1

Recap of day 1

• ES, also from managed ecosystems, have great values and impact various sectors of societyeg. Malaria management role of forests

• We need greater awareness of these values, on and off-farm• To protect and enhance them we need:

• To offer an integrated package of self-reinforcing practices, capable of delivering joint improvements in water retention, soil fertility, pest management...• To coordinate financing streams, also from ES users far

and wide to finance this integrated package of practices

• Key is: Greater Harmonization of Policies AND Institutional Coordination

INCENTIVES REQUIRED

PES..

Payment for Ecosystem Services (PES) cannot do this alone; but it’s part of the solution

PES for water: too small and isolated contributions to cover enough land to achieve visible impacts in a watershed. BUT it reveals upstream-downstream linkages

PES for carbon: too low amounts to matter to farmers; BUT 20year + commitment to assist farmers with the permanence of sustainable agriculture practices. ( a % of the credits is usually allocated to the running costs of tech support)

Unless you create large enough partnerships that actually cover large enough areas across a landscape, ENGAGING its various sectors to offer enough incentives for farmers to adopt and maintain sustainable practices

How to implement the changes discussed yesterday

Beyond PES: Multiple Incentives for Ecosystem Services for Sustainable

AgricultureIncentives for Ecosystem Services for Sustainable Agriculture (IES)

Nanete Neves, Lucy GarrettFAO Major Area of Work

on Ecosystem Services and Biodiversity for Food and AgricultureMAW ESB – AGL

IES.Info@FAO.org

Incentives for Ecosystem Services from Agriculture (IES)

Creating an IES package

Incentives for Ecosystems Services (IES)FROM Agriculture

INCENTIVES REQUIRED

Rotational grazingTo enable sufficient grass growth, ensure soil fertility recovery and increase efficiency of production

Soil conservation practices to control soil erosion, reduce sedimentation and maintain soil fertility

Improved breeds to reduce herd size, impact of grazing on soil, and need for pasture expansion It also increases the long- term livelihood potential for smallholder farmers

Riparian vegetation buffer

Protects river banks and headwaters from crop

and cattle encroachment

It also traps sediment and acts as a bio-filter

against chemical residues and siltation

Forest conservation & rehabilitation

Restoration and conservation of forests,

improves habitat connectivity, protects native

biodiversity and increases carbon storage

• Improved water sanitation and water-use efficiency• Riparian habitat protection• Fence springs• Forest reserves

• Agroforestry• Silvipasture systems

• Improved access to market opportunities and higher-value agricultural products

• Soil conservation and erosion control

• Better rural infrastructure

•Rotational grazing, improve fodder, e.g. sugar cane silage, and breeds

•Access to higher value markets • Finance and training to improve eco-technology

production

Higher Productivity(sustainable ecological

intensification)

Lower cost of Conservation

INCENTIVES REQUIRED

Incentives for Ecosystem Service (IES) are packages of measures to support farmers in the adoption of sustainable agricultural practices that will benefit the environment, and protect long-term food security.

Without incentives, farmers are limited in their ability to invest the time and capital required to change agricultural practices and overcome adoption barriers to sustainable production.

To overcome these barriers, an IES package can create an umbrella of programmes to support farmers’ transition to more sustainable production.

IES starts from the Adoption Barriers

INCENTIVES

• CONTINUED CAPACITY BUILDING • ACCESS TO RURAL CREDIT (GUARANTEES, AGRIBUSINESS REPAYMENT CAPACITY)

• CERTIFICATION SCHEMES

Barriers to adoption of conservation and sustainable management practices

INCENTIVES

• PAYMENTS FOR ECOSYSTEM SERVICES (PES)• FISCAL INCENTIVES• DIVERSIFICATION AND ALTERNATIVE INCOME GENERATING ACTIVITIES: CREDIT, MARKET

ACCESS, CERTIFICATION OF ALTERNATIVE SUSTAINABLE PRODUCTS AND SERVICES

Barriers to adoption of conservation and sustainable management practices

To design a package of incentives

•To overcome immediate adoption barriers•Secure permanence and evolution of best practices

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An IES Package would include a mix of incentives

How to finance such an integrated solution?

Land Planning: development and

conservation

= Dis-incentives

Rural Development Programmes

Market-driven Investments

= Incentives• Regulation with greater

participation in its design and enforcement

• Paired with incentives in areas of high environmental value and/or poverty alleviation priorities

• Better alignment of conservation and intensification plans

Combination of public and private investments to:• IMPROVE PRODUCTIVITY• Help overcome the COSTS OF CONSERVATION• Assist in the transition to more SUSTAINABLE

MANAGEMENT OF AGRO-ECOSYSTEMS

RegulatoryPolluter-pays principle

VoluntaryProvider-gets principle

Mandatory Regulations

Flexible Regulations

Voluntary investments –

Linked to input

Voluntary investments – De-linked to

input

Incentives Spectrum

Voluntary farm set-asides

Green Public Procurement (GPP)

