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Woodlands for Water PES Schemes in Japan

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Woodlands for Water PES Schemes in Japan Woodlands for Water and other PES schemes in Japan Takuya Takahashi (University of Shiga Prefecture) & Takashi Fujiwara (Forestry Economics Research Institute) Self-introduction Takuya Takahashi • Professor, The University of Shiga Prefecture, The School of Environmental Science • Shiga prefecture has the largest (600 km2) lake in Japan. • PhD (Resources Management & Environmental Studies, The University of British Columbia), Master of Management (Northwestern University), Bachelor of Agriculture (Kyoto University, Department of Forestry) • Research interests: • Forest policy and planning • Forest certification, watershed forest management, InVEST simulation, optimization for forest planning, use of cross laminated timber (CLT) in Japan, etc. • Corporate environmentalism • Environmental management systems (EMS), corporate culture and environmental management, etc. 2 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Objectives • Overview of forest PES schemes in Japan • Evaluation of current status • Some thoughts and questions to the participants 3 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Outline • Introduction of forests and forestry in Japan • Early partnership arrangements • Direct ownership or payments by water users (Tokyo and Yokohama) • Forestry corporations • Public Investment for Private Forest Management • Forest environmental tax schemes by local governments (prefectures) • National forest environmental tax scheme • Corporate partnership • “Tax payment for home town” scheme • Some thoughts and questions 4 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Difficult times for forestry in Japan (10K m3) (％) 14,000 Imported fuel Imported products 100 Imported log Domestic timber 12,000 Timber sufficiency rate (right axis) 80 H14(2002) 10,000 H27(2015) 60 8,000 7,516 116 6,000 5,719 40 4,426 33.2％ 4,000 18.8％ 482 20 1,487 2,000 2,492 1,692 0 0 S30 35 40 45 50 55 60 H2 7 12 17 22 27 （年） (1955) (60) (65) (70) (75) (80) (85) (90) (95) (2000) (05) (10) (15) 5 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Demands of Japanese people for forests S55 61 H5 11 15 19 23 27 Landslide and flood (1980) (86) (93) (99) (2003) (07) (11) (15) prevention Ranking 0 Climate change mitigation 1 Water storage 2 Timber production 3 Wlidlife habitat 4 Education on the 5 environment and forestry 6 Relaxation 7 Air purification and noise prevention 8 Forest products such as 9 mushroom etc. 6 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Early partnership arrangements Direct ownership or payments by water users (Tokyo and Yokohama)/ Forestry corporations Tokyo Metropolitan Region’s drinking water source in Oku-Tama • Water source: 80% from Tone river watershed, 20% from Tama river watershed • Watershed area 488 km2 ; watershed forests 216 km2 • Precipitation 1,600 ㎜/year • Elevation 500～2,100m • Tokyo City Government purchased the forests from the imperial forest office at a low price in 1901, and started planting trees in deforested areas. • After WW II (-1945) (Izumi, 2004) • 1st period (1946-1955）Emphasis on timber production • 2nd period (1956-1972）Expansion of plantation forests • 3rd period (1973-2001) Emphasis on water storage. Ban on natural forest harvesting. Double story forest management. • Factors of change • Rise of environmental movement. Request from The Nature Conservation Society of Japan in 1967. • Natural protection policy of a socialist metropolitan government. “Ordinance on nature protection and restoration” in 1973. • Change from giving away of timber rights to grant schemes for up-stream local residents. 18 19 Tokyo Oku-tama watershed: management policy • Current policy Natural forests Stable climax forests (left to natural processes) （70%） Plantation forests Natural forests （16%） Single story Multi-story forests forests Plantation forests（10%） Plantation forests（2%） 22 Tokyo Oku-Tama watershed forest management by figures Izumi (2004); Takahashi (2006) Items Figures Population receiving water supply 2.3 million Water volume 1.2 million m3/day Watershed area 49 K ha Forested area (a) 22 K ha Forests owned by the water bureau (b) 64% Watershed residents 10 K Expenditure for forest management (c) 800 million yen (6 million Euro) / year Timber production 5 K m3 Per ha management expenses (c)/((a)*(b)) 430 Euro / ha 11 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Yokohama city’s water supply from Doshi area Izumi (2016) • Yokohama: a major seaport city in Japan • 1911-: The city started subsidizing afforestation. • 1916: The city bought 2,800 ha of the prefectural forests from Yamanashi prefecture. • 1920-1940s: Selective cutting of natural forests • 1950-1980s: Clear cutting and plantation • 1991: Change of the policy due to conflict over a golf course development in the area • 1990s-: Logging ban and watershed conservation 18 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara About 20 km http://www.city.yokohama.lg.jp/suidou/os/suido