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«THE ROLE OF PAYMENTS FOR ENVIRONMENTAL SERVICES (PES) AS REWARD MECHANISMS FOR SUSTAINABLE LAND MANAGEMENT IN EAST AFRICA WORKSHOP REPORT ...»

-- [ Page 1 ] --

Payments for

Environmental Services

From

Agricultural Landscapes

THE ROLE OF PAYMENTS

FOR ENVIRONMENTAL SERVICES (PES)

AS REWARD MECHANISMS FOR SUSTAINABLE

LAND MANAGEMENT IN EAST AFRICA

WORKSHOP REPORT

Capacity-building workshop FAO- CARE Tanzania Dar es Salaam 4-6 February 2008 Organization PESAL project team, Agriculture and Development Economics Division, UN Food and Agriculture OrganizationFAO, funded by the FAO Netherlands Partnership Programme FAO Land and Water division and the upcoming “Transboundary Ecosystem Management Programme for the Kagera River Basin” With local support from CARE Tanzania and FAO Regional Office Tanzania Payments for Environmental Services from Agricultural Landscapes- PESAL Capacity-building workshop FAO- CARE Tanzania Dar es Salaam 4-6 February 2008 Final Report

1. Introduction: rationale and goals, institutions represented, organization and structure,

2. PES from sustainable land management- rationale and overview of regional initiatives (morning session, day 1)

3. Ongoing PES projects in East and Southern Africa (afternoon session, day 1)

4. Supply assessment and engaging demand (day 2)

5. Establishing an enabling environment for pro-poor PES development (day 3)

6. Main discussion results

6.1 Sustainability of PES schemes

6.2 Combining enforcement and accountability of investment with equity goals

6.3 The role of institutions

6.4 Work group session 1: assessing supply and engaging demand

6.5 Work group session 2: enabling environment

7. Workshop evaluation feedback

Ongoing & upcoming work relevant to the region

Annex 1: List of participants

Annex 2: Workshop programme

Payments for Environmental Services from Agricultural Landscapes- PESAL Capacity-building workshop, FAO- CARE Tanzania Dar es Salaam 4-6 February 2008 Final Report

1. Introduction: rationale and goals, institutions represented, organization and structure, The workshop was organized by the Agricultural Development Economics Division (ESA) of FAO under its PESAL project- Payments for Ecosystem Services schemes from Agricultural Landscapes- a project aimed to build capacity for PES development for the cases in which this instrument can support the adoption of sustainable land management and contribute to rural development.

In close collaboration with the Land and Water Division (NRL) and their work on the Transboundary Ecosystem Management Project in the Kagera River Basin, Ecoagriculture Partners and the development of their “PES Market Assessment” toolkit and CARE Tanzania and their experience in engaging buyers of environmental services, particularly in the private sector- “making the business case”, through their ongoing work under the CARE-WWF programme on Equitable Payments for Watershed Services, active in Tanzania and Kenya, Latin America and Southeast Asia.

The East and Southern Africa Katoomba Group and the World Agroforestry Centre also provided inputs in designing the workshop’s programme, electing participants and contributing with their knowledge and experience on PES across all sessions and discussions of the workshop.

The FAO Tanzanian regional office and the Department of Environment of the Tanzania Vice President’s office also provided support and endorsement for the initiative.

The meeting aimed to facilitate discussions on the potential for the application of PES as incentives for sustainable land management, especially among poorer resource managers, to provide tools for PES development, raise awareness for the barriers and encourage regional partnerships among policymakers and natural resource managers for future collaboration (Box 1).

