Donor Meeting: “Payment for Ecosystem Services in Central Asia”

1. Donor Meeting: “Payment for Ecosystem Services in Central Asia” The Regional Environmental Center for Central Asia - CAREC December 9th, 2011 Almaty

2. Strategic steps to promoting PES in Central Asia Mariya Genina, CAREC 9 December 2011

3. Urgency • Background • Definitions • Strategic vision and objectives • Priority actions

4. Urgency

5. Worldwide • “…About 60% of the world’s ecosystem services are being degraded or used unsustainably. • …By 1995, only 17% of the world’s land area had escaped direct influence by humans. Millennium Ecosystem Assessment (2005) In Central Asia High economic dependence on ecosystem services; Further degradation of ecosystems despite regulations; Lack of funding for ecosystem protection Enabling changes in legislations for new economic instruments; emerging governance structures (WUAs, RBCs); pilot initiatives

6. Background

7. 1970s – linking economic growth with pressure on ecosystems • Since 1980s, UNEP - from “polluter pays” to “beneficiary-pays” principle. • 2007 – Global Ministerial Environmental Forum called UNEP to provide “guidance and support to governmental on the payment for ecosystem services.” • ES and PES in: UN Conventions on Biodiversity, Climate Change, Combating desertification, and UNECE Water Convention • MCED6 - Astana 2010 and EfE7 - Astana 2011 have recognized and recommended PES

8. definitions

9. PES – contractual transaction between buyer and seller for an ecosystem service or land use/management practice likely to secure that service. Payments can be: Monetary; In-kind; Service, Reward Buyers can be: Private companies; Government Public Utilities; Individuals Transport companies; NGOs Sellers can be:Landowners; National parks Associations and groups Payment for ecosystem services (PES)

10. Example of PES scheme in Vietnam • ES providers upstream • 3 400 households with low incomes; protecting104 thousand ha of forest 500$ per household; Micro Hydros Regulating water regime; soil conservation; landscape beauty. ES receivers downstream: 2 Hydroelectric stations, 1 water supply company, and 1 tourist company.

11. Regulation, compensation or reward? RED Unacceptable environmental degradation Amber Current practice and ‘rights to pollute’ Green Maintenance and enhancement of ES • Environmental Code • Forest Code • Water Code • Land Code Public policy context Actor position Trend Mechanism Minimum acceptable behaviour and its effect on ES is set by regulation • Penalties • Compensation for damage CES1: Polluter pays compensation for damage inflicted CES2a: Tradable pollution and ES-use rights as ‘offsets' • Emission fee • Use fee • Tradable quotas Baseline of ‘business as usual’ under current driver conditions CES2b: Tradable pollution and ES-use rights bought for conservation sake • Planning, funding, incentive for rehabilitation & protection • Zhasyl Damu (?) RES1: Rewards for ES enhancement through ‘stewardship’ RES2: Rewards for ES maintenance (avoided degradation) by guardians (van Noordwijk et al 2006)

12. Strategic vision2012-2016

13. Core principles PARTNERSHIP knowledge + action; regional + international MULTISTAKEHOLDER approach dialogues + discussions BUILD ON not starting PES from scratch

14. Vision The governments, civil society, business and local population of Central Asia acknowledge Payment for Ecosystem Services as a working tool for ecosystem conservation at the local and national levels.

15. Goal To improve the effectiveness and sustainability of ecosystem conservation in Central Asia by promoting Payments for Ecosystem Services. Objectives • To further raise awareness on ES and PES • To generate experience on PES at the local level • To facilitate the development of national policies and regulations on PES

16. awareness experience policies Priority actions(2012-2016)

17. We thank our partners and donors International • SGP GEF (Kazakhstan, Kyrgyzstan) • Ministry of Agriculture and Rural Development of Vietnam • UN REDD program in Vietnam • National Institute of Economy of Mexico • National and local • Kyrgyzstan • Pasture Department • of the Ministry of Agriculture • IssykKul Biosphere Territory • IssykKul Oblast Administration • Leshoz of IssykKul rayon • SadyrAke and TemirovkaAylOkmetu • Association of Water Users • Pasture committees • Kazakhstan • Local NGOs and local governments

18. Objective 1. Awareness Communities Governments Businesses NGOs International organizations General awareness on PES concept at the local level and partially at the national level in Kazakhstan and Kyrgyzstan. TODAY • To organize a set of international study tours for all stakeholder groups to demonstrate the best practices on PES • To publish and distribute outreach materials, e.g. guides, manuals, leaflets and brochures on PES and ecosystem services • To strengthen the through side events, global and regional knowledge networking international networks, Central Asian PES Network and expertise exchange • To prepare policy briefs on PES benefits and opportunities for the governments of CA • To agree on the terminology - co-investment/rewards/partnership • To continue with trainings and ToTs on PES TOMORROW

19. Objective 2. Experience Watersheds Forests Biodiversity Grazing Moderate interest among NGOs and businesses in practically introducing PES in Central Asia. Experience and signed first PES contract in Chon Aksu river basin, Kyrgyzstan. TODAY • To continue the pilot project on PES in Chon Asku watershed, Kyrgyzstan – implementation and monitoring, introducing REDD+, further involving Biosphere reserve • To develop and implement the new pilot projects in Central Asia to diversify and spread the experience on various contract conditions, payment types, scheme designs, sustainability and potential benefits • To conduct further pilot research and assessments on various PES schemes depending on land tenure, economic valuation of ecosystem services, enabling policies needed, etc. TOMORROW

20. Objective 3. National policies Moderate awareness of the environmental ministries in Kazakhstan and Kyrgyzstan on PES and its opportunities; 2 feasibility assessments; some interest in continuing to explore PES opportunities and details TODAY • To develop short policy briefs on PES opportunities and potential benefits for the governments of CA • To facilitate discussions aiming to reach an appropriate agreement on possible national policy on PES or legislative amendments • To conduct multistakeholder national and regional dialogues on PES • To facilitate various possible roles of the government in PES schemes – pilot projects • To provide practical synthesized knowledge from international experience on PES • To promote pluralistic approach to environmental management (‘sticks’, ‘carrots’ and norms) TOMORROW

21. Sources: • Leimona Beria presentation, RUPES coordinator (8 Sept 2011, Astana) • Miroshnichenko A. presentation (8 Sept 2011, Astana) • Sibylle Vermont presentation, FOEN, (21 Sept 2011, Astana) • Perelet R.A. presentation (3-4 May 2011, Astana) • National expert assessments on PES in Kazakhstan (Nugumanova L. and Kaliaskarova Z. 2011) • Leimona Beria (2011) Brief scoping study on PES in Kazakhstan

22. We are looking forward to the fruitful cooperation on PES in Central Asia!