BUILDING, BUNDLING AND NEGOTIATING ECOSYSTEM SERVICES FOR SMALL-SCALE FARMERS IN RURAL LANDSCAPES

Grace B. Villamor (ZEF, University of Bonn & ICRAF) and David Huberman (IUCN)

Payments/Rewards for Ecosystem Services

Wunder’s definition:

(1) Voluntary transaction

(2) Well-defined ES

(3) Bought by ES buyer

(4) Conditionality

Conditionality – the business-like principle only to pay if the service is actually delivered (Wunder, 2005)

Photos: B. Belcher, C. Cossalter, & S. Wunder

Quality control for P/RESCriteria Sub-criteria

A. Effective, efficient and sustainability:

- Realistic Shared common perspective of the issueShared common perspective of the issue Value to beneficiaries is substantialValue to beneficiaries is substantial Opportunity costs can be covered and access to resources improved Threats can be monitored and evaluated

- Voluntary Legitimacy at individual levelLegitimacy at individual level Free and prior consent appliedFree and prior consent applied Adaptiveness of mechanism

- Conditional Trust is enhancedTrust is enhanced Sanctions exist Environmental changed is taken into account

B. Equity

- Pro-poor- Pro-poor Aligned with MDGs and SD objectivesAligned with MDGs and SD objectives Rewards reduce vulnerabilities of the poorRewards reduce vulnerabilities of the poor

(Source: van Noordwijk, et al 2007)

P/RES Scheme

Popular PES scheme: Clean Development Mechanism (receiving most attention and investments)

Weak in achieving the high hopes of the farmers

ITTO and RUPES projects experience:

(Published: ITTO's Tropical Forests Update Online Newsletter, Issue 18 No. 3 2008)

www.worldagroforestrycentre.org/Sea/Networks/RUPES/

Don’t lose sight of the broader picture…. “bundle”…

Integrating PES through ‘bundling’

Forest Carbon Markets and REDD

RISEMP Landscape Labeling IPES

Integrating PES through ‘bundling’

REDD and forest carbon standards

Ex. Voluntary Carbon Standard (VCS) tool:- Afforestation, Reforestation, and Revegetation- Agricultural Land Management- Improved Forest Management- Reducing Emissions from Deforestation and Degradation

Integrating PES through ‘bundling’

Regional Integrated Silvopastoral Management Projects (RISEMP)

Source: Pagiola, et al 2004

Integrating PES through ‘bundling’ Landscape Labels (Ghazoul et al., 2009)

- New approach that seeks to overcome problems on PES

- Combining PES and product certification principles applied at a landscape scale benefits realized at the community level

- Award managed rural landscape delivering valuable ecosystem services – “landscape label”

Towards integrated PES systems

Watersheds as fundamental building blocks

Source: Brauman et al., 2007

Integrating PES through ‘bundling’ IPES

Case Studies/Projects and InterventionsCase Studies Bundling

SchemesTools for negotiation

Diversifying ES markets in Kalahan landscape, Philippines (RUPES)

-Agro-biodiversity markets (e.g. food processing) (established)-Voluntary carbon market using improved forest management;-Proposed mini-hydro;

-Proposed bird migration scheme

-Rapid Agro-Biodiversity Appraisal (RABA);

-Rapid Carbon Stock Assessment (RaCSA);

- Rapid Hydrological Assessment (RHA);- RABA

Case Studies/Projects and InterventionsCase Studies Bundling

SchemesTools for negotiation

Reforestation and Protection of Lachua, Eco-Region, Guatemala(IUCN)

- Reforestation of degraded lands for carbon and wildlife corridors- Protection of Eco-region (3 Natural reserves & 4 areas of communal forest reservoirs)

- Project Idea Note (PIN) development

- Landscape labelling approach

Cocoa- agroforestCattle ranching

Case Studies/Projects and Interventions

Case Studies Bundling Schemes

Tools for negotiation

Niger Basin: Wetland Carbon, Guinea (IUCN)

- Based on watershed management PES model as basis- Basic upstream-downstream PES model as a platform

- Project Idea Note (PIN) development- Soil retention function of forests for ensuring the productivity of Hydroelectric power (Dabola)

Some important considerations:

P/RES is not desirable everywhere. Keep payment options broad (not just cash!) There are likely to be tradeoffs Sensitive to context specific realities (tools

are available) Carbon finance should be considered as a

means to an end – not an end in itself Outreach and awareness raising are integral

to the establishment of P/RES systems

For more information:RUPES website:

www.worldagroforestrycentre.org/Sea/Networks/RUPES/-IUCN Economics website:-www.iucn.org/economics

Thank you

gracev@uni-bonn.de