Project Making public good provision the core business of Natura 2000 Life+ code LIFE11 ENV/IT/000168 Life+ strand Environment Policy & Governance Project leader CURSA Consorzio Universitario per la Ricerca Socioeconomica e per l’Ambiente Project partners WWF Italia EURAC (Accademia Europea di Bolzano) WWF Ricerche e Progetti Parco Nazionale del Pollino Parco Nazionale del Cilento, Vallo di Diano e Alburni Parco Interregionale del Sasso Simone e Simoncello, Regione Sicilia (Dipartimento Regionale Azienda Regionale Foreste Demaniali ) Regione Lombardia ERSAF (Ente per i Servizi all’Agricoltura e alle Foreste della Lombardia) Co-funded by Ministero dell’Ambiente della Tutela del Territorio e del Mare Ministero delle Politiche Alimentari Agricole e Forestali The Life+ making Good Natura project is co-fi nanced by the European Commission through the Life+ programme Texts Enrico Calvo, Bruna Comini, Benedetta Concetti, Davide Marino, Elisa Morri, Riccardo Santolini Cover image © Amonini Images (in order of appearance) Rapella Sotgiu Ferroni Gaglioppa © Martegani © Scieghi Davini Rapella Rapella Lavezzi © Martegani Lavezzi Lavezzi Rapella Giumelli © Martegani Ghidotti B. Davini Ghidotti B. www.lifemgn-serviziecosistemici.eu Through the MGN project Regione Lombardia aimed at exploring the topic of ecosystem services, looking for the best ways to implement it within the regional system and in some Natura 2000 sites, aware that the road from theory to reality is stll long and that a strong role of local stakeholder is crucial. An indirect aknowledgement of the importance of ecosystem services can already be noted in some aspect of regional government strategy such as how it relates to nature conservation and local stakeholders. The regional parks have long been aknowledginfg the farmers essential role as land managers, also promoting specifi c agreements seeking for business activities to cohabit in harmony with natural resources, biodiversity, cultural heritage and landscape conservation. For instance the Regional Ecological Network has been promoted with the intent of creating multifunctional green infrastructures providing several ecosystem services. Furthermore, also on the basis of environmental assessment processes which involve the Regione, it is clear how oftentimes the importance of ecosystem services is underrated in politics decision making, whose main drivers actually appear to be quick profi t and high comfort, posing a risk of excessive ecosystem exploitation which might cause the loss of their ecosystem services, be it in the present time or in the near future. It is crucial to adequately value nature instead within the framework of an “enviromental accounting system” which could help to better protect and improve environmental resources that provide goods and services that actually sustain economical activities. The disregard of environmental systems providing ecosystem services leads to the need for future expenses in order to recreate such services, in a vicious circle that should be avoided.

Claudia Maria Terzi Assessore all’Ambiente, Energia e Sviluppo sostenibile Regione Lombardia

Among the diff erent kinds of capital that are explored through economic analysis (monetary, human, cultural), natural capital is actually our main wealth: ecosystems with their components (soil, air, water, plants and wildlife) and all their functions, which allow for life on Earth to be possible and of which people and corporations benefi t. We call these ecosystem services. Ecosystem services fl ows from highly natural areas such as Natura 2000 sites (242 in Lombardy) are therefore crucial to the wellbeing of the whole region. The LIFE+ MGN project involved nine Natura 2000 sites in the Lombardy Forests Corni di Canzo, Gardesana Occidentale, Val Grigna, Val Masino. Priority ecosystem services for each of these areas have been selected and assessed, and through an ongoing stakeholders consultation the possibility for implementing Payment for Ecosystem Services (PES) to remunerate those managing the sites has been explored . ERSAF, through its certifi ed sustainable managing strategy, keeps the areas in conditions that are ideal for them to keep providing those thervices to everybody, through agreements with those benefi ting from those ecosystem services. The project is among the fi rst of its kind in Italy and in Europe; ERSAF is a local government body active in research eff orts, in governance-based management of Natura 2000 sites, in exploring innovative self fi nancing tools for protected areas, coherently with the directions provided by the EU 2020 biodiversity strategy.

Elisabetta Parravicini Presidente ERSAF

1 2 The MGN life project

One of the goals of the European Biodiversity (TEEB, UK National Ecosystem Assessment, Strategy is to preserve and value ecosystems and IEEP, etc.) to locally implementing theories for a their services through green infrastructure and higher management environmental and budgetary restoring at least 15% of degraded ecosystems eff ectiveness. MGN involved 21 Italian agricultu- and improve agriculture and forestry contribution ral and forestry sites belonging to the Natura to biodiversity conservation and strengthening. 2000 Network spread across 7 administrative The 4 years long LIFE+ Making Good Natura - regions (Basilicata, Campania, Calabria, Emi- Making public Good provision the core business lia Romagna, Lombardia, Marche, Sicilia) and of Natura 2000 (LIFE11 ENV/IT/000168), born on 3 biogeographical regions (Mediterranean, conti- these premises within the “Environmental politi- nental and alpine). 12 of those pilot sites belong to cs and governance” area of the European LIFE the Lombardy region, where Regione Lombardia Programme, aims at improving Europe strategies and ERSAF have taken on the task of the project through new methodologies, tools, ideas and te- methodologies implementation. Other local par- chnologies. The project innovative character is tners, holding a coordination and/or direct pilot clear looking at its three main goals: development sites management are Ente Parco Nazionale of methodologies to identify, analyze and assess del Cilento Vallo di Diano e Alburni, Dipartimento ecosystem services provided by Natura 2000 Regionale Azienda Regionale Foreste Demania- sites; development of governance models for a li della Regione Sicilia, Ente Parco Nazionale del more effi cient management through payments Pollino and Ente Parco Interregionale del Sasso for ecosystem services and self fi nancing sche- Simone e Simoncello. mes-, local communities and stakeholders invol- After a fi rst stage studying the biophysical and vement in order to raise awareness on the strong socio-economical context of pilot sites and link between ecosystem services and human well their surrounding areas, the MGN project, thou- being. gh a fi eld -work validating stage involving the main The Natura 2000 network, established on the ba- local stakeholders, identifi ed the main ecosystem sis of the 92/43/CEE Habitat Directive, is EU’s po- services for each site and related them to the exi- litics’ main instrument for threatened or rare com- ting habitats, land cover and management autho- munity animal and plant species conservation. It rities feedback. encompasses Community Interest Sites (SCIs) One of MGN goals is surely to give more so- and Special Protection Areas (SPAs), established cial exposure to the value of natural capital and on the basis of the 79/409/CEE Birds Directive of ecosystem services provided by Natura 2000 (later replaced by the 09/147 CE Directive). An- sites, creating a knowledge basis opening the swering to clause 8 of the Habitat Directive, which road to more focused and budgetary eff ective focus on the Network fi nancing needs, the MGN solutions. Therefore MGN developed new envi- project sought to create the conditions for eff ecti- ronmental governance paths supporting mana- ve habitat and plant and animal species manage- ging authorities of pilots sites, especially through ment of the basis of the MEVAP (Protected Areas the defi nition and implementation of Payment for Assessment Methodology)methodology, in order Ecosystem Services (PES). PES are incentives to comply to conservation goals through an ef- and market-based tools aiming at translating en- fective use of monetary resources, minimizing mi- vironmental values into actual fi nancial incentives suse. for local actors to promote and support the main- To support innovative Natura 2000 Network ma- tenance of natural capital and biodiversity many nagement tools and to help each Natura 2000 ecological functions through voluntary certifi ca- Network site management body reaching en- tions, good practices and environmental aware- vironmental and budgetary eff ectiveness, MGN ness raising activities. developed several methodologies for both quali- tative and quantitative ecosystem service asses- I PROCESSI PARTECIPATIVI DI MGN 3 sment, moving from a research and policy stage Un altro aspetto centrale nell’approccio del proget- MGN PARTECIPATORY PROCESSES Another crucial point of the MGN project approach is acknowledging the essential role of stakeholders and of local communities living within or nearby Natura 2000 sites. It is indeed mandatory to set up participatory processes both during the ecosystem services assessment and the new governance schemes (such as PES) drafting stages for an eff ective management of Na- tura 2000 network. During its course MGN identifi ed 2 main stakeholders categories: the fi rst one is linked to research and government institutions gathered in the “Comitato di Pilotaggio”; the second one encompasses all pilot sites local stakeholders, playing a key role at many project stages, from ecosystem services assessment to governance models demonstration and implementation. As for the fi rst instance the project involved key strategic representatives from both agriculture and forestry associations (Coldiretti, CIA, Confagricol- tura, Federbio, AIAB, Federparchi, ISMEA, CREA) and from those gover- nance institution infl uencing politics decision making at diff erent levels (Con- ferenza delle Regioni e delle Province Autonome, UNCEM, UNIONCAMERE) and the two co-fi nancing Environment and Agriculture Ministeries, the Mi- nistero dell’Ambiente della Tutela del Territorio e del Mare and the Ministe- ro delle Politiche Agricole Alimentari e Forestali. This scientifi c-institutional community, gathered in the Comitato di Pilotaggio, provided useful remarks which helped to better focus the project activities and for the project to be constantly updated on laws, policies, plans and strategies it could face. Among the stakeholders of the second kind are farmers, foresters, the tou- rism industry, associations, local government bodies, local institutions such as consorzi di bonifi ca and comunità montane, private citizens – basically every member of the local communities. In order to develop governance models based on ecosystem services assessment and on the creation of innova- tive fi nancing schemes such as PES, it is essential to understand and analyze the wide range of stakeholders and their interest on a regional but also on a site scale. Local communities are actually the most eff ective and effi cient tool to strengthen in the long run the management of Natura 2000 Network and of all environmental resources. It is mandatory to understand the ideal conditions for them to express more willingness to “take care” of their habitat and to develop specifi c innovative economic and social initiatives in order to support adequate levels of life quality and of control both of resources and of local dynamics.

