The Katoomba Group's Ecosystem Marketplace

Vol. 2, No. 8: November 16, 2007

The Ecosystem Marketplace's Community Forum
Connecting people to ecosystem markets

Welcome to the Community Forum, a newsletter dedicated to providing information on community-based payment for ecosystem services from around the world!

In this issue of the Community Forum, we investigate initiatives from around the globe that are building capacity within communities to manage their own PES projects. In our Around the World section, we cover three projects – from Tanzania, India and Mexico – that are actively involving the communities they work with in the design, implementation and marketing of PES programs. For a perspective on international trends in PES, we look at water quality trading in the United States and at a pact to end deforestation in the Amazon using market-based initiatives. In this issue, we profile Lars Christian Smith, who has found an innovative way of increasing funding for protected areas. In our Opinion section, we review two recent studies on the current state of PES and the obstacles that must be overcome in order to implement these programs in the developing world. And don’t miss our Resources and Tools section where we review two guidebooks on participatory carbon stock monitoring and marketing carbon offsets under the Clean Development Mechanism.

NEW!!! Be sure to see our new Opportunities section at the end of the newsletter for links to international funding sources available for community-based payment for ecosystem services projects.

We hope you enjoy this edition of the Community Forum! If you do, please forward it to friends and colleagues. We want to be able to share this forum with the many people around the globe who are involved in community-based payment for ecosystem services.

– Elizabeth Shapiro, Community Forum

For comments or questions, please email: communityforum@ecosystemmarketplace.com

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Tanzania – Training Community-Based Forest Managers to Take Stock of Their Carbon

How do rural communities monitor and manage the carbon sequestered by their own forests? A recent project in Tanzania shows us. Village Forest Councils are responsible for managing communally held forest lands in rural Tanzania. Under the umbrella of the Kyoto: Think Global, Act Local research program, a team of researchers and project coordinators trained a total of four to seven villagers from each of four Village Forest Councils in forest inventory and mapping techniques to assess changes in carbon stocks. With capacity building and training, participants: map the forest area; stratify the forest by ecotype; accurately locate permanent sample plots using hand held Global Positioning Systems (GPS); measure parameters relating to forest biomass in the field; reliably record data in small lap top computers; analyze the collected data; draw conclusions and, retrieve the permanent sample plots for future assessment. Each village forest was found to sequester 1,300 tons of carbon per year on average. The team estimated that, at current rates, carbon could be sold for an average of US$6,500 per year per village. The research team’s results suggest that this level of income generation would likely be sufficient incentive for villages to conserve their forests. However, they also suggest that selling the bundled ecosystem services produced by these forests, including water and biodiversity conservation, could provide an even more substantial incentive and greater relief to the poverty experienced in the majority of these villages. For more information about how and where other participatory carbon stock monitoring is being done, see the Resources and Tools section of this newsletter.

Contact: Laura Franco, Manager of the Kyoto: Think Global, Act Local Project

– Read the full article on the Tanzanian project (pdf)

India – Study Finds that Community-Based Forestry is Best Source of Carbon Sequestration

Based on two case studies in the state of Uttaranchal, India, this project studied the potential of two afforestation projects, one community forestry and the other farm forestry on private lands, to both sequester carbon and be financially and culturally viable. The research team found that, in this region, community forestry is the best option for carbon sequestration because community forestry management tends to be implemented on relatively unproductive areas with little likelihood that the land will be developed for other uses, and that communal owners have a better ability to protect their forest than private owners do. The team also concluded that these types of projects would be financially viable, though not highly lucrative, and that the financial incentive from the sale of carbon credits was essential for motivating landowners to participate. As with the study from Tanzania (see above), the research team felt that being able to sell a bundle of ecosystem services, rather than just carbon offsets, would provide more substantial economic incentive. Overall, the researchers found that these types of projects, "Offer a significant opportunity for combining carbon trade, local institutions, peoples participation, environmental improvement and livelihood issues".

