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The restoration of natural capital and the development of payments for ecosystem services in South Africa: An opportunity for sustainable
natural resource management and use?
Christo MaraisDepartment of Water Affairs and Forestry,
South Africa
The market for ecosystem services relevant to the Southern African context
1. Water regulation and supply
2. Carbon sequestration and maintenance
3. Natural landscapes (biodiversity) for recreation and bequest value.
Environmental and Social Cluster of the Expanded Public Works- Promoting Socio-Economic Development and Improved Livelihoods
1. Working for Water - manages invasive alien plants to enhance the sustainable use and conservation of our natural resources
2. Working for Wetlands - champions the protection, rehabilitation and sustainable use of South Africa's wetlands
3. Working on Fire - enhance the sustainability and protection of life, livelihoods, ecosystem services and natural processes through integrated fire management
4. Working for Woodlands - regain woodland composition, structure and function.
The Opportunities in the Water Sector
1. Yield (utilizable water),
2. Retention (maximize low flows),
3. Water quality (minimize the loss of top soil, siltation of water infrastructure, damage to water services and human health risks) and
4. Risk (minimize impacts of floods and droughts).
The Water Pricing Strategy - Clearing of Invasive Alien Plants (IAP’s)
• The full cost of control of certain IAP’s may be charged to affected water users.
•…. in consultation with affected stakeholders, … the control of IAPs is the best and most cost effective action possible to increase long term water security and availability.
•Once agreement is reached …, the total cost of control must be communicated to all affected stakeholder organisations. These costs may be supported by subsidy where available and appropriate.
Initial and Follow Up Clearing Costs of Australian Acacias
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
Initial 1st 2nd 3rd 4th 5th 6th 7th 8th
Treatment
Costs/ha/Density Class
75-100%
50-75%
25-50%
5-25%
1-5%
0-1%
TIME (Calendar Years)
DEMAND / YIELD (million m/a)
3
Combined Yield of Schemes 1 and 2with no alien vegetation (f )
1
Combined Yield of Schemes 1 and 2 with current level of invasion (g )
1
Combined Yield of Schemes 1 and 2 when fully invaded (h )
1
Yield of Scheme 1 with no alien vegetation (f)
Yield of Scheme 1 with current day level of invasion (g)
Yield of Scheme 1 when fully invaded (h)
Current Year
DEMAND CURVE
C1
B1
D B
A
CE
D1
E1
A1
Estimates of Current & Future Impacts of Invasives in Riparian and Mountain Catchment Areas on Water Yield
-50
100150200250300350400450
BERGBREEDE
CROCODILE(WEST) AND MARICO
FISH TO TSITSIKAMMA
GOURITZINKOMATILIMPOPO
LOWER ORANGELOWER VAAL
LUVUVHU AND LETABA
MIDDLE VAAL
MVOTI TO UMZIMKULU
MZIMVUBU TO KIESKAMMA
OLIFANTS
OLIFANTS/DOORN
THUKELA
UPPER ORANGEUPPER VAAL
USUTU TO MHLATHUZE
WMA's
Million m3
TotalFuture(m3)
TotalCurrent(m3)
Cost of Control and Maintenance of Invasive Alien Trees in Riparian Areas and High Yield Watersheds in South Africa ( US$ Cents per m3 registered water use)
0.12
0.22
0.04
0.16
0.58
0.45
0.070.02 0.01
0.21
0.02
0.93
0.340.30
0.05
0.67
0.01 0.01
0.74
0.24
-
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
BERGBREEDE
CROCODILE(WEST) AND MARICO
FISH TO TSITSIKAMMA
GOURITZINKOMATILIMPOPO
LOWER ORANGELOWER VAAL
LUVUVHU AND LETABA
MIDDLE VAAL
MVOTI TO UMZIMKULU
MZIMVUBU TO KEISKAMMA
OLIFANTS
OLIFANTS/DOORN
THUKELA
UPPER ORANGE
UPPER VAAL
USUTU TO MHLATHUZENational Weighed Average
Water Management Areas
US$ cents/m3 Registered Water Use
Proposed Charges for Invasive Alien Plant Management per m3 Registered Water
Use
0.13
0.06
0.02
0.35
0.17
0.06
0.01 0.00 0.000.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
Domestic & Industrial Agric Forestry
Water Sectors
US$ cents/m3 Registered Water
Use
Average
Maximum
Minimum
Photograph courtesy: Ms. Terry Everson
Impact of Sedimentation on the Siltation of Dams and Water Quality
Photograph: Courtesy Prof. Rudi van Aarde
Photograph: Courtesy Prof. Rudi van Aarde
Photograph: Courtesy Prof. Rudi van Aarde
Preliminary Base Flow Estimates for Strategically Selected Quaternary Catchments in the Thukela Water Management Area for Degraded and Intact States (Maloti-Drakensberg Project)
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Months
Runoff in m3
IncreasedBaseflowUnder IntactScenario
Base FlowUnderDegradedScenario
Dry Season
Thukela Water Management Area - Preliminary Estimates of Degradation Impacts on Sediment Loads in Selected Quaternary Catchments (Maloti-Drakensberg Project)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
ANNUAL
Months
% of Sediment Load under Degraded
Scenario
100% -Reduction inSedimentLoad
Reduction inSedimentLoad
Dry Season
Opportunities in the Carbon Market: Working for Woodlands in the Eastern Cape
Thicket Restoration Programme
Degradation of Albany Thicket Biome
The good - 300,000 haSemiarid solid thicket (characterized by a dense canopy of tall shrubs and a Portulacaria afra Jacq. component)
The bad - 600,000 haModerately degraded by injudicious goat-farming
The ugly - 800,000 haSeverely degraded by injudicious goat-farming
Biomass carbon (t ha -1) Soil organic C (%) Semi-arid & arid systems 1 - 4 0.2 - 1.5 Tropical savannas 15 - 30 2.3 - 3.6 Intact semi-arid thicket 80 - 90 6.9 - 9.2 Forests 70 - 460 4.5 - 16.0
Comparing Carbon storage in Semi-arid and Arid Systems with Lilliputian (Rain) forest
Lechmere-Oertel et. al. (2006) Austral Ecology
Above ground
40 ± 3
7 ± 1
Litter
11 ± 1
1 ± 0.4
Roots
25 ± 1.3
11 ± 0.7
Soil
133 ± 27
95 ± 15
and falling?
