day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

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Payments for Ecosystem Services in Vietnam: Market-based Incentives or State Control of Resources? Diana Suhardiman, Dennis Wichelns, Guillaume Lestrelin, Chu Thai Hoanh Diana Suhardiman, International Water Management Institute Mekong Forum, Hanoi, 19-21 November 2013

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3rd Mekong Forum on Water, Food & Energy 2013. Presentation from Sessions 3 &5: Extending the benefits of hydropower: Clever suggestion or realistic goal?

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Page 1: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

Payments for Ecosystem Services in Vietnam: Market-based Incentives or State Control of Resources?

Diana Suhardiman, Dennis Wichelns, Guillaume Lestrelin, Chu Thai Hoanh

Diana Suhardiman, International Water Management InstituteMekong Forum, Hanoi, 19-21 November 2013

Page 2: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

Structure of the presentation

Hanoi, 19-21 November 2013

• PES in natural resource management

• Theory and practice

• PES program design and implementation

• Institutional arrangements in PES

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Page 3: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

PES as an innovative approach in natural resource management

Hanoi, 19-21 November 2013

• watershed protection, • carbon sequestration, • landscape planning.

“PES program design should incorporate: a voluntary transaction in which a well-defined environmental service (or a land use likely to secure that service) is bought by a minimum of one buyer from a minimum of one provider, if and only if the provider continuously secures the provision of the service conditionality.”

(Wunder, 2005)

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Page 4: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

Observation

Hanoi, 19-21 November 2013

PES programs often are implemented using

donor funds or as part of government-

subsidized compensation program.

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Page 5: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

Pilot PFES in Lam Dong and Son La provinces

Hanoi, 19-21 November 2013

• Challenges in program implementation:• Equal payment for all does not encourage

people to improve forest quality; • unequal revenue generation across

basins; • no monitoring of impacts.

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Page 6: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

PES as a means to collect additional revenue for forest protection

Hanoi, 19-21 November 2013

“With the implementation of the Decree no. 99/2010/ND-CP on the policy for payment for forest environmental services, gross output value of services will increase from VND 662 billion to 1,440 billion during 2011-2015”

(FOMIS report 2010: 73 )

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• watershed protection, • carbon sequestration, • landscape planning.

Page 7: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

Main research findings

Hanoi, 19-21 November 2013

• PES program implementation in Vietnam and the idea of privatization

• GoV’s ability to secure sufficient funds and ensure environmental protection

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Page 8: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

Linking PES program with hydropower development

Hanoi, 19-21 November 2013

How to prevent PES controversy?

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Page 9: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

Conclusion

Hanoi, 19-21 November 2013

Understanding the governance structure to increase program significance.

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Page 10: Day 1 session 3.2 payments for ecosystem services in vietnam. diana suhardiman

Thank youfor your attention

Mekong Forum, Hanoi, 19-21 November 2013

Diana [email protected]