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Ministry of Climate Change
INTERIM REPORT
DESIGNING REDD+ PAYMENTS FOR
ENVIRONMENTAL SERVICES
PAKISTAN FOREST INSTITUTE PESHAWAR 2018
ii
Table of Contents
S.No. Topic and Sub-topic Page No. Table of Contents ii List of Acronyms iv Executive Summary vi
1. INTRODUCTION 1 1.1 Overview of Forests and Forestry in Pakistan 1 1.2 Objectives of the Consultancy Assignment 3 1.3 Scope of the Interim Report 3 2. APPROACH 4 2.1 Analytic and Diagnostic Frameworks 4 2.2 Literature Review 5 2.3 Consultations 5 3. PILOTING AND SITUATING REDD+PES IN PAKISTAN’S CONTEXT 6 3.1 Identification of Pilot Sites 6 3.2 Identification, Quantification and Valuation of Ecosystem Services 6 3.2.1 Provisioning Services 6 3.2.2 Regulating Services 6 3.2.3 Supporting Services 6 3.2.4 Cultural, Informational and Recreational Services 6 3.3 Identification and Engagement of Stakeholders 7 3.4 Understanding the Socio-economic Context and Societal Changes Impacting
Forestry and REDD+ in Pakistan 10
4. ANALYSIS AND REVIEW OF EXISITNG POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK WITH REGARD TO REDD+PES AND PROPOSE MEASURES
10
4.1 Analytical framework for assessing strategic, policy, legal and institutional readiness for REDD+PES in Pakistan
10
4.2 Analysis of Constitutional, Legal, Policy, Institutional and Strategic Context for REDD+PES in Pakistan
23
4.2.1 Constitution of Pakistan 1973 as amended from time to time 23 4.2.2 Land Ownership and Laws Related to Land Ownership 24 4.2.3 Forestry and Wildlife Related Laws 33 4.2.4 Fisheries Related Laws 41 4.2.5 Environment Related Laws 41 4.2.6 Climate Change Related Laws 46 4.3 Review of existing policies 47 4.3.1 Review of National Level Policies 47 4.3.2 Review of Provincial Level Policies 49 4.4 Review of main multilateral environmental agreements (MEAs) 59 4.5 Institutional Analysis 61 5 REVIEW OF INTERNATIONAL RESEARCH AND EXPERIENCES ON
REDD+PES AND SELECT, DESCRIBE AND EVALUATE THE MOST APPROPRIATE PES/REDD+ BENEFIT SHARING AND DISTRIBUTION SYSTEM
70
5.1 Early PES Experiences 70 5.2 PES as a REDD+ tool 73 5.3 Preconditions for REDD+ payments for PES 74 5.4 The elements of a good PES scheme 77
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5.4.1 Design 77
5.4.2 Mechanisms 78 5.4.3 Geographic and temporal boundaries 81
5.4.4 Perceived impacts 83 5.4.5 Impact interpretation 85
5.5 Governance and benefit distribution systems 85 5.5.1 Governance structures in REDD+ PES projects 85 5.5.2 Monitoring and assessment of PES 86 5.5.3 Increasing the efficiency of benefit sharing mechanisms 88 5.5.4 Improving the cost-effectiveness of payments 88 5.5.5 Bundling of payments of ecosystem services 89 5.5.6 Motivation of stakeholders to participate in PES schemes 90 5.5.7 Secured rights to ecosystem services enhances benefit distribution 91 5.5.8 Balancing of conflicting objectives 91 5.6 Lessons learned from International PES Experiences 97 6. FINDINGS, GAPS AND PROPOSED MEASURES 98 6.1 Findings 98 6.2 Gaps in existing laws with respect to REDD+PES 100 6.3 Proposed Measures 101 6.3.2 Proposed Legal Measures 102 6.3.3 Proposed Governance and Institutional Arrangement for REDD+PES 106 7. START THE PROCESS OF DEVELOPING OF AWARENESS RAISING/
CAPACITY BUILDING MATERIAL (5 MANUALS) 112
REFERENCES 119 ANNEXURES 123 Annex I: List of Laws and UN Conventions and Documents 123 Annex II: List of participants of first consultative/training workshop 125 Annex III: Group photo of first consultative/training workshop 129 Annex IV: List of participants of second consultative/training workshop 130 Annex V: Selected pictures of 2nd consultative workshop 135
Annex VI: List of participants of seminar on payment for environmental services
136
Annex VII: Seminar on payment for environmental services 138 Annex VIII: Criteria for selection of pilot PES sites 139 Annex IX: Functions of the Climate Authority 144 Annex X: National Policies Analysis 146 Annex XI: MEAs Analysis 153 Annex-XII: Proforma for Identification, Quantification and Valuation of Key
Ecosystem Services and their assessment for potential PES Scheme Development- The case of Mangrove Ecosystems of Pakistan
164
Annex-XIII: Identification, Categorization and Effective Engagement of Stakeholders in REDD+ PES Program
171
Annex-XIV: Questionnaire for socio economic data of mangroves forests (focus group discussion)
178
Annex-XV: Questionnaire for socio economic data of mangroves forests (household survey)
186
iv
LIST OF ACRONYMS
ABS Access and Benefit Sharing
AJK Azad Jammu and Kashmir
BBOP Business & Biodiversity Offsets Programme
CBD Convention on Biological Diversity
CDM Clean Development Mechanism
CEDAW Convention on Elimination of All Forms of Discrimination Against Women
CERs Certified Emission Reductions
CO2 Carbon Dioxide
CoP Conference of the Parties
DRIP Declaration on Rights of Indigenous People
EPA Environmental Protection Agency
FAO Food and Agriculture Organization
FGD Focus Group Discussion
FCPF Forest Carbon Partnership Facility
FSMP Forestry Sector Master Plan
GB Gilgit Baltistan
GMO Genetically Modified Organism
Ha Hectare
ICCPR International Convention on Civil and Political Rights
ILO International Labour Organization
ICESCR International Covenant on Economic, Social and Cultural Rights (ICESCR)
KP Khyber Pakhtunkhwa
MBI Market Based Incentives
MEAs Multilateral Environmental Agreements
MRV Measurement, Reporting and Verification
NGO Non-governmental Organization
OECD Organization for Economic Cooperation and Development
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PES Payment for Ecosystem Services
PFI Pakistan Forest Institute
REDD+ Reducing Emission from Deforestation and Forest Degradation, plus the role of
enhancement of carbon stock, conservation of carbon stock and sustainable forest management
SDGs Sustainable Development Goals
SFM Sustainable Forest Management
UNCBD United Nations Convention on Biological Diversity
UNFCCC United Nations Framework Convention on Climate Change
UNCCD United Nations Convention to Combat Desertification
VAT Value Added Tax
VCM Voluntary Carbon Market
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EXECUTIVE SUMMARY
Pakistan is a subtropical country with low forest cover and high deforestation rate inhabited by
207.77 million people. Therefore, conservation of existing forests and development of new forest
resources is critical for the country. The international community has developed market and
incentive mechanisms to help developing countries including Pakistan for the conservation and
development of forests. One such mechanism is the REDD+ approach under which countries are
compensated for their efforts to reduce emissions from deforestation and degradation of forests,
conservation of forest carbon stocks, sustainable forest management, and enhancement of forest
carbon stocks. Pakistan became a member of the UN-REDD Program in June 2011 and the World
Bank Forest Carbon Partnership Facility (FCPF) in December 2013. It got a grant of US$ 3.8 million
under the FCPF to make the country REDD Ready. The REDD+ Readiness Grant is inter alia being
used to develop the following in support of the REDD+ program in the country:
▪ Development of National REDD+ Strategy and its Implementation Framework
▪ Development of National Forest Reference Emission Levels/Forest Reference Levels and
National Forest Monitoring System (NFMS)-Measurement, Reporting and Verifications
(MRV) System for REDD+
▪ Preparing a Feedback and Grievance Redressal Mechanisms (FGRM) for REDD+ after an
Explicit Assessment of Existing FGRM and Developing Safeguards Information System (SIS)
and Social and Environmental Management Framework (ESMF) through Strategic
Environmental and Social Assessment (SESA)
▪ Designing REDD+ Payments for Environmental Services (PES)
The study Designing REDD+ Payments for Environmental Services has been awarded to Pakistan
Forest Institute, Peshawar. Following are the objectives of the study:
▪ Identify policy, legal and institutional barriers and outline options for policy, legal and institutional arrangements that will facilitate and maintain an effective REDD+/PES linked with National REDD+ Strategy.
▪ Develop criteria for PES site selection and propose the potential site(s) and type of ecosystem service. After getting approval from Ministry of Climate Change, consultants should proceed with designing the PES scheme.
▪ To have programme design for REDD+ PES in at least two forest ecosystems, also including institutional arrangements, benefit sharing mechanisms, conflict resolution mechanisms, safeguards, identifying sources of payments, and governance system.
▪ To develop capacities and increase awareness of relevant stakeholders in PES schemes and its linkages with REDD+
As per agreement executed between the National REDD+ Office and Pakistan Forest Institute, the
Interim Report is to cover the following topics:
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▪ Analysis and review of existing policy, legal and institutional framework with regards to
REDD+ PES and propose measures ▪ Determine governance and institutional arrangements for the REDD+ PES scheme
▪ Review of international research and experiences on REDD+ PES and select, describe and evaluate the most appropriate PES/REDD+ Benefit Sharing and Distribution System
▪ Start the process of developing of awareness raising / capacity building material (5
manuals)
Accordingly, the Interim Report has been developed to cover the above topics. Two pilot sites
selected for the design of PES scheme are the Moist Temperate Forests of Kaghan Valley in Khyber
Pakhtunkhwa (KP) Province and the Mangrove Forests, after consultations with stakeholders in
Inception Workshop held on 16-17 January, 2018 in Islamabad.
Successful implementation of REDD+ PES in Pakistan requires a sound foundation in the form of
conducive policies, laws and institutional frameworks. Pakistan has an array of policies, laws and
institutional arrangements in the forestry, land and land tenure, climate change and environment
sectors which have a bearing on and are, therefore, relevant to REDD+PES. The report has
reviewed policies, laws and institutions related to forestry, land and land tenure, environment and
climate change sectors at the national and provincial levels in the three provinces, viz., Sindh,
Balochistan and Khyber Pakhtunkhwa where the two pilot ecosystems are situated.