Contact: Dr. Neeta Hooda, Head, Biodiversity and Climate Change Division, Indian Council of Forestry Research and Education

– Read the full article

Mexico - Sierra Gorda Taps Voluntary Markets for Carbon and Environmental Offsets - Again
by Jim Whitestone

After years of trying to develop and market a carbon sequestration project under the formal Kyoto rules for Clean Development Mechanism (CDM) projects, the Grupo Ecológico Sierra Gorda and its partner organization Bosque Sustentable changed course and decided to pursue voluntary markets instead. Voluntary markets offered Grupo Ecologico and Bosque Sustentable advantages associated with innovation, vibrancy and accessibility, and they seized the opportunity. Bosque Sustentable completed its first sale in the voluntary market in 2006 to the United Nations Foundation, which wanted to offset its carbon footprint as well as support a UN-sponsored project that also helped alleviate poverty. Bosque Sustentable is now in the final stages of concluding a second sale with the United Nations Foundation as well as a sale to the World Land Trust, based in the U.K. The World Land Trust will be selling Sierra Gorda Carbon and Environmental Offsets to a range of voluntary European buyers who are interested in biodiversity and poverty reduction benefits in addition to carbon sequestration. These sales highlight a principal advantage of voluntary markets in relation to regulatory markets in allowing Bosque Sustentable to access buyers that are interested in more than just carbon sequestration, an advantage that it is well positioned to exploit. Martha "Pati" Ruiz Corzo, the director of the Sierra Gorda Biosphere Reserve, has described the voluntary credit as "not just a carbon credit, but a green jewel protected by its inhabitants."

Contact: Martha Ruiz Corzo, Director

– Read the Ecosystem Marketplace article
– Sierra Gorda Carbon and Environmental Offsets website

Brazil – Nine Organizations Make a Pact to use PES to End Amazon Deforestation

Nine international and national conservation organizations have signed a pact that proposes to reduce deforestation in the Brazilian Amazon by adopting a system of reduction targets through economic mechanisms, mainly based on payment for environmental services. It also aims to establish a wide-ranging commitment between different sectors of the government and the Brazilian society to conserve the Amazon. The new pact is pushing for a 25 per cent deforestation rate drop in the first year compared to the 1,400,000 hectares of forest lost in 2005-2006, and an overall reduction in deforestation of 6,873,780 hectares in seven years. Economic incentives will be directed to strengthen forest governance, including monitoring, control and inspection, and will be used to create and implement more protected areas and indigenous lands. The nine organizations involved in development of the pact include: Conservation International-Brazil, Friends of the Earth-Brazil, Greenpeace, Instituto Centro de Vida, Instituto do Homem e Meio Ambiente da Amazônia, Instituto de Pesquisa Ambiental da Amazonia, Instituto Socioambiental, The Nature Conservancy and WWF-Brazil.

Contact: Bruno Taitson, Communications Officer WWF-Brazil

– Read the WWF article on the pact

Brasil – Nueve Organizaciones Firman un Pacto por Utilizar Pago por Servicios Ambientales para Promover el Fin de Deforestación en la Región Amazónica

Nueve organizaciones ambientales internacionales y nacionales han firmado un pacto que propone la reducción de la taza de deforestación en la región Amazónica Brasileña adoptando un sistema de objetivos de reducción a través de mecanismos basado en el mercado, principalmente los pagos por servicios ambientales. Un otro motivo del pacto es establecer un amplio compromiso entre los distintos sectores del gobierno y de la sociedad Brasileña para conservar la región Amazónica. El nuevo pacto está exigiendo una disminución en la taza de deforestación de 25 por ciento en el primer año en comparación al 1,400,000 hectáreas del bosque perdido en 2005-2006, y una reducción total de 6,873,780 hectáreas dentro del próximo siete años. Incentivos económicos serán utilizados para fortalecer la gobernanza forestal, incluyendo el monitoreo, control é inspección para crear y implementar más áreas naturales protegidas y reservas indígenas. Las nueve organizaciones involucradas en el desarrollo del pacto son: Conservation International-Brazil, Friends of the Earth-Brazil, Greenpeace, Instituto Centro de Vida, Instituto do Homem e Meio Ambiente da Amazônia, Instituto de Pesquisa Ambiental da Amazonia, Instituto Socioambiental, The Nature Conservancy and WWF-Brazil.

