Steps Toward Green

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Policy Responses to the Environmental Footprint of Commodity Agriculture in East and Southeast Asia East and Southeast Asian countries have become some of the world’s foremost producers of commodity crops, but growth came at a high environmental cost. In this new book, EcoAgriculture Partners, The World Bank and Clarmondial recommend an Agricultural Green Growth framework for national and local governments to promote environmental stewardship in the production of key commodity goods.

Transcript of Steps Toward Green

  • STEPS TOWARD GREEN

    GreeninG export AGriculture in eAst And southeAst AsiA

    Sara J. Scherr, Kedar Mankad, Steven Jaffee, and Christine Negra

    POLICY RESPONSES TO THE ENVIRONMENTAL FOOTPRINT OF COMMODITY AGRICULTURE IN EAST AND SOUTHEAST ASIA

  • STEPS TOWARD GREEN

    GreeninG export AGriculture in eAst And southeAst AsiA

    Sara J. Scherr, Kedar Mankad, Steven Jaffee and Christine Negrawith case studies by Tanja Havemann, Janjarang Kijtikhun,

    Uray Endang Kusumajaya, Samiksha Nair, and Naomi Rosenthal

    POLICY RESPONSES TO THE ENVIRONMENTAL FOOTPRINT OF COMMODITY AGRICULTURE IN EAST AND SOUTHEAST ASIA

    Washington, District of Columbia

  • This publication was produced as part of the Greening Export Agriculture in East and Southeast Asia research program, coordinated by the World Bank. For inquiries, contact Steven Jaffee, sjaffee@worldbank.org. The findings, interpretations and conclusions expressed in this document do not necessarily reflect the views of the Executive Directors of the World Bank Group or the governments they represent. The World Bank Group does not guarantee the accuracy of the data included in this work.

    Citation: Scherr, Sara J., Kedar Mankad, Steven Jaffee, and Christine Negra, with Tanja Havemann, Janjarang Kijtikhun, Uray Endang Kusumjaya, Samiksha Nair, and Naomi Rosenthal. 2015. Steps Toward Green: Policy Responses to the Environmental Footprint of Commodity Agriculture in East and Southeast Asia. Washington, DC: EcoAgriculture Partners and the World Bank.

    COPYRIGHT INFORMATION 2015 EcoAgriculture Partners 1100 17th Street NW | Suite 600 | Washington, DC 20036 | USA | ecoagriculture.org | info@ecoagriculture.org

    This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-nd/4.0/

    All or portions of this report may be used, reprinted or distributed, provided the source is acknowledged. No use of this publication may be made for resale or other commercial purposes.

    Published in May 2015. Printed in the United States of America on 100% recycled paper.

    Cbnd

  • iii

    CONTENTSList of Figures ivList of Boxes vList of Tables viList of Abbreviations viiForeword ixAcknowledgments xiAbout the Authors xiii

    PART ONE: POLICY LESSONSChapter 1. A Changing Agriculture Sector Faces its

    Environmental Footprint 1

    Chapter 2. Examining the Footprint of Commodity Production 11

    Chapter 3. Conceptualizing Policy Options to Reduce the Footprint 25

    Chapter 4. Progress and Constraints: Insights from Six Landscapes 33

    Chapter 5. Towards a More Strategic Approach to Agro-environmental Policymaking 59

    PART TWO: CASE STUDIES

    Chapter 6. Palm Oil in West and Central Kalimantan, Indonesia 75Tanja Havemann and Uray Endang Kusumajaya

    Chapter 7. Coffee in Dak Lak, Vietnam 99Tanja Havemann, Samiksha Nair, Emilie Cassou, and Steven Jaffee

    Chapter 8. Shrimp Aquaculture in Ca Mau, Vietnam 123Samiksha Nair

    Chapter 9. Tea Landscapes in Yunnan, China 143Tanja Havemann

    Chapter 10. Multiple Commodities in the Mae Chaem Watershed, Thailand 167Tanja Havemann, Naomi Rosenthal and Janjarang Kijtikhun

    Chapter 11. Banana Production in Mindanao, Philippines 187Tanja Havemann and Naomi Rosenthal

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    Steps Toward Green

    Figure 2.1 Estimates of annual groundwater recharge and extraction rates under different

    rainfall scenarios in Dak Lak, Vietnam 16

    Figure 2.2 Carbon mitigation potential of agricultural practices 17

    Figure 3.1 Factors conditioning the relevance and effectiveness of policies to improve

    environmental performance of commodity agriculture 30

    Figure 5.1 Reactive versus proactive policy approaches to environmental challenges of

    commodity agriculture 62

    Figure 6.1 Production and area harvested of oil palm, Indonesia 2000-2012 76

    Figure 6.2 Simplified oil palm products value chain 78

    Figure 6.3 Potential environmental and social impacts in oil palm value chain 82

    Figure 7.1 Production and area harvested of coffee in Vietnam, 1990-2010 100

    Figure 7.2 Simplified overview of the coffee value chain 104

    Figure 7.3 Suitability of planted area for coffee in selected provinces of Vietnam 106

    Figure 7.4 Environmental risk indicators in the coffee sector for selected countries 111