National and Provincial Policies which have been reviewed and analyzed including National Forest
Policy 2015 National Climate Change Policy 2012, Framework for Implementation of National
Climate Change Policy 2014-2030, and National Environment Policy 2005. Other National level
documents which have been studied are the Interim Report of the “Development of the National
REDD+ Strategy and its Implementation Framework” by Indufor/CHIP Training and Consulting,
2017 and Interim Report of “Preparing a Feedback and Grievance Redressal Mechanisms (FGRM)
for REDD+ after an Explicit Assessment of Existing FGRM and Developing Safeguards Information
System (SIS) and Social and Environmental Management Framework (ESMF) through Strategic
Environmental and Social Assessment (SESA)” by Climate Law and Policy/Hagler Bailly Pakistan,
2017.
Provincial level forestry, environment and climate change policies that have been reviewed and
analyzed include KP Forest Policy 1999, KP Climate Change Policy 2017, KP Environment Policy
2008, and Sindh Agroforestry Lease Policy 2004.
Balochistan Province has neither a Provincial Forest Policy nor any other policy or plan specific to
the management of mangrove forests in the province. Similarly there is no Land Allocation and
Land Use Policy, which can help in allocating land resources in the province. These are serious
policy gaps and need to be filled on priority basis. Without a conducive policy framework, it is
apprehended that the resource will keep on getting degraded because there is no formal
mechanism in place to get the required policy support in terms of fiscal, market-based or regulatory
provisions that can meaningfully contribute to the conservation of the resource or initiation of a
REDD+ or PES program for these mangrove forests.
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In addition to the Constitution of Pakistan which is the supreme law of the country, important
statutory laws of forestry and wildlife, land and land tenure, environment, and climate change laws
which have been reviewed and analyzed are the Forest Act 1927 (in its application to Sindh
Province), Pakistan Environmental Protection Act 1997, Pakistan Climate Change Act 2017, KP
Forest Ordinance 2002, KP Joint Forest Management (Community Participation) Rules 2004, KP
Wildlife and Biodiversity (Protection, Preservation, Conservation and Management) Act 2015, KP
Environmental Protection Act 2014, Sindh Wildlife (Protection, Preservation, Conservation and
Management) Ordinance 1972 and Amendments made to it, Sindh Environmental Protection Act
2014, Sindh Fisheries Ordinance 1980, Sindh Fisheries Amendments Act 2011, and a host of land
transfer and land tenure laws of Pakistan and the two provinces concerned. Most important land
tenure and land ownership Articles under the Constitution of Pakistan are Articles 23, 24, 172 and
173. Statutory laws covering land tenure vis-à-vis forestry in Pakistan include: Contract Act 1872,
The Transfer of Property Act 1882, The Government Tenants Act 1893, The Land Acquisition Act
1908, the Colonization of Government Lands Act 1912, The Sindh Tenancy Act 1950, The KP
Tenancy Act 1950, The Provincial Land Revenue Acts 1967, The Land Records Manual, The Land
Administration Manual, and the Settlement Manual.
The forests of Balochistan are governed by the Balochistan Forest Regulations 1890 (as amended
from time to time) and the Pakistan Forest Act 1927 (as amended in 1974). Both these legislations
were reviewed for the current report. The Balochistan Forest Regulation, 1890, mainly covers the
state forests. It has provisions regarding constitution and demarcation of state forests and the
power of forest officers to deal with forest offenses. It has a separate chapter on protection of
certain trees but it has not mentioned mangroves forests as such. Besides, Kalat Division Mazri
Control Rules, 1970; Kalat Division Reserved Tree Rules, 1970; Quetta Division, Reserved Tree
Rules, 1966; Balochistan Forest Produce Transit Rules, 1998; Balochistan Forest Produce Transit
Rules, 2007; The Balochistan Wildlife Act, 2014; The Balochistan Wildlife Rules, 2015; and The
Balochistan Environmental Protection Act 2012 were also reviewed.
Both national and provincial level institutions related to forestry, climate change and environment
have been studied and analyzed for assessing their support of REDD+ programs. Federal
institutions analyzed are the Ministry of Climate Change, Government of Pakistan, Prime Minister’s
Committee on Climate Change, Office of the Inspector General of Forests. Provincial Forest and
Wildlife Departments of KP and Sindh Provinces have also been analyzed from the perspective of
PES and REDD+ institutional and governance aspects.
The following analytic framework has been used in this study. This framework has been developed
by Katoomba Group which is an international network of researchers working to promote, and
improve capacity related to, markets and payments for ecosystem services (PES). The analytical
framework is divided into three levels, based on how critical the element is and the timing and
order of addressing the issues, keeping in view investors’ considerations for entering into PES
agreements. These are classified into Level-1 or Threshold Conditions, Level-2 or Essential
Aspects to be developed in parallel with PES , and Level-3 or Conditions for Streamlining PES.
These are diagrammatically depicted below:
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Level-1: Threshold Conditions The first level Threshold Conditions for PES ensure that fundamental or threshold conditions are in place for buyers to feel that there is sufficient stability in place to consider entering in these business arrangements. These are therefore critical to and without which PES is not possible. These include the following: 1.1: No prohibitions on PES 1.2: Addressing UNFCCC Cancun and World Bank Social and Environmental Safeguards Policies 1.3: Instituting Appropriate Institutional Mechanisms 1.4: Identifiable Supply and Demand 1.5: Governance Factors 1.6: Tenure Rights in Land 1.7: Rights in Ecosystem Services 1.8: Discernable Regulatory Regimes for PES Level-2: Essential Aspects to be developed in Parallel with PES The second level of preparedness, while important for well-functioning PES, may be developed adaptively as needs and options become clearer via PES experience on the ground. These include: 2.1: Ecosystem Services Baseline or Forest Reference Emissions Level/Forest Reference Level 2.2: National/Sub-national Ecosystem and Forest Monitoring System 2.3: Measurement, Monitoring, Reporting and Verification of Ecosystem and PES outcomes 2.4: Registries 2.5: Stakeholders Participation 2.6: Technical Support Level-3: Conditions for Streamlining PES Level-3 or Streamlining PES conditions include non-urgent aspects that may be important to streamline or scale up PES, depending on the particular circumstances. These are mostly related to maintaining and expanding PES infrastructure and ensuring financial resources for PES. These include: 3.1: Maintaining a well-functioning PES and REDD+ Infrastructure 3.2: Facilitating Investments into PES and REDD+ 3.3: Facilitating Incentives 3.4: Supportive Taxes/Tariffs 3.5: PES and REDD+ Risks Mitigation
While analyzing policies, provisions with respects to the following aspects have been specifically
analyzed:
▪ Institutional Development in support of REDD+PES.
▪ Improving Forest Governance and Land and Forest Tenure system.
▪ Addressing the drivers and underlying causes of deforestation and forest degradation.
▪ Technical aspects of REDD+ PES Project development.
▪ Stakeholders engagement in REDD+PES.
▪ Incentives Allocation and Benefits Distribution System.
▪ Conflicts Resolution and Management.
▪ Social and Environmental and REDD+ Cancun Safeguards.
▪ REDD+ Finance.
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▪ Legal Issues.
▪ Marketing and Contractual aspects of REDD+PES.
▪ Awareness Creation and Capacity Building of Stakeholders in REDD+PES Projects.
▪ Research on REDD+ and Climate Change issues.
▪ Influencing and Advocacy related to REDD+ and Climate Change.
▪ International Requirements regarding different Multilateral Environmental Agreements.
▪ Human and Women Rights in the context of REDD+PES.
While assessing the Constitution of Pakistan and other legal instruments, special attention was
given to the following aspects:
▪ Provisions with regard to property and tenure rights, property rights protection and ease in
transfer of property rights.
▪ Definition of ecosystem services in legislation.
▪ Rights to ecosystem services.
▪ Provisions regarding valuation of ecosystem services.
▪ Appropriate use of market-based instruments for resources protection.
▪ Involvement of stakeholders in resources planning and management.
▪ Provisions with regard to promoting public-private and civil society partnerships.
▪ Provisions with regard to integration with relevant international agreements.
▪ Provisions with regard to promotion of PES
A wide array of tools are available for institutional capacity assessment for REDD+PES. We have
assessed institutions based on four broad dimensions, viz., technical and program functions,
administrative and support functions, structure and culture, and resources. These four dimensions
were selected due the fact that these can fully describe and diagnose the capacity of an institution.
Main parameters under the technical and program functions include services delivery system,
programs planning, programs monitoring and evaluation, and use and management of technical
knowledge and skills. Parameters used for institutional assessment under the broad category of
administrative and support functions include administrative procedures and management systems,
financial management (budgeting, accounting, fund raising, sustainability), human resources
management (staff recruitment, placement, support), and management of other resources
(information, equipment, infrastructure). Structure and culture related parameters used for
institutional assessment include: organizational identity and culture, vision and purpose,
leadership capacity and style, organizational values, governance approach and external relations
management. Main resources categories used in the analysis were human resources, financial
resources, knowledge resources, physical and material resources, goodwill and social resources.
Based on the reviews and analyses done, the following major issues emerged:
▪ Insufficient and at times inconsistent policies and legal frameworks.
▪ Insufficient implementation and enforcement capacities for laws and policies
implementation.
▪ Inadequate and weak institutional arrangements.
▪ Lack of data, information, and knowledge.
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▪ Coordination and governance problems.
▪ Market and price distortions.
▪ Deficient flow of investment into the forestry sector.
▪ Forest conservation issues and ecosystem services are not priority.
▪ Existing resource related conflicts which are growing due to insufficient and inadequate
conflict resolution mechanisms.
Different Multi-lateral Environmental Agreements to which Pakistan is Party have also been
reviewed. These among others include the Ramsar Convention, Migratory Species Convention,
CITES, Law of the Seas, Vienna Convention, UNFCCC, UN-CBD, UN-CCD, and their Protocols and
Agreements. Implementation of the obligations under these conventions is supportive of the
REDD+PES program.
Proposed innovations in policies include having policies which among others have provisions with
regard to the effective participation of stakeholders groups, strengthening of social inclusion and
equity, creating an appropriate framework for forest governance and land and resource tenure
system, development of an appropriate REDD+ architecture, Cancun and other social and
environmental safeguards for REDD+, national forest monitoring and MRV system for REDD+,
incentives and incentives allocation and benefit sharing system, feedback and grievance redress
mechanisms, coordination and linkages promotion, engagement of the private sector, value chain
promotion, addressing leakages and non-permanence issues, etc. These innovations can be
introduced in one of three ways: through incorporation into the REDD+ National and Provincial
Strategies which are in the process of preparation, or through changes in the existing policies of the
forestry sector, or developing new forest policies which cater to these and other requirement of the
REDD+ program. The first options seems to be the quickest and most pragmatic one to adopt.
