Final Technical Report CRRP2017-06MY-KAWASAKI Effective Models for Payment Mechanisms for Forest Ecosystem Services in Papua New Guinea, Philippines and Thailand The following collaborators worked on this project: 1. Dr. Jintana Kawasaki, Institute for Global Environmental Strategies (IGES), Japan, [email protected] 2. Dr. Henry Scheyvens, Institute for Global Environmental Strategies (IGES), Japan, [email protected] 3. Dr. Adcharaporn Pagdee, Khon Kaen University, Thailand, [email protected] 4. Dr. Canesio D. Predo, University of Philippines Los Banos, Philippines, [email protected] 5. Dr. Cossey K. Yosi, PNG University of Technology, Papua New Guinea, [email protected] 6. Dr. Binaya Raj Shivakoti, Institute for Global Environmental Strategies (IGES), Japan, [email protected] 7. Mr. Stewart Serawe, Foundation for People and Community Development, Papua New Guinea, [email protected] 8. Mr. Mark Mameek Winai, Foundation for People and Community Development, Papua New Guinea, [email protected] 9. Mr. Isao Endo, Asian Development Bank, Philippines, [email protected] 10. Dr. Brian Johnson, Institute for Global Environmental Strategies (IGES), Japan, johnson @iges.or.jp Final Report: CRRP2017 -06My-Kawasaki 0 Contract: Institute for Global Environmental Strategies (IGES) 2108-11, Kamiyamaguchi, Hayama, Kanagawa, 240-0115, Japan Tel: +81-46-855-3700 Fax: +81-46-855-3709 E-mail: [email protected] IGES website: http://www.iges.or.jp/ APN Project: https://www.apn-gcr.org/resources/items/show/2074 Suggested Citation: Kawasaki, J. and Scheyvens, H. (Eds.). 2020. Effective Models for Payment Mechanisms for Forest Ecosystem Services in Papua New Guinea, Philippines and Thailand. Kobe, Japan: Asia-Pacific Network for Global Change Research (APN) and Institute for Global Environmental Strategies (IGES). 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For reuse requests: http://www.apn-gcr.org/?p=10807 Table of Content Table of Content ................................................................................................................. ii Abbreviations ................................................................................................................... iii Project Overview ............................................................................................................... ４ Effective Models for Payment Mechanisms for Ecosystem Services from the Watershed Forest in Phu Kao-Phu Phan Kham National Park, Thailand ....................................... ６ 1. Introduction ................................................................................................................... ６ 2. Methodology ............................................................................................................... １２ 3. Results and Discussion ................................................................................................ ２７ 4. Conclusions ................................................................................................................. ５１ 5. Future Directions ......................................................................................................... ５３ 6. References ................................................................................................................... ５４ 7. Appendix...................................................................................................................... ５６ Effective Models for Payment Mechanisms for Forest Ecosystem Services: The Case of Upstream Communities in Sta. Rosa-Silang and Bay-Cambantoc Subwatersheds, Philippines ................................................................................................................... ７９ 1. Introduction ................................................................................................................. ７９ 2. Methodology ............................................................................................................... ９３ 3. Results and Discussion ............................................................................................. １０５ 4. Conclusions .............................................................................................................. １４１ 5. Future Directions ...................................................................................................... １４２ 6. References ................................................................................................................ １４３ 7. Appendix................................................................................................................... １４８ Effective Models for Payment Mechanisms for Forest Ecosystem Services in Madang Province in PNG ....................................................................................................... １７５ 1. Introduction .............................................................................................................. １７５ 2. Methodology ............................................................................................................ １７６ 3. Results and Discussion ............................................................................................. １８９ 4. Conclusions .............................................................................................................. ２１３ 5. Future Directions ...................................................................................................... ２１４ 6. References ................................................................................................................ ２１５ Final Report: CRRP2017-06My-Kawasaki ii Abbreviations EGAT Electricity Generating Authority of Thailand ES Ecosystem services FES Forest ecosystem services DDF Dry Dipterocarp forest DNP Department of National Park, Wildlife and Plant Conservation KMT Kok Muang Tambon (subdistrict) MEA Millennium Ecosystem Assessment NKPT Nikom Pattana Tambon (subdistrict) NTFPs Non-timber forest products PES Payment for ecosystem services PFES Payments for forest ecosystem services PK Phu Kao PKNP Phu Kao – Phu Phan Kham National Park RFD Royal Forest Department RID Royal Irrigation Department SAO Subdistrict Administrative Organization WTA Willingness to accept WTP Willingness to pay Final Report: CRRP2017-06My-Kawasaki iii Project Overview Project Duration : 2 years Funding Awarded : US$ 41,000 for Year 1; US$ 41,000 for Year 2 Key organizations : Institute for Global Environmental Strategies (IGES), Japan involved (Dr. Jintana Kawasaki, Dr. Henry Scheyvens, Dr. Binaya Raj Shivakoti, Dr. Brian Johnson) Khon Kaen University, Thailand (Dr. Adcharaporn Pagdee) University of Philippines Los Banos, Philippines (Dr. Canesio D. Predo) Papua New Guinea University of Technology, Papua New Guinea (Dr. Cossey K. Yosi) Foundation for People and Community Development, Papua New Guinea (Mr. Stewart Serawe, Mr. Mark Mameek Winai) Asian Development Bank, Philippines (Mr. Isao Endo) Project Summary Although it is widely acknowledged that forests provide critical ecosystem services for human survival and well-being, in the Asia-Pacific region forests are being converted to other land uses and degraded at alarming rates. One underlying factor for this destruction of forests is market failure. Forests are cleared for other land uses or degraded because their ecosystem services have no market value. Payments for forest ecosystem services (PFES) have been proposed as a way of overcoming this market failure, but PFES systems have been slow to develop in the region. This project entitled, “Effective Models for Payment Mechanisms for Forest Ecosystem Services in Papua New Guinea, Philippines and Thailand” aimed to strategically generate scientific knowledge on how payments for forest ecosystem services (PFES) could contribute to forest conservation in areas where forests are facing increasing pressures. The objectives of the project were 1. Identify a cost- effective and scientifically robust method to assess ecosystem services; 2. Identify the steps necessary to establish the institutional framework and activity for generating the ecosystem services; 3. Compare and contrast pricing and payment options, both voluntary and compulsory, based on the scientific quantification and valuation of forest ecosystem services; and 4. Strengthen the capacity of the stakeholders for the identification, assessment and delivery of forest ecosystem services. The project explored the potential to develop PFES systems at three research sites - community forest in PNG, sub-watershed forest in the Philippines, and protected forest in Thailand – that offered contrasts with respect to all key elements of PFES, i.e. the type of ecosystem services with potential for payments, the types of buyers and sellers, and the likely payment arrangements. Keywords: payment for forest ecosystem services, contribution of forests to climate change mitigation, forest carbon stocks, flood damage mitigation, water shortage damage