scaling-up sustainable land management tools to enable responsible private sector investments...
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Scaling-up sustainable land management
Tools to enable responsible private sector investments in land
Siv Øystese, Global MechanismWindhoek 24 September 2013
SLM Business Forum at UNCCD COP11
THE PRIVATE SECTOR & LANDPrivate sector:• a major user of and investor in land that can and
should play a key role in managing land resources• A diverse group from a range of sectors: agriculture,
energy, forest, water, tourism, extractive industries...
How to unlock the potential for private sector investments in sustainable land management?
How to scale up good practices?
PROVIDING ECONOMIC EVIDENCE
The science of valuing ecosystem services (ES) can inform private sector decision making by:– making the business case for SLM investment
options by providing the total value of land – recognising and measuring the value of ES,
create markets for ES that gives economic incentives for investments and adoption of SLM
PROVIDE THE RIGTH INCENTIVES & MARKET BASED MECHANISMS
• Often a mismatch between stakeholders paying the costs of maintaining land resources (e.g. opportunity cost of not converting a forest to cropland) and beneficiaries (e.g. downstream water users benefiting from the regulation of water flows).
• There are a range of incentives and market-based mechanisms that can:– encourage companies, communities and other private
land users to adopt and invest in SLM; and– enable the land users to cover the cost of adopting
sustainable practices
Framework and score card tool developed by GM and CATIE on incentive & market based mechanisms
Studies at national and sub-regional level: including Cambodia, Cameroon, Dominican Republic, Guatemala, Mozambique, Panama, Tanzania, Zambia & South East Asia
Best practices and case studieshttp
://global-mechanism.org/gm-publications/view-category
responses
Framework: 14 incentive and market based mechanismsType Mechanisms
1. Public payment schemes A. Permanent conservation easementsB. Contract farmland set-asidesC. Co finance investments D. Payment for proven investments in SLME. SubsidiesF. Tax, tax breaks, environmental fees
2. Open trading under regulatory cap or floor
G. Conservation banksH. Tradable development rights I. Trading of emission reductions
3. Self organized private deals J. Purchase of development rightsK. Direct payments for ecosystem servicesL. Conservation concessions
4. Eco-labeling of products and services
M. Marketing labelsN. Certification schemes
Coca Cola and public water company – willing to pay upstream farmers for implementing SLM practices because it reduces their water treatment costs
CARE responsible for training and monitoring
example 2:Payments for ecosystem services in Tanzania
Objective: Decrease soil erosion and overall land degradation lowering the quality of the water of the Ruvu River
• Study on land use change in Cambodia for Ministry of Agriculture:1. Making the case for sustainable land
management: CBA of land use change
- Ecosystem valuation methods2. Potential for using incentive and
market based mechanisms- FSC labelling & Grandis Timber teak plantation
example 3:Grandis Timber teak plantation & Forest Stewardship
Council® certification
cont. example 3:Grandis Timber teak plantation & Forest Stewardship
Council® label• 10,000 ha Economic Land Concession• Degraded land (previously clear cut)• Land restoration and biodiversity area• Costs:
– Reduced production (20% set aside for biodiversity and land restoration)
– Initial accreditation (US$ 50k) + annual audit (US$ 30k)
• Benefits:– No price premium, but access to bigger
markets– Investor demand - the FSC label has
attracted finance that would otherwise not be accessible
Scaling up – what does it take?
• Raise awareness on opportunities
• Value ecosystem services and natural capital
• Monitor to demonstrate returns on investment and make the business case for action
• Clear and reliable policies and regulations establishing a level playing field and conducive business and investment climate
• Champions are needed!www.capacitybuildingoslo.com
Thank you!
Siv ØysteseCoordinator, Economic Instruments and Innovative FinanceGlobal Mechanism of the UNCCDs.oystese@global-mechanism.org
COMACO: Community Markets for Conservation Objective: reduce poverty and hunger whilst conserving
environment Poor, food insecure farmers are organized into producer
groups, trained in quality, legal and income-generating skills focused on sustainable agriculture
Sustainable land use practices qualify the farmer for conservation dividends
COMACO purchases surplus crops and resells them as processed, value-added, organic products under the brand IT`S WILD!
example 1:Eco-labeling of products and services in Zambia
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