Proposed innovations in laws include adding an exclusive chapter in the forestry laws on Forest
Ecosystem Services. In support of this section, a number of definitions pertaining to ecosystem
services, forest carbon and forest carbon rights will have to be provided in the law. Also, the
definition of forest produce will have to be changed so as to include forest carbon in the definition
of forest production. A number of sections will have to be provided in the chapter on forest
ecosystem services. Government may also make rules in support of some of those sections.
Proposed innovations in institutions include the establishment of a dedicated National PES/REDD+
Office in the Ministry of Climate Change on regular basis and Provincial PES/REDD+ Offices in
provinces where REDD+PES Programmes will be implemented. The “Provincial Grievances and
Implementation Units for REDD+” which will be established under Provincial REDD+ Management
Committee should also be mandated to work PES in the provinces. It is also proposed to have
District level REDD+PES Committees represented by the government departments as well as
members of the local communities. These PES/REDD+ Offices must have the requisite human
resources, financial resources, technical and knowledge resources, etc. to be able to deliver the
multi-functions, interaction with multi-actors and supporting work at multiple scales. Initially
these could be developed through a development project and later on brought on regular budget
once these have proved their worth.
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1. INTRODUCTION
1.1 Overview of Forests and Forestry in Pakistan
Pakistan’s forest resources are inadequate to meet the growing demands of its population for
various products and services. The country inherited a comparatively low forest wealth at the time
of its creation (Jan, 1993). Its problem of low forest cover is compounded by the high deforestation
rate in the country. The low forest cover partially results from arid and semi-arid climate in large
parts of the country. According to the Forestry Sector Master Plan (1992), natural forests account
for 4.2 million ha (4.8%), irrigated plantations occupy 103,000 ha (0.117%) and rangelands cover
28.507 million ha (32.40%) out of the total land area of 87.98 million ha of the country. According
to NFRRA Study the total area of forests in the country is 4.34 million ha (5.01%) out of which
3.44 million ha are state owned; tree cover on farmlands and private forests is 0.781 million ha
(0.887%) (Government of Pakistan, 2009). The latest estimates on forest area have been given
by Bukhari et al. (2012) who estimated the total forests area of the country as 4.55 million ha
constituting about 5.1% of the total area.
Most of the forest area is in the northern part of the country i.e. Khyber Pakhtunkhwa (KP)
Province, Gilgit-Baltistan (GB) and Azad Jammu & Kashmir (AJK) and comprises coniferous and
scrub forests. Other types of forests include riverine forests (Punjab and Sindh provinces),
mangrove forests (Sindh and Balochistan provinces), and juniper and chilghoza forests (primarily
in Balochistan province). Irrigated plantations have been raised in Punjab and Sindh provinces.
These forest types provide different types of environmental services which need to be identified,
quantified and valued to devise mechanisms for conservations of these ecosystems.
The high deforestation rate in the country primarily results from societal factors lying outside the
influence of forestry sector and include high demand for forest products due to demographic
pressure, political, institutional, economic and various societal factors. Natural factors that create
challenges for the forestry sector include earthquakes, floods, droughts, global warming and climate
change. Anthropogenic factor further exacerbate the extent and negative impacts of these natural
factors. The various contributing factors viz., arid climate, overexploitation of forest resources
coupled with lack of regeneration, forest land use change (in particular for agriculture), abstraction
and extraction of river waters without caring for the needs of environmental flows downstream;
competing uses and inefficient use of water, inefficient use of wood, and forest fires are the main
causes of this situation. Other contributing socio-economic and institutional factors include rapid
increase in population, i.e. beyond the carrying capacity of forests and other resources on which
2 | P a g e
forestry depends (for example low priority is given to the forestry sector in the national agenda);
controversial land tenure; lack of community participation; weak enforcement of policies and laws;
weak institutional framework; and lack of a proactive approach (Government of Pakistan, 2009).
The large scale deforestation and forest degradation and deterioration of rangelands and
watershed areas are threatening the ecosystem functions and services of these ecosystems. These
have also contributed to climate change and environmental and social problems such as floods,
ecological degradation, health issues as well as contributing to poverty and other economic
hardships. To reverse these negative trends, governments, organizations and societies all across
the world are seeking market-based solutions in addition to regulatory and fiscal solutions. The
most prominent of these market-based approaches are the Payments for Ecosystem Services (PES)
and other PES like programs.
PES and PES like1 schemes aim to connect people and organizations who function as ecosystem
services providers sellers to people who are the direct or indirect beneficiaries of these ecosystem
services (ES buyers) in contract-like arrangements. In this way, a market or quasi-market2 is
created where the ecosystem services that were formerly provided for free get a price tag and are
valued as a natural commodity in a trade.
Although the principle of PES seems simple and straightforward in theory, PES creation and
implementation on ground, however, is a complex issue that faces many challenges as the PES
needs to be made a good fit to either the already existing policies, laws, regulations and institutional
structures and other context features, or a new set of policies, laws, regulations and institutional
arrangements is put in place that are conducive of and support implementation of the PES program.
In this report we have, therefore, made an analysis of the existing policies, laws and institutions at
national as well as provincial levels to assess their utility for implementation of PES program in the
country.
Also, at present a multitude of different PES approaches exist all across the world. These
differences arise from variations in the structure of PES schemes; the services aimed at under the
1PES like scheme is that scheme where proper PES arrangements are not in place but it provides incentives for
provision of environmental services. 2 A quasi-market is a public sector institutional structure that is designed to reap the supposed efficiency gains of
free markets without losing the equity benefits of traditional systems of public administration and financing.
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program; the form, mode and frequency of payments; who the sellers and buyers of the ES are; who
the PES implementers and intermediaries are; whether incentives are given to individuals or
communities; how the eligibility rules for participation are defined; and how the payments are
funded (Jack et al., 2008).
While designing PES programs for the two pilot sites in Pakistan, the above issues will be
considered and addressed as part of the design of the PES program for the two pilot sites.
1.2 Objectives of the study
The overall objective of this study is to design a pilot program to test payments for ecosystem
services that supports results for REDD+ in two forest ecosystems.
Specific objectives include:
▪ Identify policy, legal and institutional barriers and outline options for policy, legal and institutional arrangements that will facilitate and maintain an effective REDD+/PES linked with National REDD+ Strategy.
▪ Develop criteria for PES site selection and propose the potential site(s) and type of ecosystem service. After getting approval from Ministry of Climate Change, consultants should proceed with designing the PES scheme.
▪ To have programme design for REDD+ PES in at least two forest ecosystems, also including institutional arrangements, benefit sharing mechanisms, conflict resolution mechanisms, safeguards, identifying sources of payments, and governance system.
▪ To develop capacities and increase awareness of relevant stakeholders in PES schemes and its linkages with REDD+
1.3 Scope of Interim Report
As per agreement executed between the National REDD+ Office and Pakistan Forest Institute, the
Interim Report is to cover the following topics:
▪ Analysis and review of existing policy, legal and institutional framework with regards to
REDD+ PES and propose measures
▪ Determine governance and institutional arrangements for the REDD+ PES scheme ▪ Review of international research and experiences on REDD+ PES and select, describe and
evaluate the most appropriate PES/REDD+ Benefit Sharing and Distribution System ▪ Start the process of developing of awareness raising / capacity building material (5
manuals)
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Accordingly, the Interim Report has been developed to cover the above topics. While doing the
review of policies, laws and institutions, special attention has been paid to cover the following
aspects of REDD+PES:
▪ Institutional Development in support of REDD+PES.
▪ Improving Forest Governance and Land and Forest Tenure system
▪ Addressing the drivers and underlying causes of deforestation and forest degradation.
▪ Technical aspects of REDD+ PES Project development.
▪ Stakeholders engagement in REDD+PES.
▪ Incentives Allocation and Benefits Distribution System.
▪ Conflicts Resolution and Management.
▪ Social and Environmental and REDD+ Cancun Safeguards.
▪ REDD+ PES Finance.
▪ Legal Issues.
▪ Marketing and Contractual aspects of REDD+PES.
▪ Awareness Creation and Capacity Building of Stakeholders in REDD+PES Projects.
▪ Research on REDD+ and Climate Change issues.
▪ Influencing and Advocacy related to REDD+ and Climate Change.
▪ International Requirements regarding different Multilateral Environmental Agreements.
▪ Human and Women Rights in the context of REDD+PES.
2. APPROACH
Here we discuss the approach that has been used to gather information for this study and
development of this interim report. It has three main sections: analytic and diagnostic frameworks
used for the collection of primary data; literature review for collection of secondary data and
international experiences; and consultations and capacity building sessions for the engagement of
different stakeholders, their capacity building and hands on experiences on different aspects of
REDD+ PES.
2.1 Analytic and Diagnostic Frameworks
A number of data collection, analytic and diagnostic frameworks have been used in this study for
different purposes. These include the following:
▪ Proforma containing criteria for the selection of pilot project sites for designing PES
schemes. The proforma is given as Annex-1.
▪ Proforma for identification, quantification of valuation of ecosystem services. Annex-2.
▪ Proforma for identification, categorization and measures for effective engagement of
stakeholders. Annex-3.
▪ Proforma for collecting socio-economic information about the community in Focused Group
Discussions. Annex-4.
▪ Proforma for collecting livelihoods related information through household surveys. Annex-
5.
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A number of other frameworks have been developed for the review and assessment of existing
policies, laws and institutions impacting on REDD+ in Pakistan. These frameworks are given in
Section 4.1 of this report.
2.2 Literature Review
Literature review has been done to gain insights into national and international experiences on
different aspects of REDD+ and PES and lessons learnt from those studies are presented in Section
5 of this report.
2.3 Consultations
Regular consultative workshops and meetings including capacity building trainings are being held
with the different stakeholder groups. The inception workshop was held in Islamabad on 16-17
January, 2018. A Provincial level first consultative and training workshop for the Coastal Mangrove
Forests was held on 8-10 February at Karachi. The Registration Sheet and selected pictures of the
first consultative workshop are given at Annex II-III. Training sessions held in this workshop
covered inter alia the following topics:
▪ Identification, quantification and valuation of different ecosystem services of mangrove
forests
▪ Identification of potential mangrove ecosystem services which can be brought under the
ambit of PES scheme.
▪ Suppliers/providers of the PES services of mangrove forest ecosystem.
▪ Potential buyers of the PES services of mangrove forest ecosystem.
▪ Potential intermediaries for linking the service providers and potential buyers and potential
knowledge providers for detailed designing and implementation of PES schemes.
▪ Identification, categorization and measures for effective engagement of different
stakeholder groups in the coastal areas of Sindh Province.
▪ Identification of existing policies impacting forestry and REDD+PES in mangrove forests.
▪ Identification of existing laws, rules and regulations impacting forestry and REDD+ in
mangroves.