Total
209 ± 28
114 ± 14
t C ha-1
Mills et. al. (2005) Austral Ecology
Krompoort (MAP 300 mm yr-1)
27 years growth
4.2 ± 0.08 t C ha-1 yr-1
= 15.4 t CO2 ha-1 yr-1
Mills & Cowling (2006) Restoration Ecology
Financial overview
Goat farming $7 – $30 income ha-1 yr-1
Spekboom farmingImplementation costs: $400 – $700 ha-1
- based on large-scale DWAF project in Baviaanskloof
Potential turnover (inclusive of transaction costs):@ $3 $30 ha-1 yr-1
@ $20 per credit $200 ha-1 yr-1
- present carbon price: $5-$10- 2006 high: approximately $ 40 (energy credits)
10 t CO2 ha-1 yr-1
- conservative
Mills & Cowling (2006) Restoration Ecology: 15.4 t CO2 ha-1 yr-1
Large-scale project scenario
•20, 000 hectares•417 people employed over 10 years•Total cost: $26 millionPotential annual earnings: @ $3 per credit $600,000@ $20 per credit $4 million
The Proviso•There is no free lunch. •Sellers must be capacitated to enter the market. •There is money to be made but it needs proper regulation.•A long term view•Transaction costs can be a deal breaker!
Opportunities in Water, Carbon & Biodiversity: Integrated Veld
and Forest Fire Management
Impacts of Fire on Biodiversity, Ecosystem Processes and Services
• Sprouting – a large proportion of plants in fire-prone areas have the ability to sprout after fire,
• Serotiny – some plants (for example, proteas) hold their seeds in “fire-proof capsules” built from the remains of the flowers.
• Smoke-stimulated germination – the seeds of many plant species are stimulated to germinate by the chemical cocktails contained in smoke.
• Fire-stimulated flowering – many species are stimulated to flower, following fires, offering the best opportunity for seed production and germination of these plants.
• Flammability – “killing their neighbours”, and creating space for their own progeny to thrive.
• Dependence on fire-induced nutrient flushes - Some animals, such as Roan antelope, calve in the middle of the dry season, when green grass is scarce. The females need the protein flush that follows a fire to provide enough milk for their calves.
Extent of Fire Prone Landscapes in South Africa
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Pine Eucalyptus Wattle OtherHardwoods
Savanna Fynbos Grassland
Commercial Plantations and Natural Biomes
Area (km2)
Direct Losses of Unwanted Wild Fires in South Africa
0.00
5.00
10.00
15.00
20.00
25.00
Pine Eucalyptus Wattle Other Savanna Fynbos Grassland Livestock
Land Use and Biomes
Losses in $ millions
Total Loss to the Economy (US$ millions per year)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Timber fromplantations
Downstreamtimber
processing
Livestockand grazing
Harvestedproducts
fromsavannas
Harvestedproducts
fromgrasslands
Harvestedproducts
from fynbos
Disruptionsto power
supply
Houses andstructures
Smokehazards*
Alien plantcontrol
Land Use Activities
US$ Million
Two Major Impacts on Soil Movement and Related Ecosystem Services
• Fire (rotation and season)
• Unsustainable use (overgrazing and “nutrient mining”)
Land Use & Management OptionsUnsustainable Fire Regimes
Conclusion
• There is potential for the development of a Payments for Ecosystem Services (PES) Market in South Africa
• The two most promising options at the moment are water regulation and carbon.
• It has the potential to have significant socio-economic benefits to the rural poor where up to 80% of the population are unemployed.
• Restoring Natural Capital and the development of PES could make significant contributions to the alleviation of poverty in developing countries all over the world.
Thank You!