Investigating and evaluating the payment for forest environmental service in ba be district, bac kan province

THAI NGUYEN UNIVERSITY UNIVERSITY OF AGRICULTURE AND FORESTRY LƯU VĂN HOÀNG BACHELOR THESIS INVESTIGATING AND EVALUATING THE PAYMENT FOR FOREST ENVIRONMENTAL SERVICE IN BA BE DISTRICT, BAC KAN PROVINCE Student name : Lưu Văn Hoàng Class : K45 AEP Major: International Programs Office Supervisor : MSc Nguyễn Văn Hiểu Thai Nguyen, 16/02/2017 ` DOCUMENTATION PAGE WITH ABSTRACT Thai Nguyen University of Agriculture and Forestry Degree program Bachelor of Environmental Science and Management Student name Luu Van Hoang Student ID DTN1354120136 Thesis title Investigating and evaluating the payment for forest environmental service in Ba Be district, Bac Kan province Supervisor MSc Nguyễn Văn Hiểu Abstract: Payment for forest environmental services is a policy that creates a payment mechanism between users of PFES and PFES providers, to socialize the forest protection and promotion the economic value of forest environment in the context of wood resources of natural forests, have been depleted and the State budget capital investment in forest protection is very limited In recent years, PFES policy has brought about practical and important effects for soil protection, erosion control, sedimentation of lakes, rivers and streams; regulating the maintenance of clean water for production and social life; carbon absorb and storage, reduction of greenhouse gas emissions; protect the natural landscape and preserve the biodiversity of forest ecosystems; provide spawning grounds, food sources and natural seedlings, and use water from forests for aquaculture It also contributes to the income of people living in the forest Derived from above, the research: "Evaluation of payment for forest environment i ` services in Ba Be district" is very significant in the payment for forest environment services, contributing to acknowledge the details on payment for forest environmental services has been implemented in recent years in the Ba Be district Number of pages 72 Date of submission 20/09/2017 Supervisor’s signature ii ` ACKNOWLEDGEMENT To complete this thesis, first of all, I would like to express my deep gratitude to my thesis supervisor: MSc Nguyễn Văn Hiểu He helpfully guided and helped me during the implementation process of my thesis I would like to thank the Rector Board of Thai Nguyen University of Agriculture and Forestry that dedicated teaching, guiding and caring, create the facilitate in my process of study and research I would like to send my thanks to the managers and staffs of Bac Kan Forest Protection and Development Fund have helped me during the process of investigating and collecting the data to complete my thesis Despite many efforts, due to the limited time and the level of the subject, the inevitable shortcoming of the topic I hope to receive valuable comments from my teachers and friends to more complete I also thank you to teacher, officers of Advance Education Programs office Sincerely thank! Thai Nguyen, June 29, 2017 Student Luu Van Hoang iii ` LIST OF TABLES Table 4.1: Forest types, current status, overall forest PES provides for units using PES 43 Table 4.2: Statistics on land area of Dong Phuc commune 45 Table 4.3: Forest types, current status, overall forest PES provides for units using PES 50 Table 4.4: Payments for forest environmental services in 2016 for non-forest owners 51 Table 4.5: Payments for forest environmental services in 2016 for owners are individual household 52 Table 4.6: Summary of forest land use status of Ba Be district 53 Table 4.7: Revenue and total income from forest protection of Ba Be farmers 54 Table 4.8: Amount of payment for forest owner are state and non-state 60 Table 4.9: Amount of payment for forest owner are community and individual 60 iv ` LIST OF FIGURES Figure 3.1: The administrative map of Ba Be district 26 Figure 4.1: The payment for forest ecosystem services map in Ba Be district – Bac Kan province 2017 41 Figure 4.2: The payment for forest ecosystem service map in Dong Phuc commune, Ba Be district, Bac Kan province 44 Figure 4.3: The payment for forest ecosystem service map in My Phuong commune, Ba Be district, Bac Kan province 47 Figure 4.4: The payment for forest ecosystem service map in Quang Khe commune, Ba Be district, Bac Kan province 48 v ` LIST OF ABBREVIATIONS Mod : Moderator PFES : Payment for Environment Service SOC : Socioeconomic CPC : Commune People's Committee USD : Dolar RUPES : Rewarding Upland Poor for Environmental Services RES : Receive environmental services MONRE : Ministry of Natural Resources and Environment IFAD : International Fund for Agricultural Development IUCN : International Union for Conservation of Nature and Natural Resources RCFE : Center for Research on Forest Ecology and