▪ Identification of existing institutions that are playing or can potentially paly role in REDD+
PES scheme in mangrove forests in the Indus Delta.
▪ Key elements for the design of REDD+ PES schemes.
A second consultative and training workshop has been held at Karachi on 12-13 March, 2018.
Participants from different stakeholder groups including members of coastal community attended
this workshop List of Workshop Participants and selected pictures are given at Annex IV-V. Main
topics covered for consultations with and capacity building of the stakeholders in this workshop
included:
▪ Land and resource tenure related issues in coastal areas.
▪ Conflicts Resolution Mechanisms for addressing land and resource tenure issues in the
Indus Delta Coastal Areas.
▪ Existing Policies Gaps and Innovations for Addressing Gaps
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▪ Existing Legal Preparedness, Gaps and Innovations for Addressing Gaps
▪ Existing Institutional Gaps and Innovations for Addressing Gaps
▪ Mechanisms and Innovations for Incentives Allocations and Benefit Sharing Mechanisms
3. PILOTING AND SITUATING REDD+PES IN PAKISTAN’S CONTEXT
3.1 Identification of Pilot Sites
First of all, a proforma (Annex-VIII) was developed containing criteria for the selection of pilot
sites for the current REDD+ PES Study. The criteria were presented and explained to the different
stakeholder groups and discussed in a plenary session in Islamabad at the time of the Inception
Workshop held on 16-17 January. After endorsement of the criteria by the participants of the
workshop, it was used to select two pilot sites for the design of PES schemes out of seven potential
sites. Using this proforma, the following two sites have been selected for pilot testing of REDD+ in
Pakistan:
▪ Mangrove Forests.
▪ Moist Temperate Coniferous Forests in Kaghan Valley.
3.2 Identification, Quantification and Valuation of Ecosystem Services
A second proforma (Annex-XII) was developed for the identification, quantification and
valuation of ecosystem services at the two pilot sites. This proforma was explained to the
participants of the first consultative and training workshop held on 8-10 February, 2018 at Karachi.
Later on, it was used as a data collection tool for the identification, quantification and valuation of
ecosystem services in the mangrove forests in same workshop.
Using this proforma, the following have been identified as the major ecosystem services of
mangrove forests:
3.2.1 Provisioning Services
▪ Timber
▪ Fuelwood
▪ Fodder
▪ Other Forest Products
▪ Non-Timber Forest Products, e.g., honey, etc.
▪ Oxygen Production
▪ Fishes
▪ Shrimps
3.2.2 Regulating Services
▪ Coastal Protection
▪ Shoreline Stabilization
▪ Carbon Change Mitigation and Adaptation
▪ Biodiversity Conservation
▪ Water Quality Maintenance
▪ Pollution Prevention
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3.2.3 Supporting Services
▪ Soil formation
▪ Nutrient Cycling
▪ Habitat Provision
3.2.4 Cultural, Informational and Recreational Services
▪ Cultural and Spiritual Services
▪ Recreation Services
▪ Education Services
▪ Research Services
Out of the above ecosystem services, the following five key services have been shortlisted and
ranked in order of importance by the workshop participants for development into a PES
scheme:
i. Spawning places for fishes and shrimps
ii. Coastal protection
iii. Shoreline stabilization
iv. Climate change mitigation through carbon storage and sequestration
v. Biodiversity Conservation and promotion of ecotourism
The rationale for selecting the above services is their high potential for development into a PES
scheme for the following reasons:
▪ Availability of demand for the ecosystem service by one or more potential buyers
▪ Service provider has clear ownership over and can reduce the supply to the user
▪ Management actions of the managers have the potential to increase the quantity and
quality of the service
▪ Is mandatory on the buyer on account of legal responsibilities
▪ Benefits to the supplier are greater than his opportunity costs, transaction costs and
implementation costs
3.3 Identification and Engagement of Stakeholders
A third proforma (Annex-XIII) has been developed for the identification, categorization and
effective engagement of stakeholders. This was first presented to the participants for their
understanding and endorsement, after which the tool has also been used in the first consultative
and training workshop in Karachi on 8-10 February, 2018.
Using this proforma and plenary discussions in the workshop the following categories of
stakeholders have been identified for PES in Mangroves forests:
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Table-1: Stakeholders Categories
S.No. Stakeholder Group/Stakeholder Category Timeframe for Engagement I. Government Departments 1. Forest Deptt: P Immediate and on continuous basis 2. Wildlife Deptt: P Immediate and on continuous basis 3. Fisheries Deptt: P Immediate and on continuous basis 4. Agriculture Deptt: S Intermittent and on need basis 5. Livestock Deptt: P Immediate and on continuous basis 6. Rural Development Deptt: S Intermittent and on need basis 7. Power and Energy Deptt: S Intermittent and on need basis 8. Tourism Deptt: S Intermittent and on need basis 9. Irrigation /Drainage P Immediate and on continuous basis 10. Planning and Development Deptt: P Immediate and on continuous basis 11. Finance Deptt: P Immediate and on continuous basis 12. Law Deptt: S Intermittent and on need basis 13. Revenue Dept: P Immediate and on continuous basis 14. District Administration S Intermittent and on need basis 15. Police S Intermittent and on need basis 16. Judiciary S Intermittent and on need basis 17. EPA P Immediate and on continuous basis 18. K-Electric/WAPDA S Intermittent and on need basis 19. Disasters Management Authority S Intermittent and on need basis 20. Education S Intermittent and on need basis 21. Social Welfare Deptt: S Intermittent and on need basis 22. Coastal Development Authority P Immediate and on continuous basis 23. Alternative Energy Board S Intermittent and on need basis 24. Pakistan Navy P Intermittent and on need basis 25. Local Government S Intermittent and on need basis 26. FBR/Excise and Taxation
Department T Intermittent and on need basis
27. Health S Intermittent and on need basis II. Community Groups 28. Forest Users P Immediate and on continuous basis 29. Fishermen P Immediate and on continuous basis 30. Farmers P Immediate and on continuous basis 31. Livestock Owners P Immediate and on continuous basis 32. Chambers of Commerce & Industries S Intermittent and on need basis 33. Traders S Intermittent and on need basis 34. Religious Leaders S Intermittent and on need basis 35. Local Level Leaders and Other
Opinion Makers and Influencers P Immediate and on continuous basis
36. Tourists S Intermittent and on need basis III. Civil Society and Media Intermittent and on need basis 37. Advocacy Groups S Intermittent and on need basis 38. Media S Intermittent and on need basis IV. INGOs Intermittent and on need basis 39. IUCN S Intermittent and on need basis
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40. WWF S Intermittent and on need basis V. Local NGOS Intermittent and on need basis 41. SDPI S Intermittent and on need basis 42. Fishermen Society S Intermittent and on need basis 43. Friends of the Sea S Intermittent and on need basis VI. Academic and Research
Institutions Intermittent and on need basis
44. Marine Biology Department, University of Karachi
P Intermittent and on need basis
45. Pakistan Forest Institute P Intermittent and on need basis VII. Local Financing Institutions 46. Banks S Intermittent and on need basis 47. Other Lending Institutions S Intermittent and on need basis VIII. International Agencies 48. UNDP S Intermittent and on need basis 49. UNEP S Intermittent and on need basis 50. FAO S Intermittent and on need basis 51. USAID S Intermittent and on need basis 52. World Bank S Intermittent and on need basis 53. Asian Development Bank S Intermittent and on need basis IX. Knowledge Providers 54. Project Design Developers S Intermittent and on need basis 55. Brokers S Intermittent and on need basis 56. Validators S Intermittent and on need basis 57. Verifiers S Intermittent and on need basis X. Ecosystem Services Potential
Buyers Intermittent and on need basis
58. Industries P Intermittent and on need basis 59. Energy Companies P 60. Utility Companies P Intermittent and on need basis 61. Airlines and Other Transport
Agencies P Intermittent and on need basis
62. Water Utilities P Intermittent and on need basis 63. Tourism Companies P Intermittent and on need basis 64. Coastal Authorities P Intermittent and on need basis 65. Disasters Management Agencies P Intermittent and on need basis 66. Pharmaceutical Companies P Intermittent and on need basis P: Primary S: Secondary T: Tertiary
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3.4 Understanding Socio-economic Context and Societal Changes Impacting Forestry and
REDD+ in Pakistan
A fourth proforma (Annex-XIV) has been developed for collecting socio-economic information
about the local communities through Focused Group Discussion (FDGs). It was pilot tested and is
currently being used in Sindh and Balochistan provinces for information collection about the
communities residing in the coastal belt around mangrove forests. The survey is on-going and
information is being collected through professional experts engaged for the purpose.
A fifth proforma (Annex-XV) has been developed for collecting livelihoods related data at the
household level. This too has been first pilot tested and is now being used in Sindh and Balochistan
provinces for data collection. This survey is also on-going and professional experts are collecting
the information.
4. ANALYSIS AND REVIEW OF EXISITNG POLICY, LEGAL AND INSTITUTIONAL
FRAMEWORK WITH REGARD TO REDD+PES AND PROPOSE MEASURES
4.1 Analytical framework for assessing policy, legal and institutional readiness for
REDD+PES in Pakistan
To foster an environment in which PES transactions can occur and to turn PES into a mechanism for
driving investments into forest protection and REDD+, an understanding of policy, legal and
institutional readiness options for PES is critical. Therefore, there is a need for developing an
analytical framework for assessing policy, legal and institutional readiness for PES transactions. In
the following, we have adopted and made use of the Analytical Framework developed by the
Katoomba Group (Hawkins, 2011; (Greiber, 2009). This framework was adopted because it is a
comprehensive framework and has been used in several countries of Latin America and East and
Southern Africa where PES Schemes have been implemented.
