1. Propoor Rewards for Environmental Services In Africa (PRESA) Brent Swallow and Thomas Yatich 6 October 2006

6. Definitions and concepts Payments for environmental services”: 1) well defined service, 2) voluntary transaction 3) conditioned on provision of the service or land use likely to produce the service, 4) minimally comprising one buyer and 5) one seller (Wunder). But controversy, question and confusion … … few pure PES schemes in existence, although several PES-like schemes (conditionality as a critical gap) … unclear how to really engage the private sector … transaction costs may bias toward relatively wealthy people, … loss of sovereignty (Ecuador Amazon peoples), … compensation for damage versus rewards for action … little evidence of the CDM working in Africa … targeting payments for efficiency and impact … different types of rewards including monetary, property rights, public services, alternative enterprises … different perspectives on payments / rewards for environmental services

13. PRESA policy activities: 1. Conduct a survey of private and parastatal firms to determine factors motivating and constraining their participation in RES 2. Evaluate the business case for rewards from perspectives of private sector, parastatals and beneficiaries of watershed services. 3. Review and synthesize site-level results for policy. 4. Identify policy factors that constrain the business case for rewards and convene consultations among stakeholders. 5. Present results at international fora.

16. PRESA core sites CARE- Tanzania, TFCG, IIED, WWF and ICRAF Financial payments, input support, and extension services in exchange for improved watershed management; Financial payments, input support and extension services in exchange for carbon sequestration; Restricted access to forest reserve resources in exchange for the protection, restoration and ”co-management” of biodiversity Bundling forest Ecosystem services Uluguru Mountains (Tanzania) WWF-EARPO Ecotrust, Nature Uganda,, ICRAF Financial payments, input support and extension services in exchange for carbon sequestration. Restricted access to forest reserve resources in exchange for the protection, restoration and ”co-management” of Biodiversity and landscape level resources Bundling forest ecosystem services Kasyoha- Kitomi forest landscape (Uganda) Collaborators Possible reward mechanism Environmental Services) in focus Sites

17. PRESA core sites (cont’d) CIFOR, USAID, Local government, Support for tree and forest-based enterprises in exchange for biodiversity and watershed conservation and build rural communities capacity for agricultural production Primate conservation, tree diversity conservation, and watershed protection Conservation of Fouta Djallon highlands (Guinea) Line ministries, KWS, Forest Department, MKEPP-NRM, UNOPS, GEF, Katoomba Group Conditional rewards for adoption of better-farming practices leading to reduced soil erosion, sediments in downstream dams and improved production Regular supply of clean water for urban, domestic, irrigation, hydropower production and downstream uses Mt. Kenya East Catchment (Kenya) Collaborators Possible reward mechanism Environmental Services) in focus Sites

18. PRESA associate sites ASARECA, AHI, Ministries of NR and Tourism, agriculture, Water and TAFORI Support for community and district-level negotiations over NRM, processes for small-scale irrigation; extension support Indigenous tree species; co- Management of protected areas; conditional water, biodiversity, carbon payments. Biodiversity conservation; watershed protection (large drylands in valleys supported by Usambara Mountains) Western Usambara (Tanzania) ICRAF, Unilever, IUCN, NARIs, SNV, TFCG Financial payments for planting and maintaining diverse tree stands on farm Landscape level tree diversity in multi-functional landscapes adjacent to protected areas Allanblackia project sites in Tanzania NCWSC, JKUAT Financial payments, input support, and community forest groups in exchange for restoration of gazetted forests Regular supply of clean water downstream and urban squatter settlements & biodiversity conservation Aberdares NCWSC (Kenya) KARI Carbon offsets through either voluntary or CDM market Land restoration for enhancing soil fertility, restoring watershed function biodiversity and carbon sequestration Lake Victoria Basin Collaborators Possible reward mechanism Environmental Services) in focus

21. Conceptual Foundations 1. Compensation for environmental services – “polluter pays” for damage that they inflict on others 2. Rewards for environmental services – “beneficiary pays” an ecosystem resident who foregoes legitimate uses of the ecosystem or undertakes positive investment in the ecosystem services 3. Markets for ecosystem services also refer to tradeable pollution or tradeable resource use rights 4. The regulatory environment and distribution of rights define the baseline viz rewards and compensation.