Environment CLD : Certificate of land use right ICRAF : International Council for Research in Agroforestry IDDRI : Institute for Sustainable Development and International Relations vi ` TABLE OF CONTENT PART I: INTRODUCTION 1.1.Research rational 1.2.Research’s objective 1.3.Research questions and hypotheses 1.4.Definition PART II: LITERATURE REVIEW 2.1.Legal foundations 2.2.Theoretical foundations 2.2.1.Definition of forest 2.2.2.Forest classification in Vietnam 2.2.3.The concept of payment for forest environment service (PFES) 2.3.Practical basis 15 2.3.1.Research situation in the world 15 2.3.2.Research situation in Vietnam 16 PAST III: CONTENTS AND METHODS 18 3.1.Materials 18 3.1.1.Object and domain of the research 18 3.1.2.Research period 18 3.2.Research content 18 3.3.Methods 19 3.3.1.Methods of analysis and theoretical synthesis 19 3.3.2.Collect information and data on research subjects 20 3.3.3.Analytical methods of data processing 20 3.3.4.Inheritance method 21 PART IV: RESULTS 22 4.1.Natural, economic and social conditions of Ba Be district 22 4.1.1.Natural condition 22 4.1.2.Socio-economic development 27 4.2.The objects and the area to pay for forest environmental services 32 vii ` 4.3.Evaluation of payments for forest environment services in Ba Be district 34 4.4.Evaluation of payment for forest environmental services on each forest type 42 4.5.Revenue and total income from forest protection of farmer households in Ba Be 46 4.6.General observe the application of policy on payment for forest environment services in Ba Be district 47 4.7.Assessment of PFES policies on the people of Ba Be district 54 4.7.1.General evaluation of the district 54 4.7.2.Feedback from local people 55 PAST V: DISCUSSION AND CONCLUSION 57 5.1.Discussion 57 5.2.Conclusion 59 REFERENCES 61 viii ` PART I INTRODUCTION 1.1.Research rational Payment for forest environmental services (PFES) is the supply and payment relationship between the providers and users of forest environmental services For more than a decade, the attention and funding from international organizations have enabled the testing of several different PFES mechanisms, especially in the fields of river basin protection and carbon reduction Excluding China - the state managed, in other countries in Asia, these problems are solved in the form of community projects which are small scale and fragmentation (Young, Oran R et al, 2003) The developments of PFES in developing countries usually follow by the priority decisions based on a fair system Some countries suppose that PFES is a marketable tool for ensuring environmental services such as carbon emissions reduction, river basin protection, and biodiversity conservation The central focus of plans and projects in these countries is to promote market efficiency However, the rigid application of this approach in developing countries may increase the risk of livelihood to the poor people In Vietnam, during the last two decades, the forestry sector in Vietnam has been changed in policy and practice The forest concentration management model with the central purpose is resources exploitation have been changed into the forestry socialization model, focusing on environmental protection, social development and the promotion of local forestry enterprises These changes reflect the response of the forestry sectors to forest resource degradation and the inefficiency of centralized forest management systems Since the early 1990 's, through the program 327 and million ` Table 4.7: Revenue and total income from forest protection of Ba Be farmers Targets The benefit of the farmers Special use forest - Forest protection contracts receive 200.000VND/ha/year and not harvested timber forest products For afforestation on special use forest land, it is 10.000.000VND/4years from the 661 program budget Protection Forest - Forest clearance and protection of 200.000VND/ha/year and zoning for natural regeneration receive 100.000VND/ha/year, harvested from non-timber forest products and low quality timber Production forest - Subjects contracted plantation workers receive support and seedlings worth 4.000.000VND/ha/4years for new planting, take care of the next year after planting and forest management itself Own forest owners are 100% products obtained from the forest Total current income from protection and 200.000VND - 300.000VND/household/year afforestation Expected income of local people to protect the forest 3.000.000 - 6.000.000VND/ Household/year (source: revenue-expenditure plan of Forest Environmental Services 2016) 4.6.General observe the application of policy on payment for forest environment services in Ba Be district 47 ` Total funds for payment directly to forest owners for forest protection is obtained from the object directly using the environmental services of forests, which is the