This analytical framework is divided into three levels, based on how critical the element is and the
timing and order of addressing the issues, keeping in view investors’ considerations for entering
into PES agreements. These are classified into Level-1 or Threshold Conditions, Level-2 or
Essential Aspects to be developed in parallel with PES , and Level-3 or Conditions for
Streamlining PES. These are diagrammatically depicted below:
Level-1: Threshold Conditions The first level Threshold Conditions for PES ensure that fundamental or threshold conditions are in place for buyers to feel that there is sufficient stability in place to consider entering in these business arrangements. These are therefore critical to and without which PES is not possible. These include the following: 1.1: No prohibitions on PES 1.2: Addressing UNFCCC Cancun and World Bank FCPF Social and Environmental Safeguards 1.3: Instituting Appropriate Institutional Mechanisms 1.4: Identifiable Supply and Demand 1.5: Governance Factors 1.6: Tenure Rights in Land 1.7: Rights in Ecosystem Services
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1.8: Discernable Regulatory Regimes for PES Level-2: Essential Aspects to be developed in Parallel with PES The second level of preparedness, while important for well-functioning PES, may be developed adaptively as needs and options become clearer via PES experience on the ground. These include: 2.1: Ecosystem Services Baseline or Forest Reference Emissions Level/Forest Reference Level 2.2: National/Sub-national Ecosystem and Forest Monitoring System 2.3: Measurement, Monitoring, Reporting and Verification of Ecosystem and PES outcomes 2.4: Registries 2.5: Stakeholders Participation 2.6: Technical Support Level-3: Conditions for Streamlining PES Level-3 or Streamlining PES conditions include non-urgent aspects that may be important to streamline or scale up PES, depending on the particular circumstances. These are mostly related to maintaining and expanding PES infrastructure and ensuring financial resources for PES. These include: 3.1: Maintaining a well-functioning PES and REDD+ Infrastructure 3.2: Facilitating Investments into PES and REDD+ 3.3: Facilitating Incentives 3.4: Supportive Taxes/Tariffs 3.5: PES and REDD+ Risks Mitigation
Level-1: Threshold Conditions
There are certain minimum threshold conditions that must exist for all PES transactions to occur.
These thresholds generally refer only to minimum requirements, for example in terms of supply
and demand, governance and regulatory aspects, and rights in land and ecosystem services that
must exist for PES to work. Beyond the absolute minimum levels required to support PES,
additional strengthening in these fundamental aspects can be expected to further bolster PES. Each
of the following threshold conditions is described below:
i. No prohibitions on PES
ii. Cancun Safeguards and other Social and Environmental Safeguards
iii. Institutional Mechanisms
iv. Identifiable Supply and Demand
v. Governance Factors
vi. Tenure Rights in Land
vii. Rights in Ecosystem Services
viii. Discernable PES Regulatory System
i. No Prohibition on PES
If Pakistan or for that matter any government which wishes to promote or facilitate PES, there can
be no explicit or implied prohibition on PES in any valid law or provision of the constitution. Such a
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prohibition most likely would not be a specific ban on PES, but rather a restriction or establishment
of rights in ecosystem services that is fundamentally inconsistent with PES.
Often, PES is neither explicitly permitted nor prohibited by law. In such case, the challenge is in
inferring rules and regulations that affect PES from relevant law related to, for example, forest and
natural resource use, forest rights, development, and other issues.
To analyze this condition we have reviewed the Constitution of Pakistan, International and National
Studies, Land Laws of Pakistan, REDD+ related Strategies and other relevant Policies, Laws and
Institutions in Pakistan and have also relied on experiences of the study team leader.
ii. Addressing UNFCCC Cancun and World Bank Social and Environmental Safeguards
Parties to the UNFCCC agreed in Cancun, Mexico in 2010 on seven broad safeguard principles for
the implementation of REDD+ addressing transparency, participation of stakeholders, protection of
biodiversity and ecosystem services, and respect for rights of indigenous and local communities.
One year later, in Durban, the Parties to UNFCCC reached another agreement that parties
undertaking REDD+ activities should provide a summary of information on how the Cancun
safeguards are being addressed and respected.
The World Bank Forest Carbon Partnership Facility (FCPF) has also adopted Operational Policies
towards Social and Environmental Safeguards.
The Cancun Safeguards and the relevant World Bank Operational Policies are given in the following
table:
Table 2: UNFCCC REDD+ Safeguards and the World Bank Safeguard Policies:
UNFCCC Safeguards for REDD+
Sample of Relevant World Bank Safeguard Policies and Procedures
(a) That actions complement or are consistent with the objectives of national forest programmes and relevant international conventions and agreements;
OP 4.01 on Environmental Assessment, in particular paragraph (“para.”) 3 OP 4.36 on Forests, in particular paras. 14 and 6
(b) Transparent and effective national forest governance structures, taking into account national legislation and sovereignty;
Access to Information policy, in particular para. 1 OP 4.01 on Environmental Assessment, in particular paras. 3 and 13 OP 4.36 on Forests, in particular para. 14 BP 4.04 on Natural Habitats, in particular para. 5 BP 4.10 on Indigenous Peoples, in particular para. 10
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BP 4.12 on Involuntary Resettlement, in particular para. 2
(c) Respect for the knowledge and rights of indigenous peoples and members of local communities, by taking into account relevant international obligations, national circumstances and laws, and noting that the United Nations General Assembly has adopted the United Nations Declaration on the Rights of Indigenous Peoples;
OP 4.10 on Indigenous Peoples, in particular para. 1; para. 16 and footnote 17; paras. 19 to 21 OP 4.36 on Forests, in particular paras. 10 and 14 BP 4.36 on Forests, in particular para. 4
(d) The full and effective participation of relevant stakeholders, in particular indigenous peoples and local communities, in the actions referred to in paragraphs 70 and 72 of this decision;
OP 4.01 on Environmental Assessment, in particular paras. 14 and 15 OP 4.10 on Indigenous Peoples, in particular para. 1 and footnote 4 OP 4.04 on Natural Habitats, in particular para. 10 OP 4.12 on Involuntary Resettlement, in particular para. 7 OP 4.36 on Forests, in particular paras. 11 and 12
(e) Actions are consistent with the conservation of natural forests and biological diversity, ensuring that actions referred to in paragraph 70 of this decision are not used for the conversion of natural forests, but are instead used to incentivize the protection and conservation of natural forests and their ecosystem services, and to enhance other social and environmental benefits;
OP 4.04 on Natural Habitats, in particular para. 1 and Annex A, para. 1(a); para. 4 and Annex A, para. 1(c) OP 4.36 on Forests, in particular paras. 1, 2, 5, and 7
(f) Actions to address the risks of reversals OP 4.01 on Environmental Assessment, in particular paras. 1 and 2 OP 4.36 on Forests, in particular para. 14
(g) Actions to reduce displacement of emissions.
OP 4.01 on Environmental Assessment, in particular para. 2 and footnote 3; para. 3 and footnote 5 OP 4.04 on Natural Habitats, in particular para. 4 and Annex A, para. 1(c)
The UNFCCC Cancun Safeguards and World Bank Policies are binding if Pakistan is to have access to
international funding. These will, therefore, have to be properly understood; addressed in relevant
policies and laws; respected on ground; and reported on to the relevant forums through an
appropriate safeguards information system.
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The consortium of Climate, Law and Policy and Hagler Baily Pakistan have done an analysis of these
safeguards and made recommendations to the Government of Pakistan regarding these safeguards.
A web link to full report is as under:
https://www.redd-pakistan.org/wp-content/uploads/2015/08/Interim-progress-report_CLP-and-
HBP.pdf
Their suggested frameworks are useful and therefore will be made use of.
iii. Identifiable Supply and Demand
For the viability of PES for any given ecosystem, there has to be supply and demand. That is, there
must be: a valuable ecosystem service(s) that is actually being degraded or lost (or whose
degradation or loss is imminently threatened), and key stakeholders who perceive (or can be made
aware of) both the value of the ecosystem service and the threat. Further, it must be possible for
actions by defined individuals or groups to mitigate threats or prevent degradation and loss.
For identifying PES opportunities, the following questions will have to be asked:
▪ What are the ecosystem services under consideration, and who is benefitting from, or
dependent on, continued ecosystem service provision?
▪ What is the threat, whether current or likely degradation or loss, and what are the drivers?
▪ Are beneficiaries aware of the importance of, and threats to these ecosystem services?
▪ What is the demand driver, e.g., incentives from international institutions, private sector
expectations, actual conflict around the flow of ecosystem services, government incentives
or restrictions, or others?
In some circumstances, government intervention may be necessary for PES to take root because
supply and demand are lacking. For example, where the existence or value of ecosystem services is
not perceived or the benefits of ecosystem services are non-excludable, then market transactions in
those ecosystem services are unlikely to occur without some kind of government requirement or
other intervention.
iv. Governance Factors
PES and REDD+ readiness is similar to readiness for other investments, including the fact/idea that
PES investors require minimum governance factors, particularly in terms of enforcement of
contracts and basic rule of law. That is, minimum levels of governance are required in order for
there to be investment demand for PES. Beyond minimum levels, improved governance plays a
major role in facilitating stable PES projects and programs and attracting additional funding.
Because PES transactions are highly dependent on contracts, which outline the parties’ rights and
responsibilities, access to courts and enforcement of contracts are particularly important aspects of
PES preparedness. Other governance factors that are relevant include:
▪ Public participation
▪ Transparency
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▪ Access to information
▪ Accountability
▪ Rule of law
Without minimum levels of governance in place, PES investments will be perceived as too risky,
crippling demand for PES.
v. Tenure Rights in Land
Tenure rights are relevant on the Supply Side of the PES transaction. Of the Ecosystem Services
Providers, at least some potential sellers must have clear and secure tenure rights sufficient to
support PES activities. It has to be understood though that tenure rights do not necessarily mean
private ownership, but rather secure, clear, long-term rights to possession, use, management, and
potentially transfer of land use rights. Relevant tenure related rights can be subdivided into the
rights that a potential PES seller must have (1) in the land and natural resources at issue, as well as
any inputs into PES activities (such as seedlings, fertilizer, machinery, raw materials) and (2) in the
ecosystem services (or credits for ecosystem services) generated by the PES project.
Supply Side Parties to a PES agreement who lack minimum rights in the project area or natural
resources cannot guarantee that project activities will continue as promised, creating the risk that
ecosystem services will not be delivered and that a PES arrangement will be abandoned. The
necessary “minimum rights” in the particular case will depend a great deal upon the legal context,
but can be said to at least include use rights sufficient to perform the project activities and the right
to exclude or prohibit incompatible uses.
When there is a lack of clarity in land rights, it makes it challenging to determine who, if anyone, is
the rightful PES seller. Therefore, governments have a role as well as an opportunity to clarify
rights in land and natural resources in order to pave the way for PES.
vi. Rights in Ecosystem Services
Tenure Rights in Land and Tenure Rights in Ecosystem Service though related concepts are distinct
from each other. PES transactions involving a purchase of credits for ecosystem services or similar
instruments (as opposed to land management services), the ecosystem services must legally be able
to be transferred separately from their source. They might, for example, be considered as a type of
intangible good. In this type of transaction, the seller must “own” the ecosystem services and must
have a right to transfer them without selling the land itself or the natural resources on the land.
The law may implicitly or explicitly provide for who has rights in ecosystem services. Where the
law does not specifically refer to rights in, or ownership of economic benefits from ecosystem
services, they might, for example belong to:
▪ A private owner as part of his or her rights in land,
▪ The nation as a whole, and might be granted to project participants via an approval letter
coming from the government, or
▪ Those with rights in the natural resources on the land (i.e., timber rights).
