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Research Report

Payment for Ecosystem Services (PES): Assessment of PES Potential in Kapuas Hulu

Emily Fripp
Bayuni Shantiko
Copyright Date: Jan. 1, 2014
Pages: 33
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Table of Contents

  1. (pp. 1-2)

    One component of the CoLUPSIA project is to explore the potential for establishing payment for ecosystem services (PES) projects within the pilot sites identified in each of the districts where the CoLUPSIA project is working, namely Seram (Central Maluku Province) and Kapuas Hulu (West Kalimantan Province).

    As no PES projects are under development as part of CoLUPSIA, this assessment focused on the opportunities for PES, but did not assess the feasibility of any specific PES project(s). If a PES project is to be developed, then a full feasibility assessment should be conducted during the project design phase.

    The aim of...

  2. (pp. 2-4)

    The 10-Step Guide to PES is designed to take the user through the process of identifying the ecosystem service, the buyer, the seller and the market. It also aims to support the user in determining the feasibility of PES, including opportunities and risks. The 10 steps form the framework for this assessment of potential PES projects in the district of Kapuas Hulu.

    Before presenting the feasibility results, it is worth reiterating a generally recognized definition for PES. According to Wunder (2005, 2008), PES can be defined as:

    1. a voluntary transaction where

    2. a well-defined ecosystem service or corresponding land use is...

  3. (pp. 4-8)

    WWF and FFI are running PES programs in Kapuas Hulu that may generate valuable information for CoLUPSIA. Information from the interviews is presented in Tables 1 and 2, organized against the PES 10-step criteria.

    TNBK is engaged in and supports the promotion and development of PES projects for tourism, carbon sequestration and watershed management. These are all seen as supporting TNBK’s overall goal of becoming a world-class national park for tourism and research, while providing a global economic service.

    TNBK had a budget for carbon accounting and other carbon-related activities, but the work was cancelled because the requirements had not...

  4. (pp. 9-10)

    The potential for PES in Kapuas Hulu was assessed using the 10-step guide to PES. For each step, the feasibility assessment considered the opportunities, constraints, risks and risk mitigation, assumptions and next steps.

    Assessments were completed for five villages or hamlets in Kapuas Hulu, across the four pilot areas where socioeconomic survey work was undertaken. The assessment focused predominantly on socioeconomic, institutional and governance aspects, so that the findings of the assessment are applicable to any PES project, and not just those based on carbon. The main findings are summarized in Section 5, with issues relevant to all potential PES...

  5. (pp. 10-12)

    This section summarizes the findings of the assessment of the potential for PES projects in Kapuas Hulu. Further details are given in interview notes are included in Annex A.

    Nanga Hovat, a hamlet in the village of Datah Dian, on the boundary of TNBK, has limited opportunity for PES, mainly because of land classifications and the presence of protected areas. Livelihood options also are limited. People are dependent on ladang areas (approximately 0.5 ha per household), which can be established up to 100 m inland from the river, some forest products collected inside TNBK and gold mining. WWF is running...

  6. (pp. 12-15)

    In all villages, official government administrative systems and customary processes operate in parallel. The degree of democracy, that is, election of representatives, varies across villages; in some places, where one particular longhouse or hamlet is larger than others in the village, an electoral system where whoever secures the most votes wins always results in the election of the representative from the biggest longhouse.

    Governance over resources is reasonably equitable, according to conversations during the field visit, but land classification, boundaries and legal recognition of community land remain major issues.

    In all cases, further research is required to fully define the...