1. BUILDING, BUNDLING AND NEGOTIATING ECOSYSTEM SERVICES FOR SMALL-SCALE FARMERS IN RURAL LANDSCAPES Grace B. Villamor (ZEF, University of Bonn & ICRAF) and David Huberman (IUCN)

2. Payments/Rewards for Ecosystem Services Wunder’s definition: (1) Voluntary transaction (2) Well-defined ES (3) Bought by ES buyer (4) Conditionality Conditionality – the business-like principle only to pay if the service is actually delivered (Wunder, 2005) Photos: B. Belcher, C. Cossalter, & S. Wunder

3. Quality control for P/RES CriteriaSub-criteria A. Effective, efficient and sustainability: - Realistic Shared common perspective of the issue Value to beneficiaries is substantial Value to beneficiaries is substantial Opportunity costs can be covered and access to resources improved Threats can be monitored and evaluated - Voluntary Legitimacy at individual level Legitimacy at individual level Free and prior consent applied Free and prior consent applied Adaptiveness of mechanism - Conditional Trust is enhanced Trust is enhanced Sanctions exist Environmental changed is taken into account B. Equity - Pro-poor - Pro-poor Aligned with MDGs and SD objectives Aligned with MDGs and SD objectives Rewards reduce vulnerabilities of the poor Rewards reduce vulnerabilities of the poor (Source: van Noordwijk, et al 2007)

4. P/RES Scheme  Popular PES scheme: Clean Development Mechanism (receiving most attention and investments)  Weak in achieving the high hopes of the farmers  ITTO and RUPES projects experience: (Published: ITTO's Tropical Forests Update Online Newsletter, Issue 18 No. 3 2008) www.worldagroforestrycentre.org/Sea/ Networks/RUPES/ Don’t lose sight of the broader picture…. “bundle”…

5. Integrating PES through ‘bundling’  Forest Carbon Markets and REDD  RISEMP  Landscape Labeling  IPES

6. Integrating PES through ‘bundling’ REDD and forest carbon standards Ex. Voluntary Carbon Standard (VCS) tool: - Afforestation, Reforestation, and Revegetation - Agricultural Land Management - Improved Forest Management - Reducing Emissions from Deforestation and Degradation

7. Integrating PES through ‘bundling’  Regional Integrated Silvopastoral Management Projects (RISEMP) Source: Pagiola, et al 2004

8. Integrating PES through ‘bundling’  Landscape Labels (Ghazoul et al., 2009) - New approach that seeks to overcome problems on PES - Combining PES and product certification principles applied at a landscape scale benefits realized at the community level - Award managed rural landscape delivering valuable ecosystem services – “landscape label”  Towards integrated PES systems Watersheds as fundamental building blocks Source: Brauman et al., 2007

9. Integrating PES through ‘bundling’  IPES

10. Case Studies/Projects and Interventions Case StudiesBundling SchemesTools for negotiation Diversifying ES markets in Kalahan landscape, Philippines (RUPES) -Agro-biodiversity markets (e.g. food processing) (established) -Voluntary carbon market using improved forest management; -Proposed mini-hydro; -Proposed bird migration scheme -Rapid Agro-Biodiversity Appraisal (RABA); -Rapid Carbon Stock Assessment (RaCSA); - Rapid Hydrological Assessment (RHA); - RABA

11. Case Studies/Projects and Interventions Case StudiesBundling SchemesTools for negotiation Reforestation and Protection of Lachua, Eco-Region, Guatemala (IUCN) - Reforestation of degraded lands for carbon and wildlife corridors - Protection of Eco-region (3 Natural reserves & 4 areas of communal forest reservoirs) - Project Idea Note (PIN) development - Landscape labelling approach Cocoa- agroforestCattle ranching

12. Case Studies/Projects and Interventions Case StudiesBundling SchemesTools for negotiation Niger Basin: Wetland Carbon, Guinea (IUCN) - Based on watershed management PES model as basis - Basic upstream- downstream PES model as a platform - Project Idea Note (PIN) development - Soil retention function of forests for ensuring the productivity of Hydroelectric power (Dabola)

13. Some important considerations:  P/RES is not desirable everywhere.  Keep payment options broad (not just cash!)  There are likely to be tradeoffs  Sensitive to context specific realities (tools are available)  Carbon finance should be considered as a means to an end – not an end in itself  Outreach and awareness raising are integral to the establishment of P/RES systems

14. For more information: RUPES website: www.worldagroforestrycentre.org/Sea/Networks/RUPES/ - IUCN Economics website: - www.iucn.org/economics Thank you gracev@uni-bonn.de