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Therefore for supporting or incentivizing more PES transactions in the country, the law should
specifically speak to the question of the nature of ecosystem services and rights in ecosystem
services (or economic benefits derived from ecosystem services) in order to provide the clarity
needed for PES buyers to engage in PES transaction.
vii. Discernable Regulatory Regime for PES
Another area of clarity in legal aspects of PES that is to be discernable and clear is the restrictions
and requirements that will apply to PES transactions. There will have to be a minimum level of
clarity as to:
▪ Which regulatory entities have jurisdiction over PES activities;
▪ What are the contours of their powers; and
▪ What formal approval or registration processes (and associated fees), if any, are involved.
Another area that requires clarity is the classification of PES credits as a commodity, security, or
whatever. This clarity is needed because the regulatory regime that applies is likely to differ if
tradable PES are classified as a commodity, a security, or something else. Therefore, to facilitate
ecosystem services transactions, clarity in how ecosystem services credits will be regulated, and
therefore what taxes and fees will apply, is important as it provides clarity and certainty to
potential participants. Commodities or securities regulation, whichever is applicable, has
implications for any project or program involving PES credits, whether public or private,
compliance, or voluntary.
In general, commodities regulation is less restrictive than securities regulations and is likely to
provide a more clear, efficient, and accessible framework for PES. Commodities and securities are
broad categories, however. Depending on how they are created and sold, credits for ecosystem
services might be further subcategorized, with consequences for their regulatory treatment.
When the legal nature of ecosystem services credits is not defined, PES contracts will face
substantial uncertainty in future taxation and other regulatory treatment. This uncertainty is likely
to translate into lower and more volatile credit prices. In addition, project developers may have
difficulty in obtaining project finance to the extent that revenues are less certain.
A number of taxes may apply to PES credits transactions. Taxes that may apply include:
▪ Sales and value-added (VAT) taxes that are charged when credits are transferred and that
are based on credit value, if credits are defined as an intangible asset
▪ Duties or tariffs on credits that are exported from the host country and imported into
another country.
▪ Other tax implications for PES activities are applicable regardless of whether credits are
used or how they are classified, such as:
o Personal and corporate income tax on PES income, which may be subject to withholding
at the non- resident rate for foreign project developers. Note also that revenues may be
treated as capital receipts that are subject to capital gains tax rates.
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o Property taxes, based on the value of the land, which may increase due to the potential
for, or actual occurrence of, PES on that land.
o Indirect taxes on goods and services that are used in PES activities.
A minimum level of clarity in terms of the regulatory structure for PES, including which authorities
have jurisdiction over PES regulation, is a threshold requirement for PES to occur. Otherwise the
level of uncertainty – particularly for potential international buyers, who may be subject to export
taxes – is too great. Beyond minimum levels, additional clarity will help to facilitate PES.
Level-2: Essential Aspects to Be Developed in Parallel with PES
There are aspects of the institutional framework that are needed in order to systematize or scale up
PES and/or to increase clarity and efficiency of transactions. These requirements are beyond the
threshold requirements stated above as anything beyond one-off PES transactions requires aspects
of supportive institutional infrastructure.
Although incredibly important for PES to happen at scale; yet, institutional requirements do not
need to be in place or perfected in order for PES activities to begin to occur; instead, they can be
developed in parallel with PES in an adaptive learning approach. That is, formal and technically-
sophisticated elements of a supportive institutional framework can be developed and refined as
PES experience grows. These are described below:
i. Ecosystem Services Inventory
Every PES transaction requires a shared understanding about the value and distribution of
ecosystem services. Ecosystem services inventory, as well as valuation assessments, forms the basis
of ecosystem services baselines from which PES progress can be measured and also informs
strategic PES projects planning. Therefore, ecosystem services baseline surveys are needed at the
national, provincial and projects level to move forward with PES projects. Among other things, it
means the development of measurement protocols over time, the collection of site specific data and
the preparation of a baseline.
Whether they are at national, provincial, or project levels, these baselines, or reference levels,
represent current or projected future ecosystem service provision absent PES project activity.
Having an accurate baseline helps to determine whether, and to what extent, PES activities succeed
in delivering promised ecosystem services benefits. Standard Methodologies for establishment of
current status and level of Ecosystem Baseline and for subsequent Monitoring will have to be
prepared for the pilot sites areas.
Creating a baseline requires adequate, consistent classification of ecosystem types and services.
Inventory and mapping might reveal levels and types of services that are delivered under
alternative land management regimes, indicate the degree to which ecosystem service supply is
spatially congruent, and help to forecast changes in services and societal needs in the future.
Assumptions must be clearly stated to make the process transparent and allow for updating as new
information is developed.
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Robust mapping of ecosystem services is also useful for decision making and priority-setting at the
government level. Ecosystems services related conservation will have to be balanced against
competing demands on land and natural resources and coordinated with economic development
activities. Strategic conservation planning and economic-ecological zoning may be used to identify
areas of high conservation (and/or ecosystem service) value and to support “trading up” in the case
of biodiversity offsetting.
Building off of robust ecosystem service mapping and valuation, economic-ecological zoning are
needed to systematically identify priority areas for ecosystem service provision and different types
of economic development activities. This is important as ecosystem conservation and restoration
cannot come at the expense of production and economic development functions of forests. The
process of comprehensive economic-ecological zoning would allow policy makers, governments
and PES participants to make educated decisions about which ecosystems are priority areas for
conservation and restoration and which are priority areas for productive activities, extractive
industries, or other types of economic activity that may clash with PES and conservation goals. In
priority areas for production, for example, intensification might allow for preservation or
restoration of prime habitat that would otherwise be degraded by scattered, low-yield farms.
Furthermore, strategic PES planning that builds off of ecosystem service inventory and valuation
can reveal opportunities to combine ecosystem management for PES and conservation with other
goals allowing low impact use of the forest resources.
ii. Methodologies for Measurement, Reporting and Verification (MRV)
PES buyers seek to secure real ecosystem services outcomes irrespective of their motivation for
engaging in the transaction , whether they are engaging in PES to satisfy a legal obligation, are
pursuing public relations or philanthropic goals, or are securing their supply chain. This means
that PES transactions are conditional on ecosystem service delivery or on the maintenance of
ecosystem structure and function that is very likely to result in expected ecosystem services flows.
Therefore, the availability of guidance around monitoring & measurement, reporting, and
verification (MRV) of progress from a baseline level of ecosystem service provision is an important
aspect of a supportive institutional framework. Overarching guidance for, or regulation of, MRV can
be expected to increase transparency, accuracy, and certainty and also to reduce transaction costs.
Key questions to be addressed in such guidance are:
▪ What ecosystem services are recognized and included and how is improvement or
deterioration in these ecosystem services measured?
▪ What set of activities does MRV include with respect to these ecosystem services?
▪ When, how often, and by whom are these activities performed?
▪ What are the geographical limits of MRV? How, if at all, are impacts outside of these
geographical limits to be taken into account?
Overarching guidance on these and other MRV issues will help institutionalize consistent
assumptions and methodologies across different projects or activities, lending transparency,
accuracy, and legitimacy to PES activities overall. Consistent MRV will also reduce administrative
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and transaction costs as regulators and PES participants avoid duplicating efforts in designing,
implementing, and assessing MRV.
The government’s role in MRV mostly will relate to endorsing, supporting, or even helping to
develop third-party MRV methodologies or the internal development and promulgation of MRV
guidelines or regulations.
Guidance on PES MRV is available from different sources including UNFCCC, Voluntary Carbon
Markets, Business and Biodiversity Offsets Program (BBOP), etc. and should be made use of.
iii. Registries
PES registries are another important aspect of a supportive institutional framework. In practice, a
PES registry is an electronic database containing information on PES projects, transactions,
tradable ecosystem services credits, and potentially other information. Using a registry makes it
possible to track ecosystem service transactions, avoid double-counting of ecosystem service
benefits, and to hold participants accountable. In order for this data aggregation and dissemination
to be effective, however, it should happen at the national (or, potentially, provincial) level, whether
implemented by the government itself or by an independent non-governmental body.
The registry may serve multiple different functions, such as:
▪ Capturing geographical information on where projects are located.
▪ Registering PES participants and associated PES activities.
▪ Displaying environmental, social, technical, or other criteria applicable to projects.
▪ Tracking performance of PES activities.
▪ Recording PES credit issuance or payments made.
▪ Issuing and tracking tradable PES credits.
In addition, the registry might be connected to or cross-referenced with the system of land titles,
providing more certainty around tenure issues in PES. PES registries can be implemented in phases,
serving basic project tracking functions at first and increasing in complexity and
interconnectedness over time.
iv. Public Participation
Another key aspect of a supportive institutional framework is the presence of effective structures
and processes for consultation and information dissemination. Relevant procedures, protocols and
other documents to be developed as part of the PES program will need to be circulated for public
comment prior to their notification and adoption. There should also be mechanisms in place for
receiving and responding to stakeholder concerns and complaints.
This component also supports free, prior and informed consent from indigenous peoples, as
required by the UN Declaration of the Rights of Indigenous Peoples, as well as other stakeholders. It
is also an important safeguard for small-scale, rural, and community interests in particular, which
might be underrepresented in national dialogues.
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Further, public consultation supports project and program design that is more effective because it
is well-suited to relevant needs, opportunities, and barriers. At the same time, information
dissemination, including training, enables various stakeholders to participate in PES with a full
understanding of their rights, responsibilities, and options, enhancing the efficacy of PES projects.
Civil society and international organizations like IUCN and WWF can be key partners in this area,
helping to disseminate information, conduct trainings, and facilitate stakeholder consultation.
v. Technical Support
PES transactions are complex and, often, not well- understood. Stakeholders of all kinds may have
little or no experience with these unique market interactions. The availability of technical support,
through whatever sources (government, international bodies, knowledge providers, etc.) is
therefore a key aspect of a supportive institutional framework.
Technical support may be provided directly by the government, international bodies, knowledge
providers like consultancy organizations, etc. , or a combination of these. It can take a number of
forms, such as trainings, information dissemination, or direct technical assistance during key
phases of project development or implementation. Whatever the form or the provider of technical
support, the government has a role in making sure that reliable support is available and accessible
and that providers are accountable to PES participants for misrepresentations or fraud.