4 NATURA 2000 sites location in the Lombardy region What are ecosystem services?

The interaction of non-living components (water, On the contrary, keeping a variety of functions air, soil) helped by sunlight, create the conditions translates to a higher adaptability to change, e.g., (e.g. landscape, climate) which might or might climate change, reduced vulnerability, better resi- not be suitable to animal and plant species, that lience and environmental quality, for all the beings is all those living beings spread across the ground that benefi t from those functions, humans inclu- and waters according to their adapting skills. ded. Clean water and air, lack of soil erosion, su- Therefore an ecosystem is a complex entity stainable activities (e.g. agriculture) contributing which consists of diff erent elements (both to preserve the environment itself, should be the abiotic and biotic) which interact generating goals, both from a quality of life point of view and functions linked to the ecosystem (emerging from energy and monetary savings one. properties) originated from the integration of each element. The Millennium Ecosystem Assessment (MEA, If we were to look at a hand like it was an ecosy- 2005), a study on these topics started in 2001, stem and analyze its components we would no- backed by UN, which cost 24 millions of dollars, tice how it consists of cells belonging to diff erent stated that every ecosystem can develop ecosy- systems/apparatus (skeletal, muscular, vascular, stem functions of use to humans (ES Ecosystem nervous etc.) just like an ecosystem consists of Services) and that their availability is essential to (animal and plant) species living on the ground, mankind well-being and contributes to poverty in the air and in the water which interact for the reduction. However in the last 50 years humans ecosystem to work, just like with our hand. As have modifi ed ecosystems with never seen befo- nerve cells have functions of their own like growth, re speed and force. The main drivers have been diff erentiation, cellular division, cellular death and the growing need for food, drinking water, wood, some specifi c ones such as excitability and con- textiles and energy. This impact is leading to irre- ductivity, the specimens belonging to a plant versible biodiversity losses all over the planet. It species for instance photosynthesize, grow, eat, has been assessed that 60% of ecosystem ser- breathe. Looking at these phenomena from afar, vices have been compromised due to the degra- zooming out, we could see how cells belonging dation of natural resources, highlighting how the to diff erent apparatus interact and allow for the consequences of this state of things are going to hand to work, just like the diff erent species living increase steadily in the next 50 years. in a forest, together, retain soil, purify water, store CO2, release oxygen, allowing for the ecosystem to work. Adjusting zooming scale it is possible to look at diff erent levels of complexity and at dif- ferent functions carried out by diff erent elements and components. It is crucial to be aware of this when operating on an ecosystem: what is the working scale, what interactions might there be among the diff erent scale levels etc. It helps avoi- ding actions which might be eff ective merely on a Ecosystem Services: “The multiple benefits local scale, oftentimes useless or even damaging that ecosystems provide to the human kind” (MA, (and moreover a waste of public money), just like 2005). The publishing of the Millennium Ecosystem putting a band-aid on a pimple that is the sign of Assessment (MA, 20005) brought the topic to the a much more severe disease! attention of the international political agenda. In Italy it has been introduced and discussed within the framework of the Collegato Ambientale alla Legge di Stabilità 2015. 221/2015 law 5 More recent studies show that: Economical growth which disregard the link to the natural environment might be unsustainable - 11% of natural areas on Earth as of 2020 could in the long period, while also missing on quality be lost as soon as 2050; and therefore value.

- almost 40% of agricultural land is at risk of This idea brings up the need to develop ecolo- being turned into intensive agriculture fi elds; gical functions assessments not just on a quali- tative and quantitative basis but also on a mo- - 60% of coral reefs could disappear by 2030; netary one in order to build uo and be aware of the value of natural capital. The fi rst point to - 80% of protected habitats in Europe is at risk; consider is therefore ES categories. These are goods and services spontaneously provided - human activities has increased species extin- by every ecosystem: goods, like food, water, ction rates 50-1.000 folds in the last century. raw materials (e.g. fuel, wood) and functions and processes, some of which have a glo- bal impact (such as climate regulation) while other play more of a local role (air purifi ca- tions, natural hazard prevention etc). Any change in ecosystems leads to a change in their functions and often a steady loss of those functions. Four diff erent categories of ES have been identifi ed (De Groot et al., 2002; Millennium Ecosystem Assessment, 2005) on the ground of their diff erent impact, all of which are essential to human wellbeing and health, with the fi rst two also needed to keep the ecosystem itself and therefore a prerequisite for the provision of ES belonging to other categories:

- Regulating functions: they keep ecosystems heath and functions, while also collecting many other services of both direct and indirect bene- fi t to humans linked to processes and events control or mitigation (e.g. climate regulations, water cycle, minerals and energy transfers though food chains etc.):

- Supporting functions: availability of environ- ment and conditions suitable for the life of all the animal and plant species which originate every ecosystem function e.g. soil formation, photosynthesis, food cycle essential for growth and production;

