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Financial Mechanism of Payment for Mangrove Environmental Services


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Presented by Phạm Thu Thuỷ on 9 November 2020 at "National workshop: Mangrove environmental services payments"

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Financial Mechanism of Payment for Mangrove Environmental Services

  1. 1. Financial mechanism of Payment for Mangrove environmental services Ho Chi Minh, 9 November 2020 Pham Thu Thuy
  2. 2. Outline 1. How to collect payment ? 2. How to distribute payment ? 3. How to monitor ? 4. Principles and key recommendations
  3. 3. • Literature review • Interviews and HH surveys • Cases studied: both PES AND PES-LIKED, different scales + management regimes, different ecoregions, and state and non-state programs/projects Provinces Total key informants interviewed Thai Binh 292 Thanh Hoa 287 Quang Ninh 288 Da Nang 6 Hai Phong 224 Quang Nam 4 Ben Tre 14 Tra Vinh 25 Ca Mau 10 TOTAL 1,150 Methods
  4. 4. How to collect payment ?- Depends on what to be paid… Lý do chi trả cho việc bảo vệ rừng ngập mặn Tàu du lịch Tàu cá Vẻ đẹp cảnh quan 37.5 77.45 Bảo vệ môi trường, làm sạch nước 12.5 20.59 Bảo vệ đê điều và sản xuất nông nghiệp 50 63.73 Cung cấp củi và thức ăn 0 26.47 Tăng thêm thu nhập cho người dân làm nghề cá 37.5 63.73 Cho thế hệ tương lai 12.5 81.37 Bảo vệ tuần thuyền khỏi gió bão 12.5 10.78
  5. 5. How to collect payment ?... Depends on who pays ?
  6. 6. Who pay and how to pay ? Fishermen + tourist ships: Docking fee and through port management board Fishermen and Tourists: Fishing license through Department of Aquaculture Tourist: Entrance fee, diving fee, environmental fees by Border police Private sector: Trust Fund Organic Shrimp Certification and Carbon Financing Hợp đồng trực tiếp
  7. 7. Who pay and how to pay ?
  8. 8. Payment distribution Advantages Disadvantages In cash • Greater flexibility in the use of resources • Less prone to be seen as paternalism • Reinvestment to other land uses • Raise participation in communal tasks • Reduce social motivations in case of collective action made on the basic of social norm • Depends on financial management skills • Investment in certain type of land uses creates pressure to forest In kind (e.g. in schools and clinics (Mikoko Pamoja project; training for Ca Mau local people) • More likely to lead to long-lasting benefits and predicable welfare improvement • Potential to benefit the whole community • Depends on decision-making process
  9. 9. Payment distribution
  10. 10. Payment distribution HAI PHONG
  11. 11. Factors for relevant BDS selection  Size of payment  Social motivation complement with existing financial incentives  History of collective actions  Leadership, financial capacity and accountability of local management  Discourse on equity and local preferences on frequency and types of payment (e.g. 50% advance payments, followed by 30% then 20% upon satisfactory completion (Mikoko Pamoja project) and agreement on payment criteria  Costs and benefits in delivering PES  M&E system- payment criteria (E.g. environment or economic outcomes such as in Ca Mau ? M&E to enforce both providers and sellers to comply with the rules
  12. 12. Payment criteria
  13. 13. Key messages  How to pay- Bundling multiple ES and is driven by political economy and political will, trade-off and cross sectoral collaboration, complex multilevel governance  Combination of both in cash and in kind could leverage the impacts of PFES  Fixed schedule tailored to the need of local people enhance commitment in delivering ES  Ratio of payment needs to ensure the ES is actually delivered  A mixture of payment ensure benefits reach to different groups and reduce the risks of inequity  No one size fits all recipes and need to be locally adapted  Local preferences and perceptions changes overtime - BDS has to be adapted overtime
  14. 14. We acknowledge the support from: the Norwegian Agency for Development Cooperation (Norad), the Australian Department of Foreign Affairs and Trade (DFAT), the European Union (EU), the UK Government, USAID, the International Climate Initiative (IKI) of the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) and the CGIAR Research Program on Forests, Trees and Agroforestry (CRP-FTA) with financial support from the CGIAR Fund. & all research partners and individuals that have contributed to the GCS research Thanks