Ecosystem Services for Poverty Alleviation in Amazonia A report of a capacity-building project to design a research agenda on the links between the natural capital of Amazonian forests and water, food, health, livelihood, climate and energy securities. – Global Canopy Programme – Grupo de Trabalho Amazônico – Instituto Nacional de Pesquisas Espaciais – London School of Economics – Met Office Hadley Centre – Universidade Federal do Rio de Janeiro – Universidad Nacional Agraria La Molina – Universidad Nacional de Colombia – University of Edinburgh – University of Oxford – University of1 Vermont This Report presents the activities and results of an ESPA capacity-building project (grant NE/G008531/1) entitled: Valuing rainforests as global eco-utilities: a novel mechanism to pay communities for ecosystem services provided by the Amazon. The project was led by the University of Edinburgh and the Global Canopy Programme in the UK; Universidade Federal do Rio de Janeiro (UFRJ) and Instituto Nacional de Pesquisas Espaciais (INPE) in Brazil; Universidad Nacional de Colombia (UNAL) and Universidad Nacional Agraria La Molina (UNALM) in Peru in collaboration with a number of academic and NGO partners. The views expressed in this publication do not necessarily reflect the views of the organisations involved in this project, or those of its funders. Acknowledgements The project leaders would like to warmly thank all those who gave up their valuable time to engage in this capacity-building project. In particular, the members of the project team who committed their energies at workshops and meetings and through the writing of reports and project proposals. We especially thank the stakeholders in local communities and government who provided their insights into the process. Professors Carlos Nobre, José Eli da Veiga and John Grace provided invaluable inspiration, momentum and guidance in the early stages of the project. The team would like to particularly thank Dr Antonio Nobre for his longstanding support and collaboration, and his innovative thinking which helped to inspire this project. The capacity-building project was made possible by an ESPA capacity-building grant to the University of Edinburgh and the GCP. In addition, the GCP wishes to thank the Prince Albert II of Monaco Foundation (www.fpa2.com) for its generous support to this project. Citation: Meir, P., Mitchell, A., Marengo, J., Young, C., Poveda, G., Llerena, C.A., Rival, L., Meneses, L., Hall, A., Betts, R., Farley, J., Fordham, S., Trivedi, M. 2011. Ecosystem Services for Poverty Alleviation in Amazonia. Global Canopy Programme and University of Edinburgh, UK. Designed by Company www.company-london.com Ecosystem Services for Poverty Alleviation in Amazonia A report of a capacity-building project to design a research agenda on the links between the natural capital of Amazonian forests and water, food, health, livelihood, climate and energy securities. Principal contributors Patrick Meir, University of Edinburgh Andrew Mitchell, Global Canopy Programme José Marengo, Instituto Nacional de Pesquisas Espaciais Carlos Young, Universidade Federal do Rio de Janeiro Germán Poveda, Universidad Nacional de Colombia Carlos Llerena, Universidad Nacional Agraria La Molina Laura Rival, University of Oxford Luis Meneses, Grupo de Trabalho Amazônico Anthony Hall, London School of Economics Richard Betts, Met Office Hadley Centre Joshua Farley, University of Vermont Sarah Fordham, University of Oxford Mandar Trivedi, Global Canopy Programme WHY IS THIS PROJECT IMPORTANT? These are critical times for Amazonia and the people who depend on the region for their livelihoods and their climate, food, water, and energy security. Although predictions are uncertain, over time, deforestation and climate change could substantially alter the functioning of large portions of the forest and even tip the region over a threshold into a regime supporting reduced forest cover and impacting regional and global climate. Amazonia’s forests also represent places of spiritual importance to their indigenous peoples, acting additionally as a symbol of nature that resonates across societies globally. Despite the physical resources and cultural value of the region, its forests have historically experienced substantial land use change. The region is under pressure from infrastructure development, natural resource extraction and conversion of land to agriculture. Hence, there is a need for research that explores the risks, opportunities and trade-offs, and the winners and losers expected from alternative development scenarios. One route to supporting reductions in deforestation and extending them across the region is to work towards informing change in the political economy. This requires the recognition of