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Gerhard Weiss EFICEEC, BOKU Vienna

Gerhard Weiss EFICEEC, BOKU Vienna. The governance of innovation. New financing mechanisms for forest ecosystem services in Europe and their implications for forest governance. International Conference-Forum:

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Gerhard Weiss EFICEEC, BOKU Vienna

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  1. Gerhard Weiss EFICEEC, BOKU Vienna The governance of innovation New financing mechanisms for forest ecosystem services in Europe and their implications for forest governance

  2. International Conference-Forum: Emerging Economic Mechanism: Implications for Forest-Related Policies and Sector Governance The governance of innovation New financing mechanisms for forest ecosystem services in Europe and their implications for forest governance FAO, Rome, October 4-7, 2010

  3. Research background • European Forest Institute Project Centre INNOFORCE (2001 - 2008) • European Forest Institute Central-East European Regional Office EFICEEC (since 2009) • Study on the Development and Marketing of Non-Market Forest Products and Services (FORVALUE) for EC DG AGRI (Mavsar et al. 2008) • COST Action E51 “Integrating Innovation and Development Policies for the Forest Sector”

  4. Do not talk about „functions“ but … … ecosystem services (MEA) … marketability(Ostrom et al. 1994; Merlo et al. 1996; Glück 2000; Mantau et al. 2001; Pettenella et al. 2007) … innovation (Rametsteiner et al. 2005; Slee 2006; Niskanen et al. 2007; Rametsteiner et al. 2010) … policy/governance (Buttoud 2002; Böcher 2008; Rametsteiner et al. 2010; Weiss et al. 2011)

  5. Limited marketability of forest ecosystem services Mantau et al. 2001

  6. Innovation systems: actors and institutions Rametsteiner et al. 2005

  7. Innovation processes Three dimensions: information flows, cooperation of actors, financing. Rametsteiner et al. 2005; Weiss et al. 2011)

  8. Types of financing mechanisms

  9. Examples (PUBLIC – or MIXED): Taxes – or Conservation Banks

  10. Examples (PUBLIC – or MIXED): Subsidies – or contracts

  11. Examples (MIXED): New markets - Carbon trade

  12. Examples (PURE PRIVATE): Trade with forest goods

  13. Examples (PURE PRIVATE): Spiritual or cultural services

  14. Examples (PURE PRIVATE): Eco-sponsoring, donations, gifts, certification

  15. Use of financing mechanisms in EU(government answers)

  16. Conclusions from an innovation system perspective Ecosystem services are hardly seen as a business field by forest owners and by governments: Forest owners fight off social demands instead of developing entrepreneurial offers Systematic knowledge base and data lacking Easier to talk about innovations regarding wood than regarding other ecosystem services

  17. Conclusions from an innovation system perspective ctd. Gaps in policy: Comprehensive innovation policies are lacking for the forest sector Innovation is seen important by policy-makers and documents but innovation support measures are rare Lack of cross-sectoral coordination Forest sector is hardly connected to the NIS Sector focuses on traditional products and neglects new business opportunities

  18. Changing role of governance The traditional division of state and market spheres increasingly breaks up and leads to a paradoxical development: Trend to involve private actors in governance, e.g. through market-based instruments, … but there are new roles for governmental / institutional actors!

  19. Policy action is needed regarding public AND private mechanisms Public mechanisms: Further develop public or mixed instruments (PES, new markets,…) Private mechanisms: Support private sector in order to use and develop new products or services

  20. Systemic innovation support Three dimensions for action: to intensify the information on new market opportunities, establish cross-sectoral bridges, and to provide innovation-oriented incentives (seed money; LEADER approach; etc.).

  21. thank youwww.eficeec.efi.int

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