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Landscape Finance Lab

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As essential reading we'd recommend starting with the 1) Little Book of Sustainable Landscapes, 2) Landscape Elements resource and Ecoagriculture Partners' 3) Business for Sustainable Landscapes report

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Payment for Ecosystem Services to support landscape restoration

Posted by Deesha Chandra (Admin) Mar 27, 2020 Posted in Past webinars

On Thur 26 March, the Lab hosted a webinar with UN FAO's Forest Landscape Restoration Mechanism (FLRM). This is part of a 2020 series focusing on local finance mechanisms to support FLR.  

The webinar was an opportunity to learn from two PES schemes and the experiences of the speakers in designing, implementing and monitoring such schemes.

The first case from Rejoso, Indonesia was presented by Dr Leimona Beria (ICRAF)and looked at smallholders’ practices in a production landscape and the influence of the flow of ecosystem services (ES) in the downstream clusters. The financing scheme focused on three key areas highlighted below. From co-investment in ecosystem services, to investments in water effieciency to increase water supply and sales and finally blended finance options through income of green agricultural commodities. Hear more about the case study in our recording here

 

Dr Pham Thu Thuy (CIFOR) was our second speaker. Thuy presented learnings from a Vietnamese PES programme using CIFOR's 3E's principles of Effectiveness, Efficiency and Equity. The programme contributes 22% of the total investment for the forestry sector in Vietnam, doubling state budget allocated to forestry.  The key objectives were to reduce the burden to the state budget, improve local livelihood and improve forest quality/quantity. Funded by a Government Trust Fund (VNFF) key finance is channeled from the water and tourism sector along with hydropower plants. To date services implemented include watershed protection and landscape beauty. 

Thuy reported on the challenges of the programme particularly in reporting e.g. different stakeholders reporting varying figures of success. The need to include more local voices in the design of schemes to take in to account varying regional rights and needs. Click here to learn more about the programme and the proposed recommendations for improving the scheme. 

Summary of lessons 

  • PES goes beyond a ‘market-based ES’ to broader landscape governance involving conservation-development incentive instruments
  • Many different stages of PES to consider – devil in the details–which require different financing mechanisms
  • Important to take into account political dimensions throughout the development of a PES scheme
  • Establishing an ecological and socioeconomic baseline is important to assess impacts and determine payments
Need to consider:
    • Effectiveness (M&E is essential)
    • Efficiency (bundling of services and payments)
    • Equity (ensure inclusivity of participants in procedural processes)

Join the discussion

Over 75 questions were shared during the webinar, to follow up on these we will be sharing themed discussions via dgroups which you can receive directly to your inbox. Register here.  

This post was edited on Mar 27, 2020 by Deesha Chandra

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