u-suishitsu/suidou/pdf/suigen.pdf 19 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Yokohama’s programs Izumi (2016) Year Options Object Expense 1916- The YWB Forest management Investment for the YWB 140-150 million yen per year forest (1991, 1996) 1916-1996 Stumpage sales subsidy Doshi village 0 to 1.9 million yen per year (1975-1985) Not sure Programme to provide one-third-aid for Doshi village 7 million to 58 million yen Doshi village’s public works per year (1975-1987) 1996 “Doshi Headwater Fund” by Yokohama Doshi village 1 billion yen which earns 11- city 14 million yen per year 2001- Financial assistance for the Doshi Household in Doshi village 29-49 million yen per year Residential Wastewater Treatment Service 2004- Doshi headwaters volunteer organization Private forest owners in 10-14 million yen per year Doshi village (replaced by Doshi Forest Fund, see below since 2006) 2006- “Doshi forest Fund for Our Hometown of Doshi headwater volunteers 14-17 million yea per year Water” by YWB --- relatively small fund (2006-2008) + Donations + Revenue from bottled water 20 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Yokohama Doshi watershed forest management by figures Izumi (2016) Items Figures Population receiving water supply 320 K (3.5 million total * 9%(Doshi share)) Water volume 173 K m3/day (2 * 60 * 60 * 24) Watershed area 9 K ha Forested area (a) 8.6 K ha Forests owned by the water bureau (b) 32% Watershed residents 2 K Expenditure for forest management (c) 150 million yen (1.1 million Euro) / year Timber production N.A. Per ha management expenses (c)/((a)*(b)) 390 Euro / ha 21 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Other types of ownership • Forestry corporations in Shiga prefecture • Down-stream municipalities such as Osaka and Kyoto invested in the corporations, and the corporations planted trees from 1960s to 1990s. • Share-cropping type arrangement: Land owners provide forest lands, and the corporations provide funds and operation services. When trees are harvested, the participants share profits (owner 40%; corporation 60 %). • Due to difficulties in forestry business, this arrangement appears not so successful at this moment. 22 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara 23 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara 24 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Public Investment for Private Forest Management Public Investment in Japan • 3% of the Japanese public investment amount is allocated for the investment on forests, which is larger than housing field. • 30% of forest investment is devoted to forest maintenance of private forests. • Japanese citizens pay annually $ 530 million as public work expenses to private forest owners. Public Investment of Japanese Government29.2 Breakdown of Forest Infrastructure Investment Item Mill. yen Mill. US$ % Item Mill. yen Mill. US$ % Social infrastructure 1,999,694 18,346 33.5% Erosion Control Work 71,994 660 36.3% Road 1,666,194 15,286 27.9% Forest Management 126,170 1,158 63.7% Port 232,057 2,129 3.9% Private Forest 57,844 531 29.2% Agri. Infrastructure 308,404 2,829 5.2% National Forest 68,326 627 34.4% Forest Infrastructure 180,049 1,652 3.0% Forest Infrastructure 180,049 1,818 100.0% Housing 151,019 1,385 2.5% Others 1,438,908 13,201 24.1% Total 5,976,325 54,829 100.0% 26 2018-7-3 PES schemes in Japan by Takahashi & Fujiwara Legislative Ordinance • Forest and Forestry Basic Act • Article 4 • The national government is responsible for formulating and implementing comprehensive policies for forest and forestry, pursuant to the basic principles for forest and forestry prescribed in the preceding two articles • Article 7 (Financial Measures, etc.) • (1) The Government shall take legislative and financial measures required to implement the policies concerning forest and forestry. • (2) In taking measures for forest and forestry, the Government shall endeavor to provide adequate financial support smoothly http://www.japaneselawtranslation.go.jp/law/detail/?id=50&vm=04&re=02 • Forest law • Article 109 • (1) The Government shall assist the prefectural government with part of the expenses assisted by prefectures to the prefecture in the case of a municipality or other person specified by a Cabinet Order. 27 2018 -7-3 PES schemes in Japan by Takahashi & Fujiwara • Article 2 In consideration of the indispensableness of sustainable fulfillment of the multiple roles that forests play through preservation of national land, water resources, natural environment, public health, prevention of global warming and supply of forest products (hereinafter referred to as the "multifunctional role") in maintaining the stable life of the citizens and the national economy, adequate efforts shall be given for the development and preservation of forests for the future. • (2) In consideration of the importance of continuous forest production activities in mountain villages, necessary consideration shall be given for the promotion of such areas including promotion of the settlement of people for adequate development and preservation of forests.
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