STEPS TOWARD GREEN Policy Responses to the Environmental Footprint of Commodity Agriculture in

East and Southeast Asia

September 15th, 2015

Outline • Context • Objectives and Scope • Approach • Major Findings • Recommendations

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Share of Urban Population (%)

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Indonesia

India

Malaysia

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Thailand

Vietnam

EAST AND SOUTHEAST ASIA A Dynamic Region

East and Southeast Asia: A Dynamic Region

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8,000 GDP per capita (constant 2005 US$)

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Poverty headcount ratio at $1.25 a day (PPP) (% of population)

China Indonesia Philippines Thailand Vietnam

With Dynamic Agro-Food Sectors

Country 2000-2014 China 3.7

Vietnam 3.7

Indonesia 3.6

Malaysia 3.2

Philippines 2.7

Thailand 2.6

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Cereals Production (tons) Per Capita 1990-2013

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Average Annual Agriculture Growth Rates

…and Expanding Food and Agricultural Exports

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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Viet NamThailandPhilippinesMalaysiaIndonesiaChina

Rank Rice Palm Oil Tea Coffee Cocoa Cassava Rubber Crustaceans Garlic Onion

1st India Indonesia Sri Lanka Brazil Côte d'Ivoire Thailand Thailand India China Netherlands

2nd Thailand Malaysia Kenya Viet Nam Ghana Viet Nam Belgium Ecuador Spain India

3rd Viet Nam Netherlands China Colombia Netherlands Cambodia Viet Nam Canada Argentina China

4th Pakistan Papua New

Guinea India Germany Malaysia Indonesia Guatemala China Netherlands Egypt

5th USA Guatemala Argentina Switzerland Indonesia Lao PDR Malaysia Viet Nam Malaysia Mexico

Among the Global Leaders in Agri-Food Commodity Exports

Agriculture’s Heavy Enviro Footprint Air and water pollution

Biodiversity and habitat loss

Water scarcity/salinity

Deforestation

Soil degradation

Natural resource depletion

Greenhouse gas emissions

Deforestation for palm oil in Indonesia

Maize on unsuitable land in Thailand Deforestation in China

National Level

• Green growth/agri-modernization strategies

• Closing regulatory gaps

• Increased media coverage

Growing Recognition of the Problems and Solutions

Practices to mitigate risks

• Farm level

• Community level

• Landscape level

• Value chain level

Countries have begun to pilot and apply measures to create more awareness and change prevailing trends…Nevertheless, a large gap generally

remains between green agriculture aspirations and applications.

The Gap Between Aspirations and Applications

• Agnostic consumers

• Hierarchy of objectives

• Conflict between environmental and agricultural policy

• Weak administrative coordination

• Transaction costs of collective action

• Gaps in knowledge, capacity and/or finance

OBJECTIVES Inform public policy on effective measures

which governments can take to reduce the environmental footprint of commercial

agriculture

SCOPE Three Components

1. Steps Toward Green: synthesis based on (6) commodity landscape case studies in the region

2. Shades of Green: compilation of international experiences involving public-private collaboration

3. Aspirations to Applications: country level ‘green agriculture’ reviews in Indonesia, Vietnam, and the Philippines

APPROACH • Framework – Map commodities, ecosystems and

environmental risks

– Typology of roles/policy instruments

– Expectations on suitability and effectiveness

• Case Studies – Scoping (22) and selected 6

– Diversity of problems, structure and solutions

– Literature review; interviews

• Synthesis – Cross-cutting observations, lessons and

recommendation

Factors conditioning the choice of policy instrument

Exogenous factors

Endogenous factors

Competencies

Economic conditions

Socio-Political Conditions

Product characteristics

Agro-ecological conditions

Industry Structure & Characteristics • Financial value • Concentration of producers/buyers • Strength of producer orgs • Socio-economic status of producers • Business commitment to CSR • Market demand • Maturity of sector Green Agriculture

