WORKING TOGETHER TO INSPIRE SUSTAINABLE SOLUTIONS TECHNICAL REPORT PAYMENT SCHEME FOR AESTHETIC AND BIODIVERSITY VALUES OF RUSENSKI LOM NATURE PARK Author: Maya Bankova-Todorova, WWF DCP Bulgaria Co-authors: Yulia Grigorova and Raina Popova, WWF DCP Bulgaria Technical adviser: Julio Tresierra, PhD, independent consultant With the contribution of: Milko Belberov, Tzonka Hristova and Georgi Georgiev, Directorate of Rusenski Lom Nature Park, Mariana Tzvetanova, freelancer, Milan Jousten, Intern, Monia Martini, WWF DCP Romania Graphic design: Boyan Petkov Cover photo: © Veselina Kavrakova Back cover photo: © Alexander Ivanov Published by WWF Bulgaria, Sofia © 2013 WWF Bulgaria. All rights reserved. WWF is one of the world's leading independent environmental organizations with 5 million volunteers and a global network, which operates in more than 100 countries. WWF's team in the Danube-Carpathian region is responsible for leading and implementing WWF's efforts to preserve, restore and sustainably manage the natural values of the Danube-Carpathian ecoregions. The team works across political borders developing model projects, influencing policy, capacity building, raising awareness and seeking solutions to the challenges that the region faces in order to ensure prosperity, sustainability and biodiversity conservation. All material appearing in this publication is copyrighted and may be produced with permission. Any reproduction in full or in part of this publication must credit WWF Bulgaria as the copyright owners. The designations of geographical entities in this publication, and the presentation of the material, do not imply the expression of any opinion whatsoever on the part of WWF or its supporting organizations concerning the legal status of any country, territory, or area, or its authorities, or concerning the delimitation of its frontiers or boundaries. Suggested citation: Todorova M. (2013). Payment Scheme for Aesthetic and Biodiversity Values of Rusenski Lom Nature Park. WWF Bulgaria, Sofia. Payment Scheme for Aesthetic and Biodiversity Values of Rusenski Lom Nature Park | 2013 TABLE OF CONTENTS INTRODUCTION 2 1. BACKGROUND AND CONTEXT 4 1.1. HISTORICAL OVERVIEW 4 1.2. THE PROBLEM ADDRESSED BY THE PROJECT 7 1.3. THE NATIONAL SYSTEM OF PROTECTED AREAS 7 1.4. BIODIVERSITY AND ECOSYSTEMS WITHIN RUSENSKI LOM PILOT SITE 9 2. DESIGN 12 2.1. IDENTIFICATION OF THE TARGETED ECOSYSTEM AND ITS SERVICES 12 2.2. IDENTIFICATION OF THREATS AND RISKS TO THE ECOSYSTEM (AND ITS SERVICES) 13 2.3. PES AS A SOLUTION TO THE BIODIVERSITY PROBLEM 18 2.3.1. AREA TO BE COVERED BY PES 18 2.3.2. POTENTIAL BARRIERS FOR IMPLEMENTING PES 19 2.3.3. PAYMENTS FOR AESTHETIC AND BIODIVERSITY VALUES AND UNREGULATED TOURISM 20 2.3.4. LOGICAL FRAMEWORK OF THE SCHEME 20 3. PES IMPLEMENTATION 26 3.1. LEGAL FRAMEWORK 26 3.1.1. SELLERS 26 3.1.2. BUYERS 27 3.2. FINANCIAL FRAMEWORK OF THE SCHEME 28 3.2.1. VALUE OF THE SERVICE 29 3.2.2. FINANCIAL SCENARIOS 30 3.3. SUPERVISION AND MONITORING FRAMEWORK 31 3.3.1. TIME FRAME 30 4. RESULTS AND LESSONS LEARNED 33 4.1. LESSONS LEARNED 37 5. NEXT STEPS AND RECOMMENDATIONS 40 6. ANNEXES 43 1.1. HISTORICAL OVERVIEW 4 1.2. THE PROBLEM ADDRESSED BY THE PROJECT 7 1.3. THE NATIONAL SYSTEM OF PROTECTED AREAS 7 1.4. BIODIVERSITY AND ECOSYSTEMS WITHIN RUSENSKI LOM PILOT SITE 9 INTRODUCTION This report presents the work of the WWF DCPO on testing a scheme of payments for ecosystem services (PES) for one pilot area in Bulgaria, Rusenski Lom Nature Park, as part of the commitments established in the project Promoting payments for ecosystem services and other related sustainable financing (SF) schemes in the Danube river basin. The report elaborates upon the steps taken to design and implement a scheme of payments for ecosystem services focused on resolving conflicts/ establishing sustainable links between tourism development and the maintenance of aesthetic and biodiversity values provided by ecosystems of the targeted protected area. The project Promoting PES and other related sustainable financing schemes in the Danube river basin (hereafter Danube PES project) in its essence aims at promoting and demonstrating the feasibility of PES/ SF in the Lower Danube river basin. Five pilot sites in Romania and Bulgaria were selected for the purpose, Rusenski Lom Nature Park being one of them. The project also plays an important role in awareness raising and capacity building at the local, national and Danube river basin level for the scaling-up and uptake of the ecosystem services approach into public policies and funding instruments. The GEF Danube PES project has been coordinated by the WWF with financing from the GEF, and implementation support from the UNEP since October 2009. The project is operational until