Philippines Conference on CAPTURING ECONOMIC BENEFITS FROM ECOSYSTEM SERVICES 25 August 2011

Overview and Context

for the Meeting

David McCauley Lead Climate Change Specialist

Why this gathering?

PES/REDD+ represents a promising new source of financing for sustainable rural development ADB is exploring these opportunities through a regional technical assistance program Covering 7 countries: Cambodia, Lao PDR, Papua New Guinea, Philippines, Nepal, Thailand, Viet Nam Today a focus on the Philippines (terrestrial), but first a look at the context.

Protecting soil, water & biodiversity

100% 90%

80%
70% Production 60% 50% 40% 30% 20% 10% 0% Cambodia Indonesia Lao PDR Philippines PNG Thailand Viet Nam Unknown Social services Multiple use Biodiversity conservation

Soil and water protection

National forest policies recognize the importance of ecological services (though not their economic value)

Forest Context
Forest extent 2010 (000 hectares)
100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 80 70 60 50 40 30 Forest extent 2010 (000 hectares) 20 10 Land Area with Forests (%)

Land Area with Forests (%)

Annual Natural Forest Cover Change 2000-2005 (%)

1.5
1 0.5 0 -0.5 -1 -1.5 -2 -2.5 Annual Natural Forest Cover Change 2000-2005 (%)

Forest Financing Challenges

In practice, however Expenses > Revenues Needs > Available funds Current Fund Sources Domestic: national budget allocations & retained forest revenue External: ODA grants and loans
100.00

10.00

1.00

0.10

0.01 Revenue/hectare Expenditure/hectare

Data source: FAO FRA 2010

Ecosystem Service Benefits and Monetizing Approaches

Carbon sequestration (global benefit)
e.g. REDD+

Biodiversity conservation (global benefit)

e.g. TEEB, bio-prospecting agreements

Watershed protection (regional-local benefit)

e.g. agreements with energy or irrigation depts

Landscape aesthetics (regional-local benefit)

e.g. eco-tourism

Payment for Ecosystem Services Types

Characteristics Private PES Scheme Source of financing Scale Scope Payment scheme Effectiveness User-financed Small Single-service Tailored Often successful in achieving environmental objectives Time-consuming and costly negotiations Public PES Scheme Government-financed Large Multi-service Uniform Often burdened with politically motivated side objectives, blurring original environmental goals Cost-efficient operations

Efficiency

Todays Objective
Elicit views and perspectives from Philippine stakeholders On PES and REDD+ concept and application Especially for improving management of forest ecosystems Assess approach as a source of sustainable financing

Who is here?
Government Non-government Peoples organizations Private sector/foundations Development partners

Four Sessions
Policy
AM REDD

Field

Session 1 Climate Change and REDD+ Strategy

Session 3 Watershed Protection Policies & Program

Session 2 Palawan, Leyte REDD+ actions

Session 4 Bukidnon watershed PES +

PM

Watershe d

Outputs & Dissemination

Short report on discussions, to be shared with DENR and CC Commission as input to REDD+ readiness development Inputs to a regional synthesis publication being prepared by ADB Summary and presentation web links will be uploaded on ADB website

Transition

Communities as major actors in Asias forests

Forest communities as marginalized poor

Can PES and REDD+ help this transition?

Thank you Salamat po!