International Payments for Ecosystem Services A global research initiative sponsored by

United Nations Environment Programme (UNEP)International Union for Conservation of Nature (IUCN)

in close cooperation with the Secretariat of the Convention on Biological Diversity

Dr Wendy Proctor

CSIRO Australia

CSIRO. International Payments for Ecosystem Services

Background

• What are Payments for Ecosystem Services• Why do we need such schemes• Examples• Going ‘international’

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CSIRO. International Payments for Ecosystem Services

The IPES concept

• 2006 meeting of experts• exploring the salient features and challenges - analysing possible

options to be presented in a book

• Basic principals• IPES should foster conservation and sustainable use of relevant

biodiversity components across the world• IPES should ensure financial (self-)sustainability• IPES should address the needs of the poor - those who are in the

lowest 20 per cent consumption brackets or below survival levels of consumption

• Ecosystem services focus• watersheds and water services generally• forests and their carbon sequestration services• genetic resources, including the role of associated biodiversity

knowledge• international existence values for unique ‘charismatic’ species or

ecosystems

CSIRO. International Payments for Ecosystem Services

Challenges

• CDM – example of an IPES scheme• Differences between a carbon emissions and biodiversity

conservation based scheme• Measurement

• Emissions are a uniform and homogeneous ‘commodity’ across the world

• Different ecosystem services across the planet – not a uniform or universal concept

• However, possibilities exist – Indices, Securitization (discussed later)

• Scale• Carbon emissions – global scale• Biodiversity – local scale - Match the scale of the scheme with the

motivations and the beneficiaries at that scale• Bundling – ‘landscape approach’• Targeting – services with global appeal

CSIRO. International Payments for Ecosystem Services

Demand - challenges

• Identify and quantify the product• Choice of locations for desired services – best

‘value for money’• Australian BushTender program

• Improve motivations and interest of beneficiaries by marketing and communicating benefits

• Business benefits

• Image benefits

• Take advantage of carbon market successes

• Improve the ease of access through institutional arrangements and education

CSIRO. International Payments for Ecosystem Services

Supply - challenges

• IPES offers benefits to rural poor:• Increased cash income • Expanded experience with external business activities,• Increased knowledge of sustainable resource use practices• Improved resilience of local ecosystems

• Risks:• danger of not involving an entire community from the start• trying to implement IPES where it is not appropriate• issues of developing countries development rights • equitable sharing of responsibilities for conserving the world’s

critical ecosystems

• Success will depend upon:• assessing institutional & technical capacity • structuring agreements • Implementation of IPES agreements• support institutions transfer knowledge and expertise

CSIRO. International Payments for Ecosystem Services

Matching supply and demand

• Barriers:• Lack of clarity on what is being paid for

and delivered

• Lack of quantifiable benefits

• High transaction costs

• Lack of appropriate financial

mechanisms or processes

• Will depend upon:• Cooperation between international institutions - associated laws,

compliance, incentives, monitoring, recognition of different stakeholders’ rights

• CBD can provide an platform for bringing expertise and different interests together

• Learning from existing examples e.g. REDD

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CSIRO. International Payments for Ecosystem Services

Moving Forward

• Existing schemes and research provide a good start but much more is needed

• Issues of scale and measurement

• Beneficiaries and motivations for suppliers and demanders

• Institutional and financial arrangements

• Building on existing schemes

• Pilot and experimental projects

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CSIRO. International Payments for Ecosystem Services

Moving Forward

• IPES book structure and contributors:• Introduction - Fulai Sheng (UNEP) and Josh Bishop (IUCN)• Scaling up PES to the International Level - David Huberman (IUCN)• The Demand side of IPES - Wendy Proctor (CSIRO), Anna Lukasiewicz

(CSIRO), Sissel Waage (The Katoomba Group), Thomas Köllner (ETHZ)• Case study: Public attitudes and preferences towards REDD –

Andrea Baranzini (HEG) and David Huberman (IUCN)• Case study: Criteria for Guiding Investors at the International level -

Stefanie Engel and Tobias Wünscher (ETHZ),• The Supply Side of IPES - Alice Ruhweza and Sissel Waage (The

Katoomba Group)• Matching Supply and Demand: Financial/Institutional Options -

Graciela Chichilnisky (Columbia University) • Case study: Avoided deforestation as an IPES opportunity - Annah

Peterson (Duke University), Louise Gallagher (UNEP), Ivo Mulder (The Dutch National Fund for Rural Areas) and David Huberman (IUCN)

• The poverty/equity Issues - Anantha Duriappah (UNEP)/Unai (Cambridge)

• Conclusions – Markus Lehmann (SCBD), Josh Bishop (IUCN) and Fulai Sheng (UNEP)

Contact UsPhone: 1300 363 400 or +61 3 9545 2176

Email: enquiries@csiro.au Web: www.csiro.au

Thank you

Dr. Wendy ProctorStream Leader, Water Sharing Water for a Healthy Country FlagshipCommonwealth Scientific and Industrial Research OrganisationAustralia

Phone: +61 2 6246 5955Email: wendy.proctor@csiro.auWeb: www.csiro.au