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Ecosystem Valuation Background Paper for Northern Ghana October 2017

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Ecosystem Valuation Background Paper for Northern Ghana October 2017 Ecosystem Valuation Background Paper for Northern Ghana October 2017 Feed the Future Ghana Agriculture and Natural Resource Management Project Ecosystem Valuation Background Paper for Northern Ghana Agreement Number: AID-641-A-16-00010 Authors: Alexandre M. Grais, Gabriel Sidman, Michael Netzer, Therese Tepe, and Timothy Pearson; Winrock International DISCLAIMER The report was made possible through the generous support of the American people through the U.S. Agency for International Development (USAID) under the Feed the Future initiative. The contents are the responsibility of Winrock International and do not necessarily reflect the views of USAID or the United States Government. ii Table of Contents Executive summary .................................................................................................... 1 Ecosystem Services and PES Schemes ..................................................................................................... 1 Ecosystem Services in northern Ghana .................................................................................................. 1 Potential PES schemes in northern Ghana ............................................................................................. 2 Design and Next Steps for Ecosystem Services and Payment for Ecosystem Services ............... 3 Introduction ................................................................................................................. 3 Background .................................................................................................................................................... 3 What are Ecosystem Services?.................................................................................................................. 4 What is Payment for Ecosystem Services? ............................................................................................. 5 Review of ecosystem services in Northern Ghana ............................................. 6 Ecosystem services in northern Ghana ................................................................................................... 6 Climate Change regulation...................................................................................................................... 13 Recreational and ecotourism ................................................................................................................. 15 PES Schemes for Northern Ghana ...................................................................... 17 Carbon and GHG emissions................................................................................................................... 18 Water-based ecosystem services .......................................................................................................... 19 Soil erosion control and enrichment .................................................................................................... 20 Importance of biodiversity for the provision of aesthetic services and provision of crops ..... 20 Payment for Ecosystem Services in northern Ghana – Design and next Steps .................................................................................................................. 22 Stakeholder Consultation ........................................................................................................................ 22 Evaluation of ES with Existing Data and Geospatial Analysis .......................................................... 23 Valuation of ES with Economic Analysis .............................................................................................. 28 Conclusion ................................................................................................................ 29 References ................................................................................................................ 30 iii Acronym List CREMA Community Resource Management Area ER-PD Emission Reduction Program Document ES Ecosystem Services FAO Food and Agriculture Organization FCPF Forest Carbon Partnership Facility GFC Ghana Forestry Commission GHG Greenhouse Gas GoG Government of Ghana km2 square kilometer MESTI Ghanaian Ministry of Environment, Science, Technology and Innovation NGO Non-Governmental Organization NPP Net Primary Productivity NTFP Non-Timber Forest Product PES Payment for Ecosystem Services PFES Payment for Forest Ecosystem Services REDD+ Reduced Emissions from Deforestation and forest Degradation and the enhancement of carbon stocks SLWM Sustainable Land and Water Management SLWMP Sustainable Land and Water Management Programme SWAT Soil and Water Assessment Tool USAID United States Agency for International Development USAID AgNRM USAID Feed the Future Agriculture and Natural Resource Management Project USGS United States Geological Survey iv EXECUTIVE SUMMARY With this paper, the USAID Feed the Future Ghana Agriculture and Natural Resource Management Project (USAID AgNRM) seeks to begin a conversation on how to best develop an ecosystem valuation for the Upper West Region, Northern Region, and Upper East Region that integrates ecosystem services’ intrinsic values into daily natural resource management. This paper presents: 1. An overview of ecosystem services (ES) and payment for ecosystem services (PES) schemes. 2. Explores which ES are important in northern Ghana and potential PES schemes for the region. 3. Discusses the next steps to supporting an ES valuation and the PES schemes best suited for northern Ghana. Ecosystem Services and PES Schemes The Millennium Ecosystem Assessment defines ecosystem services as the provisioning (e.g., water resources), regulating (e.g., climate regulation, water quality), cultural (e.g., aesthetic), and supporting (e.g., soil formation) benefits that people obtain from ecosystems (Millennium Ecosystem Assessment, 2005). Although there are intrinsic values to ecosystem services, the impact that economic development has on them is usually considered an externality. Payment for ecosystem services (PES) schemes provide a market mechanism to internalize these externalities, so that a monetary cost can be associated with the carbon that would be emitted and the decrease in water quality that would occur. Factors that ensure the viability of a PES are 1) To define ES well so that it can be valued, measured, and monitored, 2) To identify a buyer (e.g., private company or government program), and 3) To identify the provider (e.g., land owner). Ecosystem Services in northern Ghana Northern Ghana and all of Sub-Saharan Africa are among the most vulnerable areas in the world to losses of ES and impacts of global climate change. This is partially due to the seasonal and drought-prone semi-arid climate that forms the transition between savanna and the more arid Sahel region, combined with a growing population dependent on subsistence livelihoods (Sheffield et al. 2014; Herrmann et al. 2005). Currently, two primary reports have been published on ES of northern Ghana. One was compiled by the Ghanaian Ministry of Environment, Science, Technology and Innovation (MESTI) in 2015 and focused on the feasibility of sustainable land and water management activities that could be supported by a PES system. The second was published by Boafo et al. in 2014 and reviewed ES in the rural savanna landscapes of northern Ghana. Using these reports, other studies, and preliminary spatial analysis, we will analyze the most important ES for northern Ghana, to be combined with information from local stakeholders and other experts. This paper reviews a number of ecosystem services: water-based ecosystem services; ecosystem services to support crops, game and fodder; timber and non-timber forest products; regulation of greenhouse gases; and recreation, tourism and biodiversity. 1 Potential PES schemes in northern Ghana While all the ES mentioned above are important for northern Ghana, not all are viable as a PES. For a PES scheme to be viable, there must be a well-defined environmental service, a buyer, a provider, and in many cases, some type of third party regulator. This analysis will review those that are potentially appropriate for PES in northern Ghana (Table 1) based on existing literature and staff expertise. Table 1. Overview of potential PES schemes in local communities in northern Ghana Ecosystem Service Activity Beneficiaries and Buyer Mechanism Climate regulation Reducing deforestation and Beneficiary: the global community Government through the forest degradation and/or Buyers: World Bank Carbon scheme such as reduction/removals conducting Fund, national governments such REDD+. of Greenhouse Gas afforestation/reforestation as Norway, and to a certain (GHG) emissions activities (e.g., mango, teak and extent the voluntary market. Private voluntary cassia). carbon projects. Provision of Activities in the upper Heavy users of water such as Heavy water users freshwater and watershed that improve or power companies producing providing direct regulation of flow maintain water quality and hydroelectricity, industrial users payment to and water quality. flow, such as reforestation, (e.g., shea processors) irrigation communities based improved agricultural associations, portable water on measurable practices, and improved utilities, and local governments activities such as wastewater that must provide flood area reforested. protection. Regulating soil Activities in the upper Dam operators who must Dam operators erosion watershed that improve prevent sedimentation, industry
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