jp8589 WRI.qxd - World Resources Institute

BOX 4.4 PAYING THE POOR
FOR ENVIRONMENTAL STEWARDSHIP
PROGRAMS THAT PAY LANDHOLDERS TO MAINTAIN
ecosystem services like storing carbon, maintaining stable
water flow, or preserving scenic landscapes for tourism have
burgeoned in the last decade. Most of these “payment for
environmental service” (PES) programs don’t do a good job of
reaching the poor, even though poor households are often
active environmental stewards. A small but growing number of
projects show that this does not always have to be the case.
Two PES programs in particular—in the Cauca Valley of
Colombia and in Chiapas, Mexico—demonstrate how PES can
yield benefits for poor communities.
Cauca Valley, Colombia
In the late 1980s, private farmers initiated a voluntary system of
payment for water use in the Cauca Valley, Colombia. The
payment system was designed to improve the livelihoods of the
upland poor as part of a strategy for sustainable watershed
management. The uplands of the Desbaratado Watershed in the
Cauca Valley were inhabited by poor farmers. Seventy-two
percent lacked sanitary facilities and 83 percent had no electricity,
but most held titles to their land (Echavarría 2002:6).
Overgrazing and deforestation on the slopes of the watershed
had led to erratic stream flows and destructive seasonal flooding
in the lower basin, the effects of which were being felt by
landowners downstream. These landowners consisted mainly of
wealthy sugarcane growers who had invested in costly farming
technologies, including laser leveling and underground
drainage and irrigation systems (Echavarría 2002:7). With the
threat of continually escalating costs to protect their investment,
the farmers became interested in regulating the stream
flow by restoring and improving management of the lands in the
upper watershed. They subsequently organized into twelve
Water User Associations and instituted voluntary user fees to
finance upland watershed management.
The Water User Associations came to the conclusion that the
surest route to achieving long-term land-use change in the
upper watershed was to improve the livelihoods of the land
users. With the aid of the government, planners met with
upland communities to identify community priorities for development.
The result of these meetings was a series of programs
with wide-ranging social benefits, including:
■ A “social program,” providing education and skills training;
■ A “production program,” which includes building home gardens
to improve diets and increase earnings, as well as reforestation
and crop-planting projects;
■ An “infrastructure program,” which focuses on improving
sanitary and drinking water facilities, building roads, and
constructing erosion control structures (Echavarría 2002:7).
From 1995 to 2000, an estimated US$1.5 million was invested in
the upper watershed—all from the water fees assessed by the
Water User Associations (Echavarría 2002:5). So far, the environmental
commitment of downstream users has remained strong,
and upland projects have continued even in the face of armed
guerilla activity in the region. Considering the length of the project,
this suggests that benefits on both sides have been worthwhile.
Chiapas, Mexico: Scolel Té
The Scolel Té project in Chiapas, Mexico, represents one of the first
efforts to make the international market for carbon storage benefit
poor communities. Companies interested in offsetting their greenhouse
gas emissions can purchase carbon credits from a local
organization, Fondo BioClimático, with two-thirds of the revenue
going to farmers (Scherr 2004:43; IUCN 2003:1). The largest buyer
thus far has been the Fédération Internationale de l’Automobile,
which purchased over 13,000 tons of credits to offset some of the
emissions from professional auto racing (IUCN 2003:1).
Farmers who join the Scolel Té scheme must draw up a management
plan for their land and agree, to the extent possible, to
maintain the trees on their land over the long-term. Fondo
BioClimático provides technical support and training to participants
in managing their land (Phillips et al. 2002:8). Scolel Té
is more than a strict reforestation program. It also allows participants
to plant “live fences,” shade-grown coffee plantations, and
mixed agroforestry plantations. In addition to the PES payment
they receive, farmers can make money on regulated sales of
timber as well as non-timber products. They also commonly plant
food crops under the trees until the canopy closes over (IUCN
2003:1). Because of this variety of income sources, the program
is more attractive to farmers.
Since it began in 1996, Scolel Té has gained more than 700
participants in 40 communities. In 2002, sales of carbon credits
at US$12 per ton amounted to $180,000, translating into
$120,000 distributed among the participants (IUCN 2003:1).
The project has also enabled farmers to penetrate markets in
sustainable timber, organic coffee, and other agroforestry
products. For many, access to these valuable markets has been
the more important route to greater income (Rosa et al. 2003:27).
The project has generated positive environmental benefits locally
as well. Plantings on denuded hillsides are helping to reduce
erosion and improve soil quality.