Consortium for the SustainableDevelopment of the Andean Ecoregion

Stockholm, World Water Week, 23 August 2006

Compensation for Environmental Services in the Andes, reflections for a wider application

Héctor CisnerosCONDESAN Coordinator

Outline of the Presentation:

• Introduction• CES as a mechanism of CNR + PA• Critical steps? • Context considerations• Process considerations• Looking into the future

InternationalCooperationNGOs

Private Sector Local Government & Govt Agencies, Andean Community-CAN

UniversitiesNational &InternationalResearch Centers

• R & D• Ecoregional approach• Local, national, regional

PIURA

AREQUIPA

Andean Watersheds CPW&F

Rainfall

Poverty and Degradation of Natural Resources

Land Tenure Education and Capacity

Rural investment in Environmental ServicesAccess to markets and services

The context and challenges in the Andes

Pérdida de biodiversidad

Alto grado dedeforestación

Disminucióncalidad aguax contaminac

Alta vulnera-bilidad a

desastres

Alto grado deerosión

Bajo nivel deinversionesen el s. rural

Alto grado depobreza rural

Alta migra-ción pobla-ción jovén

Baja productividad enprod. rural

Degradacióndel regiménhidrólogico

Alta conflic-tividad entre

actoresDismin. volu.Agua disp. enépoca critica

Sedimenta-ción repre-

sas, canales

Escasavaloración de

RRNN

Deficienteinfraestructura

física

Deficien. sis-temas planif.

territorrialAlto

crecimientopoblacional

Difícil accesoa serviciospúblicos

Baja efecti-vidad de po-líticas de DR

Predominiodel

minifundio

Altos costosde

transacción

MainMain ProblemsProblems of Andean of Andean BasinsBasins

CES for wider application....

Possible?

Desirable?

Is CES the answer?

Conservation of NR Poverty Alleviation

NR Management Plans

Terracing

Reforestation

Cash crops

Value adding

Value chain

EducationPublic Awareness

TrainingTechnical Assistance

InformationSustainable Income

CES

Food for Work (several)Cash for work (several)

TA for work

No market mechanismSociety compensatingES is not quantified or valuedResponse to deterioration of NR

Water-related CESUpper catchments-NR degradation-people

Conservationof NR

PovertyAlleviation

ES

ES userES supplier

Income

Production, marketsValue AddedInvestment

MethodologyVariablesModels

StrategicPartnership

WatershedAnalysis-HRU

Valuationof ES R

ESEARCH

DEVELOPMENT

NR Management Income Generation

Setting ofPriority areas

Ideally…

StrategicPartnership

WatershedAnalysis

Valuationof ES

Setting ofPriority areas

• Conservation and Development simultaneously• Cannot apply “whoever affects the environment pays”• Society as a whole not ready to compensate• Awareness and education levels are relatively low • Other priorities• NR deterioration exists where is no evident ES demand. Coca

Context

StrategicPartnership

WatershedAnalysis

Valuationof ES

Setting ofPriority areas

WatershedAnalysis

• Diagnosis a necessary step

•Which areas are generating ES?

• How sophisticated? Inter-relationships

• Territorial Zoning - CNR

• Social-economic mapping

• Land use maps

• Management Plans

Community Participatory Planning

Demand for CNR from within the community

StrategicPartnership

WatershedAnalysis

Valuationof ES

Setting ofPriority areas

Valuationof ES

• Establish a value for the ES

• Is it always needed? Costly

• Negotiations without valuation of ES

• Which method and how rigorous should it be ?

• Combine environment and socio-economic aspects

• Clear evidence of provision of ES

• Any participatory and simple way to do it?

ExampleExample: : PaymentPayment categoriescategories

Categoría 1 o páramo no intervenido = $ 1,00 / mes / ha.Categoría 2 o páramo intervenido = $ 0.50 / mes / haCategoría 3 o bosque prim. no interv. = $ 1,00 / mes / haCategoría 4 o bosque primario interv. = $ 0.50 / mes / haCategoría 5 o bosque secundario viejo= $ 0.75 / mes / haCategoría 4 o bosque sec. joven = $ 0.50 / mes / haCategoría 5 o áreas de agr/gan = $ 0.00 / mes / haCategoría 6 o áreas degradadas = $ 0.00 / mes /ha

Source – UMAT, Paramo of Pimampiro, Ecuador

StrategicPartnership

WatershedAnalysis

Valuationof ES

Setting ofPriority areas

Setting ofPriority areas

• Areas for intervention, where and for what

• When it is evident vs not evident provision of ES. Need valuation?

