Overview of payment for ecosystem services in Uganda Telly Eugene Muramira Director Policy Planning and Information

Introduction Developing countries closely linked to natural resource base Endowments of minerals, forests, wetlands, fertile soils, wildlife, biodiversity, lakes, rivers, climate and hydropower Economies are closely linked to ecosystems Ecosystems provide food, fibre, wood, medicines and energy

Also process and store carbon, and water and other nutrients; and assimilate wastes and purify water Also regulate water runoff, control floods, soil degradation

Broad categorisations Provisioning- provide goods including food, fibre, medicines, genetic material Regulating – regulate the human environment through air quality maintenance etc Cultural – non material benefits that enrich the quality of life Supporting – primary production, oxygen etc

Discussion Definition of the concept and scope for Uganda – what are PESs, how are they generated, managed, enhanced etc; Are they broadly the benefits people obtain from ecosystems What does that mean for poverty eradication….can we see money exchange hands??? Do we have examples in Uganda – see matrix

Examples Provisioning functions include wildlife conservation partnerships around multiple zoning for food, medicines, firewood, handicrafts etc Regulatory functions include prototype carbon fund operations (PCF) for projects on emission reductions, joint implementation and CDM and watershed management eg. Ecotrust, West Nile Power,UWA/FACE Cultural and touristic including ecotourism Supporting services especially soil formation and nutrient recycling eg National Organic Agriculture Movement

Why so few examples? New and rather specialised Product development and marketing just beginning Requisite conditions for functional markets absent Lack of definite property rights Lack of market information to link demand to supply High transaction costs

What suggestions Active government support to remove structural problems Create enabling environment for profit/private sector participation by reforming the policy, legal and institutional set-up Increase valuation studies to tell us what we have Link supply and demand-provide market information, reduce transaction costs

Conclusion New potential to reduce poverty Enhance economic growth Demonstrate a clear alliance between government and the private sector While there is some work being done, information mostly restricted to GoU offices (NEMA, ECOTRUST, MET, UIA) Need more outreach, information support etc