Tuyen Quang hydropower company and Chiem Hoa hydropower plants In 2016 were obtained: - Tuyen Quang Hydropower Company 4,086,980,000VND - Chiem Hoa hydropower plant 809,790,000VND In addition, the source of funds for PFES payment is also taken from the residual management budget 2016 budget not used due to rounding funds paid to forest owners in 2015 not at all (due to failure to take over and failed to verify the forest owner) reserve fund (5%) in 2015 is not used, and bank interest In general, the Forest Protection and Development Fund of Ba Be district has implemented the regulations of the government on the implementation of payment for forest environment services in the district Expenditure for entrusting environmental services in 2016 for state forest owners are 547.414.700VND with total area of PFES are 7.720,21ha According to the statistical report of the Fund for Forest Protection and Development in Ba Be district, in 2016 (Hoang Minh Ha et al 2013), the norm of payment has been applied to the hydropower company is 20VND/kWh, the processing facility to clean water is 40VND/m3, the total amount collected from forest resource users of Ba Be district in 2016 is 4.896.770.000VND Of which, Tuyen Quang Hydropower Company pays 4.086.980.000VND, Chiem Hoa Hydropower Plant pays 809.790.000VND[18] This is not quite large amounts but also very significant in the early years of the 48 ` process of establishing payment mechanisms for environmental services The proceeds will be accounted and paid to the forest contractor based on the unit price and the total contracted area of forest owners in the area In fact, the average income of households and individuals receiving forest protection contracts in the province has improved along with other incomes, PFES contributes to job creation, poverty reduction, livelihood improvement, the protection and development of forests Currently there are many households contracted for forest protection and cultivation planting trees timber forest products, has also significantly improved economic terms for households PFES policy not only contributes to partly supporting the people's need for employment in the region, but also enhances people's awareness of the importance of caring for people Minimizing the illegal exploitation and illegal logging and sustainable development of forest resources in the district However, the PFES policy has not really achieved the high efficiency, not the combination of households involved in forest protection Typically, the rate of policy participation is very low in the areas of Dia Linh, Yen Duong, Khang Ninh and Phuc Loc communes, actually this number was very small in comparison with the total area of forest land in the whole district 49 ` Table 4.8: Amount of payment for forest owner are state Forest owners The total SpecialProtection area use forest Forest (ha) converted (ha) (ha) A) The forest owner is an organization Ba Be National Park 7.820,21 7.820,21 Ba Be Forest 596,57 Enterprise B) The forest owner is not an organization Ba Be district 10.492,14 21,94 6.496,88 Cao Thuong People's 454,78 Committee Nam Mau People's 21,94 21,94 Committee Dia Linh People's 544,62 369,83 Committee Hoang Tri People's 1.150,62 790,08 Committee Yen Duong People's 1.499,73 822,79 Committee Khang Ninh People's 459,19 Committee Cao Tri People's 501,13 Committee Ha Hieu People's 118,80 46,80 Committee Banh Trach People's 411,69 162,88 Committee Dong Phuc People's 1.348,12 1348,12 Committee Quang Khe People's 1.715,42 1263,38 Committee Phuc Loc People's 696.86 170,54 Committee Chu Huong People's 316,50 316,50 Committee My Phuong People's 798,98 798,98 Committee Cho Ra town 46,58 Thuong Giao 406,98 406,98 People's Committee Production forest (ha) Total amount paid (VND) 547.414.700 596,57 41.759.900 3.973,32 734.449.800 454,78 31.834.600 1.535.800 174,99 38.137.400 360,54 80.543.400 676,94 104.981.100 459,19 32.143.300 501,13 35.079.100 72,00 8.316.000 247,81 28.818.300 94.368.400 452,04 120.079.400 526,32 48.780.200 22.155.000 55.928.600 46,58 3.260.600 28.488.600 50 ` For forest owners under state management Ba Be National Park has the largest area of converted forest land and the largest payment, in 2016, Ba Be National Park paid for 7,820.21 of forest land with a total payment of 547,414,700 VND Hoang Tri and Yen Duong communes, there are communes with non-state owned forest owners having the largest area of payment with over 1,000 of forest land converted The total payment for each commune is 80.543 400VND (Hoang Tri) and 104.981.100VND (Yen Duong) Ba Be National Park is a famous tourist destination of the district not only attract tourists in the neighboring localities and domestic visitors but also extremely attractive destinations of foreign tourists to to enjoy the majestic natural beauty of the mountains and