WORKING TOGETHER TO INSPIRE SUSTAINABLE SOLUTIONS ANALYSIS OF PES NEEDS AND FEASIBILITY IN SERBIA CONTENT INTRODUCTION 01 Author: Goran Sekulić THE DANUBE BASIN IN SERBIA 02 Editor: Maya Todorova Editor of the English text: Vanya Rainova PES IN SERBIA – GENERAL REMARKS 03 Design concept: Boyan Petkov, Ina Kalcheva Printed at Geosoft EOOD DETAILED REVIEW OF EXISTING FINANCIAL SCHEMES RELATED TO NATURAL Cover photo: © Wild Wonders of Europe / Ruben Smit / WWF RESOURCES AND NATURE CONSERVATION 04 © Text 2012 WWF Danube-Carpathian Programme All rights reserved Fund for environmental protection 04 This study was prepared as part of THE DANUBE PES PROJECT: PROMOTING Fund for waters 08 PAYMENTS FOR ECOSYSTEM SERVICES AND RELATED SUSTAINABLE FINANCING SCHEMES IN THE DANUBE BASIN. Fund for forests 13 This project promotes and supports land managers who help us sustain the benefits that we all get Charges for use of protected areas 17 from nature. The project is implemented by the WWF Danube-Carpathian Programme with the financial support of the GEF through UNEP and the European Commission. Tourism in protected areas 21 General recommendations for PES schemes in Serbia 22 WWF-DCPO Ottakringer Straße 114-116 Potential case studies for PES schemes in Serbia 27 1160 Vienna, Austria Phone: +43 1 524 54 70 Fax: +43 1 524 54 70-70 [email protected], www.panda.org/dcpo WWF-Bulgaria 38 Ivan Vazov Street, app. 2-4 Phone: +359 2 950 50 40, +359 2 950 50 41 Fax: +359 2 981 66 40 [email protected], wwf.bg WWF-România Str. Ioan Caragea Voda nr. 26A, 010537, sector 1, Bucuresti Phone: +40 21 317 49 96 Fax: +40 21 317 49 97 [email protected], wwf.ro scaling the PES concept with a focus organizations are also working on INTRODUCTION on biodiversity conservation. The developing international PES (IPES). People have largely underestimated natural resources and the relatively the benefits derived from ecosystems poor results of the existing concept in industrial society. Most often, for conservation of ecosystems have these gains were seen in the context brought economic assessment of THE DANUBE BASIN IN SERBIA of culture and spirituality and ecosystem services to the forefront of were, therefore, difficult to value in contemporary thinking about nature economic terms. conservation policies. Global policies Serbia is located in southeastern Europe and occupies an area of 88,361 sq. have started to acknowledge the km. Most of its territory (80%) is in the Balkan Peninsula; the remaining 20% However, the last decades have immense importance of ecosystem stretch into the Pannonian Plain. witnessed a shift in our thinking services and to incorporate them in about ecological services. The growing economic systems. The Danube is the largest river in Serbia. Its basin covers almost the entire concern over the rapid depletion of territory of the country, save for small areas in southern Serbia, which belong to the Adriatic and Aegean Sea basins. Coming from the northwest, the Danube flows through the Pannonian Plane. In the eastern part of the country, the river enters Djerdap gorge (Iron Gate), one of the largest gorges in Europe. The Cultural (eg. educational, largest tributaries in Serbia are Tisa, Sava, Morava, Tamiš and Timok. Provisioning (eg. food, recreational, spiritual, water, timber) religious) Regulating (eg. climate regulation, water purification, Supporting (primary flood protection, disease production, soil formation) control) Figure 1. Classification of ecosystem services (based on Millennium Ecosystem Assessment, UN 2005) Payments for ecosystem services in general. Many international (PES) are incentives for the marketing programmes and initiatives promote of services that are provided by this concept. The United Nations natural systems. Nowadays, PES Environmental Programme (UNEP), are recognized as one of the most the Conventional on Biological convenient tools for supporting Diversity (CBD) and the International nature conservation and sustainable Union for the Conservation of Nature management of natural resources (IUCN) are cooperating closely on WWF 2012 - Payments for Ecosystem Services in Serbia / page 1 WWF 2012 - Payments for Ecosystem Services in Serbia / page 2 effective and targeted financing of People who are working in sectors PES IN SERBIA – GENERAL REMARKS ecosystem conservation. Additional related to natural resources (nature economic analysis should be conservation, water management, conducted in order to properly adapt forestry) are acquainted with the The PES concept is a relatively new to mechanisms, even though certain existing mechanisms and to define general facts and principles of Serbia, and it has not been developed elements are in place. In addition, procedures for the internalization environmental economics, but and implemented. However, recent the existing financial mechanisms of environmental costs in different incentives and organized efforts for laws regulating the use of natural are focused on provisioning services sectors. promotion of this concept are lacking. resources have enabled some (timber, water, flora and