• Better use of scarce resources

• Not necessarily based on economic valuation but social variables

• Other activities in the area, mining

• Better chance of alliances

StrategicPartnership

WatershedAnalysis

Valuationof ES

Setting ofPriority areas

StrategicPartnership

• For action

• Contract for provision of ES – supply & demand

• Agreements of different kind, LT platforms

• Co-investment, warranty funds, credit

• Set up a FUND for actions. Different contributors and mechanisms

• Social control

MoyobambaPopulation of 40.000

• Dispersion• Fund• Not CES

Time

Income

Income in relation to land use change and CES

BeforeCES

Land usechange

AfterCES

A

B

C

StrategicPartnership

WatershedAnalysis

Valuationof ES

Setting ofPriority areas

StrategicPartnership

WatershedAnalysis

Valuationof ES

Setting ofPriority areas

Ri o Agua ri co

Rio Napo

Rio Na p o

Ri o Putumayo

Rio Yavari

Rio Tig re

Ri o Past aza

Rio Tigre

Rio U ca yali

Ri o Cene pa

Rio S antiago

Rio S isa

Rio Hu am

bo

Rio

Abi

seo

Rio

Agu

ay

tia

Rio Tam

ay a

Rio

Pa c

hite

a

Rio Yuru a

Rio In uya

Rio Sepahu a

Rio Urub amb a

Rio

Hea

t h

Rio Carabaya

Rio V i to r

Ri o Colc a

Ri o Pi sco

Ri o

Gra

nde

Rio

Ica

Rio C

an

e te

Rio

Mala

Rio C

hancayRi o M antaro

Rio

For

talez

a

Rio S

anta

Rio H ua nca ba mb a

Rio

Piu

ra

Rio Ch ir a

Rio

Tum

bes

Rio A

lt o P

u ru s

Rio de la s P iedr as

Ri o Manu

Rio Ene

Ri o H ual laga

Rio Tambo

Rio Locumba

Rio

Cap

lina

Rio Ayaviri

Ri o Ilav

e

Ri o Inambar i

Rio Tambopata

Rio Madre de D ios

Rio Br eu

Rio Pal cazu

Rio Tambo

Rio Apurimac

Rio

Man

taro

Rio Urubamba

Rio Apur im

a c

Rio

Oco

n a

Rio Cama n

a

Rio

Acar i

Rio H ua ura

Rio Rimac

Rio

C

hil l on

Rio G rand e

Rio San ta

Rio Pati vilca

Rio Requ e

Rio Chi cam

a

Rio Maranon

Rio Chinchipe

Rio Maranon

Rio

Hu a

llaga

Ri o Mar anon

Rio Cur acay

Rio Napo

Rio Pu tumayo

Rio Camp uyaRio Tamboryacu

Rio Amazonas

Rio Biab o

Rio Ucayali

Rio t ap ich e

Ri o Ucay ali

Ri o

Poz

u so

#Y

#Y

#Y #Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

#Y

LORETO

PUNO

UCAYALI

CUSCO

JUNIN

LIMA

AREQUIPA

ICA

PIURA

MADRE DE DIOS

ANCASH

SAN MARTIN

AYACUCHO

HUANUCO

PASCO

AMAZONAS

CAJAMARCA

TACNA

APURIMAC

LA LIBERTAD

HUANCAVELICA

MOQUEGUA

LAMBAYEQUE

TUMBES

ICAICA

PUNO

CUSCO

TACNA

PIURA

HUARAZ

TUMBES

IQUITOS

HUANUCO

ABANCAY

CHICLAYO

TRUJILLO

HUANCAYO

MOQUEGUA

PUCALLPA

AYACUCHO

MOYOBAMBA

CAJAMARCA

CHACHAPOYAS

LIMA

HUANCAVELICA

CERRO DE PASCO

PU ERTO MALDONADO

LAGO TITICACA

LAGO JUNIN

AREQUIPA

73° 71°81° 79° 75°77° 69°

18°

16°

14°

12°

10°

8°

6°

4°

2°

0°

69°77° 75°79°81° 71°73°

0°

2°

4°

6°

8°

10°

12°

14°

16°

18°

Area de Deforestación

LEYENDAOCEANO PACIFICO

N

Capital de Departamento

Lagos y Lagunas

Rios

Limite Departamental

Capital de la Republica

Limite Internacional

SIGNOS CONVENCIONALES

#Y

BRASIL

ECUADOR COLOMBIA

BOLI

VIA

CHILE

80º 70º 60º 50º 40º

40º50º60º70º80º90º100º 20º30º

40º

30º

20º

10º

0º

10º 10º

0º

10º

20º

30º

40º

ECUADO R

CO LOM BIA

VENEZUELA

GUYANAS

BRASIL

BO LIVIA

P E R U

PARAGUAY

ARGENT INAURU GUAY

CH ILE

O C E

A N

O P A C I F I C O

O C

E A

N O

A

T L

A N

T I C

O

PANAMA

8Bogota

Caracas8

Georgetow n8 Paramarib o

8

Cayenna8

Brasilia8

8

La Paz

Montevide o8

Buenos Ai res8

Asuncion

8

Santiago8

Quito8

Panama

8

Lima"8

EN LAAMERICA D EL SUR

EL PERU

MAPA DE UBICACION

MAPA DE AREAS DEFORESTACIONAÑO 2000

Conservation agricultureAlternatives

(Cannot rely on benefiting with ES only from users)

Overlap technologies – environmental and economic benefits:Sprinkler irrigation, reservoir, agroforestry practices,Ecoturism. LT & ShT

… maintaining the ecosystem and the ES

A true CES

No land use change

Research Considerations:

• Minimum information for action (initial and long term)• Simplify• Provision of evidence of ES supplied – valuation, payment• Map of potential CES application• Role of researcher-convener• Comparative analysis

• Success factors, special conditions• Methodologies• Monitoring strategies• Policy changes

• CES as a means to bring other national private investment ?

Concluding Remarks

• CES is a subset of possibilities, has limitations, is a tool• Can bring stakeholders together – Fund, projection to LT• Dialogue and platforms – taylor made solutions• Cannot avoid the long term aspects – youth,

education, awareness, countries’ economy, culture• Prevention, beyond reaction• Innovation systems approach – networking, social variables• Linking local, national and regional levels – critical mass• Step by step

Thank you!

¡Muchas gracias!

www.waterforfood.org www.condesan.org