Coastal and Marine Resources Management in the Coral Triangle—Southeast Asia

Abbie C. Trinidad Sustainable Financing Specialist

Objec&ves  •  Introduce  Payments  for  Ecosystem  Services  (PES)  as  a  policy  instrument  for  sustainable  tuna  management  

•  Appreciate  the  applications  of  PES  (+  and  -­‐)  •  Assess  the  five  elements  of  a  PES  deal  and  apply  to  tuna  management  issues  

•  Explain  the  steps  in  arranging  a  PES  deal  

Definition  of  PES  

REGIONAL COOPERATION ON KNOWLEDGE MANAGEMENT, POLICY, AND INSTITUTIONAL SUPPORT TO THE CORAL TRIANGLE INITIATIVE (TA

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PES  is:    1.  a  voluntary  transaction  in  which  2.  a  well-­‐defined  environmental  service  (ES),    3.   is  bought  by  at  least  one  ES  buyer  4.        from  a  minimum  of  one  ES  provider  5.        if  and  only  if  the  provider  continues  to  supply  that  service  (conditionality).”      Modified  from  Sven  Wunder  (2005)  

Direct, Conditional, Contractual

REGIONAL COOPERATION ON KNOWLEDGE MANAGEMENT, POLICY, AND INSTITUTIONAL SUPPORT TO THE CORAL TRIANGLE INITIATIVE (TA

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PES:  what  it  is  and  what  it’s  not  

PES is an incentive system; policy instrument to enable resource users to modify behavior, i.e., attain conservation objectives, through incentives (can also be used to alter behavior)

PES internalizes indirect/non-use values of particular ecosystem services;

PES is a sustainable financing mechanism

The critical, defining factor of what constitutes a PES transaction, however, is not just that money changes hands and an environmental service is either delivered or maintained. Rather, the key is that the payment causes the benefit to occur where it would not have otherwise. That is, the service is “additional” to “business as usual,” or at the very least, the service can be quantified and tied to the payment

Funding is needed; PES is not Necessarily the answer. PES is introduced NOT for financing mainly but to compensate or to incentivize

Is  there  a  situa&on  where  an  ecosystem  service  is  being  under-­‐  provided  by  a  resource  users  group  because  the  benefits  do  not  accrue  

en&rely  to  them?    

Reduction  in  biomass;  change  in  stock  

dynamics;  etc..  

BENEFITS

COSTS

Status Quo

Sust Mgmt

Sust Mgmt with PES

minimum

maximum

•  More than 21000 ha of watershed

•  First to be awarded a CADT for the Bago-Kankana-ey Peoples

•  Commercial vegetable farming and small scale mining

•  Lowland uses: hydroelectric power

•  Two Hydropower Corporation (LHC) and the Northern Mini Hydro Corporation (NMHC)

•  3 environmental issues: siltation, pollution, lack of water during the dry season

REWARDING UPLAND PEOPLE FOR ENVIRONMENT SERVICES : BAKUN CASE STUDY

Regulating services   Linking services  Regulation of food web dynamics   Linkage within aquatic ecosystem  Recycling of nutrients   Linkage between aquatic  

and terrestrial ecosystems  Regulation of ecosystem resilience   Transport of nutrients, carbon and

minerals  Redistribution of bottom substrates   Transport of energy  Regulation of carbon fluxes from water to atmosphere  

Acting as ecological memory  

Maintenance of sediment  Processes  Maintenance of genetic,  species, ecosystem  biodiversity  

Fundamental  ecosystem  services  of  fisheries  

Source:  C.M.  Holmlund  and  M.  Hammer.  Ecological  Economics  29(1999):  253-­‐268  

Demand-derived ecosystem services  

Cultural services   Information services  Production of food   Assessment of ecosystem  

Stress  Aquaculture production   Assessment of ecosystem  

Resilience   Production of medicine  

Revealing evolutionary  tracks  

Control of hazardous diseases   Provision of historical information  Control of algae and macrophytes   Provision of scientific and  

educational information  Reduction of waste  Supply of recreational activities  Supply of aesthetic values  Source:  C.M.  Holmlund  and  M.  Hammer.  Ecological  Economics  29(1999):  253-­‐268  

The  “usual”  PES  User fees are most popular!!

