Creating Markets for Ecosystem Creating Markets for Ecosystem Services Services Economic Commission for Europe Economic Commission for Europe Seminar on the Role of Ecosystems as Water Suppliers Seminar on the Role of Ecosystems as Water Suppliers Geneva, 13-14 December, 2004 Geneva, 13-14 December, 2004 Gonzalo Castro Gonzalo Castro Head, Biodiversity Team Head, Biodiversity Team Global Environment Facility Global Environment Facility
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Creating Markets for Ecosystem Services Economic Commission for Europe Seminar on the Role of Ecosystems as Water Suppliers Geneva, 13-14 December, 2004.
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Creating Markets for Ecosystem Creating Markets for Ecosystem ServicesServices
Economic Commission for EuropeEconomic Commission for Europe
Seminar on the Role of Ecosystems as Water SuppliersSeminar on the Role of Ecosystems as Water Suppliers
Global Environment FacilityGlobal Environment Facility
GEF Biodiversity Portfolio Summary
(FY91-FY03)
Number of Projects: 336
GEF Funding: US$1.54 Billion
Co-funding: US$3.24 Billion
Number of Countries: 140
Lessons Learned(Independent OPS-2)
STRENGTHS:
• Excellent Ecosystem Representation
• Wide Coverage
• Innovative Financing (Trust Funds, PES, etc)
• Impact on Capacity Building
• Strong Stakeholder Participation
• Addresses Cross-Cutting Issues
• Includes Science and Technology Issues
Lessons Learned(Independent OPS-2)
WEAKNESSES:
• Fails to Address Root Causes
• Weak Sectoral Linkages (mainstreaming)
• Weak Sustainability
• Weak Private Sector Participation
• Poor Capacity to Measure Results
Change in Paradigms
From: How to make project sustainable?To: How to sustain conservation?
From: Project successTo: Changing behavior of societies and economies
From: Short-term projectsTo: Long-term programs
GEF-3 Strategic Priorities US$3.1 Billion (ca. US$800 Million
for BD)
1. Catalyzing Sustainability of Protected Areas (US$400M)
2. Mainstreaming Biodiversity in Production Landscapes and Sectors (US$250M)
3. Capacity Building for the Implementation of the Cartagena Protocol on Biosafety (US$80M)
4. Generation and Dissemination of Best Practices for Addressing Current and Emerging Biodiversity Issues (US$70M)
MAINSTREAMING BIODIVERSITY
OBJECTIVE
To integrate biodiversity conservation in agriculture, forestry, fisheries, tourism and other production systems and sectors to secure national and global
environmental benefits
Water services
Supply of services:
Upstream land uses affect the Quantity, Quality, and Timing of water flows
Improved pasture 0.0 without trees, 0.3 <30 trees, 0.6 >30 trees
Fruit crops 0.3 monocrop, 0.4 diverse
Shaded coffee 0.6
Fodder bank 0.4 monocrop, 0.6 diverse
Commercial tree plantation 0.4
Bamboo (guadua) 0.5
Riparian forest 0.8
Secondary forest (>10m2) 0.9
Primary forest 1.0+0.1 for multiple species (>5); +0.1 for multiple shade species; +0.1 for multi strata; +0.1 for connectivity;+0.2 with understory; +0.3 with species enrichment; +0.1 if riparian; +0.1 with species enrichment
Finca Putumayo (Quindío, Colombia)
Finca Putumayo:Land use plan
Land use Units Baseline
Year
1 2 3 4
Degraded pasture ha 3.2
Unimproved pasture without trees ha 2.2
Improved pasture without trees ha 6.1
Improved pasture with low tree density ha 8.5 8.5 8.5 8.5
Coffee grown undershade: The forest is structurally complex and provides some degreeof habitat richness
Coffee grown in the sun:The forest is gone and thevalue of this plantation forbiodiversity is verymarginal
Certified Coffee
- Better taste- Less volatile prices- Ecosystem Conservation- Water Conservation
Water services: Key characteristics
Water flows downhill
High value = Substantial potential
payments
Low value = Minimal potential
payments
Río NizaoRío Ocoa
CaribbeanDominican Republic
Water services vary substantially
HydropowerProduction
98MW
52MW
64MW
6 m3/secPotablewaterIrrigation
San Joséde Ocoa
Canaima NP
Venezuela: Canaima NP ProjectN
CaracasMaracaibo
VENEZUELAVENEZUELA
COLOMBIA
BRASIL
CARIBBEAN
Pto. Ordaz
MACAGUACARUACHI
TOCOMA
GURI
TAYUCAY
AURAIMA
ARIPICHI
CIUDAD
PTO.ORDAZ
SANFELIX
BOLIVAR RIOCARO
NI
RIO
PA
RA
GU
A
RIO
ORINOCO
EUTOBARIMA
DAM
Río Caroní watershed
Venezuela: Canaima NP ProjectN
INSTALLED CAPACITY
MACAGUA I 360 MW
MACAGUA II
MACAGUA III
2376 MW
164 MW
CARUACHI 2160 MW
TOCOMA 2160 MW
GURI II 6600 MW
GURI I 3000 MW
RIOORINOCO
MACAGUA IEL. 54,5
-II Y III100
150
200
250
300
0
50
110 100 90 80 70 60 50 40 30 20 10 0
DISTANCE (Km)
ELE
VA
TIO
N (
mas
l)
CARUACHIEL. 91
TOCOMAEL. 128
EL. 270
II
EL. 215
GURIMACAGUA
CARUACHI
TOCOMA
GURI
RIOORINOCO
Can we actually get people to pay? Costa Rica: Payments by water users
Firm WatershedWatershed size (ha)
Contract area (ha)
Payment ($/ha/year)
Energía Global Río Volcán 3,466 2,493 10
Río San Fernando 2,404 1,818 10
Platanar SA Río Platanar 3,129 1,800 10/30
CNFL Río Aranjuez 9,515 5,000 42
Río Balsa 18,926 6,000 42
Lago Cote 1,259 900 42
La Manguera SA La Esperanza 3,000 10
Florida Ice & Farm Río Segundo 3,870 1,000 10
Source: S. Pagiola, 2002. “Paying for Water Services in Central America: Learning from Costa Rica.” In S.Pagiola, J. Bishop, and N. Landell-Mills, eds, Selling Forest Environmental Services. London: Earthscan.