 2,524 m
The GDP (purchasing power parity) of Sri Lanka is $82.02 billion and
GDP(official exchange rate) is $30.01 billion.
Growth rate of GDP of Sri Lanka is 6.8%. and per capita GDP is $4,000.
Agricultural sector 11.7%
Industrial sector 29.9%
The services sector 58.4%
.

4. Home gardens in Sri Lanka

5. Kandyan Forest Garden

6. Typical Kandyan Forest Garden

8. Land use in the three districts of Sri Lanka where the
Kandyan garden system is practiced
Area in the district (ha)
Kandy Matale Kurunegalle Total area
(ha)
% of Sri Lanka’s
total
Total land 215,770 199,530 477,590 892,890 13.6
waters
Forest 23,000 33,200 10,500 66,500 4.1
Rice 37,967 18,728 109,704 166,399 19.0
Tea 78,249 7,990 376 86,615 35.4
Rubber 5,881 7,036 5,804 18,721 8.4
Cacao 3,015 4,439 522 7,976 94.3
Cinnamon 17 68 12 97 0.4
Cardamom 1,949 2,294 34 4,277 80.7
Cintronella — 90 — 90 3.6
Black pepper 2,652 3,021 388 6,061 66.8

9. Productive role of KFGs

10. Protective role of KFGs

11. Problem identification
Critical problems in Up country wet zone areas
• Deforestation
• Biodiversity degradation
• Human nutrition problem
• Land slides
• Rapidly reduce of drinking water sources
• Soil erosion
• Land degradation

12. Why ecosystem valuation?

13. The logic of PES

14. Cont…

15. Cont…
• Idea:
• Those who provide ES get paid for doing so (service
provider gets)
• Those who benefit from ES pay for provision (service
user pays)
• PES are popular for perceived simplicity and cost-
effectiveness
• PES = new paradigm for contractual conservation

16. Definition and scope of PES
PES are defined as
• voluntary transactions in which
• a well-defined ES (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).

17. Uses of PES
Four areas of application:
1. Carbon trading
2. Water shed management
3. Bio-diversity conservation
4. Land scape beauty enrichment
5. Human nutrition and well-being

18. PES definitions – between
hard core and periphery
PES Core
“PES-like” Schemes
PES Core
Other Economic
Incentives
“PES-like” Schemes
PES Core
PES Core
Theory & some private PES
“PES-like” Schemes:
Public agro-environmental
schemes; eco-labels
(e.g. ecotourism), etc.
Other Economic
Incentives:
Any “payment” for any
“environmental service” by
“anybody”
park-ranger salaries, reforestation
subsidies, etc.

19. Methodology
Identification
of Ecosystem
Services by
KFGS
Quantification
of Ecosystem
Goods and
Services in
KFGs
Valuation of
Ecosystem
services
Analysis of
Benefit Cost
Ratio
Integration
with Human
Activities

20. Implementation of PES

21. Discussion
Areas can be adopted in KFGs
• Pollinator protection Eg: Honey bee culture
Introduce nesting places for Carpenter bee
(Ambalan paluwa)
• Plant breeding activities Eg: food crops
• Water shed mgt programs
• Inland ornamental fisheries
• Ecotourism
• Indigenous medicinal plants breeding

22. Can PES improve livelihoods?
 PES schemes have not led to weakening of land
tenure, and in some cases have strengthened it
 Direct evidence from case studies on the impact
on livelihoods is limited
 Even if initially access constraints for poor,
subsequent corrections occurred (e.g. Costa Rica)
 Despite seemingly low payment levels, PES is
popular with farmers (Costa Rica, Mexico)
 Little evidence of local economy impact on prices
and employment

23. Suggestions
• Promising tool, with regional differences (PES mainly in LA, emerging
in SEA and Africa)
• Should practice in Sri Lanka
• But, effectiveness difficult to assess because
– Many schemes still too recent
– Insufficient baseline data (no control area)
– Few analyses based on solid monitoring and evaluation methods
• Performance payments (PES) = key for REDD , but upfront conditions
needed
• To address DD drivers, PES = promising, but not sufficient  need
governance investments & extra-sectoral transfers

24. Conclusion
To enhance livelihood/equity outcomes:
• “no-harm” approach
– Narrow focus on environmental goal
– Undesired livelihood/equity side-effects are mitigated
(e.g. ‘collective contracting’-provision)
• “pro-poor” approach
– Poverty reduction objectives are explicit side-
objectives
(e.g. in areas where rural poverty is pervasive)
– participation of the poor is actively pursued
(e.g. rewarding upland rural poor for ES)

25. References
• USAID PES Sourcebook
http://www.oired.vt.edu/sanremcrsp/menu_research/PES.Sourcebook
.Contents.php
• World Bank - Introduction to PES
http://siteresources.worldbank.org/EXTEEI/Resources/IntroToPES.pdf?
&resourceurlname=IntroToPES.pdf
• CIFOR – PES
http://www.cifor.cgiar.org/pes/_ref/home/index.htm
• Rewarding Upland Poor for Environmental Services
http://www.worldagroforestrycentre.org/sea/Networks/RUPES/index.
asp
• The Katoomba Group (Regional Network for China and East-Asia)
http://www.katoombagroup.org/
• Ecosystem Marketplace
http://www.ecosystemmarketplace.com/

26. Thank You…!