- Provision functions: related to availability and provisioning of resources originated from natu- ral and semi-natural ecosystems such as food, water, oxygen, wood and textiles, etc; Natural Capital therefore becomes the basis of economical activities and of human wellbeing and - Cultural functions: natural ecosystems provi- is strongly dependant on the environmental con- de an important “consultancy function” contri- text, of which water (with regards to both quality buting to the upkeep of human health thanks to and quantity) is a crucial component, even more the provision of opportunities for thought, spiri- so due to it being a scarce (2% drinking water) tual growth, cognitive development, recreation a fi nite resource. This awareness stems from and aesthetic enjoyment. the interaction of two key aspects that should also be the ultimate goals: human wellbeing and ecosystem wellbeing with the quality of its ser- vices. Human well-being generates from a ba- 6 lance between individual and social well-being. It is undeniable how ecosystems’ support is cru- planning and decision making. It is a new way to cial to quality of life, both of the environment and think on local governance promoting new dyna- of its inhabitants thanks to their resources and mics between producers and consumers (see functions. Whenever humans develop a need D.M. n. 39/2015). for the latter, it is mandatory to assess their va- lue using the right comparison methodologies, Healthy ecosystems might therefore off er a very even if nobody might actually make use of them. important input, as their services, which oftenti- Awareness of natural capital value, which transla- mes encompass non-replaceable resources and tes into environmental quality and well-being, will process of which humans take advantage for lead to increased taking on of responsibility and free, have a large monetary value, still ignored by commitment in common goods conservation and traditional markets. in their use for the common good and not against It is becoming therefore increasingly more clear it for crude “market-reason”. how the ES concept should be taken into consi- Ecosystem functions, that is the ability of natu- deration in decision making processes, in order ral processes and components to provide goods for local authorities to control the forces threa- and services which directly or indirectly meet hu- man needs and make life on the planet possible for all the species, have community value as they provide local communities direct or indirect irre- placeable benefi ts of common interest. Therefore holding on a rich ecosystem services set actually equals to a much higher individual wealth of resources and natural capital and to environments reduced vulnerability and better health and resilience, that makes for a quicker re- covery skills from potential impacts such as natu- ral hazards, with clear public money savings and better chances for long-lasting well-being. tening ecosystems and their functions, improve Securing and protecting ecosystems functions their effi ciency and build up a governance model and processes warrants advantages for the who- based on new tools such as Payment for Ecosy- le society such as cleaner air and water, less stem Services (PES), to which the new 221/2015 pollution, more regular water fl ows and therefo- law refers to as Payment for Environmental and re reduced chances for streams to overfl ow, im- Ecosystem Services (PSEA). proved slopes stability which lessens the risk for landslides, landscapes which are richer in biodi- versity, cheaper drinking water purifi cation, and ultimately better coping and adapting skills to climate change. . The implementation of the ES approach star- ts from the process of the acknowledgment of the monetary value of ecosystem ecological fun- ctions provided by the environment. Once the functions have been identifi ed, it is necessary to locate the areas providing them and the individual or collective activities (e.g. agriculture) keeping and/or improving them. Finally the benefi ciaries of these functions have to be picked out, imple- menting ways to acknowledge them on a mone- tary, tax and environmental level in order for the monetary fl ow they generate to fall back on those areas providing the resources, in order for them to keep and boost them according to a circular economy model and new local government bo- dies accounting and budgeting models. This approach intend to be not just cultural but actually hands-on, and should be integrated into 7 8 Opportunities and threats of a new economy

During the 2012 Rio+20 conference it has been effi cient resources allocation leading to more highlighted how the transition to the so-called awareness in decision making and planning. “Green Economy” has to look at the protection Nevertheless this economical valuation is not and restoration of natural capital as the basis an immediate process as ecosystem services for every sustainable development project. belong to the public goods category, that is the The protection of ecosystem services (ES) use of them by one person does not limit the fl ows provided by Natural Capital is the pre- possibility for another to use them himself, no- requisite for local social and economical well- body can be excluded from taking part in them, being. Disregarding ecosystem services means and the lack of a reference market poses major increasing the opportunity costs for industries diffi culties to their valuation. and reducing well-being of present and future society; a EU fi nanced study assessed yearly well-being losses (linked to biodiversity loss) of approx. 50 billion euro from 2000 to 2010 and CASE STUDIES WORLDWIDE foresees that by 2050 the opportunity costs lin- ked to losses in ecosystem services fl ows will In the case study of Natura 2000 site Pico da Vara/Ri- beira do Guilherme in Azores (Portugal) for instance the be 14 billion of euro per year. socio-economical benefi ts linked to a complete set of Right from Costanza’s studies to 2005 Millen- ecosystem services (provision, regulation and cultural) have been identifi ed and valuated. In Ireland the value of nium Ecosystem Assessment (MEA) and 2008 benefi ts specifi cally linked to cultural and tourism activities The Economics of Ecosystems and Biodiver- in Burren National Park has been valued at more than 15 sity (TEEB) the importance of biophysical as- million euro through surveys exploring users’ WTP (Willin- sessments and monetary valuations has been gness to Pay). In Poland several studies have assessed highlighted, in order to assess on one hand the the value of benefi ts originating from Natura 2000 sites environmental costs linked to the exploitation ‘ecosystem services, such as the one in Bialowieza Fo- of natural capital, on the other the benefi ts for rest, whose yearly tourism-linked and provisioning (ho- human well-being. ney, game, mushrooms, berries etc) services’ value has been calculated to be of approx. 700.000 euro. In the From ecosystem services fl ows a whole range Netherlands the value of two Natura 2000 sites has been of economical and social benefi ts stem, con- appraised taking into account three diff erent ecosystem tributing to populations well-being and furthe- services: recreational water activities, sailing and fi shing ring their quality of life. For instance in the world activities within the site: the value of the aforementioned drinking water quality and supply levels in many activities has been assessed at approx. 91 million euro per year. major cities is closely related to the state of fo- rests in protected areas nearby; as an exam- ple, in New York savings for drinking water tre- atment costs have been assessed in at least 6 Many research eff orts approach the topic of billion dollars in the long run. biodiversity and its ecosystem services valua- According to part of the scientifi c communi- tion, and consequently of the costs linked to ty and to some politicians giving a monetary their loss. Several studies have been carried value to ecosystem service allows for a bet- out seeking valuation of benefi ts stemming ter environmental governance and for a more from Natura 2000 sites conservation in diff e- rent European countries, even though the avai- According to TEEB analysis, if ecosystem services are lable data are still lackluster both on a regional not going to be protected and sensibly managed, by and national scale. 2050 we will face 19 billion dollars of economic losses 9 due to their impoverishment, an impact equivalent to 10% of the world economy yearly GDP. The experiences gathered so far indicate that actually damaging local communities and the ecosystem services assessment if oftenti- environment itself. mes hindered by the low quality and quan- tity of available information; nevertheless it Actually, as many PES experiences from all is a crucial step in order to integrate ecological around the world show, monetary valuation of and economical point of views in environmental benefi ts generated from ecosystem services management and local planning. of the assessment of the WTP for biodiversi- ty conservation are not always such a relevant Valuation appears to be a critical stage for the element in a PES defi nition and implementa- creation of specifi c strategies taking into ac- tion. count the actual biodiversity and natural ecosy- stem value while aiming at sustainable deve- lopment.

Assessing the monetary value can be a useful resource to decision makers from several point of view: - it allows for the introduction of environmental issues in cost-benefi ts analysis generally used while evaluating alternatives, or just off ering a starting point for discussion and debate on the matter with diff erent stakeholders; - it can guide the planning implementation actions setting environmental damage compensation levels or through the appraisal of ecosystem services benefi ciaries WTP; - providing information that can be used to raise awareness on the importance of Natural Capi- tal conservation and of ecosystem services for human beings livelihood and well-being, also supporting decision makers (politicians, busi- nessmans) in their strategical choices.

Since ES provisioning and management often This is true, for instance, for PES in which the take place in a complex setting, with many dif- payment seeks to avoid or reduce negative ex- ferent levels and multiple stakeholders involved ternalities such as water pollution: the compen- it is necessary along with monetary valuation, sation to the service provider in this instance to face governance issues. As the LIFE+ MGN will equal its opportunity cost. In some cases project experience showed introducing innova- monetary valuation can be useful anyway espe- tive approaches based on PES/PES-like sche- cially in order to involve diff erent partners in the mes can contribute to a reduction in transition scheme, to get a better understanding not just costs and in bureaucracy, while also complying of the benefi ts provided by the ecosystem, but to environmental conservation goals (public also of PES transition costs and enhance its sector) and improving industries competitive- social and economical sustainability. ness (private sector) through ES promotion. It is anyway crucial fi rst and foremost to quan- The ever growing interest in PES is strongly tify ecosystem services or biodiversity conser- linked to the concept of Ecosystem Services. vation goals rather than work on the monetary To this extent, the main objections to PES fo- valuation of the benefi ts provided by ecosy- cus on the topic of “nature” monetary valua- stems, in order to be able at a later stage to tion, which is seen as an ambiguous precedent check through monitoring activities, the achie- to its fi nal commodifi cation. The creation of a vement of the original goals. biodiversity and ecosystem services market is regarded as just another business opportuni- 10 ty for the economics and fi nancial world, and PES, a voluntary agreement

