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An Analysis of the Ability and Willingness to Protect Forest-Based Environmental Services in the Asia-Pacific Region

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An Analysis of the Ability and Willingness to Protect Forest-Based Environmental Services in the Asia-Pacific Region ASIA-PACIFIC FORESTRY SECTOR OUTLOOK STUDY II WORKING PAPER SERIES Working Paper No. APFSOS II/WP/2009/16 VALUING SERVICES: AN ANALYSIS OF THE ABILITY AND WILLINGNESS TO PROTECT FOREST-BASED ENVIRONMENTAL SERVICES IN THE ASIA-PACIFIC REGION By 1 Moushumi Chaudhury FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS REGIONAL OFFICE FOR ASIA AND THE PACIFIC Bangkok, 2009 1 Moushumi Chaudhury was a consultant in the Forestry Department of FAO. She is very grateful for comments from CTS Nair who has guided this paper from the start and thankful for suggestions from colleagues at FAO Rome and Bangkok. APFSOS II: Protecting forest-based environmental services in the Asia-Pacific region Contents ABSTRACT 4 1. INTRODUCTION 5 2. BIODIVERSITY CONSERVATION 7 Extent of biodiversity 7 Drivers of change 9 Uncertainties 10 Protection of biodiversity through local management 10 National biodiversity initiatives 12 Global conservation efforts 13 Market mechanisms to protect biodiversity 15 Biodiversity protection outside protected areas 16 Discussion 19 3. FORESTS AND WATERSHED MANAGEMENT 21 Complexities and uncertainties linking forests and water 21 Policy initiatives to protect watersheds 23 Market mechanisms to protect forests and watersheds 25 Discussion 28 4. COMBATING DESERTIFICATION 30 Extent of desertification in Asia and the Pacific 30 Causes of desertification and uncertainties 31 Policies to combat desertification 35 Forest services to combat desertification 35 Discussion 36 5. FORESTS AND CLIMATE CHANGE 38 Land use, land use change, and forestry 38 Policy barriers 42 Technical challenges and risks 44 Discussion 45 6. ECOTOURISM 47 Tourism in Asia and the Pacific 47 Ecotourism in Asia and the Pacific 48 Evaluating ecotourism based on policies 50 Market mechanisms and ecotourism 52 Discussion 55 7. FUTURE SCENARIOS IN PROTECTING FOREST-BASED ECOSYSTEM SERVICES 56 Scenarios 56 Conclusion 60 8. CONCLUSION 62 9. REFERENCES 64 10. ANNEX 69 2 APFSOS II: Protecting forest-based environmental services in the Asia-Pacific region INFORMATION NOTE ON THE ASIA-PACIFIC FORESTRY SECTOR OUTLOOK STUDY The Asia-Pacific Forestry Sector Outlook Study (APFSOS) is a wide-ranging initiative to gather information on, and examine, the evolution of key forestry issues as well as to review important trends in forests and forestry. The main purpose of the study is to provide a better understanding of the changing relationships between society and forests and thus to facilitate timely policy reviews and reforms in national forest sectors. The specific objectives are to: 1. Identify emerging socio-economic changes impacting on forest and forestry 2. Analyze probable scenarios for forestry developments to 2020 3. Identify priorities and strategies to address emerging opportunities and challenges The first APFSOS was completed in 1998, with an outlook horizon to 2010. During its twenty-first session, held in Dehradun, India, in April 2006, the Asia-Pacific Forestry Commission (APFC) resolved to update the outlook extending the horizon to 2020. The study commenced in October 2006 and is expected to be completed by September 2009. The study has been coordinated by the Food and Agriculture Organization of the United Nations (FAO), through its regional office in Bangkok and its headquarters in Rome, and implemented in close partnership with APFC member countries with support from a number of international and regional agencies. The Asian Development Bank (ADB), the International Tropical Timber Organization (ITTO), and the United Kingdom’s Department for International Development (DFID) provided substantial financial support to implement the study. Partnerships with the Asia-Pacific Association of Forest Research Institutes (APAFRI) and the Secretariat of the Pacific Community (SPC) supported the organizing and implementing of national focal points’ workshops and other activities, which have been crucial to the success of this initiative. The contributions of many other individuals and institutions are gratefully acknowledged in the main APFSOS report. Working papers have been contributed or commissioned on a wide range of topics. These fall under the following categories: country profiles, sub-regional studies and thematic studies. Working papers have been prepared by individual authors or groups of authors and represent their personal views and perspectives; therefore, opinions expressed do not necessarily reflect the views of their employers, the governments of the APFC member countries or of FAO. Material from these working papers has been extracted and combined with information from a wide range of