Conservation concessions

Conservation Easements

Subsidies

Permits and Quotas

Marketing labels – Certificates and Standards

Taxes/ Charges

Prohibition of use

Property use rights

Mandatory farm set-asides

Rewards for Ecosystem Services (RES)

Cultural and Social Norms

Marketing Labels (without certificates / standards)

Offsets

Corporate Social Responsibility (CSR)

Direct Payments for Ecosystem Services (PES)

Some examples from last year’s meeting in Latin America

(next year, Asia)

Nature reserve s within properties

and monitoring of ecosystem services

$ CEPF$ Conservation

International$ Mata Atlantica

Rotational grazing $ EMATER (increased productivity reduce pressure

on remaining forest)$ BMBF/ University of Cologne

Improved fodder: sugar cane silage to reduce herd size and GHG emissions$ EMATER (technical assistance)$ INTECRAL

Fenced water spring$ Programa Productor de Agua, from water users

Water recharge buffer$ Programa Productor de Agua

$ CEPF

Case study: Rio Rural Programme, Brazil

with soil conservation and gully plugging along the water line$ Programa Productor de Agua

MÉXICO : Financial Investments for Best Practices

Forest protection and restoration to protect water recharge area and reduce GHG emissions$ PRONAFOR$ PRORRIM$ CONABIO

Combined, these efforts result in improved farm productivity and resilience, and food security$ PESA

18 Key: Public programme | Private sector investment

Improved maize, wheat and cattle breeds$ MasAgro$ PURSN$ PROGAN

Soil conservation: Use of organic fertilizers and improved

irrigation$ COUSSA

Certified sustainable shade- coffee plantations $ Certificacion para la Productividad Agroalimentaria

Sustainable maize and bean production$ PROMAF

with improved harvesting and processing practices$ PAAP$ PROCAMPO

Zoning of protected areas, ecosystem

monitoringCBMM

Ecotourism infrastructure$ Banamex

MÉXICO : Package of Incentives for Ecosystem Services

Biodiversity conservation• Zoning of land use areas within and surrounding

forest habitats to limit growth of the agricultural frontier and improved habitat connectivity

• Ecosystem services monitoring

CBMM – Special Program for the Lacandona$ CONABIO

• Monitoring ecosystem outcomes• Multiple use zoning of land use areas• Finance to transition to sustainable milpa agriculture

and agroforestry, reducing pressure to deforest

$ Certificacion para la Productividad Agroalimentaria$ PESA$ PAAP$ Banamex

Livelihood diversification and strengthened local capacity• Development of alternative income generation

opportunities

• Development of market for certified coffee production• Investment in production, harvesting and processing

equipment• Sustainable development of marginalized rural

communities• Finance to develop ecotourism infrastructure

Increased sustainable agricultural productivity• Improved integrated agricultural practices, including

milpa, agroforestry and silvopasture system development

• Soil conservation practices and improved irrigation systems

• Crop diversification

$ MasAgro$ COUSSA$ PROMAF$ PUSRN$ PROGAN$ PROCAMPO

• Technological assistance to transition to sustainable agricultural practices

• Finance for improved breeds of beans, maize, cattle and wheat, sustainable production investments, organic fertilizers and improved irrigation infrastructure

Incentives from the programmes/ investors:Financed by:Best practices:

$ PRONAFOR (PSAH, PSA-CABSA)$ PRORRIM

Restoration and protection of forest cover• Forest conservation in water recharge area and

riparian habitats• Forest restoration

• Finance:• For afforestation, forest protection and management

of water recharge area• To reconvert maize plantations to forest and

agroforestry productionPES

IES

Incentive Type Key:

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Table 1: possible combination of sectorial and strategic actions, within the Regional Voluntary Guidelines for Agrienvironmental measures, following an IES approach­ Clarifying land tenure of

indigenous and traditional territories

­ Land use planning considering economic, ecological and social goals

Associated with

­ Land tax system that rewards the arrangements for sustainable use and discourage harmful practices to the environment

­ Eliminate tax incentives for practices that do not comply with the agri -environmental principles

­ Detach the credit of the mandatory / elimination of tax incentives in the use of technological packages and harmful inputs to the environment.

Compensated with

­ Tax incentives for:• Rehabilitation of degraded areas• Soil protection and water resources• Marketing of agri - environmental

products­ Environmental certification mechanism­ Better access to credit lines, conditional

on adoption of the agro-environmental principles

­ Updating the phytosanitary regulations, seeds and agro- toxic to minimum international standards

­ Improve Environmental licensing system, and its enforcement

Combined with

­ Intensify campaigns targeted to food education

­ Increase the participation of agri - environmental products in government procurement

­ Encourage the local market of agri - environmental products

­ Promote the organization of agro-industries, and the economic organization of producers , through associations and cooperatives

­ Public programs of technical assistance­ Basic research on production systems

and sustainable use

KENYA IS PRIORITY COUNTRYPROPOSALS FOR COLLABORATION?