The world relates to ecosystem services accor- they have access to safe water, clean air and ding to three main behavior patterns: conside- healthy food. The latter are taken for granted, ring the environment to be valueless; attributing but actually the main problem of contemporary some sort of value to ecosystem services but post-industrial society is that they are not. The not thinking of them as scarce, rare or endan- goal of the monetary valuations PES are based gered; thinking of nature conservation as a bar- upon therefore is not to give a price in order to rier to our well-being. privatize and market the service, but rather they try to off er one more weapon to environmental The measuring unit for everything is money, To protection eff orts, off ering a chance to refl ect make it easier for the economics community to on the value of ecosystems that human kind understand environmental issues, the science exploits every single day to support itself. They community tries to speak the same language, also seek to identify resources for the environ- through monetary valuation of ecosystem ser- ment to be sustainably managed, that is for vices. Well-being perception is indeed generally it to be enhanced through activities aiming at linked to the economy, putting the environment fully developing its socio-economical potential in a corner as if it was a pleasant but not ne- gathering resources that are going to be used cessary thing. Ironically, people are usually hap- to improve its ecosystem services provisioning. pier because they own a nice car, a new dress, an expensive piece of jewellery than because

WHAT PAYMENT FOR ECOSYSTEM SERVICES (PES) ARE The most widely accepted defi nition of Payment for Ecosystem Services was provided by Sven Wunder and it is rooted in 5 key points. He explains that “A Payment for ecosystem Services scheme is 1. A voluntary transaction in which 2. a defi ned ecosystem service (ES), or a soil use that allows for the provision of that service to be guaranteed in the long run 3. is bought by at least one ES buyer 4. from at least one ES provider 5. if and only if the ES provider guarantees its provision (conditionality)”. PES are born with the intent of remunerating goods and services off ered by ecosystems in order for the ensuing resources to be put through the implementation of activities managing and im- proving those same ecosystems, benefi ting the whole community. Basically owners or managers are paid by ecosystem services users or benefi ciaries to provide certain ecosystem services, or to keep up a specifi c ecosystem management strategy genera- ting those ecosystem services. In the last decade, PES have been quickly spreading out worldwide. The way they work is basi- cally a new fi nancing tool intending to protect ecosystem services providing monetary incentives for land managers who choose land uses or management practices aimed at the protection of ecosystem services. Unlike conventional fi nancing instruments, like state subsidies which are fuelled by taxpayers money, PES are directly and voluntarily fi nanced by the benefi ciaries of that same ecosystem service that the PES aims at maintaining.

11 WHY PAY FOR ECOSYSTEM SERVICES? It is becoming increasingly clear how natural capital impoverishment is a cost. It is therefore crucial to acknowledge the importance, the role and the functions carried out by healthy ecosystems in supporting life on the planet, including their value in private transactions. The innovation brought up by PES resides in society›s acknowledgment of ecosystems› role and of the importance of maintaining their functions, also using market-based instruments. PES are therefore one of the available tools to operate sustainably on our planet, allowing for a ever increasing acknowledgment of the role of Ecosystem Services in decision making processes aiming at securing natural resources conservation, human well-being and economic fl ourishing.

PES KEY FEATURES: 1. Result-oriented: PES strongly focus on reaching actual environmental goals; 2. Voluntary: they support cultural and behavioral changes in a non-coercive, potentially participate and fair way; 3. Flexible: PES originate from negotiation, and are designed to adapt to the distinctive features of each context; 4. Conditional: monitoring and sanctioning protocols are usually set up in order to secure the actual providers commitment to actions leading to the service provision, and regular payments from the buyers; 5. Synergic: oftentimes public and private stakeholders are involved at once in the processes in order to maximize the services provision in each specifi c context, to raise new funding resources from the private sector in order to infl uence public fi nancing and reach better environmental goals, while at the same time creating major incentives opportunities for rural areas economy, boosting employ- ment rates and creating new opportunities for recreation and tourism.

GLI ATTORI COINVOLTI NELLA DEFINIZIONE DI PES: 1. Ecosystem services providers: land or resources managers, project areas land owners whose actions might secure the production of the useful service: 2. Consumers/benefi ciaries: companies or local instiutions sctiong on the behalf of individuals and communities: 3. Intermediaries: mediators with a strong track record in resources and land management who might help in designing and implementing agreements aimed at promoting ecosystem services while faci- litating the development f the payment and management scheme

Contribution to action aimed at protecting and restoring the ecosystem service Contacts

ECOSYSTEM ECOSYSTEM SERVICE Mediator SERVICE PROVIDER BENEFICIARY Contacts

Ecosystem service steady provision 12 PES – Italy and worldwide

PES bring ecosystem services into a mar- an interest in it may negotiate directly the price ket context leading those benefi ting from an of ecosystem services without any mandatory ecosystem service (buyers) pay the service involvement of the public sector, for instance provider (seller) to secure its constant or impro- associating in private groups, but PES are mo- ved provision. Public instruments supporting stly promoted by public institutions starting services can therefore also be backed up by mutually benefi cial public-private partnerships. private partnerships. PES schemes are getting Governments involvement is actually instru- increasingly more popular worldwide as a way mental in securing for PES goals not to be pol- to control environmental services loss and de- luted by confl icting agendas and raising new gradation. funding e.g. promoting applications to call for tenders etc. They diff er in scale, from small local initiatives to global international agreements. Also the In order for payment for ecosystem services number and legal status of buyers, ecosystem to become more widespread, higher level s of services providers and mediators may vary awareness in government representatives, lan- (e.g. private landowners, communities, corpo- downers and corporations are needed. In order rations, NGOs, government bodies). The range to get it involvement and information activities of ecosystem services and land uses features based on actual results of good practices alre- is quite wide too, just like the systems deve- ady running in Italy and in Europe are needed, loped to gather funds from buyers and share as well as clear and agreed-upon guidelines them among providers. The sum owed to ser- supporting PES planning and implementation. vices providers can be set through negotia- PES are still quite rare in Europe. Most of the tions between buyers and sellers (as usually more famous and well-documented examples happens for small-scale PES) or by the go- are linked to biodiversity conservation and wa- vernment/mediating intermediary public body ter bodies management. (typically for large-scale schemes, directed by governments). Local private stakeholders with

One of the fi rst realized PES cases is the agreement signed by New York City water supply pu- blic company and the owners of forests of the catch basin. According to that agreement landow- ners committed to manage their forests following a specifi c forest management plan compatible with a constant water downstream fl ow of consistent quantity and quality over time. Compensa- tion for the conservation of the ecosystem service (drinking water) provided to the city population by forest managers is paid through an additional charge in the water bill, paid by end users. The program implementation allowed to save 6-9 billion dollars which would otherwise have been ne- eded in order to build purifi cation plants, an expense that taxpayers would have incurred in, while securing a constant yearly income to forests landowners.

13 Vittel (French bottled water company owned by Nestlé Waters) has avoided the risk of nitrate water contamination linked to intensive farming in north-east France funding farmers of the catchment ba- sin willing to change their farming practices and technologies . A ten years long negotiation process was needed in order for a confl ict to turn into a successful synergy, proving how a PES implemen- tation actually is quite a complex endeavor, surely requiring scientifi c knowledge but fi rst and fore- most an in-depth knowledge of stakeholders social, economical, politic and institutional dynamics. In this instance a big success factor was Nestlé ability to guarantee a steady income to farmers and to fund the machinery updates they needed to comply, but actually the main success reasons were not of a monetary kind. Essential conditions for success were the creation of trust through the set up of a mediation body (local and guided by a representative notoriously partial to the farmers’ cause); the development for long-term participatory process to identify alternative farming practices and a mutually satisfying incentives set; the ability to link those incentives to land use and to the hardships linked to debt and to replace old technical and social support systems with brand new ones. It is not always possible to assess a PES’ costs and benefi ts. Not all information are publicly accessible, and oftentimes costs can’t be split up in order to identify those specifi cally linked to the PES. Vittel experience could be transferred in areas where it isn’t possible to buy land and set it away for conservation purposes, and where local stakeholder are already well aware of the link between ecosystem conservation and agricultural practices. It isn’t hard to fi nd such conditions in developed countries, and the same approach could be adopted in developing countries with solid contract laws as well. In time the Vittel PES could possibly need to be integrated with other tools in order to compensate urban pollution no coming from specifi c sources. The case study shows how private actors involvement in water resources PES could actually be really eff ective, as long as it is avoided any risk of a de facto privatization of those resources.

