Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development IMPLEMENTATION 0F PAYMENT FOR FOREST ENVIRONMENTAL SERVICES IN VIET NAM Pham Van Trung [email protected]Vietnam Forest Protection and Development Fund (VNFF) Ministry of Agriculture and Rural Development (MARD) Jakarta, May 2014
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Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development
IMPLEMENTATION 0F PAYMENT FOR FOREST ENVIRONMENTAL SERVICES IN VIET NAM
Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development
Current status, equity & challenges (cont)
K-coefficient applicationPeople’s Committees of province will base on the specific conditions of their provinces & cities to specify number of the sub K factors applicable to their respective provinces. (Circular no 80/2011/TT-BNNPTNT dated 23/11/2011 on methods to determine for PFES, issued by MARD).
K-coefficients have not fully applied due to lack of forest inventory data;
Provinces have just applied K2 & K3-coefficient; applying K=1 in some provinces.
Equity
Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development
Current status, equity & challenges (cont)
Using different K-coefficients is appropriate, but it is difficult to explain the system to communities & can provoke conflicts between community members;
Due to lack of forest inventory data, so local communities have not agreed on the value of the K-coefficients.
Equity - Occasional Paper
Recommendations: “For PFES to have outcomes that are effective, efficient and equitable, however, policy makers must also work toward developing a functional M&E system with an accessible grievance mechanism, to ensure transparency & accountability in the distribution of PFES revenues from central to local levels…”
Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development
Current status, equity & challenges (cont)
No Indicator 2008 2009 2010 2011 2012 2013
1 Electricity price (VND/kwh)
890 948,5 1.058 1.242 1.437 1.508
2 The payment rate of hydropower plants compared to the electricity selling price (%)
2,25 2,11 1,89 1,61 1,39 1,32
Equity
Annual inflation, electricity selling price increased but the payments of buyers have been unchanged
Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development
Current status, equity & challenges (cont)
Equity
The average level of payment of the amount determined forest area for PFES in VN (2013) is around 10,6 USD/ha/year;
Too different levels of payments among basins in some provinces such as Gia Lai, Yen Bai, Dak Nong, Kon Tum…
Different levels of payments for forest owners:
Province Payment level/ha/year (USD)
Lam Dong 14- 21
Gia Lai 0.1 - 10
Yen Bai 1 - 22
Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development
Current status, equity & challenges (cont)Equity - Solution
Implement the “national forest inventory program period 2013-2016”, one of the important objective of the program is supporting to PFES payments;
Propose to revise the Degree no 99 on policies for PFES;
Strengthen capacity for government officers & improve communication related to PFES to local communities;
Finalize guidelines / policies related to carbon sequestration, aquaculture, water for industrial zones & factories;
Improve the M&E system.
Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development
Current status, equity & challenges (cont)Challenges
Direction for PFES implementation is not timely;
Mechanisms, levels of payments for forest owners are not realistic;
Payments of hydropower plants are still delayed;
Lack of guidelines for aquaculture, carbon sequestration, Industrial production facilities;
Viet Nam Forest protection and Development Fund – Ministry of Agriculture & Rural Development