Wednesday 2and September 2009REDD Workshop - Oasis, Morogoro 31st-3rd Sept'09 1 Payment for...

Wednesday 2and September 2009 REDD Workshop - Oasis, Morogoro 31st-3rd Sept'09

1

Payment for Environmental Services (PES) and REDD

Prof Kassim Kulindwa (UDSM),

Prof Yonika Ngaga (SUA)

and L. Makarios (SUA)


2

Outline of the presentation Background to PES

Genesis and Rationale for PES

Types of PES schemes Public and Private Covering various ecological services

Conditions for Success of PES Schemes Experience around the World Experiences in Tanzania PES Link to REDD Prospects for PES in Tanzania Conclusions


3

Background to PES

Markets for Environmental Services (MES) approach integrate economic growth and ecological integrity

Environmental services (ES) represent the flow of goods and services derived from nature i.e Ecological functions (carbon sequestration,

microclimate regulation, habitat, etc PES concept has emerged in recent years as a

potential financing mechanism for achieving ecosystem conservation and improving the livelihoods of communities.


4

…cont/ Background

PES came into being after the failure of the former conservation approaches and initiatives Command-and-control approaches

Lack of resources by government to manage natural resources (environmental goods and services)


5

Typology of PES Schemes Public schemes

Basin wide, or users of public amenity e.g water Private schemes

Hydropower operators Water bottlers

Different types of services e.g. Carbon sequestration Watershed protection Landscape aesthetics Biodiversity conservation


6

Conditions for Success of PES Schemes The establishment of a PES scheme must start

with the identification and quantification of the demand for the service.

The PES schemes should be designed in a such a way so as expected and actual benefits exceed inconveniences and costs imposed by the scheme

At the same time net benefits to the paying party should exceed those before the scheme

Conditions for Success of PES Schemes

PES systems must be designed in such a way so as operate independently of external financial resources after a previously determined period to ensure sustainability.

Monitoring is essential the smooth operation of a PES scheme. It must include the establishing of a base line, as well as the socio-economic and environmental impact of the project.


7

Conditions for Success of PES Schemes Users and providers of the service as well

as the service itself must be clearly defined.

PES schemes for ecological services have greater potential of effectively improving resource management if there is a direct relationship between providers and users of the service.


8

EXPERIENCE AROUND THE WORLD United States: Good water quality and sustainable water

supplies for various uses in New York (Catskils Municipal scheme –public saved US$ 7- 9 billion for 10 years).

Costa Rica: Contribution financially by water users to the protection and maintenance of adequate forest cover so as to enable catchment infiltration and recharge (public)

Ecuador: A fund for catchment forest management for water, catchment conservation fees, which are included in urban water bills (public scheme)

Lao PDR: Payment to protected areas from HEP plant in order to ensure sustainability of water flow by HEP operator (Private –Public)


9

EXPERIENCES IN TANZANIA

Not yet in full swing in the country Studies for WTP by water users in

Pangani and Rufiji have been conducted and show promise

There are pilot projects in Uluguru Mountains under WWF-TPO and CARE Tanzania, Think Global Act Local Research Project


10

PES LINK TO REDD

PES initiatives motivates communities to conserve catchment and protected areas and therefore addressing REDD objective

PES has direct link with climate change mitigation/adaptation and thus embracing CDM and REDD

PES implementation means adhering the Kyoto protocol which advocate reduction of carbon emission


11

Challenges and Limitations Poorly defined property rights are the most

common reason for failure in implementing PES schemes

The complexity and diversity of land tenure systems Protected land, forest reserves, village forests

reserves Uncertainty of benefits to poor communities How to minimize transaction costs Negotiating agreements, monitoring and enforcing

them across communities is a costly exercise.


12

Challenges

PES schemes may offer perverse incentives to land users.

Generally PES programmes and activities have been disseminated poorly among the local population.


13

PROSPECTS FOR PES IN TANZANIA Government is working on water resources

regulations in which PES is recognized PES has the potential to contribute substantially

to REDD Pilot projects in Uluguru and feasibility studies in

Pangani, Rufiji and Wami Ruvu basin indicates future potential

Programmes such as PFM and WMA could become PES projects in the near future


14


15

Conclusions PES systems present a series of advantages

and opportunities which make them a promising mechanism to improve the conditions of ecological services since they can: Be used for sensitizing the participating population

about the value of natural resources. Facilitate the solution of conflicts and the

obtaining of consensus among the involved actors.


16

….cont/- Conclusions Improve the efficiency in the allocation of

natural, social and economic resources. Generate new sources of funding to

conserve, restore and value natural resources.

Transfer resources to socially and economically vulnerable sectors, which offer environmental services.


17

Thanks for your attention

Wednesday 2and September 2009REDD Workshop - Oasis, Morogoro 31st-3rd Sept'09 1 Payment for...

Documents

Transcript of Wednesday 2and September 2009REDD Workshop - Oasis, Morogoro 31st-3rd Sept'09 1 Payment for...