rewarding water-related ecosystem services in the canete basin, peru
DESCRIPTION
Presentation made in the Multi-stakeholder Dialogue in PSD/PES 12-13 September 2013 FAO, Rome Marcela Quintero (CIAT), Roger Loyola (MINAM), Yolanda Puemape (MINAM)TRANSCRIPT
Marcela Quintero (CIAT), Roger Loyola (MINAM), Yolanda Puemape (MINAM)
Multi-stakeholder dialogue 12-13 September 2013 FAO, Rome
Rewarding water-related ecosystem services in the Canete Basin, Peru
RES initiative location
Upper basin(4000-5800
Ecosystem service provision (Water yield (mm))
1111-1507
Middle basin (350 – 4000
51-256
Lower basin (0-350)
0-50
Peruvian case study, Canete River watershed – Current situation
Upper basin(4000-5800
River flow use (m3/s)
0 (mostly from springs)
Middle basin (350 – 4000
250, 64
Lower basin (0-350)
Upper basin(4000-5800
Water and land uses
Extensive degrading grazing, subsistence agriculture
Middle basin (350 – 4000
Hydropower companyShrimp growers
Lower basin (0-350)
Urban dwellersWater inefficient commercial agricultureTourists (rafting)
Desired situation
Upper basin(4000-5800
Middle basin (350 – 4000
Lower basin (0-350)
Transfer part of their benefits
Investment in conservation alternatives
Watershed’s socioeconomic asymmetries might be balanced by this benefit-sharing mechanism
Rewards as a benefit-sharing mechanism
“Transfer of resources between social actors, which aims to create incentives to align individual and/or collective land use decisions with the social interest in the management of natural resources”(Muradian et al., 2010)
20102009
MINAM chooses Canete Basin as its pilot site for designing a PES Scheme. CIAT, CARE and WWF are invited to support this initiative. CIAT is asked to conduct respective hydrological and economic analyses .
CIAT includes Canete as the Peruvian study site in a project supported by the CPWF
CIAT conducted studies on economic valuation and hydrological priority areas as inputs for PES design
TIMELINEKey fact: The Canete PES scheme is designated as the MINAM’s offical pilot case
Key fact: The existence of an explicit interest or initiative to create a PES schemes was a precondition to select study sites for the project
January
Various meetings jointly organized between MINAM, CIAT and CARE-WWF with multiple local stakeholders to socialize and receive feedback on the PES initiative and research results.
2011MINAM disseminated the PES initiative widely and kept supporting it even after two changes of Ministry and one change of government
Consevation InternationaI supports the legal analysis for implementing the scheme in Canete
Key fact: Legal feasibility in one of the main gaps limiting the advance towards PES negotiation
Some bottlenecks to move towards implementation
• The lack of recognition of PES schemes in the legislation: the legitimacy seems to be a bottleneck that holds local and regional authorities up in the promotion of these mechanisms.
• Obstacles to allocate potable water users contributions in a RES scheme (in Peru): There are legal bottlenecks to collect contributions via water charges payment system and transfer this to a private-public fund (ie. RES Fund). Similar occurs with public funds coming from local governments.
• Conceptual approach: The main motivation for initiating RES initiatives in some cases is to protect currently delivered ES and to reward land managers for this.
• Requires multi-sectorial coordination: Water management and environmental protection under different sectors
• There are not current watershed-level platforms to take collective decisions regarding watershed management upon which RES can be built
2011
Based on legal analysis recommendations, PES implementation actions incorporated in the action plan of the Natural Reserve (upstream area).
Actors from multiple disciplines came together to be part of a ESS Law discussion group led by MINAM. CIAT/CPWF part of the invitees
There is a final version of the Law to be subject of public consultation and congress approval
2012
TIMELINE (2)
Key fact: Law discussion considered lessons learned from practice including Canete regarding the conceptual approach, institutional bottle necks, legal constraints, etc.
Key fact: CIAT is invited by IFAD and MINAM to be part of the project formulation mission. Technical-science-based project results are taken into account in this.
IFAD approached MINAM with the purpose of supporting the creation of a Trust Fund to start up the operation of the PES scheme in Canete. A GEF-IFAD project was formulated (pending for approval)
Scheme for Rewarding for Water-related Ecosystem Services
Farmers in hydrological priority areas of the highlands of rivers Canete (and Jequetepeque)
Willing to co-invest in :-Rehabilitation of wetlands-Conservation of andean relict forest-Improving farming practices in slopping lands
Farmers receive training and capital to invest in the new practices
$
ES beneficiaries (urban water users, hydropower company, tourists, irrigated agriculture
$
Watershed committee
Overcoming bottlenecks for RES implementation
Proposed law• Offical recognition of RES,
eventhough are voluntary• Definition of RES: Rewards and
incentives• Avoid perverse incentives• Enable transfer of urban water
users contributions into RES funds• Highlights the importance of
articulating PES with existing land and water use/management plans
Remaining gaps
• How to become voluntary contributions in a legally binding to ensure continuity
• Management design that guarantees independency and transparency
Canete institutional arrangement for implementation
• Creation of ad-hoc watershed committee for PES governance possible transition towards watershed councils
• National organization that currently manages conservation project will manage the PES Fund
• High replicability potential
Lessons learned
Private sector participation:
From the ES beneficiaries’ side: Relatively easier than having public support, as long as there is willingness of private sector to participate.
From ES providers’ side: There are two aspects that would need to be refined prior to actual rewards disbursement.
– Details about land management alternatives to guarantee effectiveness
– Due to the lack of land titles in some areas, it is needed a field recognition of who is actually having control on land and under what type of land tenure. Based on this contractual agreements would need to be shaped.