In Italy Gaudianello, which entered the Norda group in 2010, launched “Ninfa”, a drinking water brand bottled by the Vulture (1326 m) mountain, a ancient inactive volcano in the Basilicata region, Potenza province, which fl ows in a forests-rich environment, far away from any human settling. In order to protect the catchment basin integrity the company which manages the spring, supports and funds local farmers who chose to switch to organic farming practices certifi ed by Icea (Institute for ethical and environmental certifi cation). Laws are in place in order to back up this strategy (reg. CCE 209/91).

PES have to be carefully designed in order for to reap all their potential benefi ts, taking into conside- ration the socio-economical, ecological, law and government context of the target area – they need to be fl exible, specifi c and associated with adequate monitoring and sanctioning systems, since oftentimes the lack of regular checks leads to payments elusion. Among the main lessons learned from PES pilot studies carried out so far, one is to focus on areas where PES could really make a diff erence, looking for environmentally weak area, where it is most needed to develop incentive sy- stems to natural resources management (e.g. landslides areas) or areas especially rich in resources a PES could devised for (e.g. forests rich in non-wood products such as mushrooms, truffl es, etc.).

14 PES in the Lombardy region tests in Natura 2000 sites

Regione Lombardia 01 - ZPS IT2040401 Parco Regionale Orobie Valtellinesi 02 - ZPS IT20A0402 Riserva Regionale Lanca di Gerole 03 - ZPS IT20B0501 Viadana, Portiolo, San Benedetto Po e Ostiglia «¬9 ERSAF 10 04 - ZPS IT2020301 Triangolo Lariano «¬ «¬11 05 - SIC IT2020002 Sasso Malascarpa 06 - SIC IT2070022 Corno della Marogna 07 - SIC IT2070021 Valvestino 08 - ZPS IT2070303 Val Grigna «¬1 09 - ZPS IT2040601 Bagni di Masino, Pizzo Badile, Val di Mello, Val «¬6 «¬4 «¬7 Torrone, Piano di Preda «¬5 «¬8 Rossa 10 - SIC IT2040019 Bagni di Masino e Pizzo «¬12 Badile 11 - SIC IT2040020 Val di Mello, Piano di Preda Rossa 12 - ZPS IT2070402 Alto Garda Bresciano

«¬2 «¬3

Regione Sicilia 13 - SIC ITA020007 Boschi Ficuzza e Cappelliere, Vallone Cerasa, Castagneti Mezzojuso 14 - SIC ITA020008 Rocca Busambra e Rocche di Rao 15 - SIC ITA060006 Monte Sambughetti - Monte Campanito

Parco Nazionale del Cilento e Vallo di Diano e Alburni 16 - SIC/ZPS IT8050055 Monti Alburni 17 - SIC IT8050025 Monte della Stella 18 - SIC IT8050006 Balze di Teggiano

Parco Nazionale del Pollino 19 - SIC IT9310014 Fagosa - Timpa dell’Orso 20 - SIC IT9310008 La Petrosa

Parco Naturale del Sasso Simone e Simoncello 15 21 - ZPS IT4090006 Versanti occidentali del Monte Carpegna, Torrente Messa, Poggio di Miratoio The Corni di Canzo Lombardy Forest cover an area of 450,27 Ha in the Comunità Montana Triangolo La- riano (CO), in the Canzo municipality, with a small section also in the Valbrona municipality. It encompasses the vast Ravella creek (a Lambro river tributary) high valley and its boundaries are the Corni di Canzo lime- stone range (north) and the Sasso Malascarpa – Monte Cornizzolo ridge (south). Altitude ranges from 550 m (Ravella valley) to 1372 m (Corno Occidentale peak). Visitors can enjoy the typical Lombardy limestone Prealps, which features spontaneous broad-leaved species forests (hop hornbeam, ash, sycamore, lime trees, beech) and artifi cial conifers reforestation, evidence from 1950 forestry practices (Norway spruce, Bhutan pine, European larch) and also the breathtaking rock faces of Tre Corni, of Cepp de l’Angua and of Sasso Malascarpa. Around the ancient rural hamlets of Prim’Alpe (entrusted to environmental education activities) and Terz’Alpe (state-owned, the facility is leased to agri-tourism activities) vast grass fi eld of major importance have been preserved. One landmark of utmost importance is the Sasso Malascarpa Nature Reserve, SCI IT2020002 Sasso Malascarpa, half of which (223,85 Ha) is state owned: many elements of naturalistic interest can be found there such as: the Sasso Malascarpa itself, rich in Conchodon fossils; the “campi solcati” (“lined fi elds”) and the “sorgenti pietrifi canti” (“rocky springs”); furthermore many studies on the local fl ora and bat fauna have been carried out. The SCI overlaps with a section (440,11 Ha) of the SPA IT2020302 Triangolo Lariano. The forest has a high recreational value (100.000 yearly visitors) thanks to a well developed paths network, managed by ERSAF in partnership with Canzo’s CAI (Italian alpinism association). Noteworthy are the Sentiero Geologico Basso (Low Geological Path), one of the most popular hiking destination in the Lombardy region, and the more recent Sentiero Geologico Alto.

The Gardesana Occidentale Lombardy Forest covers an area of approx. 11.058 Ha, making it the biggest state-owned forest in Lombardy. It is located by the north-western side of the Garda Lake, in the eastern part of the Lombardy Prealps. Most of it is located within the Comunità Montana Parco Alto Garda Brescia- no and it partially includes the Sites of Community Interest Valvestino, SCI IT2070021, (3876,55 Ha) and Corno della Marogna, SCI IT2070022, (2563,70 ha), and about half of the SPA IT2070402 Alto Garda Bresciano (9963,95 Ha). Most of the forest lays at over 600 m altitude, with a lowest point at 400 m and a highest at1976 m (Caplone mountain). The landscape is unique, with breathtaking views of the lake as well as of forest slopes and rock faces. In the broad-leaved, conifers and mixed woods Austrian pine, European ash, manna ash, oak, beech, Scots pine, norway spruce and Bhutan pine can be spotted. Relevant en- demisms can be found on rock faces. Among the most relevant mountain fauna species, chamois, alpine ibex, many red deer and roe deer live there. Eagles and black grouses nest there along with many other rare bird species. Many historical and cultural sites are located in the forest as well, where one can learn about the now forgot lifestyles of mountains communities (the Segheria, sawmill, and the barns in Rest) and about WW1 events by the Italy-Austria old border (trenches, boundary stones, customs facilities, barracks). In 2002 in Tignale a Visitors’ Centre opened, off ering tourists the chance to learn more about a wide and diverse area, which can also be hiked thanks to a vast paths network that covers an area of a fi erce and at 16 times still wild natural beauty. The Val Grigna Lombardy Forest covers an area of approx. 2.847,50 Ha, in the municipalities of Berzo Inferiore, Bienno, Bovegno, Esine, Gianico, sitting at an altitude ranging from 1000 m to 2207 m (Crestoso Mountain). The SPA IT2070303 Val Grigna overlaps with the area. The landscape is that of the middle and high mountain, with forest slopes and vast meadows taken up by ten alpine farms. Noteworthy is the Rosello di Mezzo pasture, where a Fauna Studies Centre has been opened in Sept 2003, thanks to a par- tnership between ERSAF and the Brescia’s Province Hunting and Fishing department. Among elements of cultural and historical interest a roman bridge and ancient copper and iron mines, dating back to the VII century b.C. Many forest trails connect the farms (Campolungo, Rosello and Caminetto di Cigoleto) to the nearby towns, as well as livestock paths. Also not to be missed is the “Tre Valli Bresciane” path, in the northern area of the forest, which links the Maniva pass to the Campione Mountain and is quite popular among hundreds of hiking enthusiasts. The Val Masino Lombardy Forest covers an area of approx. 2.945 ha, and it is divided into two distinct sections: the “Bagni di Masino” one (367 ha, 12,5% of the total) in the valley western area, and the “Val di Mello” one (2.578 ha, 87,5% of the total) in the namesake eastern valley. Both are located in the Valmasino (SO) municipality, and they cover respectively the Sites of Community Interest SCI IT2040019 Bagni Di Masino - Pizzo Badile – Pizzo Del Ferro and SCI IT2040020 Val Di Mello – Piano Di Preda Rossa, who are also listed as SPA IT2040601 Bagni di Masino, Pizzo Badile, Val di Mello, Val Torrone, Piano di Preda Rossa. The area’s main vegetation types are high forest (broad-leaved species and conifers) in the low valley, and at higher altitudes (from 1200 to 2000 m high) coppice forest (mixed woods, with broad-le- aved species and conifers), typically found in valley fl oors and in areas with ease f access; grasslands, at those altitudes where the forest cover starts to thin out (approx 1800 m high, with species of low nutritional value to livestock) to the upper vegetation limit (2400m, rocks and debris fl ora) and areas sitting lower than 1150 m of altitude. The landscape is typically alpine, featuring cirques, granite ridges, glaciers sediments formations, and slope debris buildups, making it a popular destination among mountain climbers. Such a variety in scenery id met by an equally rich fauna, including roe deer, red deer, alpine ibex, hedgehog and eagle.