Level-3: Measures for Streamlining PES
Beyond threshold requirements and basic elements of the supportive institutional infrastructure,
measures may be taken to streamline PES, maximizing overall returns and providing social and
economic safeguards for PES participants. These include:
▪ Refining and Expanding PES Infrastructure
▪ Facilitating Investments: international as well as domestic
▪ Dedicated Tariffs
▪ PES Risk Mitigation
i. Refining and Expanding PES Infrastructure
As PES experience grows and develops, it will become clear what additional changes are needed to
the legal and institutional framework to streamline and facilitate more (or more desirable socially,
environmentally, economically, or otherwise) PES transactions in a particular context. Additional
investment may be needed, for example, in MRV, registries, technical support, or other aspects
based on barriers and opportunities for PES in that jurisdiction.
Assessing these needs and making additional changes is part of the adaptive learning process.
Certain aspects of the supportive institutional framework must be present in basic form to begin to
scale up PES, but can be refined and formalized in tandem with growing PES experience.
ii. Facilitating Investment-International and domestic
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Based on literature review, the following factors obstruct mainstream business participation in
PES:
▪ Lack of exchange of information and knowledge between the business sector and
conservationists.
▪ PES businesses face high risks.
▪ High transactions costs for investors.
▪ Lack of management capacity and entrepreneurial abilities in the Forestry Departments and
agencies.
▪ Small project coupled with low revenue streams.
▪ Lack of enabling environment.
▪ Inability to think long-term.
The following solutions have been proposed for tackling the obstructions mentioned:
▪ Encouragement of multi-stakeholder information.
▪ Sharing information.
▪ New tools to innovate PES business mechanisms.
▪ Creating a good investment climate, which includes good governance, a well-developed
legal system and supportive policies and institutions.
The above mentioned actions by governments and PES participants will facilitate the inflow of
funds into the PES programs.
The balance between facilitating investment in PES and maintaining domestic control over
resources and PES revenues is likely to be difficult and politically fraught. Whatever balance is
struck, providing clarity around the rules will enhance transparency for PES in Pakistan.
iii. Dedicated Tariffs
Given sufficient political will and requisite legal authority, PES may be funded, wholly or in part, via
revenues from resource usage fees or tariffs. Such fees or tariffs may be assessed on ecosystem
service beneficiaries – such as water or electricity users, private developers, water or electricity
companies, pharmaceutical companies, etc. – essentially creating a state-managed PES program
based on mandatory contributions. Or fees or tariffs might come from an unrelated sector, but
simply be diverted from general government revenues to specific PES purposes. This type of
funding mechanism requires that government have necessary will and motivation for planned taxes
or fees and that implementation follows legal requirements.
iv. PES Risk Mitigation
If government is interested in expanding or scaling up PES, it may invest in measures that reduce or
mitigate risks for project participants or for a PES program. Key risks associated with PES projects
include:
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▪ Leakage – the risk that negative ecosystem impacts will simply be displaced rather than
mitigated or reversed overall. This is a systemic risk, though it may also be a risk for project
participants to the extent that they are obligated to control leakage.
▪ Non-Permanence – the risk that ecosystem benefits that are meant to be realized over the
long term are suddenly lost.
▪ Project Performance – the risk that the project does not generate promised ecosystem
services benefits due to poor design, intentional land conversion, encroachment on the
project area, etc.
If these risks are too large, PES is unlikely to be an appropriate or effective instrument for achieving
conservation goals. But where these risks are manageable, the government may provide support
that reduces risks and related costs.
Leakage, non-permanence, and poor project performance undermine ecosystem service provision
and therefore pose systemic risks, as well as risks to affected participants. The buyer may have paid
for goods or services that can no longer be delivered, or the seller may not be able to recoup
expenses out of future revenues. Either party might be obligated to offset the loss, perhaps by
purchasing “replacement credits” if such instruments are available. In addition to these risks, PES
participants also face risks that arise from any commercial context, such as the risks of market
fluctuation or unfavorable policy developments.
To a greater or lesser degree, depending upon the context, PES risks can and should be managed by,
and allocated between, project participants. However, a government that is interested in supporting
PES can also provide or support risk mitigation and/or "pooling" of risk to decrease participants’
exposure to risks that are outside of their control.
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4.2 Analysis of Constitutional, Legal, Policy, Institutional and Strategic Context for
REDD+PES in Pakistan
The following section presents an analysis of the provisions of Constitution of Pakistan and relevant
Laws, Policies, Strategies and Institutional arrangements pertaining to the design and
implementation of PES and REDD+ programs in Pakistan.
4.2.1 Constitution of Pakistan 1973 as amended from time to time
A. Provisions of the Constitution of Pakistan
Constitution of Pakistan is the supreme law which provides basis for governance in the country.
The provisions of the constitution are of paramount importance because any scheme, programme,
law, rule or agreement which is contrary to the provisions of the Constitution cannot be
implemented in the country. The salient provisions of the Constitution of Pakistan are given below.
Property and Property Related Constitutional Provisions The Constitution of Pakistan 1973, amended from time to time, is the supreme law of the country with regard to property rights in Pakistan. Following are the particular provisions of Constitution of Pakistan regarding ownership of property and property rights in Pakistan: Property rights are protected under the Constitution of Pakistan, 1973, as well as under many special and specific laws that deal with various types of property and various aspects of property rights. The following Articles of Constitution of Pakistan specifically deal with who can own property. Articles 23, 24, 172 and 173 of the Constitution of Pakistan deal with private property rights. Article 23 declares that: 'Every citizen shall have the right to acquire, hold and dispose of property in any part of Pakistan, subject to the Constitution and any reasonable restrictions imposed by law in the public interest'. Article 24 makes the following provision with respect to the acquisition of the private property: 'No property shall be compulsorily acquired or taken possession of save for a public purpose, and save by the authority of law which provides for compensation therefore and either fixes the amount of compensation or specifies the principles on and the manner in which compensation is to be determined and given'. Article 172 states that: ‘Any property, which has no rightful owner shall, if located in a province, vest in the Government of that province and in every other case, in the Federal Government’. It simply means that if either the federal or the Provincial Government does not own a property, then private individuals shall own it. All the lands, minerals and other things of value within the continental shelf or underlying ocean beyond the territorial waters of Pakistan shall vest in the Federal Government. And the mineral oil and natural gas within the province or the territorial waters adjacent thereto shall vest jointly in equal proportions in that province and the Federal Government. Under Article 173, the Federal Government and the Provincial Governments can grant, sell, dispose or mortgage any property that vests in them. These Governments can purchase or acquire property. All properties acquired for the purposes of the federation or of a province shall vest in the Federal Government or the concerned Provincial Government.
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II. Property Rights of Women Women are entitled to the fundamental right to own, hold and transfer property under the laws of Pakistan. The Constitution of Pakistan gives and protects property rights of women as explained below: Article 23 of Constitution Guarantees that every citizen has the right to acquire, hold and dispose of property in any part of Pakistan, subject to the Constitution and any reasonable restrictions imposed by law in the public interest. Article 25 of Constitution Ensures the equality of citizens in terms of property rights, both male and female, but the state can take affirmative action for women. Article 30 of Constitution Directs that the State shall ensure the elimination of all forms of exploitation and the gradual fulfillment of the fundamental principle, from each according to his/her ability, to each according to his/her work. Article 34 of Constitution Mandates that steps shall be taken to ensure full participation of women in all spheres of national life. Article 35 of Constitution Directs that the state shall protect the marriage, the family, the mother and the child. Article 38 of Constitution Mandates that the State shall secure the well-being of the people, irrespective of sex, caste, creed or race, by raising their standard of living, by preventing concentration of wealth and means of production and distribution in hands of a few to the detriment of general interest and by ensuring equitable adjustment of rights between employers and employees, and landlords and tenants. Similarly, under the Muslim Personal law that is applicable in Pakistan, women are entitled to acquire property through purchase, Inheritance, Gift, Will etc. Additionally, there are certain sources of acquisition of property, which are peculiar to women only i.e. dower, dowry and bridal gifts etc.
B. Analysis of Constitutional Provisions
The Constitution of Pakistan fully defines as well as protects property and land related rights of all
citizens of Pakistan. It is therefore supportive of PES implementation and in no way would hinder
PES implementation in the country.
4.2.2 Land Ownership and Laws Related to Land Ownership
A. Provisions of Laws regarding Land Ownership
I. Categories of Land Ownership in Pakistan
Land ownership or proprietorship in Pakistan (including Azad Jammu and Kashmir and Gilgit-
Baltistan) falls into one of the three following categories (Soofi, 20017).
▪ State owned land
▪ Privately owned land
▪ Village common land
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State Owned Land
Lands owned by government are called State owned or “Crown” land (Sarkaari zameen). It means
that their ownership or legal entitlement vests in the government. Government means the federal
or provincial or local government though local governments do not have much land in their name
and normally they have provincial governments' land under their control or use. Depending on how
the State land is used or managed, State land may fall into one of the following categories (UN-
HABITAT, 2012):
▪ State land assigned to individuals for various uses including cultivation, storage etc. on a
temporary basis. This type of land can normally be resumed by the state;
▪ State land granted to individuals under various schemes like cattle breeding, horse studs
etc. In this category, the ownership belongs to the state and it is possessed by the citizens on
a temporary basis against a nominal annual rent to be paid by user to the state;
▪ Before 1947, Governments used to grant lands to the influential citizens as Jaagir (gift,
largesse). The Mughals and then British mostly did it. After independence, Jaagirs were
abolished and the government resumed possession of lands;
▪ State Land is cultivated directly under the State. Under this arrangement, the land is
cultivated by tenants and agreed rent is paid either in cash or in kind to the state;
▪ State land that is temporarily allotted on some payment schedule to the citizens under
various colony schemes so that the citizens could make these lands cultivatable. After these
are made usable or cultivatable, then the ownership may be transferred in the name of that
citizen;
▪ There are many parcels of state land that are under illegal occupation of the citizens and
state does not have the will to evict them or does not want to evict them;
▪ State lands that are under the control of some government department, such as Forest
Department, Board of Revenue, etc. Lands under the Forest Department are further
classified as Reserve Forests, Protected Forests and Unclassed Forests.
▪ State lands that are barren and are not under cultivation or cannot be made cultivatable due
to its inhospitable terrain or unsuitable soil. These lands at times are also called
Wastelands.
Privately Owned Land
Privately owned lands are the exclusive property of the private individual or entity. Private owners
have full rights to use, manage, sell, gift, exchange or dispose of their private land in any manner
they wish subject to some legal limitations. For instance, the law of preemption imposes certain
restrictions on the sale of rural land to people who are residents of other areas.
The Constitution and laws give equal rights of ownership, tenancy, and sale and purchase of land to
women.
Private owned land is subject to automatic inheritance under the Muslim personal law and the
property rights devolve after the death of a legal owner on his/her legal heirs as per pre-
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determined shares under the implementation of a will, if any. The right to give away land under a
will is also restricted under the Muslim personal law.