    Figure 8.1 Production of shrimp in Vietnam, 2000-2012 125

    Figure 8.2 Simplified value chain of Vietnamese shrimp in global market 126

    Figure 9.1 Production and area harvested of tea in China, 2000-2012 144

    Figure 9.2 Simplified tea value chain 146

    Figure 9.3 Landscape impacts and risks from tea production 149

    Figure 10.1 Production and area harvested of maize in Thailand, 2000-2012 168

    Figure 10.2 Maize value chain in Thailand 171

    Figure 11.1 Production and area harvested of banana in Philippines, 2000-2012 188

    Figure 11.2 Simplifed Philippines banana export value chain 189

    List of Figures

  • v

    Box 1.1 Questions for targeting policy measures 3

    Box 2.1 Mitigating the environmental footprint of rice 18

    Box 4.1 Progressive adoption of certified sustainable practices in the Thai shrimp sub-sector 55

    Box 5.1 Areas for context-specific analysis for policy development 65

    Box 6.1 Local consultation area 80

    Box 6.2 Indonesias agricultural and oil palm development strategies 83

    Box 6.3 Progress in natural resource management in Central Kalimantan 85

    Box 6.4 Learning from the conflict between the Sambas community and PT Wilmar 86

    Box 7.1 Emerging policy, legal, and program framework for environmental action 115

    Box 8.1 PPPs in aquaculturemangroves and markets 135

    Box 9.1 Ethical Tea Partnership and Tea Research Institute training on chemicals 156

    Box 9.2 Puer tea bubbles 158

    Box 9.3 Farmer returns under different management systems 159

    Box 10.1 Thailands grain purchasing policies 169

    Box 10.2 Horticultural production in Mae Chaem 170

    Box 10.3 Protests against upland managers 175

    Box 10.4 The Thai watershed management implementation experience 178

    Contents

    List of Boxes

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    Steps Toward Green

    Table 2.1 Principal environmental risks from production of commodities in East and Southeast

    Asia 14

    Table 2.2 Costs associated with environmental degradation, as a percentage of Gross National

    Income (2012 data) 15

    Table 2.3 ASB summary matrix: forest margins of Sumatra, Indonesia 20

    Table 3.1 Government roles and instruments in environmental mitigation 29

    Table 5.1 Elements of a proactive policy for agricultural green growth 60

    Table 6.1 Key environmental risks associated with large-scale oil palm expansion 81

    Table 6.2 Existing and related potential policy interventions related to Indonesian palm oil 89

    Table 7.1 Overview of major coffee-related landscape stakeholders 108

    Table 7.2 Environmental risks associated with coffee expansion and intensification 110

    Table 8.1 Environmental risks associated with large scale shrimp production 130

    Table 9.1 Environmental risks from expansion of monoculture tea tree production 148

    Table 9.2 Roles of government in Chinas tea sector 150

    Table 9.3 Policy responses to environmental challenges in Chinas tea sector 160

    Table 10.1 Categories of land use in the landscape 174

    Table 10.2 Environmental risks associated with maize and other agri-commodity production 176

    Table 10.3 Development programs in Mae Chaem 180

    List of Tables

  • vii

    ACP World Bank Agricultural Competitiveness ProgramADB Asian Development BankAFMA Agriculture and Fisheries Modernization Act (Philippines) AQSIQ Administration of Quality Supervision, Inspection, and Quarantine Office (China)ASB Alternatives to Slash and BurnBMP Better Management PracticesCAS Chinese Academy of SciencesCCB Coffee Coordination Board (Vietnam)CDC Community Development CenterCGIAR Consultative Group on International Agricultural ResearchCPO Crude Palm OilCRSD Coastal Resources for Sustainable Development Project (World Bank)CSO Civil Society OrganizationDAE Department of Agricultural Extension (Vietnam)DARD Department of Agriculture and Rural Development (Vietnam)DONRE Department of Nature Resources and Environment (Vietnam)EU European UnionETP Ethical Tea PartnershipFAO Food and Agriculture Organization of the United NationsFFB Fresh Fruit Bunches (Oil Palm)FLEGT Forest Law Enforcement, Government and Trade processFMU Forest Management UnitFPIC Free and Prior Informed ConsentGAP Good Agricultural PracticesGAqP Good Aquaculture PracticesGCTF Governor's Climate and Forests Task ForceGHG Greenhouse GasGIAHS Globally Important Agricultural Heritage SiteGI Geographic IndicationGMS Greater Mekong SubregionHCMC Ho Chi Minh CityHCVA High Conservation Value AreasICRAF World Agroforestry CenterICS Internal Control System

    List of AbbreviationsContents

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    Steps Toward Green

    IDH Sustainable Trade InitiativeIFAD International Fund for Agricultural DevelopmentIPSARD Institute of Policy and Strategy for Agriculture and Rural Development (Vietnam)ISPO Indonesian Sustainable Palm Oil StandardIUCN International Union for Conservation of NatureIWRM Integrated Water Resource ManagementLULUCF Land Use, Land Use Change and Forestry MAM Mangroves and Markets (IUCN/SNV Project)MARD Ministry of Agriculture and Development (Vietnam)MIS Market Information SystemsMOAC Ministry of Agriculture and Cooperatives (Thailand)MONRE Ministry of Natural Resources and Environment (Vietnam)NAEC National Agricultural Extens