17 18 The site SPA IT2040401 “Parco regionale Orobie The SPA IT20A0402 “Lanca di Gerole” is located Valtellinesi” is located in the Sondrio province. 91% in the south-eastern area of the Cremona province, of the SPA area is covered by habitats of community and it is among the best examples of a typical Po interest, most of them of the forest kind: broad-lea- rivers fl oodplain since it includes the main riverbed as ved species woods (ash, chestnut) at lower altitudes, well as three concentric palaeochannels at diff erent Norway spruce at higher ones. In those contexts stages. This Natura 2000 sites partially overlaps with open environments such as nardus grasslands and the SCI IT20A0013 of the same name as well as with mountain hay-fi elds. At higher altitudes larch forests a oriented nature reserve. Furthermore, it belongs to often associate with Swiss pine and Norway spru- the Regional Ecological Network, to the Province Eco- ce. Areas sitting at even higher altitudes are mostly logical Network, to the PLIS “Golena del Po” and from covered by boreal alpine moors, with rhododendron a hunting point of view it is divided between a Repo- and dwarf juniper bushes, alpine grasslands and clif- pulation and Catchment Area and a Wildlife Protection fs. The site encompasses both alpine forest environ- Oasis. The site includes humid environments, with ments and open alpine environments-, the site Mana- rich and diverse associations of aquatic and swamp gement Plan acknowledges the need for grasslands herbaceous species and riparian woods. The site, conservation measures in the latter, with a special remnant of an inactive Po river meander fl oodplain, focus on wet grasslands. The SPA fl ora is especially plays a crucial role in regulating the river’s fl oods. The rich, counting 147 species of high naturalistic interest, area river waters can overfl ow into and be temporarily 12 of which are at risk of extinction in Italy. The role of stored and its vegetation (associations of aquatic and livestock farmers is crucial as their activities support swamp species as well as spots of riparian woods grasslands and meadows which otherwise would be ) support protection and mitigation functions in the taken over by the forest losing those habitats that event of fl ooding, providing a natural place for a river are needed for instance by the western capercaillie to dissipate its energy and for waters to be absorbed, among others, while also keeping up the traditional both though infi ltration and evapotranspiration. world-famous Bitto cheese-making.

The site SPA IT20B0501 Viadana, Portiolo, San Benedetto Po e Ostiglia, managed by the Mantua Province, is divided into four big areas – and it inclu- des all the quintessential both natural (running waters, sand dunes, oxbow lakes, river banks woods) and man-made (poplar plantations cereal fi elds, sand and clay pits, dams, piers, towns, civil and industrial in- frastructures) features of this section of the Po river. From an environmental point of view the Po river is the largest natural area of the Mantua province and actually of the whole Padana Plain, thanks to its fl oo- dplains. The site includes humid environments, with rich and diverse associations of aquatic and swamp herbaceous species and riparian woods. One of the most relevant activities for raw materials provisioning are poplar plantations, which could turn into a resour- ce addressing nature conservation. The SPA fauna is especially rich in bird species (over 200), among which can be black kite, osprey, Montagu’s harrier, European bee-eater, great cormoran, little ringed plover, common tern, Eurasian woodcock, Eurasian golden oriole. Among mammals hedgehog, hare, le- Of exceptional relevance is the site fauna, despite the ast weasel, European badger, European polecat and relatively small-scale of the area. The site is essential many small rodents can be commonly found, while for birds, especially at winter and migration times, as it among amphibians and reptiles triturus, green frog, provides shelter to the largest water birds populations hyla, toad, western green lizard, green whip snake, observed so far along the river in the Cremona provin- grass snake. Finally among fi sh species the increa- ce. Among mammals, roe deers and squirrels have singly rarer sturgeon, eel, fl athead grey mullet, twait in recent times settled again in this area of the plain. shad, carp and wels catfi sh.

19 “Raw materials (wood)” - ERSAF forest plots sale contract • SPA IT2070303 VAL GRIGNA

The ecosystem service taken into consideration and its value Conservation of “Raw materials (wood)” ecosystem service The “Call for tenders to public auction for the sale of forest plots and ERSAF promotions of the Lombardy Forest Val Grigna in the Bienno and Bovegno municipalities” sets the auction stating price at 9,50 euro/mc and assesses the plots total gross timber provision at 4.462 mc. The ecosystem service is therefore valued at 42.389€.

PES opportunities and threats contacts The scheme originates from ERSAF choice to put into the market timber provided by the Lombardy Forests, whose sustainable management is both FSC and PEFC certifi ed, and to allocate the revenues to actions aiming at ERSAF the upkeep of the aforementioned forestry strategy. ERSAF will from now Forest plot sale on implement a PES scheme modeled after the “Val Grigna” pilot site case in every forest plot sale instance, eff ectively acknowledging the importance contacts of promoting ecosystem services through widespread good practices which incorporate them in everyday operations, also from a cultural standpoint. Purchase of “Raw materials (wood)” Purchase

PROVISIONING ECOSYSTEM SERVICES PROVISIONING ECOSYSTEM SERVICES FORESTRY COMPANY

“Forage, pasture” - ERSAF grassland lease contract• • SPA IT2020301 TRIANGOLO LARIANO

The ecosystem service taken into consideration and its value In the “Call for tenders featuring a management plan proposal for the lease of the Lombardy Region owned so-called “Terz’Alpe” farm including the annexed agritourism facility located in the Lombardy Forest “Corni di Canzo”, Canzo Conservation of “Forage, pasture” ecosystem service (CO) municipality” ERSAF offi cially acknowledges the production of forage as a ERSAF provisioning ecosystem service supplied by grasslands, whose conservation is possible thanks to adequate faring practices. It also sets the auction starting price at 15.000. The farmer who won the auction off ered 25.000€/year. In the case the farmer was planning at the start of the year to take on the implementation of SPA’s habitat improvements measures, ERSAF may apply a fair and agreed upon discount on the lease. contacts

PES opportunities and threats ERSAF The farmer pays a yearly lease to ERSAF (which includes the rent for the agritourism facility annexed to the fi eld, and therefore the actual PES value Grassland lease is lower) in order for his livestock to benefi t from forage; on the other hand, raising livestock he actually helps grasslands conservation himself, and contacts therefore he gets a discount on the lease, which is going to be assessed by PROVISIONING ECOSYSTEM SERVICES PROVISIONING ECOSYSTEM SERVICES

ERSAF after extensive monitoring activities f the yearly activities taken on. The of “Forage, pasture” Purchase farmer is therefore both a user and a provider of the ES (Farm lease -user + Discount on the lease for conservation activities - provider). ERSAF will from now on implement a PES scheme modeled after the “Triangolo Lariano” pilot site case in every farm lease instance, eff ectively FARMER acknowledging the importance of promoting ecosystem services through widespread good practices which incorporate them in everyday operations, also from a cultural standpoint.