Contact: Bruno Taitson, Director de Comunicaciones, WWF-Brazil,

– Link a un artículo sobre el pacto (Español)
– Link a un reporte sobre el pacto (Portugués) (pdf)

United States - Status of Water Quality Trading Programs Today
by Virginia Kibler and Kavya Katsuri

As carbon markets continue to grow, people are asking themselves, what is the world's next big environmental market? One possibility is water, specifically water quality trading. Water quality trading is a tool allowing a point source of pollutants to meet its water quality-based permit limit by purchasing pollutant reductions created by another source in the watershed that has lower pollution control costs. Markets for tradable permits almost always develop as the result of strict regulatory caps being put on the total amount of pollutants allowed to be released, which can make them difficult to establish in developing countries where enforcement is often weak or impossible. However, since water quality trading is done within single watersheds, the scale is small enough that enforcement and monitoring may be less of a problem than with cap and trade programs for such things as air pollutants or green house gases. Although there are no large-scale water quality trading examples anywhere in the world, there are now dozens of small-scale experiments within this concept. In this Ecosystem Marketplace article, Virginia Kibler and Kavya Kasturi of the US Environmental Protection Agency look at the nearly two dozen examples of this type of trading taking place across the United States.

Contact: Virginia Kibler, Office of Wastewater Management at the U.S. Environmental Protection Agency

– Read the full article

The Innovator: Can Lars Christian Smith Take Protected Areas to Market?
by Cameron Walker

On a trip to Africa in 2003, business professor Lars Christian Smith spent four weeks in Tanzania, exploring the bush with hunter-gatherers. Along the way, he met up with conservation officers at wildlife parks and preserves and heard a repeated lament: small conservation areas were suffering from low funding. Two national parks, Ngorongoro Crater and Serengeti, subsidized all of the country's other parks. Christian Smith came up with a novel idea to increase funding for conservation areas through a system of tradable quotas. This system would put daily visitor entry permits into a trading market, with each conservation area's visitor carrying capacity limiting the number of permits sold. In developing countries, these protected-area tradable quotas (known as PATVIQs, for Protected Area Tradable Visiting Quotas) could be used to increase revenue for under-funded parks, and mitigate pressure on overcrowded ones. By requiring biodiversity tallies from member parks, more money could also be channeled to protected species. Last but not least, Smith hopes that along with raising money for conservation, the proposal could also involve local communities, who are too often the losers when it comes to protecting natural areas.

– Read the full article

Mainstreaming Payments for Ecosystem Services in the Developing World
by Sissel Waage

In order to better understand why PES is not currently a common tool for conservation, the non-profit organization Forest Trends conducted a study focusing on requirements for PES deals to work on the ground in Latin America, Asia, and Africa. 57 interviews were conducted with NGOs, governments, and businesses working on the establishment of PES globally. They found that the biggest barrier to mainstreaming PES in developing regions of the world is the lack of buyers. Once willing and able buyers exist, they must be connected to sellers of ecosystem services quickly and efficiently. Once buyers and sellers have identified one another, the issue of negotiating and structuring deals serves as another barrier to the development of PES. The fourth barrier is related to the third, but important enough to flag separately, in that it focuses on establishing the accountability and transparency mechanisms for money exchange and deal security over time. Based on the barriers identified, the report details a number capacity building areas needing development in order to create functional PES programs in the developing world.

– Read the Ecosystem Marketplace article

Compensation and Rewards for Environmental Services: Major Findings and Conclusions of the Pan-Tropical Scoping Study on Ecosystem Services
by Carina Bracer, Josefina Braña and Brent Swallow

From January 2006 to March 2007, the World Agroforestry Centre led a consortium of seven organizations from around the world in a pan-tropical scoping study of compensation and rewards for environmental services (CRES). Commissioned by the Rural Poverty and Environment Programme (RPE) of the International Development Research Centre (IDRC), the scoping study sought to identify critical issues affecting the development, operation, impacts and institutionalization of mechanisms linking stewards and beneficiaries of ecosystem services. Particular attention is paid to the potential for compensation and rewards for ecosystem services to alleviate or exacerbate the multiple dimensions of poverty: rights to productive assets, streams of income and consumption, and vulnerability to shocks.