Entrance fees, dive/snorkeling fees, tours etc

Why is it a PES? • Payments are made for particular, sometimes perceived ecosystem service like biodiversity, where there was none before (free good!)

• Sometimes, WTP studies are implemented to assess the fee but more often than not, arbitrary.

Why is not a PES? •  Payments made do not ensure that the ecosystem service is maintained or improved (no monitoring, no mutual exchange) •  payments are not necessarily directed towards the people who are maintaining the ecosystem service •  No conditionality criteria

Issues  in  Marine  PES  q  more difficult, property rights not defined q  very complex, mingling issues q  ecosystem processes harder to model or characterize q  users are also buyers

A  Step-­‐by-­‐Step  Process  in  Designing  a  PES  

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Step 4: Implementing PES Agreements

• Defining,  measuring,  and  assessing  the  ecosystem  services  in  a  particular  area  • Determining  marketable  value  • Identifying  potential  buyers  who  benefit  from  the  service  • Considering  whether  to  sell  as  individuals  or  as  a  group  

• Assessing  legal,  policy,  and  land  ownership  context  • Examining  existing  rules  for  PES  markets  and  deals  • Surveying  available  PES  support  services  and  organizations  

• Designing  management  and  business  plans  to  provide  the  ecosystem  service  that  is  the  focus  of  the  PES  deal  • Reducing  transaction  costs  • Reviewing  options  for  payment  types  • Establishing  the  equity  and  fairness  criteria  for  evaluating  payment  options  • Selecting  a  contract  type  

• Finalizing  the  PES  management  plan  • Verifying  PES  service  delivery  and  benefits  • Monitoring  and  evaluating  the  deal  

Step 1: Identifying Ecosystem Service

Prospects & Potential Buyers

Step 2: Assessing Institutional &

Technical Capacity

Step 3: Structuring Agreements

STEPS IN DESIGNING / IMPLEMENTING A PES

Source: www.ecosystemmarketplace.com; www.katoombagroup.org

PES  is  not  fool  proof  

End  of  Part  1  

Who  are  the  buyers?  1.  User financed – the ES buyers are those who enjoy the services 2.  Intermediary – government or NGO buys the ES on behalf of other parties

Who  are  the  sellers?  1.  Technically, those who can control the delivery of the ES (owners, managers,

rights holders). Fishers, coastal dwellers, mgmt entity with jurisdiction over coastal resources

What  is  the  Ecosystem  service  that  can  be  traded?    In your sites, are there resource use activities that result to externalities to a third party? Can they be compensated to stop or produce more of the service?

Buyers  •   private  sector  (company  or  individuals  •   government  •   NGOs  •   Donors  •   Private  intermediary  

Sellers  •   Fishers  •   LGUs  •   Coastal  Communities  •   Tourists  and  tourism  operators  •   Offshore  oil  and  gas  

Are  there  market  failures?  

Are  there  opportunities  to  compensate  or  reward  some  resource  users  for  activities  that  enhance  ecosystem  services  for  other  people?  

Impt  to  be  familiar  with  the  activities  that  cause  

externalities  of  diminution  of  services  in  order  to  

determine  what  actions  are  required!!!  

These  are  the  potential    “sellers”  

These  are  the  potential    “buyers”  

Preliminary  id  of  site  for  PES  

ID of ES •  measurable? •  baseline? •  units of improvement? •  method under which ES can be improved? •  suitable proxy measure in cases where ES cannot be observed?

REGIONAL COOPERATION ON KNOWLEDGE MANAGEMENT, POLICY, AND INSTITUTIONAL SUPPORT TO THE CORAL TRIANGLE INITIATIVE (TA

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ThankYou  Terimah  Kasih  Obrigada  barak  

Maraming Salamat Tenk u tru