Ecosystem Services & their Role in Poverty Alleviation in Suynik Province, Armenia Armenia

The Project – Overall objective To strengthen the knowledge base & capacity at the national, provincial and local levels in ecosystem valuation Independent expertise in ecosystem valuation in order to provide scientific based evidence to stakeholders & decision makers

Key questions to be addressed through valuation study How do ecosystem services in Armenia support economic growth, employment and prosperity? What risks / costs are associated with their damage / loss? What are the links between ecosystem services and poverty alleviation?

Key steps in the economic assessment ` Undertake qualitative assessment of ecosystem services Determine data availability (scientific / quantitative) Select ecosystem services to be valued. Select key economic indicators Derive monetary estimates of the ecosystem services under the elected scenarios using appropriate valuation approach CBA (economic & financial perspective). Aggregation, discounting, sensitivity analysis Impacts of different scenarios on key indicators – e.g. employment, incomes, tax revenues Distributional analysis and implications for poverty alleviation Identification of sustainable financing / development mechanisms Step 6: Analysis of economic evidence Step 5: Undertake valuation of ecosystem services Step 2: Characterize the study and determine the context for the assessment Step 7: Understanding the institutional requirements Step 3: Define the scope of the economic assessment Specify the institutional barriers to achieving the sustainable and equitable economic development 2a. Develop a conceptual understanding of the physical characteristics of the area to be studied e.g. its size, soil type, typography, hydrology 2b. Undertaken a socio-economic analysis 2c. Define the issues. What are the main threats to ecosystem services who is being affected and how? 2d. Define scenarios to be analyzed Quantify (in bio physical terms) the impacts of each scenario, taking into consideration both on- site and off-site impacts Step 4: Quantification of impacts Step 1: Stakeholder consultation and site selection Consult on project and potential study sites Select pilot site Specify & agree the policy issue with stakeholders

Study Site Bardzradir (Musra), Suynic Region Proposed gold mine Community opposition Alternatives?

Draft Scenarios ScenarioDescription Mining (as currently proposed) Analysis based on production quantities and mining practices proposed by company Best practice mining Analysis based on best practices and restoration of damage to ecosystems and equitable distribution of benefits from mining Alternative use of ecosystems Development of local communities enterprise, based on NTFPs and ecotourism. No mining. Potential for skiing / horseriding? Bee keeping, fruit orchards?

Challenges & Opportunities Challenges –New area for Armenia –Data Opportunities –Framework law on environmental protection being drafted –Best practice principles and tool for assessing future mining investments