Establishing a mangrove Payment for Ecosystem Services scheme in Madagascar. Dr Garth Cripps
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1 Establishing a mangrove Payment for Ecosystem Services scheme in Madagascar Dr Garth Cripps garth@blueventures.org
2 a counterfactual baseline actual Carbon markets: Compliance (UNFCCC (CDM), EU ETS.) Voluntary (VCS, Plan Vivo, Gold Standard )
3 Foundations of a REDD+ project Quantification of GHG emission reductions Carbon rights Permanence Net positive social (and biodiversity) impacts Additional (net +ve climate change impact)
4 Project steps Project idea & preliminary assessment Design & planning Project design document Implementation & monitoring Approvals, Validation & Registration Verification & Issuance of credits Time (30 60 years)
5 Cashflow (US$) 1,200,000 1,000, , , , ,000 Total implementation costs Total carbon project cycle costs Carbon revenue after Sales Tax - (200,000) Net cumulative profit / loss after tax (400,000) (600,000) (800,000) Project year (t)
6 Cashflow (US$) 1,500,000 1,000, ,000 Total implementation costs Total carbon project cycle costs - (500,000) (1,000,000) (1,500,000) Project year (t) Carbon revenue after Sales Tax Net cumulative profit / loss after tax (2,000,000)
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8 Challenges 1. Build community support for conservation actions to deliver Ecosystem Services 2. Diversify benefits / income streams Enhanced fisheries productivity Sustainable timber production
9 To Live With The Sea N 50 Km 24 Villages 6,659 People S
10 Velondriake Locally-Managed Marine Area Severe Poverty and Resource Dependence
11 Oleson et al. in prep Velondriake Locally-Managed Marine Area Severe Poverty and Resource Dependence Average Per Capita Income $1.37 (PPP)/day 91% of adults are fisher or gleaners 85% income comes from fishing/gleaning For 65% of households, 100% of income from fish/gleaning
12 A long story of conservation
13
14
15 No-Take Zone Deemed Too Ambitious
16 Octopus Closures No-Take Zone Deemed Too Ambitious
17 Octopus cyanea Closures Mean of 23.5% of village s fished area 3 months (2-7 months)
18 Octopus Closures No-Take Zone Deemed Too Ambitious
19 Octopus Closures Mangrove Closure No-Take Zone Deemed Too Ambitious
20 Octopus Closures Mangrove Closure No-Take Zone Deemed Too Ambitious Permanent No-Take Zones
21 No-Take Zone Deemed Too Ambitious Octopus Closures Mangrove Closure From: Temporary Closures for 1 Species, 1 Habitat, 1 Village To: Permanent No-Take Zones for Many Species, Many Habitats, 24 Villages Permanent No-Take Zones
22 Landings Data Collection
23 Landings: + 7-fold
24 Catch per Unit Effort: Before: 2.4 kg/day + 60% After: 3.8 kg/day
25 Majority of Closures Profitable +$250 NPV (US PPP)
26 Fisheries Benefits Economic Benefits Social Benefits Strong Evidence of Social Benefits
27 Starting Small but Starting Loud: Begin by showing demonstrable financial benefits from fisheries management and thereby build capacity, awareness, and buy-in for broader locally-managed conservation efforts.
28 Higher $/kg for villages with fishing reserves
29 2. Diversify benefits / income streams Enhanced fisheries productivity (crab & shrimp) Sustainable timber production
30 2. Diversify benefits / income streams Enhanced fisheries productivity (crab & shrimp) Sustainable timber production two commercially-valuable ecosystem services that: community management of mangrove ecosystems can deliver there is already a strong local market demand
31 2. Diversify benefits / income streams Enhanced fisheries productivity (crab & shrimp) Sustainable timber production two commercially-valuable ecosystem services that: community management of mangrove ecosystems can deliver there is already a strong local market demand
32 Building a mangrove PES scheme: 1. Establish community management to deliver ecosystem services 2. Broker the sale of Ecosystem Services between sellers (community) and buyers
33
34 1. Establish community management to deliver ecosystem services 1. a community mangrove management plan to deliver ES 2. effective temporary mangrove fishing reserves are created and managed by the communities
35 1. Establish community management to deliver ecosystem services 1. a community mangrove management plan to deliver ES 2. effective temporary mangrove fishing reserves are created and managed by the communities 3. transfer of legal resource management rights to the communities
36 1. Establish community management to deliver ecosystem services 1. a community mangrove management plan to deliver ES 2. effective temporary mangrove fishing reserves are created and managed by the communities 3. transfer of legal resource management rights to the communities 4. monitoring data of the fisheries and other targeted ecosystem services
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38
39
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41 2. Broker the sale of Ecosystem Services between sellers (community) and buyers
42 2. Broker the sale of Ecosystem Services between sellers (community) and buyers 1. Undertake bio economic analyses to develop a compelling business cases for both parties
43 2. Broker the sale of Ecosystem Services between sellers (community) and buyers 1. Undertake bio economic analyses to develop a compelling business cases for both parties 2. Cost Benefit Analysis of the resource management actions
44 Net Present Value ($US PPP) Profitability By Closure (Net Present Value at Closure)
45 2. Broker the sale of Ecosystem Services between sellers (community) and buyers 1. Undertake bio economic analyses to develop a compelling business cases for both parties 2. Cost Benefit Analysis of the resource management actions 3. Establish a clear and equitable mechanism
46 2. Broker the sale of Ecosystem Services between sellers (community) and buyers 1. Undertake bio economic analyses to develop a compelling business cases for both parties 2. Cost Benefit Analysis of the resource management actions 3. Establish a clear and equitable mechanism 4. Negotiate and establish PES contracts between buyers and sellers
47 2. Broker the sale of Ecosystem Services between sellers (community) and buyers 1. Undertake bio economic analyses to develop a compelling business cases for both parties 2. Cost Benefit Analysis of the resource management actions 3. Establish a clear and equitable mechanism 4. Negotiate and establish PES contracts between buyers and sellers
48 Thank you!
49
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51 2. Developing a sustainable financing plan
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