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)

7

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

37

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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

50

51 2. Developing a sustainable financing plan

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