Fostering Ecosystem Services in the Danube Basin TRANSLINKS | April 2009 Project Background The Tisza river is the longest tributary in the water purification and flood protection capaci‐ Danube river basin passing through Slovakia, ties. Ukraine, Hungary, Romania, and Serbia and draining 157,186 km². In 2000, heavy metal At the end of 2006, WWF funded an assess‐ spills and repeated catastrophic flood events ment of ecosystem services provided by sus‐ threatened the livelihood of local residents tainably managed forests and agricultural land and wildlife. In response to this issue, the One for the pilot project. Once a payment scheme Europe More Nature (OEMN) initiative was is established The Water Management Author‐ “The aim [is] to created in 2003 to promote integrated river ity in Baia Mare will be measuring the river and develop integrated basin management (IRBM) in order to restore wetland status in order to ensure that changes solutions that can floodplains and stimulate sustainable rural in resource use will indeed contribute to water demonstrate how it development in the region. filtration and better flood protection. is possible to create Pulling together a group of stakeholders in‐ In 2008, the WWF hired a private company to viable livelihoods for cluding business partners, local communities, measure Baia Mare citizens’ willingness to pay people while and landowners, OEMN for varying ecosystem ser‐ maintaining the rich developed a conservation vices. The next step is cre‐ natural as well as vision, and business ap‐ ating a method to transfer proach that included mar‐ payments from beneficiar‐ cultural heritage of ket research, technical ies to local farmers and for‐ the region. And we feasibilities, communica‐ esters. hope that any tions, and policy work successes in this can where necessary. In The One Europe More Na‐ be applied to or at Marmures (Romania), ture initiative is a partner‐ least inspire and WWF and part‐ners re‐ ship between the World populated grassland areas Wildlife Fund (WWF) Hun‐ inform development with beef cattle capable of gary and the Danube Carpa‐ in other areas.” thriving in natural thian Program. The group conditions and at the same time producing hopes to create strategic relationships be‐ ‐ Erika Stanciu, Head quality meat. Local land‐owning tween local government, farmers, foresters of Carpathian Forests entrepreneurs invested heavily to develop and businesses in order to create a “new econ‐ and Protected Areas tourist accommodations high on the scenic omy” throughout the whole Tisza region. Program at WWF Oas‐Gutai plateau along‐side the cows – in Three specific localities in the Tisza Basin: the order to diversify the revenue streams Maramures region in Romania, Ecseda on the derived from nature. border of Romania and Hungary and Nagykoru in Hungary, have been chosen as pilot projects As part of the pilot project in the Maramures to help demonstrate and establish the WWF’s region, one city, Baia Mare, has adopted a vision for the Tisza region as a whole. Cur‐ Payments for Ecosystem Service (PES) ap‐ rently, this project is still in the visionary stage. proach for river conservation and sustainable Over the next 3 to 5 years the project plans to development. identify appropriate conservation strategies for each ecologically unique region. As part of Timber extraction and livestock grazing are the pilot project in the Maramures region, one major sources of income in Baia Mare. The city, Baia Mare, has adopted a Payments for project is hoping that a PES program can be Ecosystem Service (PES) approach for river established that helps these local resource conservation and sustainable development. users maintain the hydrological system’s Timber extraction and livestock grazing are continued, page 2 (continued from page 1) major sources of income in Baia Mare. The Looking Forward project is hoping that a PES program can be established that helps these local resource The WWF is waiting for funding from the users maintain the hydrological system’s European Union (EU) and the Global Envi‐ “In Romania, for water purification and flood protection ca‐ ronment Facility (GEF) to finance the finaliza‐ instance, where pacities. At the end of 2006, WWF funded an tion of the PES scheme and its trial imple‐ assessment of ecosystem services provided mentation. This will include the selection of much of the by sustainably managed forests and agricul‐ the payment scenario, definition of the buy‐ population is tural and for the pilot project. Once a pay‐ ers and sellers as well as the appropriate currently involved in ment scheme is established The Water Man‐ administration of the PES scheme. agriculture, WWF agement Authority in Baia Mare will be expects a trend measuring the river and wetland status in If scenario one, two or three are pursued, order to ensure that changes in resource there is some concern that the Baia Mare towards use will indeed contribute to water filtration citizens will oppose any water tax increases. commercialization, in and better flood protection. In 2008, the PES are voluntary transactions; in order for the next few years. WWF hired a private company to measure the community to be a willing buyer, local People will be Baia Mare citizens’ willingness to pay for people must be aware of the personal bene‐ pushed out and will varying ecosystem services. The next step is fits that they will derive from the PES creating scheme. Community education will leave agriculture, a method be essential going forward. which can be bad for to trans‐ the environment if fer pay‐ Even after buyers and sellers are they're abandoning ments properly identified a legal frame‐ ecosystems that have from work for money collection and a natural value." benefici‐ distribution will have to be estab‐ aries to lished. This will require participa‐ local tion and negotiation from all major farmers stakeholders invested in the ‐ Andreas Beckmann, and for‐ project. WWF Danube esters. Firiza Reservoir, Baia Mare, Romania Carpathian Program Office (DCP) Deputy Director Challenges The project is currently trying to establish between a private water company, Vital Co., how payment systems are going to be set up and the citizens Baia Mare who will pay 1.74 for this PES scheme. It is estimated that an Euro per person per year. In the third sce‐ initial payment of 4,049,865 Euro is needed nario Vital Co. would pay 160,000 Euro per as a one time investment by the Romanian year, local citizens would pay 1.14 Euros per government. After the initial set up, a yearly person per year, and tourists would pay 1.65 payment of 477,345 Euro is required to pay Euro per tourist per year. A fourth scenario for the delivery of the ecosystem services. is to create a trust fund using a 500,000 Euro There are three direct payment scenarios grant. The fund would be managed by a local that are currently being explored. Scenario association established through a stake‐ one would collect yearly money from indi‐ holder engagement process. This is currently vidual water users. This would require a pay‐ considered to be the most feasible scenario. ment of 3.48 Euros per person per year. Sce‐ nario two would divide the yearly payment This work was supported by the United States Agency for International Development (USAID) through the TransLinks Leader with Associates Cooperative Agreement, No.EPP‐A‐ 00‐06‐00014‐00. The contents of this report are the responsibility of the authors and do not necessarily represent the views of USAID. TransLinks is a partnership of the Wildlife Conservation Society, the Earth Institute, Enterprise Works/VITA, Forest Trends and the Land Tenure Center. .