experiences in payments for ecosystems services in vietnam

8/14/2019 Experiences in Payments for Ecosystems Services in VietNam

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Experiences in Payments for

Ecosystems Services in Viet NamMs. Huynh Thi Mai

Deputy Director of Biodiversity Conservation Agency

Vietnam Environment Administration (VEA)/MONRE Vietnam

Green Economy Forum in Jakarta, 21 October 2013


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CONTENTS

1. Policies on PES in Vietnam2. Rationale and motivation of PES

3. Progress of PFES policy in VN

4. Main achievements of piloting policy

5. Current situation on PFES implementation in VN

6. Challenges in PES implementation

7. Experiences in PES implementation

8. PES for the future


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WHAT PES POLICIES HAVE BEEN ISSUED IN VN?

The Biodiversity Law (2008) stipulates at the Article 74(Environmental services related to biodiversity) that:

1. Organizations and individuals using environmental

services related to biodiversity shall pay charges to

service providers.

2. The Government shall specify environmental services

related to biodiversity.

Under this regulation of the Biodiversity Law, The Gov

Decree is not issued yet


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THE POLICY ON PAYMENTS FOR FOREST

ECOSYSTEM SERVICES (PFES)

The Vietnam Government issued the Decree No.99 dated24/9/2010 on the policy of PFES

This policy shall apply to:

State agencies;

Organizations, households, individuals, village

communities in the country;

Vietnamese residing overseas; foreign organizationsand individuals with operations relating to supply, use,

and PFES and management of the payment from FES


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Why the Government of Vietnam

issued thePolicy on Payment

for Forest

EnvironmentalServices?


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Viet Nam has:

Rich in biodiversity

Over 10,000,000 ha of natural forest 80% of which is low quality

At present, natural

forests have been

destroying even thespecial use forests and

watershed protection

forests


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Over 20 millions people living in the forest and

moutainous areas

They are mostly ethnic minority people andthe poors

Their subsistance is still depending on forest,

have not been improved by forest employment


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Social awareness on forest value is still limited

Many people consider that forest is created by natureso they take it for granted and investment into

forest is responsibilities of the Government

The state budget is not enough to cover

activities of protection for over 10 millions ha

of natural forest

New tools/approaches developed for biodiversity

conservation contributing to the green economyTherefore a new financing mechanism for forest

protection in close linkage with livelihood

improvement for local people is very urgent and

needed


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The Gov Decree on Payment for Forest

Environmental Services (PFES)

Objectives of the Decree are to:

Prevent deforestation and forest

degradation

Eleminate hunger and reduce poverty for

local people

Promote socialization of forest protection

Develop a new financing mechanism for

protecting forest


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Some main concepts of the

PFES policy that are stipulated

by Vietnamese Government


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What is forest environmental services?

Forest environmental service is the

work to provide the use values of forest

environment to meet the needs of the

society and people


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What is payment for forest

environmental services?

Payment for forest environmental

services is a providing and payment

relationship in which the users of forest

environmental services pay to thesuppliers of forest environmental

services


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What are types of PFES?

2. Regulat ion and maintenance of water

sources for product ion and l iv ing act iv i t ies

of the soc iety

1. Soil protection, reduction of erosion and

sedimentation of reservoirs, rivers, andstreams


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3. Forest carbon sequestrat ion and

retent ion , reduct ion of emiss ions ofgreen house gases through measu res

for p revent ing forest degradat ion and

loss o f forest area, and for forestsustainable development


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Mechanism on Paymentfor Forest Environmental

Services in Viet Nam

Users

Payers

Forest

FundProviders


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PFES in coastal wetland ecosystems


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Decision 380 of the PM dated 10/4/2008

on piloting PFES in Lam Dong and Son La provinces

Forest environmenal services for piloting:

1. Soil protection, reduction of erosion and

sedimentation of reservoirs, rivers, and streams

for Hydropower electricity production

2. Regulation and maintenance of water sources for

production and living activities of the society

for Living water production3. Protection of natural landscape and conservation of

biodiversity of natural forest ecosystems

for Tourism services


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Payment levels regulated in the