20 Contribution to action aimed at protecting and restoring the ecosystem service “Forage, pasture” - Alpine farming good practices PES • SPA IT2040401 “Parco regionale Orobie Valtellinesi” PARK AUTHORITY The ecosystem service taken into consideration and its value - The LIFE+ MGN project assessed an average yearly yield of forage from REGIONE LOMBARDIA the site’s pastures at 11.332,2 t; the total average value of the forage produced by the site is therefore 1.575.175,8 €/year. It is also possible to base the estimate, rather than on the forage yield, on the local cheeses (Bitto, Mascherpa, Matusch) that are the fi nal outcome of this service, listed among those in the “Lombardy region traditional food productions”. The total value

contacts of typical cheeses in the area can be assessed at 889.048 -901.298 €/year. PES opportunities and threats COLDIRETTI Introducing a Payment for Ecosystem Services (PES) should secure forage provisioning and grasslands conservation. The nardus grasslands (a habitat of (farmers association) community interest) conservation is strongly linked to farming practices. The stakeholders involved in the PES scheme are the Park managing authority and contacts the farmers owning livestock whose good practices are essential to a better management of semi-natural grassland habitats. Each farmer belonging to the Coldiretti farmers’ association who operates in fi elds located within the Park area commits to good practices listed in the procedural guidelines Conservation of the ecosystem service “Grassland and pastures conservation” and after the Authority (Parco delle Orobie valtellinesi) monitoring he gets to use a specifi c quality brand. His PROVISIONING ECOSYSTEM SERVICES PROVISIONING ECOSYSTEM SERVICES FARMERS products will get a recognizable brand from Coldiertti (mark, label etc.) which (LIVESTOCK) will attest for the product’s added value and will possibly allow him to raise prices, eff ectively compensating his eff ort in the adoption of good practices supporting the conservation of priority habitats.

“Hunting and fi shing species” - Hunters’ management PES • SPA IT2040401 “Parco regionale Orobie Valtellinesi”

The ecosystem service taken into consideration and its value Contribution to action aimed at protecting and restoring the ecosystem service Hunting and fi shing species are a provisioning ecosystem service, whose supply is secured by the conservation of forests, rivers, grasslands, natural PARK AUTHORITY and semi-natural pastures whose management is entrusted to the Parco - delle Orobie valtellinesi. Hunters benefi t from steady ecosystems’ functions REGIONE LOMBARDIA within the Parks and are required to take on environment improvement actions, as stated by the regional law n. 26/1993. The LIFE+ MGN project assessed the provision of the ecosystem service “hunting and fi shing species” at 89 red deer/year, 103/roe deer/year and 103 chamois/year, while the demand for such service depends on the number of hunters with a focus on ungulates, who are 292. Therefore the total value of

contacts hunting species service equals 1.037.478,00 €/year.

Hunting Alpine PES opportunities and threats introducing a Payment for Ecosystem Services (PES) should secure District hunting and fi shing species provisioning and lead to the implementation of environment restoring measures aimed at biodiversity and ecosystems within contacts the SPA IT2040401 Parco delle Orobie Valtellinesi conservation. The PES scheme was specifi cally designed between the managing authority and the hunters who belong to the Hunting Alpine Districts who will allocate PROVISIONING ECOSYSTEM SERVICES several working hours to the implementation of management and maintenance Conservation of the ecosystem service activities within the site according to its management plan. Those environmental improvement actions is a way for hunters to pay for the ecosystem service “hunting and fi shing resources” allowing to secure the HUNTERS presence of or restoring Natura 2000 habitats linked to the provision of the ecosystem service through an active involvement of its benefi ciaries (hunters). Those actions are going to be detailed in a specifi c document (Technical Specifi cs Document) drafted according to the Province directions as well as to the planning strategies listing priority environmental restoration activities as proposed by the Park authority.

21 “Carbon sequestration” - Carbon credits sale PES • SCI IT2070021 VALVESTINO • SCI IT2070022 CORNO DELLA MAROGNA Conservation of the “Carbon sequestration” ecosystem service ERSAF The ecosystem service taken into consideration and its value The carbon sequestration service is assessed both as the amount of carbon stored into wooden mass (stock) and as yearly sequestration rate (process). Data from the National Forest and Forest Carbon Sinks Inventory (2005) for the high woods macro-category was used.

In SCI Corno della Marogna the quantity of carbon stored by plant biomass contacts is 279.565,74 tC and the yearly carbon sequestration is 5.268,99 tC. The monetary value of the service was appraised using its social value of 31 €/t, according to Tol (2005), which was used as a multiplication factor for the Phoresta non-profit carbon both stocked and processed. The total monetary value of the SCI Corno della Marogna forests is 8.666.537,98 € (storage) plus 163.338,78

€/year (process). In SCI Valvestino the quantity of carbon stored by plant contacts biomass is 499.317,32 tC and the yearly carbon sequestration is 9.454,49 tC. The total monetary value of the site forests is 15.478.836,84 € (storage) of carbon credits Purchase plus 293.089,09 €/year (process).

REGULATING ECOSYSTEM SERVICES ECOSYSTEM SERVICES REGULATING PES opportunities and threats The scheme originated from ERSAF choice to give value to the Lombardy Forests Management Plan selling carbon credits generated by the savings in COMPANIES wood harvesting in comparison to the national average rates, which led to the storage of toms of CO2 equivalents originated by the sustainable forest management strategy ERSAF has been committed to since a long time.

“Natural hazard prevention” - Regional water license fee agreement PES • SPA IT20A0402 Lanca di Gerole

• SPA IT20B0501 Viadana, Portiolo, San Benedetto Po e Ostiglia Contribution to action aimed at protecting and restoring the ecosystem service

The ecosystem service taken into consideration and its value The amount of water the sites can retain have been assessed at 16,4 Mil mc for the Lanca di Gerole site and 132,2 Mil mc in the Viadana, Portiolo, San REGIONE Benedetto Po e Ostiglia one, on the basis of maps and digital terrain models LOMBARDIA considering the area of each strip within the site. The monetary valuation of the service used the replacement cost methodology, estimating the price for the creation of an artifi cial area which could provide fl ood protection service on par with that rendered by the site. Such a replacement area would act as a fl oodplain for the same amount of water retained by the site, and would have to be located nearby. The LIFE+ MGN project assessed these costs contacts at € 90.528.000 – 116.932.000 for Lanca di Gerole and € 695.702.500 – 702.973.500 for the Viadana, Portiolo, San Benedetto Po e Ostiglia site. ADBPo PES opportunities and threats Introducing a Payment for Ecosystem Services (PES) should secure the power for the Lanca to regulate river overfl ow events. contacts REGULATING ECOSYSTEM SERVICES ECOSYSTEM SERVICES REGULATING The agreement is based on the possibility for part of the license fee that those who lease regional owned land (poplar plantations owners, farmers) pay to the Region to be actually allocated by the managing authority towards natural hazards prevention operations, to be decided upon also consulting the Po Conservation of the ecosystem service River Basin Authority. Furthermore it is necessary to take into account the crucial role for the POPLAR PLANTATIONS Lanca functionality of the river banks, which are owned by local farmers; it is currently being investigated if farms covering an area of 15+ ha who are OWNERS, FARMERS legally bound by greening laws are actually setting 5% of their land away for nature conservation purposes.

