FOREST ECOSYSTEM SERVICES E mail: mohitgera87@gmail.com Dr. Mohit Gera, IFS Faculty, IGNFA E mail: mohitgera87@gmail.com

OUTLINE … Goods and services from forests Relevance to NLBI Payment for ecosystem services Case study results from India

GOODS AND SERVICES PROVIDED BY THE FORESTS Timber, fuelwood Pulpwood Food (tubers, flowers, seeds and gums) Non-edible oils Medicines Fibers and flosses Resins Lac Tendu and other leaves Bamboos and canes Fodder Water Services Soil stabilization & erosion control Ground water recharge Regulation of climate by trapping moisture Trees trap PM & improve air quality (human health) Biological diversity Habitat for wildlife Nutrients re-cycling Recreation & tourism Maintenance of visual quality of environment. Carbon sink & sequestration

Relevance to NLBI The national policies and measures of NLBI essentially cover the following: Encourage recognition of the values, particularly the intangible values from forests as well as from Trees outside Forests. Explore ways to reflect such values in market place in line with the national policies and the legislation. (Domestic markets may be more rewarding than the international market; Explore vigorously the domestic markets) 3. Developing effective financing strategies for SFM. 4. Enhanced access to local population to forest resources and relevant markets.

Introduction to payments for environmental services Water services Supply of services: Upstream land uses affect the Quantity, Quality, and Timing of water flows Introduction to payments for environmental services Adopted from Stefano Pagiola & Gunars Platais, 2005

Introduction to payments for environmental services Water services Demand for services: Possible downstream beneficiaries: Domestic water use Irrigated agriculture Fisheries Recreation Introduction to payments for environmental services

The problem Deforestation and use for pasture Conservation Benefits to land users Introduction to payments for environmental services Costs to downstream populations

The logic of payments for environmental services Deforestation and use for pasture Payment Conservation with payment for service Conservation Introduction to payments for environmental services Benefits to land users Costs to downstream populations Important! This logic is repeated every year » Need annual payments » Need sustained financing

What is Payment for Ecosystem Service ? PES is a voluntary transaction where There is a well-defined Ecosystem Service is being 'bought' by a (minimum one) ES buyer from a (minimum one) ES provider if and only if the ES provider secures ES provision (conditionality). The core idea of PES is that external ES beneficiaries make direct, contractual and conditional payments to local landholders for adopting practices that secure ecosystem conservation and ensure uninterrupted flow of ES in question.

BENEFICIARY PAYS PRINCIPLE Examples of ecosystem services in demand Recreational value Air quality improvement (urban demand) Watershed protection (Water, soil conservation) Biodiversity conservation Carbon sinks Need for creation of a system of localized payments for these ecosystem services from forests. This may prove to be a long term & sustainable solution to financing SFM in India.

AVAILABLE LITERATURE ON TCM STUDIES FROM INDIA Valuation of biodiversity in KNP : Rs 427.04/- (average consumer surplus, Chopra et al.) Rs. 194.68 was calculated to be average recreational benefit per visit for VOF National Park (Gera et al., 2003)

CVM STUDIES CONDUCTED IN INDIA WTP for annual Recreational benefits of Bhoj wetland – Rs 241/hh. WTP for Maintenance and preservation of Borivili National Park – Rs 90 per hh. Aggregate benefits to urban literate & employed people when the water quality of river Ganges improves from present to bathing quality – Rs. 500.02 per hh

CVM STUDIES CONDUCTED IN INDIA contd… Valuation of Terai forests of Yamuna sub-basin, 40 districts (Hills, plains & foot hills) for the services of recreation, biodiversity conservation and nutrient cycling etc. Average WTP = Rs. 519.87 per hh/year

CONCLUSION Why should a forest be assigned a value when it is slated to be lost? “Beneficiary pays principle” Payment for Environmental Services may be the key. We should have a mechanism in place for localized payments to ES providers.

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