TrainingmanualonPESpolicies en VN

See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/260126198 TRAINING MANUAL: PAYMENTS FOR FOREST ENVIRONMENTAL SERVICES POLICIES IN VIETNAM Book · December 2011 CITATIONS READS 332 author: Bac Viet Dam Consultative Group on International Agricultural Research 26 PUBLICATIONS   130 CITATIONS    SEE PROFILE Some of the authors of this publication are also working on these related projects: Climate-smart, Tree-based, Co-investment in Adaptation and Mitigation in Asia https://www.worldagroforestry.org/project/smart-tree-invest View project All content following this page was uploaded by Bac Viet Dam on 12 February 2014 The user has requested enhancement of the downloaded file TRAINING MANUAL PAYMENTS FOR FOREST ENVIRONMENTAL SERVICES POLICIES IN VIETNAM The World Agroforestry Centre ICRAF Vietnam The Pro-Poor Partnership for Agroforestry Development Project in Bac Kan province (3PAD) Rewards for, Use of and Shared Investment in Pro-poor Environmental Services (RUPES) Partnership for the Tropical Forest Margins (ASB) INTRODUCTION Vietnam is the first country in Southeast Asia to pilot the payments for water environmental services policy at the national level in Lam Dong and Son La over the period of 2008-2009 following Decision No.380/2008/QD-TTg issued on 10 April 2008 by the Prime Minister On 24th September 2010, the government issued Decree No.99/2010/ND-CP concerning payments for environmental services in the whole country In an attempt to raise local officials’ awareness of the implementation of Decree No.99/ND-CP regarding payments for forest environmental services, the training document was designed to offer a direct support for the payments for forest environmental services in the general context of Vietnam The document is based on the results drawn from consultation made among the stakeholders and practical experiences gained from building a mechanism for payments for forest environmental services in Bac Kan The document was derived from 3PAD Project in Bac Kan province as part of the 32TV technical package under the title of “Developing Training Manual and Training Courses on Payments for environmental services policies” During the process of drafting the document our editing team researched and made some reference to legal documents such as Decree, Decisions, Circulars and the Inter-ministerial Circular concerning the implementation of Decree No.99/ND-CP on payments for forest environmental services at all levels In addition, the editing team used some information, methods and experimental research results on payments for environmental services provided by colleagues in the country and beyond The authors hope this document will make a significant contribution to raising awareness and equipping local officials of all levels and local residents with knowledge of payments for forest environmental services policy or implementing a pilot model of payments for forest environmental services The document might be lacking so we hope to receive feedback from the readers to better the document World Agroforestry Centre (ICRAF) ICRAF Vietnam ACKNOWLEDGEMENTS The training document hinges on legal documents, world and Southeast Asian regional researches and experiences within the country with regard to the implementation of Decision No.380/QD-TTg and Decree No.99/ND-CP on payments for forest environmental services and practical experiences gained from building a mechanism of payments for environmental services in three districts of Ba Be, Pac Nam and Na Ri in Bac Kan province The document would not have been completed without the support and comments of local governmental agencies at all levels, individuals and local residents We would like to express sincere thanks and compliment for Project 3PAD in Bac Kan province for granting funding to launch this document for training sessions Logical frameworks, regulations on payments for environmental services are drawn from lessons learnt and results of the Rewarding for Upland Farmers for Environmental Services (RUPES II) Project in Southeast Asia Authors Dam Viet Bac, MSc World Agroforestry Centre Do Trong Hoan, MSc World Agroforestry Centre Dinh Ngoc Lan, Assoc Professor, Ph.D Thai Nguyen University of Agriculture and Forestry Delia Catacutan, Ph.D World Agroforestry Centre Stakeholders include: Department of Agriculture and Rural Development, Department of Natural Resources and Environment, Forest Protection Department, 3PA, associations at all levels, specialist department at district level, forest enterprises, natural reserves, national park, commune officials, government representatives at all levels and representative of local people in Leo Keo (Ba Be District) and To Dooc Village (Na Ri District) We would like to express a special thank to Associate Prof Dr Nguyen Ba Ngai (Deputy Director of Vietnam Administration Forestry) and Mr Pham Duc Thanh, Ms Nguyen Minh Hien, Ms Pham Thanh Loan and Ms Nguyen Ngoc Huyen for devoting their time to modifying this training document TABLE OF CONTENTS INTRODUCTION ACKNOWLEDGEMENT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLE LIST OF ABBREVIATIONS LESSONS AND EXAMPLES Lesson Overview of environmental services Lesson Mechanism of payments for forest environmental services 15 Lesson Planning, implementing, monitoring, reporting and verify payments for 28 forest environmental services at community level Lesson Payments for environmental services Fund Management Mechanism 34 Lesson 5: Methods and skills for training adult learners 44 APPENDIX 55 LIST OF FIGURE Figure A proposed approach for payments for environmental services for Bac Kan 15 Figure Forest carbon storage 18 Figure Data level of carbon (IPCC) 22 Figure Stakeholders in the mechanism of payment for forest environmental 23 services Figure Organisational Structure of PFES Pilot Policy in Lam Dong Province 25 Figure The process of building mechanism of payments for forest environmental 28 services at community level Figure Fund management and uses of indirect PES payments 35 LIST OF TABLE Table K factor decided by forest origin and type in Son La province 11 Table Defining the K factor following different criteria in Lam Dong province 12 Table Subjects, types of service and rate of payment for forest environmental 13 services Table Estimate payment for water environmental services according to Decree 99 16 in Nang River watershed Table Methods of meeasuring carbon in storages 19 Table Process and method of planning a model of payment for forest 29 environmental