Financing Infrastructure and Non-infrastructure Session 5.2: Financing of Ecosystems Services
Jim Woodcock
Main Questions • How can we incentivize financing of environmental conservation for more productive use of water? • Which institutions should increase financing of environmental conservation • How can we stimulate local financing to increase productive use of water?
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Pertanyaan2 Utama • Bagaimana kita bisa mendorong konservasi lingkungan hidup untuk jasa air yg efisien? • Lembaga/departemen apa yang harus meningkatkan anggaran untuk konservasi lingkungan hidup? • Bagaimana kita bisa merangsang pendanaan di daerah untuk konservasi lingkungan hidup?
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Case Studies in Conservation • Sumberjaya, Lampung 2004 • Coca Cola sumur resapan, 2013 • Krueng Montala PES, Aceh Besar, 2006 • Cidanau, Banten PES, 2004 • Brantas PES • Rinjani, PDAM Lombok Barat PES
• Pengendapan, Penggundulan hutan • Debit air berkurang • Penebangan liar
• Pengendapan, pupuk • Pengendapan • Erosi
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Case Studies in Conservation • Sumberjaya, Lampung 2004 • CSR, Coca Cola infiltration pond, 2013 • Krueng Montala PES, Aceh Besar, 2006 • Cidanau, Banten PES, 2004 • Brantas PES • Rinjani, PDAM Lombok PES 2005, 2007, 2011
• Sedimentation, deforestation • Reduced flow water • Illegal logging • Sediment, fertilizers • Sediment • Erosion 5
Sumberjaya, Lampung • Farmers receive land conditionally against promise to observe conservation techniques. • Farmers are motivated because they will own land. • Until now results are satisfactory
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Dua Jenis Hukum 1. Formal: Hukum Resmi UU 7/2004 Prinsip “Yang mencemarkan harus membayar” 2. Informal: Hukum Rimba Prinsip “Yang dirugikan harus bayar” or “Yang mencemarkan harus dibayar.”
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CSR: Coca Cola • Law 40/2007 regarding Limited Companies (UU PT) and Law 25/2007 regarding investment • Intermediary IUWASH Project, 2,000 wells • One well fills up 100 times a year • Recharges aquifer from runoff • Farmers get wages for construction • Depart State Enterprises Owned letter 2003 BUMN must contribute
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Krueng Montala, Aceh • • • • • •
Peusangan Watershed Two villages created Forum Assistance from NGO PDAM Aceh Besar Stop illegal logging Satisfactory, plans to expand
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Cidanau, Banten • • • • • • •
PT Krakatau Tirta Industry sells water Assisted by GTZ, reduce sediment, pollution Forum Komunikasi DAS Cidanau FKDS and LP3ES check planting Contract signed by Governor of Banten, 2004 Community gets 80% of payment, 6% tax Resistance of Forestry, other officers 10
Brantas, Perum Jasa Tirta • • • • •
PJT1, River Basin Operator, parastatal 2004, WWF, LP3ES Intermediary: Y Pengembangan Pedesaan Mengurangi pengendapan,, pollutants Satisfactory to date with key villages planting
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Rinjani, PDAM Lombok Barat • PES1 Voluntary 2005 Ford, NGOs • PES2 2007 One district additional to water bill Payments to IMP, controlled by Pemda Pemda gets 25%, IMP costs from 75% Applies to one district • PES3 2011 PDAM (not member of IMP) made bilateral agreements with farmers in two districts. Little verification. Results good. 12
Bagaimana mendorong konservasi lingkungan hidup Formal (jangka panjang) • UU 7/2004: enforce polluter pays • Pemda/PDAM charge for groundwater Informal (jangka pendek) • PES Regulations for legal basis, tax incentives, CSR
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Lembaga yang mana yang harus meningkatkan anggaran untuk konservasi? • • • • •
Departemen Kehutanan dan LH PT Perhutani Pemda, Propinsi Perum PJT 1, 2 Balai, BBWS, BPDAS (Ministry of Forestry), and BPLHD/Bapedalda • PDAM
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Bagaimana merangsang pendanaan di daerah untuk konservasi? • Formal: Penegakan peraturan • Informal: Untuk PES - National, local implementation regulations, definition of environmental services, PDAM collect environmental cost twice - Pemda fasilitator, not regulator - PES payments go to conservation, not PAD - sosialisasi, praising, publicity, school programs, CSR, tax breaks, qualified NGOs 15
End
THANK YOU FOR YOUR QUESTIONS
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