Box 1: Workshop objectives

A. To build capacity for using PES as an incentive for Sustainable Land Management:

• Provide an introduction to what PES are and how they could work- aimed at land and water agricultural managers/planners/decision makers that aren’t yet familiar with the mechanism

• Offer an overview of on-going worldwide PES scenario activities in the world, focusing on East Africa and highlighting obstacles faced and successful approaches

• Generate discussion on the legislation and institutional framework required for PES development in East Africa

• Highlight the necessary conditions for facilitating to facilitate the participation of poorer rural groups in PES schemes B. To create national and regional partnerships among policy makers and natural resource managers to facilitate the development of PES related schemes and required institutional mechanisms C. To get feedback on the need for tools/guidelines/analyses from the field to support ongoing PES development (link with the Kagera community catchments river basin and related project activities)

–  –  –

Payments for Environmental Services from Agricultural Landscapes- PESAL Capacity-building workshop, FAO- CARE Tanzania Dar es Salaam 4-6 February 2008 Final Report

–  –  –





Payments for Environmental Services from Agricultural Landscapes- PESAL Capacity-building workshop, FAO- CARE Tanzania Dar es Salaam 4-6 February 2008 Final Report The workshop began with an introduction to the rationale for PES as mechanisms to encourage sustainable land management and an overview of the initiatives already ongoing in the region.

The second day focused on the combination of a simulated assessment of the supply of environmental services from three different landscapes, with their users and potential buyers. Ecoagriculture partners introduced methodology to assess the opportunities for agricultural landscapes to provide environmental services and CARE Tanzania, with WWF Kenya, shared with the participants the main steps in building a Business Case for Payments for Watershed Services.

Day three aimed at taking stock of the institutional conditions and needs to establish an enabling environment for PES development in the participants’ countries. From looking into which institutions are or could support PES development and what would need to be created, to thinking about the legal and regulatory environment, sectoral awareness and research support options. These need to be developed while keeping in mind how to support pro-poor goals, ensure transparency and accountability, longevity of the scheme and efficiency of investment.

The workshop was successful in facilitating the discussion on the potential for PES to be an incentive for sustainable land management in East Africa, in building capacity among participants with different technical background, and in encouraging national and regional partnerships among policy makers and natural resource managers for future collaboration.

2. PES from sustainable land management- rationale and overview of regional initiatives (morning session, day 1) This session aimed to provide an introduction into what PES are and how they could be used in the agricultural sector as an incentive for sustainable land management, in Sub-Saharan Africa and, specifically in the Kagera River Basin (which includes Tanzania, Uganda, Rwanda and Burundi).

2.1 Paying farmers for Environmental Services as one way to provide incentives for Sustainable Land Management (SLM) Leslie Lipper, FAO Agriculture Development Economics Farmers are the largest group of natural resource managers on earth and can generate both positive and negative impacts on environment. Current incentives promote agricultural production while other non-productive benefits from agroecosystems have generally been overlooked in land management decisions.

Demand for environmental benefits from agricultural lands is increasing. Ongoing PES schemes help farmers improve their production practices (to conservation agriculture, agro-forestry or silvo-pastoral), change their land use (reforestation, rehabilitation or conservation) or refrain from expanding their activity into new lands (reducing deforestation and degradation).

The beneficiaries of these changes range from water users (hydroelectricity producers or municipal water facilities- mainly in Latin America), polluters in need of carbon credits and individuals supporting environmentally certified production processes (such as shade grown coffee).

The participation of farmers in such schemes depends on the investment required to adopt the PES measures and forego production income, compares to the improvements in productivity or compensation offered by the scheme. In some cases, PES schemes can also contribute to poverty alleviation, but this depends on the location of the poor, their rights over the land and the selected changes in farming systems.

Whether a PES project is able to survive financially in the long run and deliver the environmental benefits expected is a matter of design- selecting the appropriate land and activities, engaging the beneficiaries and securing long-term funding commitments and getting buy in from a range of institutions within different sectors and at different levels. This is a long process that requires realistic goals and extensive negotiations. Few PES schemes have so far managed to overcome these hurdles but interest in this tool is still growing as promising advances have been made worldwide.

