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Environmental policy in the era of the MDGs

Overview:

1. What do we know about poverty – environment linkages?

2. What have we learned about poverty reduction through environmental management?

3. What challenges lie ahead?

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Poverty-environment: what we know (1)

• DEPENDENCY– 90% of rural households

in developing countries rely on biomass for cooking and heating

– Forests contribute on average 22% of income of rural households; poorest are the most dependent

• COINCIDENCE– More than 1 billion of the world’s poorest people live within 25

biodiversity “hotspots”– 25% of forests in developing countries are owned or managed by

local communities

Source: Bishop, J. and Garzon, P-A. (2002).The Economic Value of Wild Resources in Senegal. IUCN and IIED.

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Poverty-environment: what we know (2)

• VULNERABILITY– > 90% of world’s major natural

disasters took place in developing countries between 1990-98

– Environmental factors are the direct cause of 25% of all preventable illnesses

• COMPLEXITY– Poverty more than material

deprivation; environmental quality part of human well-being

– The poor have strong incentives to conserve natural resources on which they depend

– But the poor also often deplete resources to low levels, because they lack better options

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The value of ecosystem services

ONE EXAMPLE• Wild forest-based pollinators

increased coffee yields by 20% on farms located within 1 km of forest in Costa Rica

• Improved quality by reducing “peaberries” (misshapen seeds) by 27%

• In 2002-03, pollination services from two forest fragments (46 and 111 ha) translated into about US$60,000 per year for one study farm

Source: Ricketts, T.H., Daily, G.C., Ehrlich, P.R. and Michener, C.D. 2004. ‘Economic value of tropical forest to coffee production,’ Proc. Natl. Acad. Sci. USA, 10.1073/ pnas. 0405147101.

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The costs of environmental damage

Waza LogoneIrrigation scheme curtails flooding, floodplain out-migration and poverty

$2.4 million a year$2.4 million a year

Barotse FloodplainLarge-scale rice scheme interferes with hydrology and wetland resources

$7 million NPV$7 million NPV

Nakivubo SwampLand reclamation reduces swamp wastewater treatment functions

$2 million a year$2 million a year

Indus DeltaLow flows cause saltwater intrusion, mangrove die-off

and reduced livelihoods Up to $95 million a yearUp to $95 million a year

Muthurajawela MarshIndustrial expansion

impacts wetland services and lagoon fisheries

$8 million a year$8 million a year

Tana RiverDams alter hydrology,

impacts downstream ecosystems and economies $27 million NPV$27 million NPV

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Opportunity costs of conservation

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

US$

/yea

r

Costs Benefits

Local costs and benefits of Lake Mburo National Park, Uganda

Revenue sharing

Local financing gap

Use of PA resources

Loss of pasture

Wildlife damage to farms

Restrictions on resource use

Source: Emerton, L. 1998. Balancing the Opportunity Costs of Wildlife Conservation for the Communities Around Lake Mburo National Park, Uganda. Evaluating Eden Discussion Paper EE DP 05, International Institute for Environment and Development: London.

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Poverty reduction via environmental management: lessons learned (1)

• NO SILVER BULLETNeed to…

–create economic opportunity–reduce vulnerability and insecurity–support participation in decision-

making–strengthen capacity to seize

opportunities

… environmental management can contribute across all dimensions

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Poverty reduction via environmental management: lessons learned (2)

• PROVEN STRATEGIES:– improve access to information and public services– reduce constraints on sustainable resource use (e.g. licensing, credit, tenure)– improve governance and the rule of law, including decentralized NR management– promote participation of women and other marginalized groups in decision-making– address local priorities, e.g. water pollution, restoration of critical natural resources – promote sustainable use rather than preservation (e.g. essential oils, eco-tourism)

Changes in village wealth ranking 1996-2002

0%

10%

20%

30%

40%

50%

60%

Well-off Middle Poor

Wealth rank

Per

cen

tag

e o

f h

ou

seh

old

s

1996

2002

Emerton, L. (2003) NTFPs and poverty reduction in Nam Pheng, Lao PDR. IUCN.

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Carbon: a new market opportunity for the poor in developing countries?

ANNUAL VOLUMES (million tCO2e) OF PROJECT-BASED EMISSION REDUCTIONS TRADED (up to 2012 vintages)

Source: World Bank, State and Trends of Carbon Market, 2004

0

10

20

30

40

50

60

70

80

90

1996 1997 1998 1999 2000 2001 2002 2003 2004(Jan-May)

Not Kyoto Pre-Compliance Kyoto Pre-Compliance

• FOR PRO-POOR CARBON MARKETS, NEED TO FOCUS ON:– Areas where the poor live

(rural settings)– Sectors the poor work in

(agriculture, forestry)– Factors of production the

poor own (land, labour)– Outputs the poor can

produce (biomass)– Markets the poor can

access (food, fiber)– Costs the poor can

manage (certification)

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Integrating poverty and environment: what challenges lie ahead? (1)

• REAL INTEGRATION–More attention to natural resource

management in poverty reduction–Better indicators of poverty-

environment linkages

• MORE COOPERATION–reduce and remove perverse

subsidies (agric., fish, water)– find better ways to pay for global

public goods that deliver benefits to the poor

–enlist the private sector in poverty reduction and conservation

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Integrating poverty and environment: what challenges lie ahead? (2)

• PRO-POOR CONSERVATION–“do no harm” to the poor and

contribute to poverty reduction wherever possible

–social impact assessment of conservation policies and projects

– full and fair compensation for loss of access to natural resources

–more attention to reducing risk and enhancing incomes from sustainable use

–ensure market-based conservation measures are accessible to the poor

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Poverty and Conservation at the World Parks Congress, Durban,

South Africa

Final Recommendation on Poverty and Protected Areas

• Protected areas should contribute to poverty reduction and at the very minimum must not contribute to or exacerbate poverty

• Communities should be fairly and fully compensated for any negative social, cultural and economic impacts

September 8 – 17, 2003

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Pro-PoorConservation

New Partnerships

MainstreamingIn program

Capacity Building

Knowledge management

and Communications

Analyze and Document IUCN

Experience

ConceptualFramework

Institutional Change

Change Management Process Within IUCN