Capabilities

Mae Chaem watershed, Thailand

Yunnan Province, China

Dak Lak, Viet Nam

Ca Mau, Viet Nam

Central and West Kalimantan, Indonesia

Mindanao, Philippines

SIX COMMODITY LANDSCAPES

MOBILIZING POLICY ACTION

Triggers for integrated policy action

• International market pressure

• Landscape-scale environmental catastrophes

• Threats to water important to key stakeholders

• Threats to human health of influential groups

• Social conflicts

• Operational risks for agribusinesses

ROLES FOR GOVERNMENT

5 ROLES FOR GOVERNMENTS 1. Definer 2. Enabler 3. Funder 4. Regulator 5. Advocate

DEFINER Policy Instruments • Endorsing AGG strategies

• Designated secision-making authority

• Inter-ministerial coordination

• Multi-stakeholder dialogue/action

‘Organic Coast’, Ca Mau Province, Vietnam

ENABLER Policy Instruments • Public procurement

• Institutionalize private PES

• Technical assistance

• Research for innovation

• Information systems

• Enviro action in green growth initiatives

Mae Chem Watershed, Thailand

FUNDER Policy Instruments • Producer & organizational

subsidies • Payments for ecosystem services • Direct investments by public

agencies • Bonds • Preferential credit for private land

managers

Dak Lak, Vietnam – cost share for farmers to transition coffee systems

REGULATOR Policy Instruments • Land use and zoning rules

• Norms for health

• Polluter penalties

• Direct regulation of practices

• Environmental monitoring

• Private standards frameworks

Kalimantan, Indonesia

ADVOCATE Policy Instruments • Raise awareness of resource

managers/users

• Public media campaigns for citizens & investors

• Public dissemination of data and evidence

• Mobilizing allies and advocates Yunnan, China

CASE OF TEA IN YUNNAN, CHINA

Tea production & area, 2000-2012

Consequences of monoculture tea • Soil erosion/loss of topsoil/soil hardening • Soil degradation (changes to soil chemistry) • Water pollution/local hydrology changes • Local micro-climate changes • Biodiversity loss • Greenhouse gas emissions

Drivers for policy change in Yunnan • Local protests• Consumer health concerns• Price premium for ‘quality tea’• Sustainability concerns of

western/Japanese buyers(small % demand)

• Pride in cultural heritagePhoto by ICRAF

Agri-Environmental PoliciesDefiner: Yunnan green growth policy, local ‘quality tea’ initiative; provincial bio-industry strategy

Enabler: Labeling, standards & certification (health, eco-, ‘famous’); farmer training; science centers, encourage NGOs Funder: PES; watershed and land management programs; subsidize producers for reforestation;

Regulator: land use zoning; monitoring for health labels

Advocate: Pu’er City GIAHS desig. (“Tea Garden-Tea Culture”)

Outcomes • 187,000 hectares environmentally-sensitive tea

production [Pu’er goal -90% of all tea] • Price premium for quality tea from agroforestry

systems ( up to $730/kg leaf vs $1.60/kg for low quality from monoculture

• Sustained high agrobiodiversity in tea (25 of 49 global species); densely inter-planted

• Biodiversity corridor supported

POLICY RECOMMENDATIONS

Be proactive rather than reactive

Align ag and environment policies

Recommendations

Align sector and sub-sector policies and programs

Promote diversified land use and market development

Target and coordinate policy instruments spatially

Devise alternative revenue strategies for local government

Choose government roles more strategically

• Using the D-E-F-R-A framework, explicitly examine which roles are needed and will have the biggest impacts.

Recommendations

Develop a hierarchy of action across policy roles

Draw on a complementary mix of policy instruments

Use different tools for large growers and smallholder producers

Clarify the respective roles of local and national policy

Take a learning approach

Combine value chain and spatial approaches, engaging all stakeholders

Recommendations

Reconceive certification as a tool, not a strategy

Build local, regional and national coalitions

Promote integrated landscape initiatives

Partner with the private sector around shared risks

Build on technical and policy innovations piloted by civil society

Strengthen organizational capacity, data and knowledge systems

Recommendations

Develop robust public sector agro-environment data systems

Share information widely among stakeholders

Improve capacity to administer and implement agro-environment policies and programs

Consider • supply chain actors • national ministries & agencies • sub-national and local

governments • research/training instit. • civil society • the media

Presenter

Presentation Notes

Time for governments to step up to the challenge and opportunities of agriculture and environment. There is still ample scope for voluntary action through standards, private sector innovations, community and conservation initiatives. But these cannot be a substitute for government failure. In particular need national frameworks that enable integrated policy strategies at landscape/state/district/municipal levels. There are important lessons from Asia for Africa, as commodity production accelerates there. This means strong and complementary government action at local, landscape and national levels. While impressive innovation underway, still major gaps in policy knowledge and capacities. Need a learning mode, and more systematic sharing of policy insruments and lessons across the region.

Thank you

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