cool fresh air Participation in payment for environmental services landscape forests of the tourist resorts will become more beautiful and the potential for tourism is increasingly enhanced Table 4.9: Amount of payment for forest owner are community and individual Forest owners The total Special- Protection area use forest Forest (ha) converted (ha) (ha) A) Forest owners are the community Ba Be district 6.641,87 1.000,86 Village community in Dia Linh 1.367,60 39,20 commune Village community in Hoang Tri 992,89 393,84 commune Village community in Khang Ninh 837,72 31,91 commune Village community 455,44 in Cao Tri commune Village community 562,91 241,23 Production forest (ha) Total amount paid (VND) 5.641,01 464.930.900 1.328,40 95.732.000 599,05 69.502.300 805,81 58.640.400 455,44 31.880.800 321,68 39.403.700 51 ` in Banh Trach commune Village community in Dong Phuc 937,88 commune Village community in Chu Huong 294,68 commune Village community in My Phuong 1.192,75 commune B) Individual households Ba Be district 13.690,41 individual household 717,70 in Cao Thuong individual household 1.549,43 in Yen Duong individual household 2.056,04 in Ha Hieu individual household 2.219,67 in Banh Trach individual household 582,91 in Dong Phuc individual household 138,16 in Quang Khe individual household 1.672,26 in Phuc Loc individual household 1.522,24 in Chu Huong individual household 1.904,87 in My Phuong individual household 23,49 in Cho Ra town individual household 1.303,64 in Thuong Giao 937,88 294,68 65.651.600 20.627.600 1.192,75 83.492.500 12.889,28 958.328.700 717,70 50.239.000 1.549,43 108.460.100 154,06 1.901,98 143.922.800 337,55 1.882,12 155.476.900 528,91 40.803.700 128,52 9,64 9.671.200 181,00 1.491,26 117.058.200 1.522,24 106.556.800 1.904,87 133.340.900 23,49 1.644.300 1.303,64 91.254.800 801,13 According to the statistic report on the amount of forest environmental services in 2016 for households who are forest owners, over 2695 households participate in payment for forest environment services Of which, the most engaged households are in My Phuong and Thuong Giao communes with more than 400 households participating in the policy Nam Mau has the largest total area converted in the district but most of it is used by Ba Be National Park and the People's Committee of the commune,(Pham Thu Thuy, et al 2013) 52 ` 4.7.Assessment of PFES policies on the people of Ba Be district 4.7.1.General evaluation of the district PES policy not only protects the area of forest protection, special use forest, protects the soil, limits erosion and sedimentation of reservoirs, river beds and stream beds, regulate and maintain water resources for production and social life Forest protection helps to increase carbon capture and storage, reduce greenhouse gas emissions by reducing forest degradation, reducing forest cover and sustainably developing forests, protect the natural landscape and preserve the biodiversity of forest ecosystems for tourism services, provide natural food sources and animals and to use water from forests for aquaculture To propose solutions to optimize PES policy, the survey indicates that the majority of households forest owners and forest contractors eager to increase the funding levels paid an area of forest, and received the support of the leadership of the authorities in the protection of forests from being cut down by loggers or support of modern equipment to monitor forest protection more effectively This not only helps the forest owner households have incomes enough for the daily needs to cover of individuals and families to protection Besides, the number of methods such as contracting to increase the area of forest covered environmental services and supplemented the benefits that forest owners can receive from policies PES also households launched to enhance the effectiveness of payment for forest environmental services 53 ` From the above results, the detailed description of forest environment services in Ba Be district brought high results, although the amount of forest area covered and the average amount paid per hectare of forest land received is not high, there is also a contribution to income improvement of people's lives, the area of forest that is protected thereby contributes to reducing uncontrolled logging and forest exploitation, forest ecosystems are maintained in a sustainable manner, contribute to environmental protection, disaster restrictions in the district 4.7.2.feedback from local people The implementation of the policy of payment for forest environment services in Ba Be district is still inadequate By interviewing people in some places paying for forest environmental services, I have obtained some information on the opinions of people, especially forest owners, on payment for forest environmental services: the contracted