– Read the Ecosystem Marketplace article
– Read the full report

Participatory Geographic Information Systems (GIS) for Carbon Monitoring in Community-Based Forestry

One of the greatest obstacles to including rural communities in markets for ecosystem services is the high cost and technological complexity of monitoring and measuring the services produced. The Kyoto: Think Global, Act Local (K:TGAL), is a research and capacity building program investigating the possibilities and potential for community-based management of existing (as opposed to newly planted) forest to be included as an eligible carbon mitigation activity under future international climate change agreements. They have supported a number of pilot projects to develop Geographic Information System (GIS) technologies and protocols that are simple and low cost, and train rural community members in using them to measure the carbon sequestered by community forests. Below are links to a number of reports on the process of developing the community-accessible GIS technology and some of the benefits and pitfalls of using it in participatory monitoring of carbon stocks.

  – Kyoto: Think Global, Act Local Program website
  – See a detailed overview of participatory GIS in K:TGAL program (pdf)
  – See a report on the GIS technology developed for the K:TGAL program (pdf)
  – See a case study of participatory GIS in K:TGAL project from Cameroon (pdf)

Guidebook to Markets and Commercialization of CDM Forestry Projects
by Till Neeff and Sabine Henders

Certifying reforestation or afforestation projects under the guidelines of the Clean Development Mechanism (CDM) of the Kyoto Protocol on Climate Change is so costly and time consuming that in the past, small-scale projects had almost no hope of achieving this goal. This is a serious problem for community-based carbon sequestration programs since certification programs such as the CDM program will almost certainly be required in order to sell carbon offset credits as regulatory markets continue to develop. Though there are alternative certification programs currently under development, and much talk about reforming the CDM guidelines, in the meantime, the CDM is the most widely recognized means of verifying carbon sequestration through forest-based activities. This guide from Costa Rica’s Tropical Agricultural Research and Higher Education Center (CATIE) provides a clear overview of forestry based CDM projects, a description of global carbon markets, and specific recommendations to project developers on accessing these markets. The guide also focuses on the financial aspects of developing forestry-based carbon offset projects and the particulars of the global economic and policy trends of these markets.

– Download the guide

Guía Sobre los Mercados y la Comercialización de Proyectos de MDL Forestales
por Till Neeff and Sabine Henders

El proceso de certificar proyectos de reforestación o aforestación a través de los reglamentos del Mecanismo de Desarrollo Limpio (MDL) del Protocolo de Kioto es tan costoso y prolongado que en el pasado proyectos de pequeña escala casi no tuvieron condiciones lograr éxito. Esto es un serio problema para proyectos comunitarios de captura de carbono, pues programas de certificación como el MDL seguramente serán requeridos para vender créditos de carbono ya que aquellos mercados se desarrollan y están formalizados. Mientras hay programas de certificación alternativos que están siendo desarrollado actualmente y muchos diálogos sobre la posibilidad de cambios en el MDL, el MDL es la manera más reconocido para verificar que reclamaciones del carbono capturado a través de proyectos de forestaría. Este guía del Centro Agronómico Tropical de Investigación y Enseñanza (CATIE) provee una perspectiva general sobre lo que son proyectos de forestaría del MDL, una descripción de los mercados para carbono y recomendaciones especificas para quien desarrolla estos s proyectos de cómo llegar a estes mercados. Este guía está muy enfocado en los aspectos financieros de desarrollar proyectos de forestaría de captura de carbono y las tendencias económica y política de estos mercados globales.

– Link a para bajar el guía

Regional Community Forestry Training Center for Asia and the Pacific Newsletter

This informative and thorough monthly newsletter serves as a clearinghouse for information on community-based forest management. Though it is regionally focused, a significant amount of the content concerns globally significant events and trends. It includes sections on regional and international current events, reviews of relevant resources and literature, event listings and job postings.

