PAYMENTS FOR ECOSYSTEM SERVICES IN SMALLHOLDER AGRICULTURE
Research Report
PAYMENTS FOR ECOSYSTEM SERVICES IN SMALLHOLDER AGRICULTURE: Lessons from the Hivos-IIED learning trajectory
INA PORRAS
BILL VORLEY
ALEXANDRA AMREIN
WILLY DOUMA
HARRY CLEMENS
Copyright Date: Jan. 1, 2015
Published by: International Institute for Environment and Development
Pages: 47
OPEN ACCESS
https://www.jstor.org/stable/resrep01396
Table of Contents
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  1. Front Matter
    Front Matter (pp. ii-ii)
  2. Table of Contents
    Table of Contents (pp. iii-iv)
  3. GLOSSARY AND ACRONYMS
    GLOSSARY AND ACRONYMS (pp. 1-3)
  4. ONE INTRODUCTION
    ONE INTRODUCTION (pp. 4-9)

    IIED and development organisation Hivos launched a two-year strategic partnership to provide research-based policy advice to improve sustainable food systems and access to energy in developing and emerging countries. Through this research IIED and Hivos explore the feasibility of payments for ecosystem services (PES) as incentives to promote a shift to sustainable smallholder agriculture. We focus on practical learning from existing smallholder and community PES projects linked to energy and agroforestry activities. Working with local partners and project practitioners, we analyse the opportunities, challenges, strategies and potential ‘no-go’ areas in a pre-selected group of smallholder projects and analyse them within...

  5. TWO OVERVIEW OF PARTNER PROJECTS
    TWO OVERVIEW OF PARTNER PROJECTS (pp. 10-15)

    Field visits and multiple Skype meetings took place between September 2014 and March 2015 to better understand these projects and answer the research questions. Table 1 shows some key characteristics of these projects.³ Although all cases are built around carbon capture in smallholder agriculture, they show a range of conceptual and operational differences.

    An objective of the Hivos-IIED research project was to explore a variety of PES experiences. Our partner portfolio included:

    Two projects involving domestic biogas and carbon: Kenya and Indonesia,

    Two projects exploring organic coffee and carbon: Nicaragua and Guatemala, and

    Two projects exploring reforestation and carbon: Taking...

  6. THREE METHODOLOGICAL APPROACH
    THREE METHODOLOGICAL APPROACH (pp. 16-29)

    In this section we explain the methodology used to analyse each project. We present a brief value chain map and description of the basic business model underlying the carbon proposition in relation to traditional markets (such as coffee and biogas). We used a combination of desk-based analysis, Skype meetings with experts, and field visits to project partners in the different countries.

    We use the Business Model Canvas, developed by Alexander Osterwalder (see Box 2) to describe the rationale of how an individual (person or firm) creates, captures and delivers value. Using a common language (eg how, what, who and how...

  7. FOUR KEY INSIGHTS FROM THE HIVOS-IIED LEARNING TRAJECTORY
    FOUR KEY INSIGHTS FROM THE HIVOS-IIED LEARNING TRAJECTORY (pp. 30-39)

    We set out to learn whether PES offers a viable financing strategy for smallholder agriculture. Our short answer is: yes, but it depends on how well PES fits within the smallholder enterprise and the state of the carbon markets.

    While significantly different in geographic location and scale, our partner projects have helped to shed substantial light on these issues, which are explored in detail in each of the project reports in this series. In this section we highlight some of the main lessons across the wide range of experiences on how PES fits within the smallholder agriculture enterprise.

    We found...

  8. FIVE CONCLUSIONS
    FIVE CONCLUSIONS (pp. 40-40)

    The lessons from our Payments for Ecosystem Services in Smallholder Agriculture series show that PES – and more specifically, carbon finance – can help increase sustainable agriculture, but some key considerations are relevant:

    Carbon in smallholder agriculture is new and we are still learning. Market-based instruments for ecosystem services, including PES, have existed for some time, especially in the forest sector. However, experiences in the agriculture sector involving smallholders and communities are relatively new and involve a steep learning curve.

    There need to be realistic expectations of carbon prices. There is a strong disassociation between the cost of climate change...

  9. REFERENCES
    REFERENCES (pp. 41-42)
  10. Back Matter
    Back Matter (pp. 43-44)