the end of 20141. This report covers the period between 2010 (when the works of developing PES started in the pilot site) and May 2013. The work in the pilot area was preceded by a 10-month period devoted to baseline data collection and pre-feasibility studies. Size and location of the pilot area Rusenski Lom Nature Park is located in the northeast of Bulgaria, in the canyon-like valley of the Rusenski Lom River, the last major tributary of the Danube in Bulgaria, before it flows into the Black Sea. The area comprises a natural complex of ecological, historical and cultural significance. It lies in the intersection of 3 protected areas, namely: Rusenski Lom Nature Park – 3 408 ha. According to the World Database on Protected Areas, Rusenski Lom, ID Number 604, falls under category V of the IUCN protected area categories, i.e. Protected Landscape2 1 The project was designed to last until the end of 2013. However, after the project mid-term evaluation, WWF proposed a one year non-cost extension, which was approved by GEF. 2 IUCN Category V: Protected landscape and protected seascape the area covers an entire body of land or ocean with an explicit natural conservation plan in the interest of nature conservation, but usually also accommodates a range of for-profit activities. The main objective is to safeguard regions that have built up a 'distinct character' in regards to their ecological, biological, cultural or scenic value. In contrast with previous categories, Category V: Protected Landscapes and Seascapes permits surrounding communities to interact more with the area, contributing to the area's sustainable management and engaging with its natural and cultural her itage. Landscapes and seascapes that fall into this categor y should represent an integral balance between people and nature, and can sustain activities such as traditional agricultural and forestry systems on conditions that ensure the continued protec tion or ecological restoration of the area. Category V is one of the more flexible classifications of protec ted areas. As a result, protected landscapes and seascapes may be able to accommodate contemporary developments, such as ecotourism, at the same time as maintaining the histor ical management practices that may procure the sustainability of agrobiodiversity and aquatic biodiversity. 2 Payment Scheme for Aesthetic and Biodiversity Values of Rusenski Lom Nature Park | 2013 Introduction • Lomovete Natura 2000 site (BG0002025) designated under Directive 2009/147/EC of the European Parliament and of the Council on the conservation of wild birds (EU Bird Directive), 33 451,13 ha. • Lomovete Natura 2000 site (BG0000608) designated under Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora (EU Habitat Directive), 32 488, 93 ha. The overlapping area between the two Natura 2000 sites is 32 177 ha (96 % of BG0002025; 99 % of BG0000608). Both Natura 2000 sites include the territory of Rusenski Lom Nature Park. The pilot site covers 3408 ha, which is the entire area of Rusenski Lom Nature Park. However, the actual pilot intervention area is smaller, nearly 10% of the total area, including several settlements and their adjoining territories, where tourism is more intensive. This report comprises four chapters. Chapter 1 presents a short summary of the situation in the pilot site and outlines the main environmental facts about Rusenski Lom Nature Park. Chapter 2 is dedicated to the design of a scheme of payments for ecosystem services. It provides information on ecosystem services delivered by Rusenski Lom Nature Park and on a selection of ecosystem services. It also offers details about the threats to the selected ecosystem services and the intervention area, and potential barriers to the implementation of a PES scheme in this pilot area. Chapter 2 is followed by a logical framework of the scheme. The legal, financial, monitoring and reporting frameworks of the scheme of payments for cultural ecosystem services, as developed by the Danube PES team, is presented in Chapter 3. It gives information on the buyers and sellers of the targeted ecosystem service subject to the PES scheme. Finally, Chapter 4 presents the results acieved until May 2013 and lessons learned. Payment Scheme for Aesthetic and Biodiversity Values of Rusenski Lom Nature Park | 2013 3 1. BACKGROUND AND CONTEXT 1.1. HISTORICAL OVERVIEW Rusenski Lom Nature Park has been a priority area for the WWF for 10 years. The plan for establishing a PES scheme in Rusenski Lom was conceived as a continuation to a programme initiated by the WWF Macroeconomics Programme Office entitled “Promoting Payments for Ecosystem Services (PES) and Sustainable Financing (SF) for Rural Conservation and Development”. WWF DCPO acted as an anchor for PES