Equitable Payments for Watershed Services:A joint WWF, CARE and IIED programme

Morten Fauerby Thomsen, CARE Danmark

A partnership between CARE, WWF and IIED

Linking poverty reduction and conservation

A partnership between donors: Danida and DGIS

Innovative partnerships

Ecosystem Services and Poverty Reduction

Poor rural communities are often stewards of environmental services Millennium Ecosystem Assessment:

• Nearly 2/3 of world’s ecosystem services now under threat • Degradation of ecosystem services is a barrier to achieving the MDGs• Harmful effects of degradation ecosystem services borne disproportionately by the poor

Aims to bring substantial benefits to the poor:• Direct: financial benefits to farmers and households; at community level (hospitals, schools)• Indirect benefits: community empowerment, decreased vulnerability, conservation of ecosystem.

Aims to make payments to the poor in a just and equitable way

Intermediaries?

Equitable PES

Payments for watershed services are supporting sustainable natural resource management, improved livelihoods and

social justice for the rural poor

Overall Programme Goal

Philippines: Cantingas watershed (Sibuyan) & Mt. Isarog watershed (Camarines Sur)

Indonesia: Kapuas Hulu (Borneo) & Eastern Nussa Tengara (Timor)

Peru: Jequetepeque river basin & Piura river basin

Guatemala: Sierra de las Minas & Polochic watershed

Tanzania: Uluguru mountains and East Usambara

10 Sites of Intervention

Phase 1: Making the business case• Buyers: profitability, viability of payments• Sellers: incentives for land use changes required• 1.5 years, funding from DGIS and Danida

Phase 2: Full implementation PES• For each site that delivers a viable business case• 3-4 years

Program Strategy: Phasing

Phase 1

DataCollection }

Biophysical

Livelihood

Legal/institutional

1

Buyers & Sellers

2

Problem defined (situation analysis)3

PWS = Addressing the problem 4

Cost / Benefit analysis5

Impact on conservation and poverty6

Business Case7

MoU8

Implementation

Phase II 9

Tanzania (1)

• Uluguru and East Usambara Mountains

Uluguru Mountains:

• Provides water to Dar-es-Salaam (Ruvu river)

• Increased water scarcity and quality problems

• High level of poverty in watershed

Potential Buyers Motivation

• Domestic water users Agricultural water users Industrial water users

Includes: Cement factories Breweries and distilleries Bottling companies (water/soft drinks) Textile factories 5 star hotels

• Cost of water treatment are high Costs of alternative water supply are high (trucks, boreholes) Revenues are foregone due to limited production in times of low water availability Fear of pending water crisis and the sustainability of alternative sources

Potential Sellers Motivation

• Poor communities in the catchment area (specific communities to be identified)

• Direct and indirect benefits

Tanzania (2)

What role for DonorsTanzania (3)

Better linkages to government

Better placed to support/facilitate an institutional and legal environment that is supportive of PES schemes:

Tanzania PES Task Force No PES without government in Tanzania

Contact:

Please see programme handout !!