Chronically Underfinanced – Mobilization of Additional Resources for Biodiversity, Workshop, 30...
-
Upload
francis-yell -
Category
Documents
-
view
214 -
download
0
Transcript of Chronically Underfinanced – Mobilization of Additional Resources for Biodiversity, Workshop, 30...
Chronically Underfinanced – Mobilization of Additional Resources for Biodiversity,
Workshop, 30 January 2010, Bonn
Payments for Environmental Services
Examples and perspectives for the future
Irene RingDepartment of Economics, UFZ
and Ecological Fiscal Transfers:
Irene Ring: PES and EFT – Examples and perspectives
Page 2
Outline
Introduction: TEEB Background
Payments for Environmental Services (PES)
Ecological fiscal transfers (EFT)
International PES, REDD+ and EFT
Conclusions
Irene Ring: PES and EFT – Examples and perspectives
Page 3
About TEEB…
An “Open Architecture” project… over 500 contributors across partner institutions, universities, individuals…
An international and diverse “Community” of economists and ecologists…
Makers of “Global Public Goods”: the TEEB Report suite Some of our key partners….
3
About TEEB…
Irene Ring: PES and EFT – Examples and perspectives
Page 4
Part I The need for actionChapter 1 The global biodiversity crisis and related policy challengeChapter 2 Framework and guiding principles for the policy response Part II Measuring what we manage: information tools for decision-makersChapter 3 Strengthening indicators and accounting systems for natural capitalChapter 4 Integrating ecosystem and biodiversity values into policy assessment Part III Available solutions: instruments for better stewardship of natural capitalChapter 5 Rewarding benefits through payments and marketsChapter 6 Reforming subsidiesChapter 7 Addressing losses through regulation and pricingChapter 8 Recognising the value of protected areasChapter 9 Investing in ecological infrastructure Part IV The road aheadChapter 10 Responding to the value of nature
TEEB D1: TEEB for International and National Policy Makers
Available at www.teebweb.org
Irene Ring: PES and EFT – Examples and perspectives
Page 5
Payments for Environmental Services
A voluntary transaction where a well-defined ecosystem service (ES) (or land use likely to secure that service) is ‘bought’ by at least one ES buyer from at least one ES provider, if and only if the ES provider secures ES provision (conditionality). (adapted from Wunder 2005)
Broad range of schemes for various ecosystem services and land uses in many countries and at different spatial scales:Public, public-private and private schemes at local, regional and national levels.
Important: regulatory baselines and additionality – PES will always be part of a policy mix!
Irene Ring: PES and EFT – Examples and perspectives
Page 6
PES: Opportunities and Challenges
PES can help make the value of ES more explicit and thus modify and potentially reverse incentives for resource users
Sequence of measures: First, remove perverse subsidies!
Voluntariness is a key feature – but legal/regulatory underpinning essential
Potential to scale up existing PES, e.g. from local initiatives to national coverage, and to implement them in more countries.
PES schemes face constraints: investment in information and capacity building, e.g., mapping supply
and demand of ES, engaging stakeholders, training administrators PES are not appropriate everywhere: need of sufficiently defined
resource tenure and use rights, equal bargaining power between stakeholders
Irene Ring: PES and EFT – Examples and perspectives
Page 7
PES example: Costa Rica
Among the first national PES programmes in developing countries
Well-cited example, but therefore also well-studied and permanently improved
Set up in 1997, it remunerates landholders for providing carbon sequestration services, hydrological services, for preserving biodiversity and landscape beauty.
Source of funds: national (fossil fuel tax) and international (Norway, World Bank, GEF, KfW) – partly IPES
Irene Ring: PES and EFT – Examples and perspectives
Page 8
Fore
st c
over
Time / Space
Stage 1:Undisturbed/littledisturbed forests
Stage 2:Forest frontiers; high deforestation/extraction rates.
Stage 3:Forest mosaics with stabilised cover; (low or zero net deforestation)
Stage 4:Increasing forest cover and quality due toafforestation and reforestation
MACRO NATIONAL
LANDSCAPE
&
FOREST STAND
FORESTTRANSITIONSTAGES
Challenge: Land-use transition ’path dependency’’
Sources: Flores Rodas, 1985; MINAE; FONAFIFO n.y. in Kleinn et al. 2002; CATIEDavid Barton, NINA.
Irene Ring: PES and EFT – Examples and perspectives
Page 9
Recent review: Some propositions
PES is more effective in promoting forest recovery than preventing deforestation (Sanchez-Azofeifa et al. 2003; Arriagada 2008)
PES is only cost-effective in the last stages of the forest transition, in a landscape mosaic with land-use specialisation at forest stand level (García-Fernández et al. 2008)
Land cover, land use and institutional contexts appropriate for PES represent a minor part landscape and biodiversity variation under threat. Protected area buffer zones play a key role in increasing PES effectiveness (Calvo-Alvarado et al. 2008)
Carefully check where use of PES is most (cost-)effective!