– Subscribe to the newsletter
– View newsletter back issues

British Petroleum's Conservation Leadership Programme
Deadline: November 23, 2007

The Conservation Leadership Programme is offering Future Conservationist Awards of up to $12,500 to high potential teams who aim to develop their skills through practical conservation projects. These awards are highly competitive and winners are selected from amongst the highest quality applications. There will be $250,000 worth of funding available for the Future Conservationist Award winning projects in 2008. Successful applicants will: 1) Develop the knowledge, skills and abilities of team members; 2) Implement a focused, high-priority conservation project combining research and action; 3) Contribute to the long-term success of local conservation efforts; and 4) Contribute to the education and awareness of local stakeholders. Projects must take place in one of the following countries: Algeria, Angola, Argentina, Azerbaijan, Bolivia, Brazil, China, Colombia, Egypt, Georgia, India, Indonesia, Libya, Malaysia, Mexico, Pakistan, Russia, Trinidad & Tobago, Turkey or Venezuela. They must be led by a national of the country where the project takes place; co-leadership with non-national team members is acceptable.

– Conservation Leadership Programme

The A.J. Muste Memorial Institute's NOVA Travel Fund
Deadline: Dec. 1, 2007 (For travel after Jan. 15, 2008)

Launched in 2007, the NOVA Travel Fund (Fondo NOVA-Viajes) makes grants of up to $1,500 to help base-level activists from Latin America and the Caribbean attend regional conferences and meetings. Grant recommendations are made by a committee of advisors representing different regions of Latin America.

– A.J. Muste Memorial Institute

Fondo NOVA-Viajes del Instituto Conmemorativo A.J. Muste
Fecha límite: 1 de diciembre, 2007 (para viajes que se llevarán a cabo después del 15 de enero, 2008)

Lanzado en 2007, el Fondo NOVA-Viajes ofrece aportes de hasta US$1.500 para ayudar a que activistas de América Latina y el Caribe puedan asistir a conferencias y reuniones regionales. Los aportes son recomendados por un comité de asesores representando a diferentes regiones de América Latina.

– Instituto Conmemorativo A.J. Muste

Verde Ventures from Conservation International Funds Green Business Initiatives
Deadline: No specific deadline.

Verde Ventures is a $7-million investment fund managed by Conservation International that strengthens small and medium-sized enterprises with strategic importance to biodiversity conservation. The fund provides debt and equity financing of $30,000-$500,000 to select businesses in CI's priority areas. Through a new collaboration with the United Nations Development Programme, the fund also provides limited grant funding for enterprise development and monitoring for eligible businesses. Application instructions are available in English, Spanish, Portuguese and French.

– Verde Ventures

Fondo Verde Ventures de Conservation International
Fecha limte: No hay fecha limite.

"Verde Ventures" es un fondo de inversión de US $7 millones administrado por Conservation International (CI) para fortalecer pequeñas y medianas empresas que tienen una importancia estratégica para la conservación de la biodiversidad. El fondo brinda financiamiento por medio de crédito e inversiones accionarías entre $30.000 a $500.000 para empresas en áreas de prioridad para CI. Aplicaciones están disponibles en Inglés, Español, Portugués y Francéss.

– Verde Ventures (pdf)

The United Nations Development Program's Equator Ventures
Deadline: This program is still in pilot phase but may be accepting applications soon.

Equator Ventures' clients are drawn from conservation enterprises that deliver demonstrable conservation and socio-economic benefits in priority areas. These enterprises may be found in traditional sectors such as agroforestry, ecotourism, ecosystem services or non-timber forest products. However, Equator Ventures' client pool will also welcome enterprises from other areas of endeavor, provided they can demonstrate positive impacts on biodiversity and communities. Equator Venture's mission is to provide a "blended" offer of debt finance and enterprise development support to viable small and medium sized biodiversity businesses. Equator Ventures will invest in ventures at all stages of development. Loans between US$30,000 and US$500,000 will be provided for the sustainable growth needs of projects. Complementary grants will support a comprehensive business development and capacity building program, tailor-made to meet the needs of successful entrepreneurs from the developing world.

– Equator Ventures

Rufford Small Grants for Nature Conservation
Deadline: No specific deadline

Rufford Small Grants for Nature Conservation (RSGs) provides grants of up to £5,000 aimed at small conservation programs and pilot projects. Individuals or small groups in the developing world are eligible. The impact of the project must be pragmatic, measurable and long lasting. The grant must make up the majority of the total budget and funds must be used predominantly in the field. The project should generally be approximately 12-18 months duration. The Rufford Foundation also offers Innovations Awards that are given to new, substantial projects that could have ground-breaking effects in nature conservation in the developing world. Projects receive a one-off grant of up to £50,000.