fauna), basic environmental economics which leaves out other ecological However, there is little awareness mechanisms. services of great importance, such as and knowledge about PES in Serbia. natural flood protection and water The Law on Environmental Protection purification, for example. (2004) adopted the “user pays” principle and introduced fees for the Protected area managers in Serbia are use of natural resources and some allowed to collect fees for different ecological services. Other laws, such kinds of use of resources in their DETAILED REVIEW OF EXISTING FINANCIAL SCHEMES as the Law on Waters and Law on parks. This mechanism resembles a Forests, also regulate the payment for PES scheme, but then, again, we run RELATED TO NATURAL RESOURCES AND NATURE natural resource use. The 2010 Law into the problem of loosely defined on Forests goes as far as introducing a rules for investing the money collected CONSERVATION fee for forest services of public interest from such fees. In addition, the (protection of water basins, protection ecological services, for which the users FUND FOR environmental PROTECTION from erosion, non-timber forest are charged, are not always specified, products, recreation, etc.), which can and users are not aware that they be considered a fee for ecosystem are paying for benefits they get from The Fund for Environmental The main financial sources of the services. ecological services. Protection was established by the Law Fund for Environmental Protection on Environmental Protection1, which are charges established by the However, these laws do not regulate In recent years, there has been a passed in 2004. A separate Law on eponymous law (Articles 27, 45 & 85). the investment of collected fees. deliberate effort to develop tourism Fund for Environmental Protection2 They include: Provisions for the use of these funds in some protected areas in Serbia. was adopted in 2009. The fund aims • charge for the use and trade are defined broadly, and they do These initiatives also have some to secure funding for activities in the not explicitly ensure financing of characteristics of PES schemes, since with wild fauna and flora; area of preservation, sustainable use, The charge for the use and trade of conservation initiatives. As a result, they generate income that supports protection and advancement of the the money is not invested back into the management of the protected wild flora and fauna is defined by environment, as well as in the area of the Decree on Control of Use and the conservation of ecosystems areas. energy efficiency and use of renewable Trade of Wild Flora and Fauna3. The and the improvement of ecosystem energy sources. amount of the charge is 10% of the services. Obviously, there are solid foundations for the further development of PES Therefore, we cannot fully schemes in Serbia. Many of the 1 Official Gazette of the Republic of Serbia no. 135/2004 acknowledge existing financial existing financing mechanisms can 2 Official Gazette of the Republic of Serbia no. 72/2009 & 101/2011 mechanisms in Serbia as PES be adapted so that they enable the 3 Official Gazette of the Republic of Serbia no. 31/2004, 35/2004. WWF 2012 - Payments for Ecosystem Services in Serbia / page 3 WWF 2012 - Payments for Ecosystem Services in Serbia / page 4 market value of used/traded natural bags) and by the type and volume of good. vehicles with internal combustion Percent of Source Amount in RSD engines (every vehicle owner pays the total amount • charge for the registration in the charge annually). the European Eco-management Charges for the use and trade with 72.421.465,45 1,51 and Audit Scheme `(EMAS) • charges for the use of fishing wild fauna and flora system; areas6 The charge for the registration into Users (management bodies) of Charges for motor vehicles 809.516.074,43 16,89 EMAS system is currently 66 000 fishing areas are charged 15% of Charges for substances which are 4.570.299,90 0,09 RSD (ca. 600 EUR), paid by the the amount collected for issuing of detriment to ozone layer company. licenses for professional fishermen Charges for SO2, NO2 emission 2.541.947.230,26 53,04 and 10% of that amount for sport • environmental pollution and industrial waste fishermen. charges; Charges for special treatment waste 1.334.484.362,31 27,85 Environmental pollution charges Part of the revenues from the Charges for use of fishing areas 29.265.264,95 0,61 are defined by the Decree on Types enforcement of provisions of the of Pollution, Criteria for Calculating TOTAL 4.792.204.697,30 100 Law on Waters (charges for water of Charges for Environmental protection) are also used by the Fund Pollution and Payers, Amount and Table 1. Revenues of the Fund for Environmental Protection in 2011. (for more details see next chapter). Way of Calculating and Collecting (source: Serbian Fund for Environmental Protection) of Charges4 and Rulebook on According to the Fund’s report, the Determining of Harmonized total revenue was nearly 4,8 billion Amounts for Environmental In addition to these charges, the Fund improvement of the quality of air, RSD (ca.