households payment for forest environment service, as well as job requirements, forest owners have to spend a great deal of their time working on largescale forest protection Consequently, the satisfaction of households on PES policies is still very low, through the survey to 60% of the households interviewed expressed their views on the policy is not consistent, the payment rate is too low compared to the contracting forest areas and the protection, payment delays occur and not commensurate with the effort they have spent However, about 30% of the households interviewed felt appropriate policies, remaining 10% rated it very good policy expressed positive support PES policies in the protection and sustainable development of natural resources 54 ` Many households are located in the area of payment for forest environmental services but they not join because the forest area of the household is only about Households with low forest cover in the area service of payment, want to increase the forest area contracted to participate in the program, most of households have a desire to pay higher to improve their living standards, the rest of the households who did not participate in the program was felt the money received was insignificant compared to the effort they working to protect the forest, many families want to join but not in the basin with PES 55 ` PART V DISCUSSION AND CONCLUSION 5.1.Discussion Ba Be district consists of 15 rural communes, 150 villages, and 9,886 households The total natural land area is 68.421ha Of which, Quang Khe, Dong Phuc, and Nam Mau are the three communes have 679,9ha of forest land The poverty rate under the new standard is still very high at nearly 70% where the environmental services project is located - Forms of forest management and use in Ba Be + Households: 25.670,74ha, accounting for 44,49% + Economic organizations: 3.122,18ha, accounting for 5,41% + Commune People's Committees: 19.757,14ha, accounting for 34,24% + State agencies and units: 9.142,15ha, accounting for 15,85% + Other organizations: 1,42ha accounting for 0,00% - Identify forest service providers, buyers of environmental services + Environmental service provider: Ba Be National Park, Ba Be Forest Enterprise Group of households, households, individuals, village communities contracted forest protection, zoning is located in Ba Be district Households are allocated production forest land for proper use 56 ` + Buyers of environmental services include Na Hang Hydropower Plant, Tuyen Quang and Ta Lang Hydropower Plant - Payment mechanism for forest environmental services The subject has identified the domain and area of each type of forest in the region that offers environmental services of forests, service providers and potential buyers The amount paid by the service user after the calculation will be calculated in 1/9 ratio This means that 10% will go to the provincial forest development fund and 90% to the forest owner Based on the results of surveys and consultation with stakeholders, develop forest resources and develop effective mechanisms for payment for forest environmental services The following solutions should be implemented: - Improve the capacity of individuals and agencies to pay for environmental services and how to pay for environmental services - Improve knowledge, awareness, and access to information for ethnic minority farmers That change the traditional way of farming and then adapt to payment activities for ecological services - Should be base on the planning and results of the division three types of forests in the locality for business investment in conformity with the functions of each specific forest type The premise for the management and protection of forest areas assigned section and facilitate the division of the money paid for environmental services 57 ` 5.2.Conclusion The implementation of payment for forest environmental services in Ba Be district applied in the past two years has been very successful It might assume that the one of the important factors contributing to stopping the deforestation, forest land encroachment, illegally exploiting forest products, contributing to improving the living standards of local people The implementation of PES policies in the district has had positive impacts on forest protection and development That is the situation of forest destruction, forest land encroachment, illegal exploitation of forest products to reduce The forest environment has been improved step by step, increasing the protection, regulation, and maintenance of water of electricity and clean water for people's living, creating great economic value for enterprise resources for PES establishments On the other hand, the forest owners and state management agencies in the forestry sector have qualified technical staffs to fulfill the PES, contributing