services Table Proposed contents of monitoring criteria and index of forest environmental 30 services for Ba Be district Table Report and tracking/monitoring proposed for Ba Be 31 LIST OF ABBREVIATIONS 3PAD Pro-Poor Partnerships for Agro-Forestry Development ARBCP The Asia Regional Biodiversity Conservation Program AR/CDM Afforestation and Reforestation CDM ASB Partnership for the Tropical Forest Margins CBT Community based tourism CDF Community Development Fund CERs Certified Emission Reductions CDM Clean Development Mechanism CO2eq Carbon Dioxide Equivalent DNA Designated National Authority GIS Geographic Information System IPCC Intergovernmental Panel on Climate Change MRV Monitoring Reporting and Verification PaLA Participatory Analysis of Landscape PAPOLD Participatory Analysis of Poverty PRA Participatory Rural Appraisal PES Payments for Environmental Services PFES Payment for Forest Environmental Services REDD/REDD+ Reducing Emissions from Deforestation and Forest Degradation in developing countries RES Reward for Environmental Services RaCSA Rapid Carbon Stock Appraisal REALU Reducing Emissions from All Land Uses RHA Rapid Hydrological Appraisal RUPES Rewards, Use and shared investment in Pro-poor environmental services ToT Training of Trainer TUL-VIET Trees in multi-use landscapes in Vietnam TULSEA Trees in multi-use landscapes in Southese Asia UNFCCC United Nations Framework Convention on Climate Change UN-REDD United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation VER Voluntary Emissions Reductions LESSON OVERVIEW OF PAYMENTS FOR ENVIRONMENTAL SERVICES 1.1 Concept of payments for environmental services According to Wunder et al (2005), payments for environmental services (PES) are understood as a legally binding commitment to entering into a voluntary-based contract This contract regulates that one or more than one buyer (or service user) will pay for ecosystem services1 by cash or other supports for one or more than one seller (or ecosystem service provider) The seller/service provider is responsible for ensuring a certain land-use pattern at a given time in order to ensure an agreement on ecosystem services According to Decree 99/2010/ND-CP, Forest environmental service refers to the supplements of forest environmental values to meet social and living needs It comprises these following services: a) Soil protection, reduce erosion and river and lake sedimentation; b) Adjust and maintain water supplies for production and social life; c) Forest carbon sequestration, reduce greenhouse gas emissions by preventing deforestation, enlarging forest sizes and sustainable forest management; d) Protect natural landscape and conserve biodiversity of forest ecosystems as a way to cater to tourism services; and d) Supply birth places, food sources and natural seeds, use water supplies from forests for aquaculture 1.2 Experiences of environmental services in the world 1.2.1 Payments for water and landscape services Payments for water environmental services refer to a mechanism of payment for functions of the basin area As such water users in the downstream will have to pay for forest owners in the upstream in order to protect forests against soil erosion and floods; the mechanism of payments for landscape beauty covers entrance fees to reserves which through tourism in turn raise funds for conservation; and community-based tourism which considers as a mechanism of environmental services of both landscape beauty and biodiversity In that context, it shares some similarities with the existing models of environmental services in Costa Rica One of the models in Costa Rica is that some hotels involved in the mechanism of payments for environmental services to protect the basin This payment stems from the awareness of a close link between water environmental service providers for the purpose of basin protection and beneficiaries (refer to tourism industry) Most of the tourism activities primarily rely on water reserve and water quality For that reason, starting from 2005 some hotels have paid an annual fee of US$45,5 for each of land for local landowners and paid 7% of total administrative fees of the payment for the environmental services model That said, even in such a place as Costa Rica, “There is no mutually accepted mechanism that is based on the benefits of those directly get paid from landscape beauty and biodiversity conservation “Community-based tourism is another mechanism of environmental services In a recent example given by a research in Tanzania that aims to establish a mechanism of payments for environmental services, a group of five travel companies teamed up to make a contract with a village located in a local grassland so as to use annual financial payments to protect wild animals 1.2.2 PES for carbon sequestration services Climate change has been a significant environmental and regulatory topic for over two decades In order to address it, the Kyoto Protocol was adopted on 11 December 1997 and entered into force on 16 February 20051 It is an international agreement linked to the UNFCCC2 whose major feature is that it sets binding targets for 37 industrialized countries and the European Union for reducing greenhouse gas emissions3 These amount to an average of 5% against 1990 levels over the period 2008-20124.The Protocol lays down various market-based mechanisms to help participating countries contribute to the emission reduction efforts  Emissions trading (carbon market)  Clean Development Mechanism (CDM)  Joint Implementation (JI) A decision on REDD was adopted at the Thirteenth Conference of Parties (COP 13) in December 2007 At the COP 15 in December 2009 in Copenhagen, a development on REDD, known as ‘REDD+’, was emphasized because it recognized the importance of promoting the sustainable management of forests and the co-benefits this provided, such as biodiversity After COP 16, REDD+ had developed to a point where it was understood as the most innovative and cost-effective mechanism aimed at five key issues: 1) reducing emissions from deforestation; 2) reducing emissions from forest degradation; 3) conservation of forest carbon-stock; 4) sustainable management of forests; and 5) enhancement of forest carbon-stock CDM, JI and REDD+ are the relevant mechanisms that feed the carbon market JI enables industrialized countries to carry out projects with other developed countries, while the CDM involves investment in sustainable development projects that reduce emissions in developing countries At the international level, REDD+ involves creating mechanisms to make payments to developing countries for reducing emissions from deforestation and forest degradation 1.2.3 Clean Development Mechanism The CDM allows emission reduction projects in developing countries to earn certified emission reductions (CERs), each equivalent to one tonne of carbon dioxide (CO2)5 These CERs can be traded and sold, and used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol6 Together with the objective of emission reductions for industrialized countries, the CDM also helps accelerate sustainable http://unfccc.int/kyoto_protocol/items/2830.php http://unfccc.int/kyoto_protocol/items/2830.php http://unfccc.int/kyoto_protocol/items/2830.php http://unfccc.int/kyoto_protocol/items/2830.php http://cdm.unfccc.int/about/index.html http://cdm.unfccc.int/about/index.html APPENDIX Decree No 99/2010/ND-CP on the Policy for Payment for Forest Environmental Services 58 THE GOVERNMENT _ SOCIALIST REPUBLIC OF VIETNAM Independence-Freedome-Happiness _ No: 99 /2010/ND-CP Ha Noi, September 24, 2010 DECREE On the Policy for Payment for Forest Environmental Services _ THE GOVERNMENT Pursuant to the Government Organization Law dated December 25, 2001; Pursuant to the Forest Protection and Development Law dated December 03, 2004; Pursuant to the Biodiversity Law dated November 13, 2008; Considering the recommendation from the Minister of Agriculture and Rural Development, DECREES: Chapter I GENERAL PROVISIONS Article Scope of regulations This Decree regulates the policy for payment for forest environmental services in Viet Nam, including: Types of environmental service that the users pay to the suppliers subject to this Decree Suppliers and users of forest environmental services Management and use of the payment from forest environmental services Rights and obligations of suppliers and users of forest environmental services Responsibilities of state management agencies at various levels and of different sectors in implementing payment for forest environmental services Article Target The provisions of this Decree shall apply to state agencies; organizations, households, individuals, village communities in the country; Vietnamese residing overseas, foreign organizations and individuals with operations relating to supply, use, and payment for forest environmental services and management of the payment from forest environmental services Article Terminology definitions In this Decree, the following terminologies are understood as follows: Forest environment comprises the components of the forest ecosystem: plants, animals, micro-organisms, water, soil, air, natural landscape For social and human needs, forest environment has use values, referred to as use values of forest environment, including: soil protection, water regulation, headwaters protection, coastal protection, disaster prevention and 59 mitigation, biodiversity, carbon sequestration and retention, tourism, habitat and spawning ground of organisms, timber and other forest products Forest environmental service is the work to supply the use values of forest environment to meet the needs of the society and people, including types of service stipulated in Clause 2, Article of this Decree Payment for forest environmental services is a supply and payment relationship in which the users of forest environmental services pay to the suppliers of forest environmental services in accordance to Article of this Decree Article Types of forest and types of forest environmental services entitled to payment for forest environmental services Forests entitled to payment for forest environmental services are forests that supply one or more environmental services stipulated in Clause of this Article, including: protection forest, special use forest, and production forest Types of forest environmental services stipulated in this Decree include: a) Soil protection, reduction of erosion and sedimentation of reservoirs, rivers, and streams b) Regulation and maintenance of water sources for production and living activities of the society c) Forest carbon sequestration and retention, reduction of emissions of green house gases through measures for preventing forest degradation and loss of forest area, and for forest sustainable development d) Protection of natural landscape and conservation of biodiversity of forest ecosystems for tourism services e) Provision of spawning grounds, sources of feeds, and natural seeds, use of water from forest for aquaculture The Ministry of Agriculture and Rural Development to take the lead and collaborate with relevant Ministries and agencies to submit to the Prime Minister for promulgation of the statute governing: target of application, level of payment, method of payment for carbon sequestration and retention services of forest and services for providing spawning grounds, sources of feeds and natural seeds, use of water from forest for aquaculture, for implementation in line with the regulations in this Decree Article Principles of payment for forest environmental services Organizations and individuals benefiting from forest environmental services must pay for forest environmental services to forest owners of forest that create the supplied services Payment for forest environmental services is in money through direct or indirect payment methods The payment for forest environmental services through a Forest Protection and Development Fund is the money that users of forest environmental services entrust the Fund to pay to owners of forests that supply forest environmental services Payment for forest environmental services is factor of the production costs of products that use forest environmental services and does not substitute the resource tax or other payments stipulated by law Transparency, democracy, subjectivity, and equity, in line with the legal system of Viet Nam and international agreements that Viet Nam ratifies or joins, are ensured 60 Article Method payment for forest environmental services Direct payment: a) Direct payment is that the users of forest environmental services pay directly to the suppliers of forest environmental services b) Direct payment is applies to the cases where the users of forest environmental services are able and have sufficient conditions for making direct payment to the suppliers of forest environmental services without having to go through a intermediary organization Direct payment is carried out based on the voluntary negotiated agreements between the users and suppliers of forest environmental services