Overview and Context
for the Meeting
David McCauleyLead Climate Change Specialist
Philippines Conference onCAPTURING ECONOMIC BENEFITS FROM ECOSYSTEM SERVICES
25 August 2011
Why this gathering?
• PES/REDD+ represents a promising new source of financing for sustainable rural development
• ADB is exploring these opportunities through a regional technical assistance program
• Covering 7 countries: Cambodia, Lao PDR, Papua New Guinea, Philippines, Nepal, Thailand, Viet Nam
• Today a focus on the Philippines (terrestrial), but first a look at the context.
Protecting soil, water & biodiversity
National forest policies recognize the importance of ecological services (though not their economic value)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Cambodia Indonesia Lao PDR Philippines PNG Thailand Viet Nam
Production
Unknown
Social services
Multiple use
Biodiversity conservation
Soil and water protection
Forest Context
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Forest extent 2010 (‘000 hectares)
Forest extent 2010 (‘000 hectares)
0
10
20
30
40
50
60
70
80
Land Area with Forests (%)
Land Area with Forests (%)
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
1.5
Annual Natural Forest Cover Change 2000-2005 (%)
Annual Natural Forest Cover Change 2000-2005 (%)
Forest Financing Challenges
In practice, however…
• Expenses > Revenues
• Needs > Available funds
Current Fund Sources
• Domestic: national budget allocations & retained forest revenue
• External: ODA grants and loans
Data source: FAO FRA 2010
0.01
0.10
1.00
10.00
100.00
Revenue/hectare Expenditure/hectare
Ecosystem Service Benefits and Monetizing Approaches
• Carbon sequestration (global benefit)
– e.g. REDD+
• Biodiversity conservation (global benefit)
– e.g. TEEB, bio-prospecting agreements
• Watershed protection (regional-local benefit)
– e.g. agreements with energy or irrigation depts
• Landscape aesthetics (regional-local benefit)
– e.g. eco-tourism
Payment for Ecosystem Services Types
Characteristics Private PES Scheme Public PES Scheme
Source of financing
User-financed Government-financed
Scale Small Large
Scope Single-service Multi-service
Paymentscheme
Tailored Uniform
Effectiveness Often successful in
achieving
environmental objectives
Often burdened with
politically motivated side
objectives, blurring
original environmental goals
Efficiency Time-consuming and costly negotiations
Cost-efficient operations
Today’s Objective
• Elicit views and perspectives from Philippine stakeholders
• On PES and REDD+ concept and application
• Especially for improving management of forest ecosystems
• Assess approach as a source of sustainable financing
Who is here?
• Government
• Non-government
• Peoples’ organizations
• Private sector/foundations
• Development partners
Four Sessions
Policy Field
Session 1Climate Change
and REDD+ Strategy
Session 2Palawan, LeyteREDD+ actions
Session 3Watershed
Protection Policies & Program
Session 4Bukidnon
watershed PES +
AM
PM
REDD
Watershed
Outputs & Dissemination
• Short report on discussions, to be shared with DENR and CC Commission as input to REDD+ readiness development
• Inputs to a regional synthesis publication being prepared by ADB
• Summary and presentation web links will be uploaded on ADB website
Forest communities
as marginalized poor
Communities as major
actors in Asia’s forests
Can PES and REDD+
help this transition…?
Transition
Thank you
Salamat po!
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