to improving the lives of ethnic minorities in the district, the users of PES (hydropower plants, clean water production establishments) have water sources that ensure the production PES providers (forest owners, households, groups of households contracted to protect forests, communities ) paid for the results of their labor, the value of labor of the forest workers became commodities However, the application of PES policy is very difficult, especially in the early years of application is still very new feature and forest owners have joined not much The inadequacy of the unit price paid for forest protection is not really relevant to 58 ` regions Especially in areas where there is a large hydropower generating plant, there should be adequate funding for forest environmental services The topic focuses on in-depth research on payment for water environment services, while the value of forests with the environment is very much The research stops at the assessment level in the areas currently covered by forest environment services in Ba Be district There should be a combined study investigating all forest areas in Ba Be district Identify the forest areas that can provide forest environmental services and then propose payment options Research on the ability to provide other types of forest environmental services in the area currently covered are two types: forest carbon sequestration and preservation services From there, propose appropriate payment options 59 ` REFERENCES Landell mills, Natasha, et al Silver bullet or fools' gold?: a global review of markets for forest environmental services and their impact on the poor 2002 Engel, Stefanie; Pagiola, Stefano; Wunder, Sven Designing payments for environmental services in theory and practice: An overview of the issues Ecological economics, 2008, 65.4: 663-674 Grieng gran, Maryanne; Porras, Ina; Wunder , Sven How can market mechanisms for forest environmental services help the poor? Preliminary lessons from Latin America World development, 2005 Decree 99/2010/ND-CP on payment for forest environment services 2010 Do Tien Dung Research on payment mechanism for forest environment services in Ba Be district, Bac Kan province, 2011 Bishop, Joshua; Pagiola, Stefano (ed.) Selling forest environmental services: market-based mechanisms for conservation and development, 2012 Loomis, John Valuing environmental and natural resources: the econometrics of non-market valuation 2005 Pham Thu Thuy et al Distribution of payments from PFES in Vietnam: Evidence from studies for information to compile guidelines for payment Center for International Forestry Research (CIFOR), Bogor, Indonesia, 2016 Pagiola, Stefano; Platais, Gunars Payments for environmental services 2002 10 Pangiola, Stefano; Arcenas, Agustin; Platais, Gunars Can payments for environmental services help reduce poverty? An exploration of the issues and the evidence to date from Latin America World development, 2005 60 ` 11 Somerevillate, Matthew, et al Impact of a Community‐Based Payment for Environmental Services Intervention on Forest Use in Menabe, Madagascar Conservation Biology, 2010 12 Do Hai et al Improving the investment environment in the midland and mountainous provinces of northern Vietnam, 2011 13 Muradian, Roldan, et al Payments for ecosystem services and the fatal attraction of win‐win solutions Conservation letters, 2013 14 Bulltes, Erwin et al Payments for ecosystem services and poverty reduction: concepts, issues, and empirical perspectives Environment and Development Economics, 2008 15 Delia, Lan, Elisabeth, Bac, Hoan & Rebecca, 2014 Recommendations for the capacity building program for stakeholders in the payment for forest environmental services in Vietnam 16 Tran Huu Tuan, Bui Duc Phong, Tran Van Giai the economic, social and environmental impacts of the pesticides on the environmental service of forest environment in Lam Dong ,2012 17 Pham Thu Thuy, et al Payment for environmental services in Vietnam: From policy to reality.Center for International Forestry Research (CIFOR), Bogor, Indonesia, 2013 18 Nguyen Thi Viet Ha, et al Apply sustainable livelihoods framework to assess the impact of PES on livelihoods of households in Da Nhim commune, Lac Duong district, Lam Dong province 2012 61 ... environmental services, in the basin at the time of inspection by the agency, confirmation as a basis for payment for forest environmental services The forest area managed and used by the forest environmental. .. services map in Ba Be district – Bac Kan province 2017 41 Figure 4.2: The payment for forest ecosystem service map in Dong Phuc commune, Ba Be district, Bac Kan province ... Figure 4.3: The payment for forest ecosystem service map in My Phuong commune, Ba Be district, Bac Kan province 47 Figure 4.4: The payment for forest ecosystem service map in Quang Khe