in line with the regulations in this Decree, where the payment level is not lower than the level regulated by the Government for the same forest environmental service Indirect payment: a) Indirect payment is that the users of forest environmental services pay to the suppliers of forest environmental services through the Viet Nam Forest Protection and Development Fund or the provincial Forest Protection and Development Funds or agencies and organizations, decided by the Provincial People’s Committee, acting in place of the provincial Forest Protection and Development Fund b) Indirect payment is applied to cases where the users of forest environmental services are not able to and not have sufficient conditions to make direct payment to the suppliers of forest environmental services but to make payment through an intermediary organizations stipulated at Point a, Clause of this Article Indirect payment is subject to the intervention and support of the Government with prices of forest environmental services stipulated by the Government Article Those having to pay and types of services having to pay for forest environmental services Hydropower production facilities have to pay for services for soil protection, reduction of erosion and sedimentation of reservoirs, rivers, and streams and services for regulation and maintenance of water sources for hydropower production Clean water production and supply facilities have to pay for services for regulation and maintenance of water sources for clean water production Industrial production facilities that use water directly from water sources have to pay for services for regulation and maintenance of water sources for production Organizations and individuals doing tourism services that benefit from forest environmental services have to pay for services for protection of natural landscape and conservation of biodiversity of forest ecosystems serving tourism purposes Those having to pay for forest environmental services for carbon sequestration and retention of forest; services for provision of spawning grounds, sources of feeds and natural seeds, use of water from forest for aquaculture are stipulated in clause 3, Article of this Decree Article Those entitled to payment for forest environmental services Those entitled to payment for forest environmental services are forest owners of forests that supply forest environmental services, including: a) Forest owners who are allocated forest or leased forest to by the Government for long-term use for forestry purposes and forest owners who plant forest by themselves on allocated forestry land certified by the Provincial People’s Committee based on recommendation from the Department of Agriculture and Rural Development 61 b) Forest owners who are households and individuals allocated forest or leased forest to by the Government; village individuals allocated forest by the Government for long-term use for forestry purposes; forest owners who are households, individuals, village communities who make their own investment to plant forest on forestry land allocated by the Government, certified by the district People’s Committee based on the recommendation from the agency specialized in forestry, certified by the commune level People’s Committee Organizations, households, individuals, village communities contracted for long-term forest protection by state organizations (hereafter referred to as contracted households); the contracts are entered by the contractors and the contractees, certified by the commune People’s Committee Chapter II MANAGEMENT AND USE OF THE REVENUE FROM PAYMENT FROM FOREST ENVIRONMENTAL SERVICES Part I MANAGEMNET AND USE OF THE REVENUE FROM DIRECT PAYMENT FOR SERVICES Article Payment for forest environmental services Suppliers and users of forest environmental services agree by themselves on the types, levels of payment, and methods of payment for forest environmental services in line with the regulations in this Decree and other relevant legal regulations In the case that suppliers and users of forest environmental services agree by themselves on the types of service stipulated in this Decree, the levels of payment must not be lower than the levels of payment stipulated in Article 11 of this Decree In the case that the levels of payment are not regulated in this Decree yet, suppliers and users of forest environmental services agree by themselves on the levels of payment The Government encourages the application of direct payment for all cases if suppliers and users of forest environmental services can reach agreement on the levels of payment Article 10 Use of the revenue from payment for forest environmental services Suppliers of forest environmental services have the right to decide the use of the revenue from payment for forest environmental services, after fulfilling financial obligations to the Government as stipulated by law In the case that a supplier of forest environmental services is a government organization, the revenue from payment for forest environmental services, after subtracting costs relating to the implementation of the policy for payment for forest environmental services incurring to the organization including payments to households contracted for forest protection, is accounted for as an income of the organization and is spent in accordance with financial regulations applicable to that organization 62 Part II MANAGEMENT AND USE OF THE REVENUE FROM INDIRECT PAYMENT FOR FOREST ENVIRONMENTAL SERVICES Article 11 Level of payment and determining the amount of payment for forest environmental services For hydropower production facilities a) The level of payment for forest environmental services applied to hydropower plants is 20 VND/kWh of commodity electricity The production of electricity used for calculating the amount of payment for FOREST ENVIRONMENTAL SERVICES is the power amount that a hydropower plant has sold to power purchasers according to power purchase contracts; b) Determining the amount of payment for forest environmental services The amount of payment for forest environmental services in a payment period (VND) is the production of electricity in that payment period (kWh) times the level of payment for forest environmental services per kWh (20VND/kwh) For clean water production and supply businesses: a) The level of payment for forest environmental services applied to the clean water production and supply businesses is 40 VND/m3 of commodity water The production of water used for calculating payment for forest environmental