2019 Developing Payment of Ecosystem Services Mechanisms for Sanjay Gandhi National Park- A Revenue Generating Model A Collaborative Study by Sanjay Gandhi National Park And Wildlife and We Protection Foundation, Mumbai Table of Contents Chapter 1: Ecosystems and Ecosystem Services............................................................................................ 4 Introduction to ecosystem services ........................................................................................................... 4 Types of ecosystem services ..................................................................................................................... 5 Provisioning services ............................................................................................................................. 7 Regulating services ................................................................................................................................ 9 Cultural services .................................................................................................................................. 11 Supporting services ............................................................................................................................. 12 Systemic interconnections between ecosystem services .................................................................... 13 How have ecosystems changed? ............................................................................................................. 14 Degradation of ecosystems ..................................................................................................................... 15 Valuation of ecosystem services ............................................................................................................. 16 Use value: ............................................................................................................................................ 17 Non-use value...................................................................................................................................... 18 Chapter 2: Payments for Ecosystem Services – Concepts and Principles .................................................... 19 Introduction ............................................................................................................................................ 19 Further aspects of payment of ecosystem services ................................................................................. 20 Types of PES scheme ............................................................................................................................... 22 Scale of PES schemes............................................................................................................................... 23 How PES works in practice ...................................................................................................................... 23 Multi-layered PES schemes ..................................................................................................................... 25 The actors involved in PES schemes ........................................................................................................ 25 Key aspects of scheme design ................................................................................................................. 27 Practical steps to assess the feasibility of PES ......................................................................................... 28 Chapter 3: Challenges in Mechanisms of PES .............................................................................................. 33 Introduction ............................................................................................................................................ 33 Key challenges in PES .............................................................................................................................. 33 Lack of knowledge about ecosystem functions and economic values ................................................ 33 Environmental leakage ........................................................................................................................ 33 Arranging for users to finance PES and permanence of payments ..................................................... 34 High transaction costs ......................................................................................................................... 34 Addressing the concerns of rural poor and promoting inclusive growth ............................................ 34 Lack of secure property rights ............................................................................................................. 34 1 Ensuring the integrity of the payment scheme ................................................................................... 35 Getting public participation and support ............................................................................................ 35 Securing buyer confidence .................................................................................................................. 35 Achieving fair outcomes ...................................................................................................................... 35 Ensuring organizational coordination and support ............................................................................. 35 Identifying and agreeing on the economic value of ecosystem services ............................................. 36 Ensuring ‘real’ additionality ................................................................................................................. 36 Chapter 4: The Need for PES Projects for Sanjay Gandhi National Park ...................................................... 37 The importance of SGNP to Mumbai’s environment .............................................................................. 38 The need for a PES project ...................................................................................................................... 39 Objective of this study ............................................................................................................................. 40 Chapter 5: Project Area ............................................................................................................................... 41 Biological values of the SGNP forming a basis for beneficial ecosystem services ................................... 42 Floral Species of conservation importance.............................................................................................. 44 Fauna ................................................................................................................................................... 45 Geological values of the SGNP forming a basis for beneficial ecosystem services .................................. 46 Additional environmental values of the SGNP forming a basis for beneficial ecosystem services .......... 46 Archeological value: ............................................................................................................................ 47 Recreational and Educational Values: ................................................................................................. 47 Chapter 6: Methodology ............................................................................................................................. 48 The RAWES approach .............................................................................................................................. 48 Chapter 7: Preliminary Findings of Ecosystem Service Delivery from SGNP ................................................ 50 Chapter 8: Development of PES Markets for SGNP ..................................................................................... 62 Benefits and beneficiaries of services generated by the SGNP ............................................................... 62 Exploring and developing PES markets for services generated by the SGNP .......................................... 62 Chapter 9: Implications of encroachment into SGNP .................................................................................. 69 Chapter 10: Conclusions .............................................................................................................................. 76 Appendix 1: Ecosystems of SGNP-Preliminary Findings .............................................................................. 77 Ecosystems in SGNP ................................................................................................................................ 77 1. 3B/C1 Moist teak-bearing forests .................................................................................................... 79 2. 3 B/C2 Southern moist mixed deciduous forest .............................................................................. 80 3. 4B/TS1 Mangrove scrubs ................................................................................................................. 81 4. 8 A/C2 Western sub-tropical hill forests .......................................................................................... 82 2 5. Degraded forest ............................................................................................................................... 83 6. Plantation .......................................................................................................................................