additional sources to produce the main regional outlook report. Working papers are moderately edited for style and clarity and are formatted to provide a measure of uniformity, but otherwise remain the work of the authors. Copies of these working papers, as well as more information on the Asia-Pacific Forestry Sector Study, can be obtained from: Mr. Patrick Durst Senior Forestry Officer FAO Regional Office for Asia and the Pacific 39 Phra Atit Road Bangkok 10200 THAILAND Ph. (66-2) 697 4000 Fax: (66-2) 697 4445 Email: [email protected] 3 APFSOS II: Protecting forest-based environmental services in the Asia-Pacific region ABSTRACT Forests provide essential ecosystem services such as biodiversity, watershed protection, carbon sequestration, combating desertification, and ecotourism. This paper aims to examine and analyze the various drivers that lead to deforestation and the loss of services, as well as the various policy and market mechanisms that may exist to protect forests. Considering that the Asia-Pacific region is a diverse area, this paper provides a variety of cases to illustrate the extent to which people are willing and able to protect forest-based ecosystem services depending on socioeconomic conditions. It is demonstrated that in most cases policy mechanisms play a greater role in forest protection and that payment for environmental services (PES) as a market mechanism is a relatively new method of protection that has yet to develop in most of Asia and the Pacific. Additionally, based an analysis of drivers and conditions that allow for protection, three scenarios are presented that predict the ability of people to protect forest-based ecosystem services by 2020. These scenarios suggest that low middle income countries in Asia and the Pacific will focus primarily on economic development and less on protecting services. Market mechanisms such as PES cannot be used, even though it is one of the key mechanisms to protect forest services. Middle income countries will show a more varied picture where some countries are ready to protect forest services in some cases and inability to do so in others. Finally, high income countries are willing and able to protect services. It is anticipated that this paper will serve as a tool for policy making on forest services in Asia and the Pacific. 4 APFSOS II: Protecting forest-based environmental services in the Asia-Pacific region 1. INTRODUCTION Forests play a critical role in supporting life and livelihood activities by providing diverse ecological or environmental services. The Millennium Ecosystem Assessment (MA 2005) defines environmental services as benefits people receive from ecosystems to improve their well-being. These may include provisioning (i.e. food and water), regulating (i.e. ability of ecosystems to regulate floods, diseases, and land degradation), supporting (i.e. soil formation, nutrient cycling), and cultural (i.e. recreational, religious) services. Forests are one type of ecosystem that provides a range of such services. It has been predicted by the MA that as population and economic needs increase over time, the demand for these services will grow creating conflicts and competition over them. The demand for services will not only limit the quantity and quality of services available, but will potentially lead to increased vulnerability as access to these services is curtailed. Considering this dire prediction, what has been done to prioritize the protection of environmental services? More importantly, are people willing and able to sustain environmental services? These are the types of questions this paper will attempt to address. This paper will provide an overview of the extent to which people in the Asia-Pacific region (including South Asia, Southeast Asia, East Asia, and Oceania) are able and willing to protect environmental services that forests, which cover 734,243 million hectares of the land, accounting for 19% of global forest areas (FAO 2007a), provide. Services in the forests include biodiversity, maintenance of soil and water in watersheds, prevention of desertification, climate regulation, and ecotourism. An analysis of the policy and market conditions that do or do not allow people to protect these forest services is presented. Case studies are also provided to illustrate numerous conditions that influence whether people can take initiatives to protect environmental services in high, middle, and low income countries in the region. It must be noted, however, that a high income country has a GDP per capita between US$32,000 and US$20,000; middle income countries between US$20,000 and US$4,500; and low income between US$4,500 and US$1,000. Additionally, this paper will suggest some possible scenarios that may occur by 2020 with regard to emerging provisions to protect forest-based environmental services. This will help to assess the future of protecting services in Asia and
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