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DEVELOPMENT OF FINANCING AND INCENTIVES OPTIONSFOR SUSTAINABLE MANAGEMENT OF PEATLAND FORESTS IN SOUTHEAST ASIA545.3.1 ANALYSIS OF ECONOMIC INCENTIVES: VIET NAMKEY POINTS• The only quality peatland areas are restricted to UMT and UMH National Parks. There are some other areaslocated in Mekong Delta but all other peatlands have been degraded or are too small to be conserved.• There is no specific agency responsible for managing peatlands and their resources, and no singleagency coordinates decisions affecting peatlands.• Under the Green and Red Book system, households could be contracted to protect the peatlands in thecore and buffer areas of UMT and UMH NPs.• A pilot eco-tourism project developed and implemented in pilot project sites in conjunction withrelevant Government Ministries and private eco-tourism enterprises ventures should be developed inUMT and UMH National Parks.• Funding to incentivise the wise use of peatlands may be sourced from existing agricultural subsidiesand loans.• Medium term: PES and REDD+, with government and NGO support, may have a significant role toplay in establishing a national programme to conserve all peatlands.• Reforestation of degraded peatlands may be possible under climate finance mechanism of CDM.• Long term: peatland needs to be recognised as a valuable resource in the 5-year plan produced atProvincial level.NATIONAL SUMMARY: VIET NAMArea of Peatland: 36,000 hectares (approximately 53,300 hectares in Page et al., 2011).Distribution ofPeatland:Current Status ofPeatland:The only quality peatland areas are restricted to UMT and UMH National Parks.There are some other areas located in Mekong Delta but all other peatlands have beendegraded or too small to be conserved.Largest areas of undeveloped peatlands within U Minh Thuong and U Minh HaNational Parks. The status of other peatlands are not known, but are suspected to havebeen moderately to severely degraded due to agricultural and forestry developments.Main threats: • Conversion to agriculture and forestry crops.• Fires and degradation from altered drainage.• Lack of peatland management capacity.Current Policy forPeatland:There is no provincial or national policy to conserve or manage peatlands specifically.Two significant areas of peatlands are protected as National Parks. There are anumber of laws and regulations covering peatlands, but no specific policy or agency isresponsible for peatland management and conservation. The National Action Plan onPeatland has been finalised in 2011 and waiting for cabinet approval.Drivers: • Poverty.• Agricultural and Forestry Policy objectives and incentives.• High and increasing prices for food and timber commodities.DEVELOPMENT OF FINANCING AND INCENTIVES OPTIONSFOR SUSTAINABLE MANAGEMENT OF PEATLAND FORESTS IN SOUTHEAST ASIA55Short Term Strategy: • Based on Green and Red Book system system households to be paid to protectpeatlands and develop alternative livelihoods in UMT and UMH NPs.• Eco-tourism has some potential to be developed in UMT and UMH but managementcapacity, road access and infrastructure are barriers to development.• Pilot project financing likely to come from government agencies or external projectfunds. Potential to use HAZE Fund to support pilot activities, but this wouldrequire changes to terms and conditions of HAZE Fund.• Adapt existing agricultural subsidies in pilot areas to support wise use of peatlands.Medium TermStrategy:• Establish policy focus and lead agency for peatlands conservation.• Target funding from PES and REDD+ projects.Long Term Strategy: • Reforest peatlands that are unsuitable for agriculture.• Reduce conversion rate of peatlands to agriculture or forest plantations.• Provide national incentive programme to support wise use of peatlands.• Funding potentially available through CDM.• Introduce user charges on multi-nationals wishing to invest in plantations onpeatlands.• Adapt existing government financial assistance to small farmers and from usercharge funds.
DEVELOPMENT OF FINANCING AND INCENTIVES OPTIONSFOR SUSTAINABLE MANAGEMENT OF PEATLAND FORESTS IN SOUTHEAST ASIA56INTRODUCING economic incentives for PEATLANDCONSERVATION in VIET NAM• Review cost-effectivenessof U Minh Thuong Pilotproject activities.REVIEW• Awareness low.• Need to raise profile ofpeatland resource.AWARENESS• Pay Households to protectpeatland resources under‘Green and Red Book’system.• Develop alternativelivelihoods e.g. eco-tourism.• Potential Funding Sources:development agencies,HAZE Fund, eco-tourismbusiness, corporations (CSR).PILOTROAD MAP for introducing economic incentives forPEATLAND conservation in VIET NAMShORT TERMShORT TERM• Raise awareness of policymakers and civil society.• Demonstrate effectiveness ofuser benefits at pilot sites.• In Pilot Sites pay householdsto protect peatland resourcesunder Green Book System.DEVELOPMENT OF FINANCING AND INCENTIVES OPTIONSFOR SUSTAINABLE MANAGEMENT OF PEATLAND FORESTS IN SOUTHEAST ASIA57PROGRAMME• Fund wise use of peatlandsfrom REDD+, PES.• Reforest peatlands ofmarginal agricultural andforestry value under CDM.• Redirect existingagriculture and forestrysubsidies to promotewise-use of peatlands.POLICY• No agency has overallresponsibility for peatlandshence need to establishlead agency and createpolicy focus.• Allow peatlands to bemanaged under Greenand Red Book system.MEDIUM TERM• Allow households to paid formanaging peatlands sustainablyunder Green and Red Booksystem.• Fund wise use of peatlands fromREDD+, PES.• Develop policy leadership inpeatlands by identifying lead agency.LONG TERM• Reforest peatlands of marginal agriculturaland forestry value under CDM.• Redirect existing agriculture and forestrysubsidies to promote wise-use of peatlands.LONG TERM
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