– Rufford Small Grants for Nature Conservation

Allachy Awards for Conservation of Medicinal Plants
Deadline: No specific deadline

The purpose of the awards has been to build capacity for the conservation and sustainable use of medicinal plants. Selected projects have taken community-based approaches to medicinal plant conservation. Special attention will be given in the future to applications that contribute systematically to building new regional programs on community-based conservation in the Himalayas and East Africa, but the program is open to all applicants from the developing world. Applicants should be organizations that can demonstrate a long-term commitment to plant conservation. The maximum size of grant is normally £10,000. Applicants should be from developing countries. Applications are welcome from all regions, but synergy between applications will be considered in deciding which projects to support, as well as the potential to use the awards to build more substantial proposals. Projects designed to increase the sustainability of commercial harvesting are welcome. Awards can be for periods of up to 3 years.

– Allachy Awards for Conservation of Medicinal Plants

African Conservation Fund's Partner in Conservation Grants
Deadline: No specific deadline

Researchers, scientists, conservation entities such as local or regional NGOs, and communities groups that are pursuing community-based conservation activities in eastern Africa and meet specific criteria may apply to African Conservation Fund (ACF) to become a Partner in Conservation. The primary benefits of becoming a Partner in Conservation are for non-US conservation practitioners to solicit and receive donations and grants through ACF's non-profit status under the IRS code article 501(c)3 (ie – donors' contributions are tax deductible); and to benefit from ACF's global communications efforts in support of community conservation.

– Partner in Conservation Grants

Critical Ecosystem Partnership Fund
Deadline: No specific deadline

The Critical Ecosystem Partnership Fund (CEPF) is a global program with funds from a number for sources but administered by Conservation International. The program provides grants to nongovernmental organizations and other private sector partners to protect critical ecosystems and influence decisions that affect lives, livelihoods, and, ultimately, the global environment. There is no specific limit to the level of funding an applicant can request and project funding may be provided for a maximum duration of five years. The program funds conservation groups in the following areas: Caucasus, Eastern Arc & Coastal Forests, Eastern Himalayas, Northern Mesoamerica, and Succulent Karoo. Applications are available in English, Spanish and Russian.

– Critical Ecosystem Partnership Fund

El Fondo de Alianzas para los Ecosistemas Críticos (CEPF)
Fecha límite: No hay fecha límite.

El Fondo de Alianzas para los Ecosistemas Críticos (CEPF) es una iniciativa que provee becas a organizaciones no-gubernamentales y otros socios del sector privado para proteger ecosistemas críticos y influir en las decisiones que impactan las vidas, y, el medio ambiente global. No hay un limite especifico de financiamiento, que un solicitante puede pedir y los fondos estarán proveídos por un máximo de 5 años. El programa patrocina grupos en las siguientes regiones del mundo: Caucasus, Eastern Arc & Coastal Forests, Eastern Himalayas, Northern Mesoamerica, and Succulent Karoo. Las solicitudes están disponibles en Español, Inglés, y Ruso.

– Fondo de Alianzas para los Ecosistemas Críticos (MS Word)

DOEN Foundation Grants for Sustainable Development Enterprises
Deadline: At least four months before the activity starts.

DOEN Foundation works towards the achievement of a livable world in which everyone has a place. Acting within its four fields of operation of Sustainable Development, Culture, Welfare and Social Cohesion, it provides subsidies where necessary, and arranges loans and equity investments where possible. DOEN's primary focus in the area of Sustainable Development consists of social-cultural aspects ('people'), economic aspects ('profit') and ecological aspects ('planet'). Microfinance is still the most important instrument in this program. Nevertheless, in 2006, DOEN shifted its microfinance focus towards the development of the financial sector in the wider sense. It began to invest in organizations that help SMEs (small and medium-sized enterprises) get off the ground in developing countries, so as to be able to serve those businesses that have outgrown the microfinance stage. This has resulted in support being given to organizations that work directly with these enterprises.

– DOEN Foundation Grants for Sustainable Development Enterprises

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