the importance of forests to the economy. Researchers in Latin America have shown that Amazonia’s forests comprise vital natural capital, generating ecosystem services such as carbon sequestration and storage, cooling from evapotranspiration, freshwater filtration, nutrient and water cycling, moderation of extreme climatic events, maintenance of genetic diversity, medicines, fuel, fibres and food that benefit populations both in the forest and far beyond it. Economic studies suggest that standing Amazonian forests are more valuable for their ecosystem goods and services than alternative uses of the land. However, the long-standing assertion of substantive value has not yet translated into large-scale financial flows and distribution to those people for whom the use of forests is integral to a sustainable livelihood. Fortunately, the tide may have begun to change as Amazonian nations and the wide international community have become more aware of the need to reduce emissions of greenhouse gases from land use change. Deforestation rates have declined in the Brazilian Amazon in recent years and the government has set a target to reduce rates by 72% by 2017. Coupled with growing political will is substantial interest among Amazonian countries in the emerging UN climate policy framework ‘Reducing Emissions from Deforestation and forest Degradation’ (currently REDD+), which would involve industrialised nations compensating developing countries for conserving and restoring forests. Although the implementation of the policy remains uncertain, early REDD+ preparations are taking place (with Norwegian, German, Japanese, UN and World Bank support) in all Amazon Basin countries except Venezuela. The rapidly evolving situation in the region underlines the immediate importance of feeding research results into emerging national REDD+ policies. This is especially relevant in terms of developing flexible and adaptive agendas which recognise the preferences and circumstances of local populations, to avoid what some commentators see as a potential for a top-down approach which limits the participation at the grassroots level of forest and indigenous populations. PROJECT LegaCY 1 A new network for research on Ecosystem Services for Poverty Alleviation in Amazonia, including researchers from leading Southern and Northern institutions, Intermediary organisations and Community networks across Amazonia. 2 A submitted proposal for a basin-scale research consortium project, comprising 13 major institutions from the UK, USA and the Congo Basin with leadership from South America. 3 Key decision-makers are more aware and ready to engage in future work on Ecosystem Services for Poverty Alleviation. KEY OUTpuT INDICATORS Amazon basin-scale ESPA research agenda – Submitted £4m ESPA consortium research project proposal for PRISMA Amazonia – Led by Prof. Carlos A. Llerena, La Molina University, Peru First Pan-Amazon community leaders knowledge sharing on ESPA – Community knowledge needs report – Policy brief to UNFCCC First Andean Amazon research forum focused on ESPA – Andean Amazon research gaps assessment report Pilot research projects and literature reviews – Beyond Carbon: Realising the Value and Continued Stewardship of Tropical Forest Ecosystem Services in a Changing Climate – Cash Transfer Programmes in Amazonia – Turning the Tide in Amazonia? From Perverse Incentives to Environmental Services – Counting the Costs of the 2005 Amazon Drought: A Preliminary Assessment – Risks To Amazonia: A Summary of the Past, Present and Future Pressures from Land Use and Climate Change – Amazonia’s Aerial Rivers and Lakes: Investigating Large Scale Moisture Transport, its Relation to Amazonia and Subtropical Rainfall in South America – Exploring the Value of Amazonia’s ‘Transpiration Service’ – Mapping the Benefits and Costs of Amazonia’s Ecosystem Services Thirteen reports and papers produced linked to the project (see Appendix) Newly-funded ESPA Framework project with a Political Economy theme – Led by University of Edinburgh with partners in Brazil, Malawi and Nepal Latin American policymakers engaged – Knowledge needs assessment with local and regional policymakers engaged through partnership with TEEB, UNDP and AVINA Private sector actors more aware and engaged – Knowledge needs assessment on climate and deforestation risks to business through partnership with the Forest Footprint Disclosure Project and The Royal Society 5 KEY Issues FOR fuTURE ReseaRCH Although there is uncertainty, were deforestation to exceed 40% of the original forest extent or if global warming were to exceed 3–4°C, Amazonia – especially the south and south-east – could be tipped into a new climate-forest equilibrium, experiencing lower rainfall and forest cover. How will Amazonia