services is the amount of water that a clean water production business has sold to consumers; b) Determining the amount of payment for forest environmental services The amount of payment for forest environmental services in a payment period (VND) is the production of commodity water in the payment period (m3) times the level of payment for forest environmental services per 1m3 of commodity water (40 VND/1m3) For industrial production facilities using water directly from water sources The Ministry of Agriculture and Rural Development is assigned to take the lead and to collaborate with the relevant ministries and agencies to submit to the Prime Minister for approval of the stipulation on target of application, level of payment, and method of payment for this type of service For organizations and individuals conducting tourism business benefiting from forest environmental services a) The level of payment for forest environmental services is 1-2% of the revenue generated in the payment period b) Determining the amount of payment for forest environmental services The amount of payment for forest environmental services in a payment period (VND) is the revenue times the level of payment (1-2%) c) Provincial People’s Committees are assigned to determine those having to pay including organizations and individuals doing travel tourism and accommodation tourism businesses in 63 provinces and cities under the national government The levels of payment for forest environmental services applies to these entities are according to Point a, Clause 4, of this Article Article 12 Those entitled to exemption, reduction of payment for forest environmental services Organizations and individuals stipulated in Article of this Decree if faced with force majeure are considered for exemption or reduction of payment stipulated in this Decree MARD is assigned to take the lead and to collaborate with the relevant Ministries and agencies in providing guidelines on exemption and reduction of payment Article 13 Entrusted payment for forest environmental services Forest Protection and Development Funds established under the Decree 05/2008/ND-CP dated January 14, 2008 of the Government are the organizations to receive entrusted payment for forest environmental services For provinces without sufficient conditions for establishing the Forest Protection and Development Fund, the Provincial People’s Committee to decide an agency, organization to act in place of the Provincial Forest Protection and Development Fund For provinces with a large area of forest and forest land, the Provincial People’s Committee may consider giving permission for establishing district branches of the provincial Forest Protection and Development Fund to implement entrusted payment for forest environmental services to make it easier for people For the case that users of forest environmental services use forest environmental services from forests situated within the administrative boundaries of one province or city under the national government, the entrusted money from the users of forest environmental services is transferred to the provincial Forest Protection and Development Fund of that province or the agency assigned by the Provincial People’s Committee to act in place of the provincial Forest Protection and Development Fund For the case that the users of forest environmental services use forest environmental services from forests situated within the administrative boundaries of or more provinces or cities under the national government, the entrusted money is transferred to the Vietnam Forest Protection and Development Fund Article 14 Basis for allocation of payment for forest environmental services from the Viet Nam Forest Protection and Development Fund The Viet Nam Forest Protection and Development Fund to allocate payment for forest environmental services to each province based on: a) The revenue collected from the users of forest environmental services b) The forest area of each province, city under the national government that participates in supplying forest environmental services, certified by a competent agency and in line with the guidelines of the Ministry of Agriculture and Rural Development For revenue collected from users of forest environmental services but receivers cannot or have not been identified, the Viet Nam Forest Protection and Development Fund to allocate to provinces with average level of payment per hectare that is lower than that of the country in the year 64 Article 15 Use of the revenue from payment for forest environmental services Use of the payment for forest environmental services entrusted at the Viet Nam Forest Protection and Development Fund a) A maximum 0.5% of the total entrusted money from payers of forest environmental services can be used for professional operations of the Fund relating to payment for forest environmental services including: administrative costs according to entrusting mechanism; activities to receive payment and other activities relating to financial management b) The remaining amount is transferred back to provincial Forest Protection and Development Funds or agencies, organizations that act in place of the provincial Forest Protection and Development Funds based on the forest area of each province participating in supplying forest environmental services Use of the money for payment for forest environmental services entrusted at provincial Forest Protection and Development Funds: The total revenue received from the Viet Nam Forest Protection and Development Fund and from the users of forest environmental services is considered 100% and is used for the followings: a) A maximum 10% may be used for paying for operations including: administrative costs according to entrusting mechanism, activities to receive payment, acquittal making, checking, supervision, and auditing; support for activities relating to handover and assessment of forest; support for activities relating to monitoring quality of forest environmental services; support for activities relating to payment for forest environmental services at district, commune, and village levels; b) An amount not more than 5% of the total entrusted revenue transferred back to the provincial Forest Protection and Development Fund and other lawful sources of fund is set aside for contingency to support households, individuals, and village communities contracted for longterm forest protection in case of drought and disaster Provincial People’s Committees to provide specific regulations on the use of the