Role of spatial targeting
Irene Ring: PES and EFT – Examples and perspectives
Page 10
Another Challenge: Addressing the opportunity cost of conservation of both private and public actors
PES literature has largely increased in recent years
Focus on the opportunity cost of conservation for land users: local private actors
Largely missing: Addressing the opportunity cost of conservation for local public actors
However, municipalities and local communities are important actors for implementing conservation policies at the local level (spatial planning, PAs as development obstacle)
Ecological fiscal transfers as a suitable instrument: Include ecological indicators into intergovernmental fiscal transfers to the local level
Irene Ring: PES and EFT – Examples and perspectives
Page 11
Taxes Public revenues Distribution to state and local levels
Fiscal transfers tothe local level
e.g., Governmental levels in the German or Brazilian federal systems:
Federal States Local
Intergovernmental fiscal transfers
Irene Ring: PES and EFT – Examples and perspectives
Page 12
Substantial source of income for municipalities: 30% in West-Germany, 50% in East-Germany
Not considered:
Ecological services involving spatial externalities: spillover benefits
Urban agglomerations Rural and remote areas
Fiscal compensation today:
Fiscal transfer systems to the local level
Irene Ring: PES and EFT – Examples and perspectives
Page 13
Ecological fiscal transfers – Experiences
Portugal: since 2007, under investigation
Brazil: since 1992, has gained positive experiences with ecological fiscal transfers: ICMS-Ecológico
Compensation for land-use restrictions Incentive to create and maintain protected areas
*
or commonly also called:
Ecological value-added tax
Irene Ring: PES and EFT – Examples and perspectives
Page 14
States with ICMS-E legislation in Brazil (2008)
Ecological indicators
“Conservation Units”: officially registered protected areas for nature and biodiversity conservation
Watershed protection areas Solid waste disposal Sanitation systems and sewage
disposal Slashing and burning control Soil protection Local environmental policy
Irene Ring: PES and EFT – Examples and perspectives
Page 15
Paraná: Increase in conservation units
Protected areas Until 1991 [ha]
Created after 1991 [ha]
Total by 2000 [ha]
Increase[%]
public
Federal 289.582 50.846 340.428 18
State 39.859 13.804 53.663 35
Municipal 1.429 2.740 4.169 192
private/mixed
APA 306.693 905.631 1.212.324 295
RPPN 0 26.124 26.124
Other 0 53.607 53.607
Total 637.563 1.052.752 1.690.315 165
APAs (Environmental Protection Areas) can be designated at federal, state or municipal level. RPPNs (Private Natural Patrimony Reserves) can be designated at federal or state level.
Source: May et al. 2002; Ring 2008
Irene Ring: PES and EFT – Examples and perspectives
Page 16
Paraná: 1994 – 2000 50 Mio. R$ annually 06/2001:São Paulo: 1994 – 1996 23 Mio. R$ annually R$ 1,00 =Minas Gerais: 1998 – 2000 15 Mio. R$ annually US$ 0,41
Paraná: Piraquara (100% water reserves + CUs): local income increased
by 84% until 1995 São Jorge do Patrocínio (52% CUs): 71% of ICMS transfers based
on CUs (2000)
Minas Gerais: Marliéria (55% CUs): 68% of ICMS transfers based on CUs;
Increase of transfers from R$ 36.648 (1995 before ICMS-E) to R$ 811.335 (1996 after implementation of ICMS-E)
Fiscal effects of ICMS-E on municipal budget
Irene Ring: PES and EFT – Examples and perspectives
Page 17
Consideration of conservation areas within the intergovernmental transfer system to the local level – possible scenarios:
Set aside a definite budget in advance and allocate according to share of conservation units within
municipal territory
Brazilian model:
Consideration of conservation units as part of the additional approach
to allocate lump-sum transfers (analogous to area, pupils, etc.)
Alternatively:
Corresponding scenarios are calculated at UFZ
for the Free State of Saxony
Transfer potential of Brazilian model to Germany
Irene Ring: PES and EFT – Examples and perspectives
Page 18
KFA Saxony 2002 - Scenario 1: Lump-sum transfers considering conservation units
Percentage change of general lump-sum transfers in Saxony
GIS: A. Kindler & H. Hartmann
1 ha Conservation unit
= 1 inhabitant
Irene Ring: PES and EFT – Examples and perspectives
Page 19
KFA Saxony 2002 - Scenario 2: 90 Mio. € set aside for conservation
Relative change of unconditional
conservation transfers and lump-sum
transfers in Saxony [%]
GIS: A. Kindler & H. Hartmann
90 Mio. Euro set aside for
conservation
(corresponds to compensation of
road burden)
Irene Ring: PES and EFT – Examples and perspectives
Page 20
Ecological fiscal transfers: A promising way to go?
1. International transfers (IPES), e.g., Indonesia: Role of local governments in forest conservation. Need to combine REDD and fiscal transfers to the local level based on cost and benefits of forest conservation.
2. National scale, e.g., Portugal, communal financing law Since 1 Jan. 2007: introduced Natura 2000 and other protected areas as indicators for fiscal transfers from the national level to municipalities.
3. State level, e.g., the ICMS-Ecológico in Brazil, acknowledging conservation units for redistribution of state value-added tax revenues to local governments
Irene Ring: PES and EFT – Examples and perspectives
Page 21
Conclusions: Challenges and prospects
PES Transfer and upscaling of successful schemes
Consider constraints, policy mix and check applicability
Ecological fiscal transfers Adress local governments in their role for biodiversity conservation
and protected area management
Brazil/Portugal: Transferability of approach to other countries
International PES and national REDD(+) implementation combine biodiversity conservation & climate mitigation policies
careful checking of co-benefits
go for broader range of actors and instruments
do not forget local governments – role of ecological fiscal transfers!