1. International Payments for Ecosystem Services A global research initiative sponsored by United Nations Environment Programme (UNEP) International Union for Conservation of Nature (IUCN) in close cooperation with the Secretariat of the Convention on Biological Diversity Dr Wendy Proctor CSIRO Australia

2. CSIRO. International Payments for Ecosystem Services Background What are Payments for Ecosystem Services Why do we need such schemes Examples Going ‘international’ IUCN Photo Library ©Jim Thorsell

3. CSIRO. International Payments for Ecosystem Services The IPES concept 2006 meeting of experts exploring the salient features and challenges - analysing possible options to be presented in a book Basic principals IPES should foster conservation and sustainable use of relevant biodiversity components across the world IPES should ensure financial (self-)sustainability IPES should address the needs of the poor - those who are in the lowest 20 per cent consumption brackets or below survival levels of consumption Ecosystem services focus watersheds and water services generally forests and their carbon sequestration services genetic resources, including the role of associated biodiversity knowledge international existence values for unique ‘charismatic’ species or ecosystems

4. CSIRO. International Payments for Ecosystem Services Challenges CDM – example of an IPES scheme Differences between a carbon emissions and biodiversity conservation based scheme Measurement Emissions are a uniform and homogeneous ‘commodity’ across the world Different ecosystem services across the planet – not a uniform or universal concept However, possibilities exist – Indices, Securitization (discussed later) Scale Carbon emissions – global scale Biodiversity – local scale - Match the scale of the scheme with the motivations and the beneficiaries at that scale Bundling – ‘landscape approach’ Targeting – services with global appeal

5. CSIRO. International Payments for Ecosystem Services Demand - challenges Identify and quantify the product Choice of locations for desired services – best ‘value for money’ Australian BushTender program Improve motivations and interest of beneficiaries by marketing and communicating benefits Business benefits Image benefits Take advantage of carbon market successes Improve the ease of access through institutional arrangements and education

6. CSIRO. International Payments for Ecosystem Services Supply - challenges IPES offers benefits to rural poor: Increased cash income Expanded experience with external business activities, Increased knowledge of sustainable resource use practices Improved resilience of local ecosystems Risks: danger of not involving an entire community from the start trying to implement IPES where it is not appropriate issues of developing countries development rights equitable sharing of responsibilities for conserving the world’s critical ecosystems Success will depend upon: assessing institutional & technical capacity structuring agreements Implementation of IPES agreements support institutions transfer knowledge and expertise

7. CSIRO. International Payments for Ecosystem Services Matching supply and demand Barriers: Lack of clarity on what is being paid for and delivered Lack of quantifiable benefits High transaction costs Lack of appropriate financial mechanisms or processes Will depend upon: Cooperation between international institutions - associated laws, compliance, incentives, monitoring, recognition of different stakeholders’ rights CBD can provide an platform for bringing expertise and different interests together Learning from existing examples e.g. REDD IUCN Photo Library © Philippe Tous

8. CSIRO. International Payments for Ecosystem Services Moving Forward Existing schemes and research provide a good start but much more is needed Issues of scale and measurement Beneficiaries and motivations for suppliers and demanders Institutional and financial arrangements Building on existing schemes Pilot and experimental projects IUCN Photo Library © Jeff McNeely

9. CSIRO. International Payments for Ecosystem Services Moving Forward IPES book structure and contributors: Introduction - Fulai Sheng (UNEP) and Josh Bishop (IUCN) Scaling up PES to the International Level - David Huberman (IUCN) The Demand side of IPES - Wendy Proctor (CSIRO), Anna Lukasiewicz (CSIRO), Sissel Waage (The Katoomba Group), Thomas Köllner (ETHZ) Case study: Public attitudes and preferences towards REDD – Andrea Baranzini (HEG) and David Huberman (IUCN) Case study: Criteria for Guiding Investors at the International level - Stefanie Engel and Tobias Wünscher (ETHZ), The Supply Side of IPES - Alice Ruhweza and Sissel Waage (The Katoomba Group) Matching Supply and Demand: Financial/Institutional Options - Graciela Chichilnisky (Columbia University) Case study: Avoided deforestation as an IPES opportunity - Annah Peterson (Duke University), Louise Gallagher (UNEP), Ivo Mulder (The Dutch National Fund for Rural Areas) and David Huberman (IUCN) The poverty/equity Issues - Anantha Duriappah (UNEP)/Unai (Cambridge) Conclusions – Markus Lehmann (SCBD), Josh Bishop (IUCN) and Fulai Sheng (UNEP)

10. Contact Us Phone: 1300 363 400 or +61 3 9545 2176 Email: enquiries@csiro.au Web: www.csiro.au Thank you Dr. Wendy Proctor Stream Leader, Water Sharing Water for a Healthy Country Flagship Commonwealth Scientific and Industrial Research Organisation Australia Phone: +61 2 6246 5955 Email: wendy.proctor@csiro.au Web: www.csiro.au