Decision 380 of the PM dated 10/4/2008

20 VND/KWhCommondity of electricity

40 VND/m3Commondity of water

1-2 %Revenue of tourism in period


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MAIN ACHIEVEMENTS OF PFES PILOTING POLICY

FES suppliers in Lam Dong were: Forest owner is MB of Da Nhim Forest Protection

3,342 local contracted HHs of poor and ethnic minority

112,208 ha of watershed forest of Da Nhim river

FES users in Lam Dong were: Da Nhim Hydropower Company

Dai Ninh Hydropower Company

Sai Gon Water Company (SAWACO)

Tourism Companies in Da Lat city

1


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FES suppliers in Son La were: 4,507 organizations, FMUs, households, household

groups, communities locate in 9 communes of 9 districts

50,894 ha of watershed forest of Da river

FES users in Son La were: Hoa Binh Hydropower Company

Suoi Sap Hydropower Company

Son La Water Company

2


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Total PFES fund that Lam Dong province received in two

piloting years of 2009 and 2010 is 108 billion VND

equivalent to $US 5.4 million3

Total PFES fund that Son La province received in piloting

year of 2009 is 60 billion VND equivalent to $US 3.2million4

Ave. PFES fund of one HH in Lam Dong is 11 mill. VND/year

Average PFES fund of one HH in Son La is 8 mill. VND/yearThis amount is very significant for poor and ethnic HHs

though this is still limited to cover their subsistence

5


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Forest protection is better. Number of illegal violation to

forest reduced 50% in two years 2009 and 20108

The people of Ho Chi Minh City has been paying for their

water using service monthly for forest protectors in the

upstream region of Dong Nai river9

Local households understand clearly position, boundary,

area of the forest plot that they have to protect6

Hydropower, water and tourism busineses understand

clearly their obligation on payment of PFES fund7


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It is the first time in Viet Nam the forest protection work is

recognized as a service and the payment mechanism is

established and implemented in the context of forest and

forest land is managed by the State, not private property

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The PFES policy makes the local people living in forest area

very happy because they are received money by their labor

to protect forest with the detail objectives and higher thanthe money they receive before

11


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CURRENT SITUATION ON PFES IMPLEMENTATION

IN VN


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At present, the PFES policy under the Decree 99 has

been implementing payment in 25 provinces

with the total PFES fund in 2012 is 1,172,000,000 VNDequivalent to $US 57,000,000

About 500,000 poor local households who are PFESsuppliers received PFES fund

About 3,500,000 ha of forest which are forest areato supply forest environmental services are protected

and illegal violations to forest reduced 50% for 4 years

from 2008 to 2012


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Two forest environmental service types which have been

waiting for guiding documents of the Prime Minister for

implementation, including:

Service 3: Forest carbon sequestration and

retention, reduction of emissions of green house

gases through measures for preventing forestdegradation and loss of forest area, and for forest

sustainable development

Service 5: Provision of spawning grounds, sourcesof feeds, and natural seeds, use of water from

forest for aquaculture


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CHALLENGES IN PES IMPLEMENTATION IN VN

1. A new tool2. Legal framework isnt clear

3. Financial framework isnt strong coordination with

line ministries, sectors

4. Evaluation of ES values is difficult

5. Capacity development and implementation is limited6. Public awareness is low

7. Economic financial condition is limited

8. Information on partner potentials is difficult to identify

9. Sharing mechanism is complicated10. Supervising implementation is weak


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EXPERIENCES IN PFES IMPLEMENTATION


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FES users/payers

PFES Fund FES providers

Government

Forest

managers

Contracted

households

1. The role of the Government is very important


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2. Awareness raising of PFES policy for levels from the

top to the root is very important

PFES POLICY


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3. Accuracy of forest data for forest plot of each household

is very important to determine exactly obligation on forest

protection and benefit

Household

Forest plot


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4. Current payment levels are still limited to meet the

daily subsistance of the poor people who are forest

environmental services suppliers in moutainous region

20 VND/KWh

40 VND/m3

1-2% revenue


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5. PFES supervising action is very important but this is

not regulated in the Decree 99 yet

The supervising activities shall be include:

Supervising variation of forest area and

illegal impacts to forest

Supervising income of local households

Supervising livelihood of local households


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PES FOR THE FUTURE

1. PFES duplicate for whole country: developand complete guidelines for two remaining

services

2. Pilot PES for wetlands and marine

ecosystem services

3. Develop the Gov Decree on PES for wetlands

and marine ES


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Thank you for your attention!!!

experiences in payments for ecosystems services in vietnam

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