1. 1 Paola Agostini E-mail: Pagostini@worldbank.orgPagostini@worldbank.org Rome, May 10, 2006 Ghana: SLM/PES – GEF Project (Terrafrica)

2. 2 1986 (January) Landsat Image 2002 (March) Landsat Image 2002: Dark reds = dense tree cover (forest/plantations); greens and yellows = grass; pale-medium blue = bare; dark blue-black = water. Background difference in 1986 mainly a season effect.

3. 3 Much of this expansion is in lands unsuited to it, quickly degraded

4. 4

5. 5 Loss of tree cover (5% estimated )

6. 6 Critical loss of biodiversity and carbon

7. 7 Unsustained landuse

8. 8 Total loss of tree cover & resultant siltation

9. 9 Problems of traditional conventional agriculture production in Ghana Reasons for the depletion Conversion of forest land for cash crops Shifting cultivation Overgrazing Bushfire Unsustainable timber logging Uncontrolled collection of Non-Timber Forest Products (NTFPs)

10. 10 Possible Technologies for better NRM/SLM Riparian Forests Intensive SPS On agricultural land: Mixed tree crop systems (cocoa agroforests – cocoa, fruit, timber) Simple tree crop systems (fruit trees) Field boundary planting (fruit, timber) Woodlots (timber) Soil Management Adjacent to agricultural land: Riparian strips Hedgerows Natural areas Forestland

11. 11 Examples of Land uses with Tree Systems Riparian Forests

12. 12 Examples of Land Uses with Tree Systems Live fences or wind-breaks

13. 13

14. 14 Benefits of Tree Crops Systems and Project Objective Production Conservation Link

15. 15 Benefits of Agroforestry systems On-site benefits: Promote soil fertility Provide shade Provide fodder Provide additional products (timber, fruit, etc) Biodiversity benefits: Host larger number and wider variety of species Help connect remaining natural habitats Carbon benefits: Sequester more carbon in soil and biomass Water benefits: Higher infiltration (but higher evapotranspiration) Improved water filtration Often insufficient to justify adoption Ignored by land users

16. 16 What are Environmental Services? Working Definition: Regulatory functions – upon stocks and flows of matter and energy – of natural ecosystems which help to maintain or improve the environment and quality of life.

17. 17 Example: Hydrologic Services Possible downstream beneficiaries: Water for domestic use Irrigation systems Hydroelectric power generation Fishing Recreation Downstream ecosystems Land uses in upper watersheds affect the quantity, quality, and timing of stream flows.

18. 18 New Principles Payment for Environmental Services from those who Benefit and Payment to those Land Owners whose Natural Capital produces those services. Development of Markets for Environmental Services

19. 19 Payments for environmental services Benefits to land users Costs to downstream populations and global community Conventional System Payment Improved system with PES

20. 20 Impact of PES on profitability Note: 20ha farm in Nicaragua

21. 21 Barriers to adoption of Tree Systems/Agroforestry systems Technological Barriers Capacity/ Institutional Barriers Financial Barriers Policy Barriers Cultural Barriers

22. 22 Project Components 1.Policy formulation and dissemination 2.Sustainable Land Management Extension and Capacity Building 3.Eco-services Fund 4.Monitoring and Evaluation 5.Project Coordination

23. 23 Consultation process 2004 IITA visits LAC project 2005 Jan Thematic Group Grant for Exchange LAC/AFR Feb 2005 Workshop in Accra May 2005 Mission IITA- GoG- WB June 2005 Workshop in Ghana August 2005 – Request from Ministry of Environment Oct 2005 GoN-WB-IITA preparation of Block B Feb 2006 Mission to Ghana- WB-GoG-IITA Submission of Block B to GEF (feb 10, 06)