Incentives for Ecosystem Services (IES) to finance the … · 2018-12-06 · Incentives for...

Scaling-up Adaptation in Agricultural Sectors (SAAS) webinar series

Methods and tools to support the implementation of ecosystem-based approaches (EbA) for adaptation in agriculture sectorsDecember 5, 2017

Incentives for Ecosystem Services (IES) to finance the implementation of ecosystem-based approaches

(EbA) for adaptation

Dr Lucy GARRETT | FAO| 5 December 2017



EbA good practices



To overcome these barriers, farmers require INCENTIVES to•Overcome SHORT-TERM needs

•Support a LONG-TERM transition

REHABILITATE

IMPROVE & DIVERSIFY PRODUCTION

RESTORE

Improved and diversified productivity allows for greater investment in EbA to protect, rehabilitate and restore sensitive habitats

•Without compromising food security

•Supports building resilience of agriculture-based livelihoods and agro-ecosystems

•With ecosystem services benefits for farmers and other users PROTECT



Policy-driven investments

Voluntary investments

Public programmes investing in sustainable agriculture for food security and rural development

Voluntaryinvestments to secure higher returns for sustainable production choices (e.g. conservation of threatened breeds and varieties)

Public programmes and companies fulfilling environmental regulations

Voluntaryinvestments rewarding good environmental stewardship

Market-based investments

Incentives: A wide range of sources

Incentives for Ecosystem Services in Agriculture (IES)



Policy-driven investments

Voluntary investments

Marketing labels (certificates/ standards)

Biodiversity/ forestry offsets

Responsible sourcing of agriculture products and services

Prohibition of use

Corporate Social Responsibility (CSR)

Property use rights

Taxes/ charges

Mandatory farm set-asides

Subsidies

Conservation easements

Permits and quotas

Green bonds

Voluntary farm set-asides

Conservation concessions

Direct Payments for Ecosystem Services (PES)

Rewards for Ecosystem Services (RES)

Marketing labels (without certificates or

standards)

Cultural and social norms

Market-based investments

Livelihood development

Capacity building

Incentives: A wide range of sources




From PES to IES…PES alone cannot support transition to sustainable agriculture,

and address all the threats to ES and livelihoods



Incentives for Ecosystem Services (IES) PackagesDiverse incentives to support EbA adaptation across landscapes


High opportunity cost for EbA good practices

Lack of market access for products

High demand for public goods

Lack of cooperatives/ cost of processing products

Poor soil fertility limiting production

Limited access to larger markets/ low entry point on value chain

Limited livelihood options

Lack of technological knowledge

Cost of inputs

Lack of finance to restore degraded habitats

Soil conservation and gully plugging along the water line

Certified sustainable products

Alternative livelihoods/ new markets/ access to value chains

Fencing of water springs

Water recharge buffer

Value chain development/ access to higher-value markets

Reforestation

Diversified income

Training in sustainable production practices and processing

Improved seeds and breeds

$ From downstream water users

$ Market labels (certification/ standards)

$ Taxes

$ Community forestry enterprises

$ Min. of Environment with REDD funds

$ Min. of Environment

$ Private sector sustainable sourcing of products

$ Compensatory afforestation from private sector

$ NGO capacity building

$ NGO technical training programmes

$ Min. of Agriculture

$ Corporate Social Responsibility (CSR)



IES Packages

IMPROVE COORDINATION of public-private-civil society to:

• Provide a supportive institutional enabling environment to offer a spectrum of incentives for farmers and other landscape actors

• Restore and protect ecosystem services across the landscape, improve productivity, food and livelihood security, and builds resilience

• Provides multiple entry points to enable co-financing from both public and private users of ecosystem services provided by agro-ecosystems, at lower social costs

• Spreads the burden of risk for investment across investors

• Bring environmental co-benefits to farmers, and other sectors of society.



Incentives to support sustainable production, livelihood resilience and biodiversity conservation, Mexico

Improved maize, wheat and cattle breeds$ MasAgro$ PURSN$ PROGAN

Use of organic fertilizers and improved irrigation

$ COUSSA

Certified sustainable shade- coffee plantations $ Certificacion para la Productividad Agro-alimentaria

Sustainable maize and bean production$ PROMAFwith improved harvesting and processing practices$ PAAP$ PROCAMPO

Zoning of protected areas, ecosystem monitoring

CBMM

Ecotourism infrastructure$ Banamex

Forest protection and restoration $ PRONAFOR$ PRORRIM$ CONABIO




Key: $ Public programme $ Private investment


Incentives to support adaptive micro-watershedmanagement and reforestation, Rio Rural, Brazil



Coordinated finance to support incentives for largescale watershed management, Upper Tana Nairobi Water Fund, Kenya




Coordinated finance to support incentives for watershed management, Upper Tana Nairobi Water Fund, Kenya


Incentive Private sector Public sector

Capital for investment-Reforestation, restoration-Improved agricultural production

Technical assistance-Reforestation, restoration-Improved agricultural production

Strengthening inter-institutional coordination

Increased livelihood opportunities

Facilitating agencies

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCPGbzMPe2scCFQjQgAodXtgC3Q&url=http://www.paymentscardsandmobile.com/walmart-india-in-deal-with-m-pesa/&psig=AFQjCNEkbaro485Wkf1RZIDbyQDrN8tLDA&ust=1441365345268915

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCPGbzMPe2scCFQjQgAodXtgC3Q&url=http://www.paymentscardsandmobile.com/walmart-india-in-deal-with-m-pesa/&psig=AFQjCNEkbaro485Wkf1RZIDbyQDrN8tLDA&ust=1441365345268915



Thank you

Further information on the IES approach can be found at:

www.fao.org/in-action/incentives-for-ecosystem-services/en/

[email protected]



Methods and tools to support the implementation of Ecosystem-based Adaptation (EbA) in the

Agricultural Sectors

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