designing and implementing payments for …
TRANSCRIPT
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Janet Arlene R. AmponinIWLEARN Regional Workshop on
Payments for Environmental ServicesMelia Hanoi Hotel, Hanoi,Vietnam
3-5 April 2008
DESIGNING AND IMPLEMENTING PAYMENTS FOR ENVIRONMENTAL SERVICES: THE PHILIPPINE
EXPERIENCE
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DESIGNING PES
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THE STUDY SITE: PENABLANCA PROTECTED LANDSCAPE AND SEASCAPE
• Pinacanauan Watershed• 65,099 hectares (under
study)• home to a diverse and
unique species of plants, rare and endangered species of fauna, marine species
• 200+ cave system• a high priority for
conservation in the Philippine BiogeographicConservation Priority Program (PBCPP)
• Farming is the major source of income
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MAJOR THREATS
• Poverty• Unsustainable use of
forest resources• Water problems• Deforestation and
degradation (timber poaching, slash and burn, charcoal making and firewood gathering)
• Other human disturbances on the environment (wildlife hunting, destructive fishing practices)
• Insufficient funds to support the management of the protected area
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PESStructure
SCIENCE land-water or
upstream-downstream linkages
Benefit-Cost Analysis/Multi-Criteria Analysis
ECONOMICSvaluation
INSTITUTIONS laws, policies,
property rights, development plans,
stakeholders
CONCEPTUAL APPROACH TO DESIGNING PES
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THE PES STRUCTURE
Upland farmers
Watershed Protection services
Domestic water usersLowland rice farmers
Adventure touristsRegular tourists
Others
Water DistrictIrrigation
AssociationTour operators
Others
Private Foundation (Intermediary/ fund
manager)
Village Council or
NGO
Environment payments
Environmental fundsfor watershed conservation
and protection
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PES DESIGN PLAYERS
• Environmental Service:Water flow/quality
• Providers: Upstream farmers
• Beneficiaries:– Households– Farmers with irrigated
lands– Tourists and tour
operators• Intermediary: Private
foundation/institution
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LESSONS LEARNED: DESIGNING PES
• Proper site scoping and selection– Conditions:
• Fairly good and stable watershed• Well-defined environmental services• Strong institutional capacity to implement payment system
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LESSONS LEARNED: DESIGNING PES
• Multi-dimensional character of PES– Science, economics and institutions elements are
equally important• Land use – environmental service linkage• Demand for environmental service• Social interactions/supportive institutions
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LESSONS LEARNED: DESIGNING PES
• Multi-stakeholder character of PES– Importance of stakeholders’ analysis to identify
possible players of PES
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LESSONS LEARNED: DESIGNING PES
• Poverty-environment link– Poverty dimensions of the service providers must be
investigated in greater depth
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INITIATING PES
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INITIATING PES: Preparing the Stakeholders
• 2 upstream villages• With varied local
conditions– Involvement with
destructive forest activities• Opportunity costs
– Previous experience with external assistance
• Dole-out mentality• Trust issues
• Various potential buyers and intermediaries
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INITIATING PES: Preparing the Stakeholders
• Capability building– Training on sustainable
farming and forest harvesting technologies
– Establishment of nurseries/agroforestryfarms
• Providing livelihood support
– Livelihood trainings– Livelihood
establishment
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INITIATING PES: Preparing the Stakeholders
• Strengthening community-based forest patrolling and monitoring
– Paralegal training– Assistance to forest
managers• Aggressive IEC
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INITIATING PES:Negotiating with the Stakeholders
• Regular consultations with stakeholders – upstream farmers– potential buyers– potential intermediaries
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LESSONS LEARNED: INITIATING PES
• PES not a cure-all to country’s environment problems– Complemented with
other reforms/ instruments
• Involvement of stakeholders/ communities is essential
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LESSONS LEARNED: INITIATING PES
• Long-term process– Political willingness– Public relations among key
people– Capacity
development/strengthening of institutions
• Communication and education to increase PES awareness is vital
• Reliance on negotiations and trust among the participants
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LESSONS LEARNED: INITIATING PES
• Negotiating agreements– Binding contract to
avoid potential problems
• Clear and assured incentives and commitments for buyer/seller
• Fair contractual arrangement
• Appropriate monitoring mechanism
– Education is a key complementary tool
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LESSONS LEARNED: INITIATING PES
• Negotiating agreements– Appropriate/credible
intermediary is integral– Forming an entity with
one representative help facilitate negotiations
– Local dynamics/politics could hamper smooth/speedy negotiations
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CHALLENGES TO PES
• Perception on water and environmental protection: – WATER: Right for everybody– ENVIRONMENTAL
PROTECTION: The right thing to do
• Poverty state of upland farmers– Lack of livelihood
opportunities– High dependence on forest
resources• Weak institutions• Local dynamics and
politics
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IMPLEMENTING PES: Memorandum of Agreement
• 1-year agreement– BUYER: Tour operator
• Provide funding for trainings
– SELLER: Multi-purpose cooperative
• Plant trees and maintain agroforestry farms
– INTERMEDIARY: REECS • Facilitate trainings• Monitor agroforestry
farms– FORM OF PAYMENT:
• Trainings
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IMPLEMENTING PES: Memorandum of Agreement
10 upland farmers (multi-
purpose cooperative)
Adventure/regular tourists
Tour operator(Adventures and
Expeditions Phils)Training FundsREECS
(intermediary)
Voluntary payments/ donationsTrainings
(livelihood)
Sustainable water flow
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CURRENT STATUS OF PES
• Implementation of the MOA• Exploring opportunities for scaling-up
• Wider coverage of PES implementation• Increase in the number of service providers• Increase in the number of service beneficiaries