revenue stipulated in Point a and Point b, Clause 2, of this Article c) The remaining amount is paid to the suppliers of forest environmental services This amount is considered 100% and is used for the following cases: Forest owners who are households, individuals allocated land, leased land by the State; village communities allocated forest for use on a long-term basis for forestry purposes and forest owners who are households, individuals, and village communities who make investment on their own for planting forest on forestry land, are entitled to the entire amount Forest owners who are Governmental organizations contracting out forest for protection, a 10% of the above-mentioned amount may be used for carrying out check, supervision, handover check, quality and quantity assessment of forest for making annual payment for forest environmental services The remaining amount (90%) is used for paying to households contracted for forest protection In case the remaining forest area has not been contracted out for forest protection, the payment for forest environmental services for such area is used and managed by the forest owner 65 in accordance with financial laws and regulations appropriate to the type of organization of that organization Article 16 Payment for forest environmental services from provincial Forest Protection and Development Funds Payees who are forest owners a) The amount of payment for a type of service to a forest owner is the area of forest supplying forest environmental services of the forest owner times the average payment per of forest times the corresponding payment coefficient (hereafter referred to as Coefficient K) A forest supplying many forest environmental services is entitled to the payments for all such forest environmental services b) The average payment per of forest is determined by: the amount of revenue collected from payers of a particular services, after subtracting the management cost stipulated at Point a, Clause 2, Article 15 of this Decree, divided by the total area of each type of forest of forest owners participating in supplying such services, times the Coefficient K corresponding to the forest area of each type of forest of the forest owners entitled to payment The Ministry of Agriculture and Rural Development to take the lead and to collaborate with the Ministry of Finance and other relevant Ministries and agencies to provide guidelines on how to calculate the average level of payment per of forest stipulated at Point b, Clause of this Article Payees who are households contracted for forest protection a) The amount of payment a household contracted for forest protection receives equals the average payment per hectare of forest times the area of forest (ha) entitled to payment and Coefficient K b) The average payment per of forest (VND/ha) is the total remaining amount stipulated at Point b, Clause 2, Article 15 of this Decree divided by the total forest area of each type of forest subject to payment at the time of certification and verification by competent agencies times the Coefficient K corresponding to the forest area of each type subject to payment The Coefficient K is determined based on the following factors: a) Forest owner (the capacity to generate forest environmental services) b) Type of forest (special use forest, production forest, protection forest) c) Origin of forest (natural forest, planted forest) d) The level of difficulty or easiness in forest management (social and geographic factors) For payees who are forest owners, Provincial People’s Committees to decide on the Coefficient K based on the particular local conditions For payees who are households contracted for forest protection, the contractor and contractee to calculate the Coefficient K based on the regulations of the competent agency and is expressed on the contract 66 Article 17 Responsibilities of the provincial Forest Protection and Development Funds To collaborate with users of forest environmental services (those having to entrust money to the Forest Protection and Development Fund) to determine the amount to be paid from users of services for each payment period in the local area To represent suppliers of forest environmental services to sign contract with users of forest environmental services specifying responsibilities of each party in payment for forest environmental services as a basis for monitoring, checking, and treatment of violations of responsibilities in payment making and use of payment for forest environmental services To receive entrusted money from users of forest environmental services transferred from the Viet Nam Forest Protection and Development Fund and from users of forest environmental services transferred to the Provincial Forest Protection and Development Fund To make payment for forest environmental services to forest owners based on quantity and quality of forest of forest owners, certified by the Department of Agriculture and Rural Development (for forest owners being organizations), or certified by the district agency specialized in forestry assigned by the district People’s Committee (for forest owners being households, individuals, and village communities) and make payment to households contracted for forest protection based on requests from forest owners certified by commune People’s Committees To act as the focal point to assist the competent state agency to check on the forest owners in supplying forest environmental services and on payment making to households contracted for forest protection, and to check on the submission of payment from users of forest environmental services To report to the Provincial People’s Committee and the Viet Nam Forest Protection and Development Fund on the status of income and spending of payment for forest environmental services of the local area on annual basis For provinces and cities under the national government without sufficient conditions for establishing the Forest Protection and Development Fund, the agencies or organizations acting in place of the provincial Forest Protection and Development Fund are responsible for implementing the tasks stipulated in this Article Article 18 Tasks of the Viet Nam Forest Protection and Development Fund To collaborate with Provincial People’s Committees to identify payers of forest environmental services that have to entrust money to the Viet Nam Forest Protection and Development Fund as stipulated in Clause 3, Article 13 of this Decree; Identify the amount of payment of each user of service in each payment