22 “Recreational value” - Railway company promotional partnerships PES PRIM’ALPE ENVIRONMENTAL • SCI IT2020002 SASSO MALASCARPA EDUCATION CENTER; Conservation of the “Recreational value” ecosystem service • SPA IT2020301 TRIANGOLO LARIANO TERZ’ALPE AGRITOURISM LA FATTORIA The ecosystem service taken into consideration and its value The study “Analysis and monetary valuation of recreational value of 4 Lombardy Forests study areas” carried out by Etifor ltd in the project context, for the Corni di Canzo area referenced to the number of passages register at Prim’Alpe, assuming as baseline the number of people accessing the area (in

contacts %), which accounted for 59%of the total amount. On this basis it has been estimated that 48.820 visitors access the area at Fonti Gajum (Canzo) . De Vecchi (2000) stated that this access point was chosen by more than half ERSAF of the users, and it can therefore being safely assumed that more people access the area though Valmadrera, Civate and Alpe Oneda. Nevertheless in the absence of passage tracking devices in those areas and of specifi c data,

contacts these were not included, also coherently with the methodology of choice for ecosystem service the other three study areas, exclusively based on tracking devices records. The results of the willingness to pay and travel costs estimates carried out on the basis of surveys and interviews , assess the total local surplus for the Corni di Canzo area in a range going from 0,5 to 1,22 million euro. ECOSYSTEM SERVICES CULTURAL

PES opportunities and threats The scheme originates from ERSAF resolution to get companies who target TRENORD the region citizens wishing to visit the area traveling from Milan or nearby

Contribution to action aimed at promoting the“Recreational value” the“Recreational Contribution to action aimed at promoting cities by train to partially cover the costs of environmental education activities that aim at raising awareness on the topics of conservation, sustainable mobility and ecotourism. Two agreements are going to be signed (1. Groups Partnership Trenord/Legambiente Prim’Alpe Environmental Education Center 2. Freetime Partnership Trenord/Agritourism La Fattoria Terzalpe) which will award discounts to people who buy both the train ticked and an “experience” off ered by one of ERSAF’s leaseholders; furthermore, Trenord will sponsor the initiative through its media channels and possibly pay for the production of informative materials, maps, gadgets.

“Recreational value” - SMS microPES • SCI IT2020002 SASSO MALASCARPA • SPA IT2020301 TRIANGOLO LARIANO • SCI IT2070021 VALVESTINO Conservation of the “Recreational value” ecosystem service ERSAF • SCI IT2070022 CORNO DELLA MAROGNA • SPA IT2070402 ALTO GARDA BRESCIANO • SPA IT2070303 VAL GRIGNA • SCI IT2040019 BAGNI DI MASINO - PIZZO BADILE • SCI IT2040020 VAL DI MELLO - PIANO DI PREDA ROSSA • SPA IT2040601 BAGNI DI MASINO-PIZZO BADILE- VAL DI MELLO-VAL TORRONE-PIANO DI PREDA ROSSA contacts The ecosystem service taken into consideration and its value TIM The study “Analysis and monetary valuation of recreational value of 4 Lombardy Forests study areas” carried out by Etifor ltd in the project context aimed at a Engineering Ltd fi rst attempt at assessing the total monetary value of the recreation service on the basis of the number of visitors as registered by passage tracking devices contacts set up in three out of four areas: approx. 49.000 visitors in the Corni di Canzo area, 18.000 in Val Masino, 10.000 in Gardesana Occidentale. ERSAF provided an estimate of 5.500 visitors/year in Val Grigna. The results of the willingness to pay and travel costs estimates carried out ECOSYSTEM SERVICES CULTURAL “Recreational value” ecosystem service “Recreational on the basis of surveys and interviews , assess the total local surplus ranging from 0,7 to 1,88 million euro, with a major share owed by the Corni di Canzo area, accounting for 65-70% of the total value due to its signifi cantly higher number of visitors.

Purchase via text of 1€ worth of digital contents related to the via text of 1€ worth digital contents related Purchase TOURISTS, HIKERS PES opportunities and threats A phone number for a micro-Payment for Ecosystem Services via text is going to be activated, with signs placed by the access points of at least 1 hiking path for each pilot site, advertising the initiative and asking hikes to pay 1€ and get in exchange digital informative contents about the site. The revenues are going to be allocated to cultural ecosystem services conservation and restoration activities, such as the maintenance of the path itself. 23 24 25 WORK IN PROGRESS...

PROVISIONING ECOSYSTEM SERVICES “Drinking water” - PES: Support from the water supply company Gardauno to drinking water provision conservation and restoration actions • SPA IT2070402 ALTO GARDA BRESCIANO

REGULATING ECOSYSTEM SERVICES “Flooding prevention” - PES: BIM (water basin authority) support to “water regulation” service conservation and restoration actions • SCI IT2040019 BAGNI DI MASINO - PIZZO BADILE • SCI IT2040020 VAL DI MELLO - PIANO DI PREDA ROSSA • SPA IT2040601 BAGNI DI MASINO-PIZZO BADILE-VAL DI MELLO-VAL TORRONE-PIANO DI PREDA ROSSA

REGULATING ECOSYSTEM SERVICES “Erosion and landslides prevention” - PES: Support from the Valvestino dam manager to the sustainable forestry and farming practices allowing for water to infi ltrate and reach aquifers reducing erosion to a minimum and therefore avoiding the cost they would otherwise incur into in order to remove sediments from the artifi cial basin. • SCI IT2070021 VALVESTINO

CULTURAL ECOSYSTEM SERVICES “Aesthetic value” - PES: Compensation for the impact of the TELECOM tower through actions aimed at restoring the area aesthetic quality

REGULATING ECOSYSTEM SERVICES “Water regulation” - PES: Addressing a quote of BIM and/or of the Sondrio Province monetary resources coming from licensing fees to actions aimed at conservation and restoration of the “water regulation” services as listed in a drafted strategy proposal. • SPA IT2040401 PARCO DELLE OROBIE VALTELLINESI

HUNTING AND FISHING SPECIES ECOSYSTEM SERVICES (hunting/fi shing species) - PES: revenues from “B” hunting licenses could be placed in a “fund” supporting on one hand all the fi shing and aquacultural initiative already running, and on the other actions for the conservaion of river connectivity in protected areas. The PES concept has been integrated into the CON.FLU.PO. LIFE project, leading to the fi rst ever Partnership agreement among the 4 regions the river Po fl ows though (Piemonte, Lombardia, Emilia Romagna, Veneto). • SPA IT20A0402 LANCA DI GEROLE

REGULATING ECOSYSTEM SERVICES “Erosion and landslides prevention” - PES: state-owned lands are entrusted to municipalities for them to put into action environmental restoration activities, as dictated by the Law 5 January 1994, n. 37 “Rules for the environmental protection of river, streams, lakes and other water bodies state- owned areas”, the so called “Cutrera” Law; this process can already be considered a PES itself. In the instance of areas leased to private citizens for “common” farming (poplar plantation or cereal fi elds) part of the lease they pay could be considered as a payment for ecosystem services quota and allocated for the conservation of the river functions. • SPA IT20A0402 LANCA DI GEROLE • SPA IT20B0501 VIADANA

26 CULTURAL ECOSYSTEM SERVICES “Aesthetic value” - PES: the Po river and Lanca di Gerole reserve appeal benefi t local business; thevalue they add should be allocated toward actions aimed at restoring the aesthetic and recreatìonal value of the area. • SPA IT20A0402 LANCA DI GEROLE

RAW MATERIALS ECOSYSTEM SERVICES “Timber” - PES: in the case of areas not entrusted to institutions for environmental restoration purposes but leased to private citizens for “common” farming (poplar plantation or cereal fi elds) , part of the lease they pay could be considered as a payment for ecosystem services quota, also considering the added value of certifi ed timber. • SPA IT20B0501 VIADANA

CULTURAL ECOSYSTEM SERVICES “Recreatonal value” - PES: micro-Payment for Ecosystem Services via text. Transferring ERSAF initiative from mountain areas to a diff erent context, it could be possible to activate a phone number for a micro-Payment for Ecosystem Services via text. Signs should be placed by the access points of at least 1 hiking path for each pilot site, advertising the initiative and asking hikes to pay 1€ and get in exchange digital informative contents about the site. The revenues are going to be allocated to cultural ecosystem services conservation and restoration activities, such as the maintenance of the path itself. • SPA IT20B0501 VIADANA

In the Lanca di Gerole and Viadana SPAs, respectively managed by the Cremona and the Mantua Provinces, due to the ongoing Provinces’ jurisdictions transfer process to the Regions started by the“Del Rio” law n.56 7 April 2014, it hasn’t been possible so far to implement payment schemes because of the consequent current specifi c jurisdiction uncertainty.

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Project leader

Project partners

Regione Sicilia

Co-funded by