Scaling-up sustainable land management

Tools to enable responsible private sector investments in land

Siv Øystese, Global MechanismWindhoek 24 September 2013

SLM Business Forum at UNCCD COP11

THE PRIVATE SECTOR & LANDPrivate sector:• a major user of and investor in land that can and

should play a key role in managing land resources• A diverse group from a range of sectors: agriculture,

energy, forest, water, tourism, extractive industries...

How to unlock the potential for private sector investments in sustainable land management?

How to scale up good practices?

PROVIDING ECONOMIC EVIDENCE

The science of valuing ecosystem services (ES) can inform private sector decision making by:– making the business case for SLM investment

options by providing the total value of land – recognising and measuring the value of ES,

create markets for ES that gives economic incentives for investments and adoption of SLM

PROVIDE THE RIGTH INCENTIVES & MARKET BASED MECHANISMS

• Often a mismatch between stakeholders paying the costs of maintaining land resources (e.g. opportunity cost of not converting a forest to cropland) and beneficiaries (e.g. downstream water users benefiting from the regulation of water flows).

• There are a range of incentives and market-based mechanisms that can:– encourage companies, communities and other private

land users to adopt and invest in SLM; and– enable the land users to cover the cost of adopting

sustainable practices

Framework and score card tool developed by GM and CATIE on incentive & market based mechanisms

Studies at national and sub-regional level: including Cambodia, Cameroon, Dominican Republic, Guatemala, Mozambique, Panama, Tanzania, Zambia & South East Asia

Best practices and case studieshttp

://global-mechanism.org/gm-publications/view-category

responses

Framework: 14 incentive and market based mechanismsType Mechanisms

1. Public payment schemes A. Permanent conservation easementsB. Contract farmland set-asidesC. Co finance investments D. Payment for proven investments in SLME. SubsidiesF. Tax, tax breaks, environmental fees

2. Open trading under regulatory cap or floor

G. Conservation banksH. Tradable development rights I. Trading of emission reductions

3. Self organized private deals J. Purchase of development rightsK. Direct payments for ecosystem servicesL. Conservation concessions

4. Eco-labeling of products and services

M. Marketing labelsN. Certification schemes

Coca Cola and public water company – willing to pay upstream farmers for implementing SLM practices because it reduces their water treatment costs

CARE responsible for training and monitoring

example 2:Payments for ecosystem services in Tanzania

Objective: Decrease soil erosion and overall land degradation lowering the quality of the water of the Ruvu River

• Study on land use change in Cambodia for Ministry of Agriculture:1. Making the case for sustainable land

management: CBA of land use change

- Ecosystem valuation methods2. Potential for using incentive and

market based mechanisms- FSC labelling & Grandis Timber teak plantation

example 3:Grandis Timber teak plantation & Forest Stewardship

Council® certification

cont. example 3:Grandis Timber teak plantation & Forest Stewardship

Council® label• 10,000 ha Economic Land Concession• Degraded land (previously clear cut)• Land restoration and biodiversity area• Costs:

– Reduced production (20% set aside for biodiversity and land restoration)

– Initial accreditation (US$ 50k) + annual audit (US$ 30k)

• Benefits:– No price premium, but access to bigger

markets– Investor demand - the FSC label has

attracted finance that would otherwise not be accessible

Scaling up – what does it take?

• Raise awareness on opportunities

• Value ecosystem services and natural capital

• Monitor to demonstrate returns on investment and make the business case for action

• Clear and reliable policies and regulations establishing a level playing field and conducive business and investment climate

• Champions are needed!www.capacitybuildingoslo.com

Thank you!

Siv ØysteseCoordinator, Economic Instruments and Innovative FinanceGlobal Mechanism of the UNCCDs.oystese@global-mechanism.org

COMACO: Community Markets for Conservation Objective: reduce poverty and hunger whilst conserving

environment Poor, food insecure farmers are organized into producer

groups, trained in quality, legal and income-generating skills focused on sustainable agriculture

Sustainable land use practices qualify the farmer for conservation dividends

COMACO purchases surplus crops and resells them as processed, value-added, organic products under the brand IT`S WILD!

example 1:Eco-labeling of products and services in Zambia