period To receive payment from users of forest environmental services to transfer to provincial Forest Protection and Development Funds To allocate the revenue collected from users of forest environmental services to provincial Forest Protection and Development Funds To act as a focal point to assist the Forestry Directorate to check on the submission of payment from users of forest environmental services that have to submit payment to the Fund, the use of the money that the Viet Nam Forest Protection and Development Fund transfers to provincial Forest Protection and Development Funds to make sure that it is used for appropriate purposes and targets 67 To synthesize and report to the Ministry of Agriculture and Rural Development on the status of income and expenditure of payment for forest environmental services in the country on annual basis Chapter III RIGHTS AND OBLIGATIONS OF USERS AND SUPPLIERS OF FOREST ENVIRONMENTAL SERVICES Article 19 Rights and responsibilities of users of forest environmental services Rights: a) To be informed by competent state forestry agencies of the status of forest protection and development of the forests supplying forest environmental services with regards to quantity, quality of forests supplying forest environmental services b) To be informed by Forest Protection and Development Fund of the results of payment for FOREST ENVIRONMENTAL SERVICES to forest owners; c) To participate in the checking and monitoring activities of state agencies on forest protection and development of the forests supplying forest environmental services d) To request competent sate agencies to consider adjustment of payment for forest environmental services in case that the suppliers of forest environmental services not ensure forest area or cause degradation of forest quality that the users have paid for Responsibilities a) To make self declaration of the amount of payment to be submitted to the Forest Protection and Development Fund b) To make payment for forest environmental services in a timely and sufficient manner as contracted with forest owners (for the case of direct payment) or submit payment to the FPD Fund (for the case of indirect payment); c) In case the stipulations in Point a and Point b, Clause of this Article are violated, depending on the nature and degree of the violation, appropriate punishment measures shall be applied according to law Article 20 Rights and obligations of suppliers of forest environmental services Rights: a) To request users of forest environmental services (for the case of direct payment) or the provincial Forest Development Fund (for the case of indirect payment) to pay for use of forest environmental services as stipulated in this Decree; b) To be informed of the values of forest environmental services c) To participate in checking and monitoring activities of state agencies in implementing payment for forest environmental services Obligations: 68 a) Forest owners must ensure the areas of forest supplying forest environmental services are protected and developed appropriate to the functions stipulated in the forestry development planning scheme approved by competent state authorities; b) Households contracted for forest protection must ensure that forest areas supplying forest environmental services are protected and developed as contracted with forest owners c) Forest owners being state organizations must use payment appropriate to the regulations in this Decree d) Forest destruction and illegal conversion of forest to other uses are prohibited e) In case the regulations at Points a,b,c and d of Clause of this Article are violated, depending on the nature and level of violation, punishment measures shall be applied according to law Chapter IV IMPLEMENTATION ARRANGEMENT Article 21 Obligations of relevant Ministries and agencies The Ministry of Agriculture and Rural Development to take the lead and collaborate with the Ministry of Environment and Natural Resources, Ministry of Finance, and other relevant Ministries and agencies to carry out the following tasks: a) To submit to the Prime Minister for approval of the Project on implementing the Decree of the Government on the policy for payment for forest environmental services b) To collaborate with Provincial People’s Committees to identify forest areas supplying forest environmental services that encompass or more provinces or cities under the national government and to approve for implementing this Decree c) Annually to inform Provincial People’s Committees of forest areas supplying forest environmental services that encompass or more provinces, segregated by province entitled to payment for forest environmental services d) To take the lead and collaborate with relevant Ministries and agencies to mobilize financial, scientific, and technical resources from organizations and individuals within the country and foreign ones for implementing this Decree e) To take the lead and collaborate with the Ministry of Finance and other relevant agencies to submit to the Prime Minister for issuance of regulations on payment rate from hydropower facilities with potential energy stocking system Ministry of Natural Resources and Environment To take the lead and collaborate with the Ministry of Agriculture and Rural Development and other relevant Ministries and agencies to submit to the Prime Minister for issuance of mechanisms, policies on land allocation, forestry land lease to accelerate the implementation of the policy for payment for forest environmental services The Ministry of Information and Communication To provide guidance and instruction to media agencies to raise awareness and sense of responsibility of agencies, organization, and people in forest protection and development and the implementation of the policy for payment for forest environmental services 69 Other relevant Ministries and agencies Depending on their functions and mandates and within their scope of state management responsibilities, to actively collaborate with the Ministry of Agriculture and Rural Development to implement this Decree Article 22 Responsibilities of Provincial People’s Committees To organize communication and dissemination of the policy for payment for forest environmental services To direct the provincial Department of Agriculture and Rural Development to take the lead and collaborate with relevant departments, agencies, and sectors to develop and submit to the Provincial People’s Committee for approval of projects and programs relating to the implementation of the