assessing the livelihood impacts of incentive payments: implications for redd luca tacconi sango...
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Assessing the livelihood impacts of incentive payments: implications for REDD
Luca Tacconi
Sango Mahanty
Helen Suich
Research funded by:
Australian Agency for International Development
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REDD and payments for environmental services (PES)
PES: a system to pay for the provision of environmental services, conditional on performance
Can be used to link national and sub-national REDD activities: redistribute REDD revenues to local forest and land users and local governments
REDD would involve payments to developing countries
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Research questions
What have been the impacts of existing PES schemes on livelihoods?
What are the implications for the design of incentive mechanisms for REDD at the local level?
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Country Environmental service targeted
Scale of scheme Ownership of land
Global GEF review
Variety of case studies including carbon, watershed protection
National to sub-national Common property, private
Mexico* Carbon (also hydrological services and biodiversity)
National Common property
Brazil* Bundle – reduced deforestation, carbon sequestration, biodiversity conservation, hydrological functions fire management
Sub-national (nine states of the Amazon region)
Private
Indonesia* Watershed protection Sub-national (watershed spanning 2 regencies and 6 sub-districts)
Private
Philippines* Watershed protection Sub-national (spanning multiple local government units)
State
Uganda Carbon Sub-national (small scale) Private and state
Mozambique Carbon Sub-national (ssmall scale) Common property
Nicaragua & Colombia
Biodiversity conservation, carbon sequestration
Sub-national (small scale) Private
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Analytical framework
Impacts on livelihood assets:Financial, physical, human,
social, natural
What are the impacts of PES schemes on local livelihoods? capabilities, assets,
activities required for a means of living
(Chambers and Conway 1988)
Access to schemes
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Access to PES schemes
Participation by poor households possible Typically constrained by: tenure, labour,
capital needs, transaction costs Design and facilitation can overcome some of
these constraints
http://www.wiso.boku.ac.at/mozambique.html
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Financial and physical capital
Individual payments = small % of household income
Collective payments invested in infrastructure, services
Payments don’t reflect opportunity costs
Disjuncture between payment timing and contract duration Photo: Rowena Soriaga
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Social capital
Existing community institutions strengthened: resource management & coordination capacity, external linkages
Instances of conflict caused by access disparities, changing labour patterns/roles
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Natural capital
Weak evidence of change in access to resources • Most case studies were on
private or collectively owned land
• A risk for public forests given evidence of impact on informal resource use
Weak monitoring of environmental outcomes
Satellite view of deforestation in Brazilhttp://rainforests.mongabay.com/
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Human capital
Intermediaries facilitate capacity building environmental awareness, land management, governance, business development, PES
Long term impacts not known; some persisting confusion about PES
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What are the implications for REDD?
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Can PES be used for state-owned forests?
Limited PES experience available on state lands, but some 80% of forests in REDD eligible countries are state owned
Outcome based mechanisms could reward local people’s involvement in state forest conservation
Payments to local level governments could possibly enable them to provide some foregone services
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Access to PES and forests
Poorly managed access and benefit distribution could contribute to conflict
Access to schemes threatened by high transaction costs: collective agreements
Intermediaries play an essential role in facilitating access, and also capacity building: but the capacity of intermediaries sufficient?
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How will payments measure up?
Payments in existing PES schemes often not based on opportunity and transaction costs
Opportunity costs change, contracts need to be dynamic Consult with communities on payment design:• individual vs community payments• cash vs non-cash payments
Timing of payment
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Monitoring and performance
PES schemes have not monitored performance well, implementation of REDD would require MRV mechanisms
In case of non-performance over the long term, difficult if not impossible to recover funds advanced through PESNational implementation of REDD needs to factor in this risk (eg establishment national fund)
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More on PES and REDD
Look out for our forthcoming book:
Livelihoods in the REDD? To be published by Edward Elgar in 2010