Payments for Environmental Services from Agricultural Landscapes- PESAL Capacity-building workshop, FAO- CARE Tanzania Dar es Salaam 4-6 February 2008 Final Report

2.2 Sustainable Land Management in Sub-Saharan Africa and the Terrafrica initiative Sally Bunning, FAO Land and Water division The Transboundary Agro-ecosystem Management Programme for the Kagera River Basin (Kagera TAMP) project (FAO-GEF-UNEP) is looking to reduce severe and increasing degradation of resources in the basin (reduced water supply, pollution; soil nutrient mining, deforestation, overgrazing), through investment in technical and policy improvements for the adoption of SLM (Box 3). In this context, PES is one of the measures considered.

The project is under the TerrAfrica multipartner platform -seeking to provide an enabling framework to mainstreaming and financing sustainable land management approaches in SSA and the GEF Strategic Investment Program for SLM in SSA (SIP), responsible for a multi-agency portfolio of sequenced investment packages that can catalyze country-specific SLM programs over the long term, maximize impact of the investment, mainstream SLM into policy, and sequencing of investments. This presents a very large base for funding opportunities, and each country is at this stage developing its own investment programme and identifying country partners to get in touch with each country’s focal point.

Box 3: Kagera TAMP Project Components:

Transboundary coordination, information sharing and M&E mechanisms for sustainable, productive • agro-ecosystems & the restoration of degraded lands (basin-wide collaboration LVEMP, NBI-NELSAP; KMGIS/RS, networks) Enabling policy, planning and legislative conditions to support and facilitate the sustainable management • of agro-ecosystems and the restoration of degraded land (community bye-laws, conflict resolution, incentives for SLM).

Enhancing capacity and knowledge at all levels for the promotion of – and technical support for – • sustainable management of land and agro-ecosystems in the basin (methods & approaches -demos, FFS study plots, PLAR+ monitoring, impact).

Implementing improved land and agro-ecosystem management practices benefiting land users for the • range of agro-ecosystems in the basin (integrated agro-pastoral & cropping systems enhanced productivity, PES and market opportunities).

–  –  –

Land use Intensification, unsustainable practices (over Diverse viable farm livelihood systems; Sustainable, grazing, deforestation, bush burning, specialisation: productive practices; multiple goods crop/ livestock, loss of fallow...)

–  –  –

Key Indicators:

Sustainable land & agro-ecosystem management practices implemented on 100,000 ha. by PY5 ( • 10% increase in NRM-based income for 120,000 farmers/herders - crop and livestock productivity, energy • and water supply; diversified products);

20% increase in carbon stores on 30,500 ha of land (on farmer study plots and sample sites in target arable • and pasture lands by PY5 – on average, as C storage capacity varies with soil and land use type);

10% reduction in sediment load in 4 representative micro-catchments (30% increase in vegetation cover • (above + below ground biomass) on pilot 23,000 ha. arable and 7,500 ha. pasture lands by PY5).

1,035,200 people benefiting from training in SLM (all levels, especially farmer and district);

• Enabling environment for regional cooperation in SLM established (mechanisms for PES, harmonised • policies, intersectoral).

see also: http://www.fao.org/landandwater/fieldpro/kagera/methodologies_results.htm Payments for Environmental Services from Agricultural Landscapes- PESAL Capacity-building workshop, FAO- CARE Tanzania Dar es Salaam 4-6 February 2008 Final Report

2.3 Agroecosystems of Kagera River Basin in Tanzania: Niches for PES to Enhance Sustainable Land Management Freddy Baijukia, Tanzania Agricultural Research Institute Various land use problems have led to land degradation in the Kagera basin while improved management schemes have yielded little results due to the lack of incentives. Poverty rates in the region are high and only incentive-based and pro-poor approaches will be attractive to farmers. PES schemes could therefore be an interesting option but there are important institutional constraints to overcome (Box 4).

Box 4: Niches for PES to Enhance Sustainable Land Management in the Kagera River Basin

–  –  –

1 possibility of creating a self-enforcing scheme where after initial support for the adoption of the new techniques, the increase in productivity generates a continuous incentive



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