policy for payment for forest environmental services, including: a) Reviewing land and forest allocation b) New land and forest allocation c) Contracting for long-term forest protection d) Identifying, categorizing, and listing suppliers of services and users of forest environmental services đ) The mechanisms for management and use of payment for forest environmental services To establish the Steering Committee for implementing the policy for forest environmental services chaired by the Chair of the Provincial People’s Committee To take the lead and collaborate with the Viet Nam Forest Protection and Development Fund to direct the Department of Agriculture and Rural Development and provincial agencies to identify and list payers of forest environmental services in the province that have to make entrusted payment to the Viet Nam Forest Protection and Development Fund as stipulated in Clause 3, Article 13 of this Decree To inform the payers of forest environmental services of the list and to submit the list to the Ministry of Agriculture and Rural Development for monitoring and supervising the implementation of the Decree To collaborate with the relevant Ministries and agencies to direct and to check on the payment making for forest environmental services from organizations and individuals in the province as stipulated in this Decree To be responsible for approving to ensure the stability of areas and functions of forests supplying forest environmental services in the land use planning schemes and forest protection and development planning schemes To certify the list of forest owners being organizations supplying forest environmental services to one particular user entity based on recommendation from the Department of Agriculture and Rural Development To assign the Department of Agriculture and Rural Development to act as the focal point to conduct handover check, to assess quantity and quality of forest and to issue certification to forest owners being organizations to form the basis for payment for forest environmental services; 70 To conduct checking and monitoring on forest owners being organizations in implementing their rights and obligations stipulated in Article 20 of this Decree To direct the district People’s Committees to carry out the following tasks: a) To arrange the communication, dissemination, and implantation of the policy for payment for forest environmental services according to this Decree b) To certify the list of forest owners being households, individuals, village communities supplying forest environmental services to a particular user entity of forest environmental services based on the recommendation from the agency specialized in forestry at the same level, certified by the commune level People’s Committee c) To assign the agency specialized in forestry to act as the focal point to conduct handover check and to assess quantity and quality of forest and to provide certification to forest owners being households, individuals, and village communities to form the basis for the periodic payment for forest environmental services To check on and supervise the forest owners being households, individuals, and village communities in implementing their rights and responsibilities stipulated in Article 20 of this Decree d) To participate in the checking and monitoring the implementation of the policy for payment for forest environmental services in the local area đ) To direct the commune People’s Committees to implement the contents stipulated in this Decree and to certify the list of households contracted for forest protection by forest owners being state organizations so that the households can receive payment for forest environmental services Article 23 Funding Funding relating to the implementation of this Decree includes: Funding for the agencies, organizations, and units responsible for implementing programs, projects relating to the implementation of payment for forest environmental services is ensured according to the current budget allocation mechanism Aids and supports from organizations and individuals within and outside of the country Other funding sources Chapter V IMPLEMENTATION PROVISIONS Article 24 Effect This Decree shall come to force on January 01st, 2011 Lam Dong and Son La provinces and the targets subject to the implementation of the pilot policy for payment for forest environmental services under the Decision 380/QD-TTg dated April 10, 2008 of the Prime Minister to continue to implement the pilot policy to December 31, 2010, then shift to the implementation of this Decree 71 Article 25 Implementation responsibilities The Minister of Agriculture and Rural Development and the relevant Ministries and agencies; the Chairs of the Provincial People’s Committees of provinces and cities under the national government are responsible for implementing this Decree CC to: - The Secretariat of the Central Party; - The Prime Minister and Deputy Prime Ministers; - Ministries, ministerial agencies, agencies of the Government; -The Office of the Central Committee for preventing and combating corruption; - Provincial People’s Councils, Provincial People’s Committees of provinces and cities under the national government; - The Central Office and the Committees of the Party; - The Office of the President; - Chair of the Ethnic Council and the Committees of the National Assembly; - The Supreme People’s Court; - The Supreme People’s Procuracy; - The State Auditing Agency - The National Finance Supervisory Committee; - The Bank for Social Policy; - The Viet Nam Development Bank; - The Central Committee of the Viet Nam Fatherland Front; - The central offices of mass organizations; - The Office of the Government: the Minister-Chair, Deputy Chairs, the government portal, the departments and divisions, the Official Gazette, - Archive (5b) Mr Phu ON BEHALF OF THE GOVERNMENT THE PRIME MINISTER Nguyen Tan Dung 72 View publication stats ... Reductions LESSON OVERVIEW OF PAYMENTS FOR ENVIRONMENTAL SERVICES 1.1 Concept of payments for environmental services According to Wunder et al (2005), payments for environmental services (PES) are understood... FUND MANAGEMENT MECHANISM PES fund management mechanism While concept of Payments for Environmental Service concept focuses on direct payments and payment by cash, Reward for environmental service... payments will be paid for through a trustee contract with the Vietnam FPDF The Vietnam FPDF represents environmental services’ providers when making agreements with environmental services’ beneficiaries,