Village Common Land
Village Common Land or Community Land is commonly called “Shamilat” or “Shamilat Deh”. It is
jointly owned and possessed by the land owners of that village and is meant to be used for common
purposes and uses of the village community. These common uses, among others, include grazing
grounds, firewood collection, graveyards, community buildings, mosques, schools, dispensaries,
play grounds, village ponds, village roads, passages for the movement of cattle, etc. (UN-HABITAT,
2012).
Shamilat land is usually a grant given by the State, out of State land, to the owners of the village to
be used for their common purposes and is usually granted at the time of settlement. All persons
recorded as owners of land in a village are also joint owners of Shamilat of the village, their shares
being proportionate to the size of their holding vis-à-vis total farm land in the village.
When they sell their land, the share of Shamilat also goes to the new buyer of the land accordingly.
Landowners cannot sell their share of Shamilat without selling a part or the whole of their
landholding.
Similarly, co-owners of land cannot move to encroach upon more Shamilat land than is already
allotted to them and encroachers can be ejected by moving an application before the revenue
authorities.
There is another category of Shamilat in certain areas in Pakistan where no settlement has taken
place. Under this category, large tracts of lands are jointly owned by many people and their shares
are expressed in terms of fractions of the total area in one Khasra Number, a particular number
allotted to that piece of land by the revenue authorities.
II. Laws Regulating Property Rights Laws Regulating Property Rights There are numerous laws that regulate the ownership, transfer, acquisition, taxation, registration, tenancy etc. of immovable property. Following legislations are the important ones (Soofi, 2017):
▪ The Transfer of Property Act, 1882; ▪ The Punjab Tenancy Act, 1887; ▪ The Government Tenants Act, 1893; ▪ The Land Acquisition Act, 1894; ▪ The Registration Act, 1908; ▪ The Colonization of Government Lands Act, 1912; ▪ The Sindh Tenancy Act, 1950; ▪ The Khyber Pakhtunkhwa Tenancy Act, 1950; ▪ The Provincial Land Revenue Acts of 1967; ▪ The Baluchistan Tenancy Ordinance, 1978; ▪ The Land Record Manual; ▪ The Land Administration Manual; and ▪ The Settlement Manual.
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All these Acts are administered and maintained by the Board of Revenue (BOR). The main acts
administered by the BOR are briefly described below:
1. Land Revenue Act 1967
This Act was passed when the present day Pakistan was the West Pakistan and there were no
provinces. It has been adopted and amended by all of the provinces together with the necessary
changes made therein. It deals with the issues of record of rights and land revenue. The Land
Revenue Act was revised in 1967 having XV Chapters and 184 Sections.
2. Tenancy Act 1887
All the provinces have adopted this Act. It deals with the relationship of landlord and tenants
regarding produce of land and ejection of tenants due to non-payment of rent or produce by the
tenant to the landlords. It is the only legislation which deals with various aspects of tenancy rights
in Pakistan.
3. Pre-Emption Act
This law has become operative by revenue department after promulgation of para-25 of the Martial
law Regulation (MLR-115) in 1972 which has given the first right of pre-emption to a tenant.
Normal cases of pre-emption of land are dealt with by the civil courts. The revenue courts entertain
only those cases in which a tenant brings a pre-emption suit. Preemption laws give certain
preferential rights to neighbors in matters of sale of land.
4. Land Acquisition Act
This act deals with acquisition of land needed for public purpose and determining the amount of
compensation to be paid on account of such acquisition. Whenever any land is acquired by the
government for any public purpose or by a company, the proceedings are undertaken by the
District Collector under the jurisdiction of this Act.
5. Registration Act 1908
This act deals with the registration of various documents (including those relating to land) with
registration authorities. Normally revenue officers (as detailed in Land Revenue Act 1967) are
declared as registration authorities. Under this act various documents are executed and registered
in the office of Sub-Registrar like sale deeds, mortgage deeds, lease deeds, power of attorneys,
partnership deeds, and other deeds. Deeds are entered in the relevant registers after the documents
are properly stamped, checked and duly witnessed.
6. Land Consolidation Act 1960
In order to achieve better agriculture yields, the government has passed a law known as Land
Consolidation Act 1960. The purpose of this act is that with the consent of the land owners,
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exchange of land takes place in a consolidated shape. It provides law relating to consolidation of
holdings and the matter incidental thereto.
7. Transfer of Property Act 1982
This act deals with the transfer, sale/mortgages charges, leases exchanges, and actionable claims in
respect of property. This is very important piece of legislation in terms of disputes, but is normally
ignored in land matters.
8. Land Reforms Act
The Land Reforms Laws have been introduced at various stages including the MLR-64 on 7.2.1959,
MLR-115 on 12.3.1972 and Land Reforms Act: II on 5.1.1977. The main aim of these land reforms
was to determine the individual holdings to a manageable size for improving the lot of peasantry.
This act gives rights to ‘tenant-in-possession’ of a certain property.
Several rules are available in order to implement the above Acts as mentioned below:
▪ Land Revenue Rules
▪ Settlement Manual Rules
▪ Land Record Manual
▪ Land Administration Manual
III. Land Record
A proper land record is necessary for private ownership and taxpaying purposes. This necessitates
a detailed survey of the lands to know the exact details of land belonging to each owner in the
village, i.e. how much total land each individual owns, in how many parcels and in what locations in
a village. This needs a proper system for the measurement, identification, partition and the
delineation of land holdings. This includes the details such as, how much of the total land of a land
owner is cultivable, how much is uncultivated and how much land in a village was held in common
(Shamilat-e-Deh) for the common purposes of the village, i.e. graveyards, grazing grounds,
community buildings, places of worship, schools, dispensaries, playgrounds, wells etc.
Keeping in view these details, a comprehensive Record of Rights (Misal-e-Haqiat) is prepared after
carrying out a proper settlement operation of the land after every 25 years and later Jamabandi
(prepared after every four years) and the Register of Mutations (Intaqalaat) are prepared.
There is a system to determine the type and quality of land to ascertain land productivity for the
purpose of assessing land revenue on private or state lands that are given for cultivation to
different classes of citizens under various schemes for the colonization of land. Land classification is
done according to the fertility of land, availability, types and use of irrigation facilities and natural
manure, etc. Then seasonal and periodic estimates of the production of various crops are made
through crop inspection (Khasra Girdawary) and crop estimation registers (Khasra Jinswar).
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IV. Settlement Operation
The very basis for the preparation of the records of rights is the settlement operation, which has
been continuously carried out since the mid-eighteenth century. Land settlement is a vast operation
conducted by several experienced, full time officials of the Revenue Department under a Settlement
Officer who is equal in rank to a Deputy Commissioner or District Collector. Settlement Operations
are conducted at one time in one District and sometimes only in one Tehsil. During settlement
operations, the powers of the Collector, which are ordinarily exercised by the Deputy
Commissioner/District Officer (Revenue), are transferred to the Settlement Officer (UN-HABITAT,
2012).
There are two basic objectives of undertaking a Settlement Operation:
To conduct a survey of the entire area of a District, undertake measurement and mapping of various
parcels of land in every village (Revenue estate, Mauza or Mahaal) of the District, including state
owned and privately owned lands, forests, rivers, roads and habitations. The ultimate purpose of
taking these measurements is to prepare the “Record of Rights” (Misal-e-Haqiat) which includes a
village map (Latha or Shajra-e-Kishtwar), a Record of Rights (Jamabandi revised record of rights
compiled after every four years), Shajra-e-Nasab (pedigree of village land owners), Wajib ul Araz
and in, some cases, also Riwaj-e-Aam (register of customary usage rights,) i.e. water rights, grazing
rights, rights of land including demarcated forests, rights of the tenants, general rights and
obligations of land, special customs and information about service providers of village (e.g. barber,
potter, blacksmith, etc.).
To access the total land revenue due from a village and then apportion the total land revenue
amongst various land holders in the village.
The entire settlement operation is run like a project. It takes about three to four years to complete it
in a District. The Settlement staff undertakes the operation and when they complete the work, they
hand over the newly prepared land records to the Collector of the District (Deputy Commissioner)
and move on to another District. A land settlement operation is usually undertaken every 25 years
from the previous settlement.
V. Sources of Acquisition of Property Rights
Property rights may be acquired through many ways: outright sale-purchase, exchange, State
grants (including evacuee rights acquired till 1975), inheritance, will, gift, preemption, mortgage,
leases, licenses etc. As a general principle, no person can transfer a title or rights better than what
one owns. The laws made by the Parliament and the personal laws of the concerned persons e.g.
Muslim personal law or Hindu personal law, regulates these sources of acquisition and transactions
(UN-HABITAT, 2012).
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Sale-Purchase
Sale-Purchase is the most common mode of acquisition of rights to own property for its beneficial
use. The sale may be made between private individuals, allocation by a public authority through
allotment, lease, auctions or ballot etc.
A private sale transaction has to conform to the basic ingredients of an ordinary
agreement/contract, initiated by a:
▪ Valid offer (proposal) by one party to sell a property;
▪ Unconditional acceptance by the other party to purchase the property;
▪ Payment of agreed consideration normally called price; the consideration can include
exchange with another property; and
▪ Valid intention to sell and purchase the said property.
The sale and purchase agreement must be negotiated and executed freely, without threat, fear,
inducement, coercion etc.
Under the laws of Pakistan, a verbal or an oral agreement is valid but is not preferred. It is better
and safer if it is reduced to writing and duly recorded in official agency concerned after meeting the
prescribed pre-conditions. This official process is called registration or mutation.
Inheritance
These are unearned property rights acquired after the death of an owner of a property on the basis
of personal family laws applicable to the deceased's faith. Such rights devolve automatically on the
legal heirs and become effective immediately on death though formalities may be accomplished
later.
However, a person guilty of killing his/her relation is not eligible to receive from the estate e.g. if a
son kills his father, he is disentitled to get his share in the property. It is based on the principle,
recognized by Islamic law also, that no one shall benefit from the proceeds of the crime.
A deceased person at the time of death leaves behind whatever property, it is subject to distribution
under the relevant inheritance laws. However, this division of inheritance shall take place after
settling of debts and payment of expenses on the deceased's burials etc.
Until late 1930's, inheritance was regulated by customs and traditions in the sub-continent and
females' right to share in the inheritance was not recognized as per most of the customary laws.
However, with the promulgation of various Shariat Application Acts , options were given for settling
such matters according to pre-existing customary practices or the applicable personal law.
Then this option was taken away and Sharia was applied and it was obligated to divide inheritance
of Muslims as per Islamic law.
With enforcement of a new constitutional order in 1956, customs inconsistent with basic and
personal laws applicable to a particular religious community were discarded. Consequently, no one
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was to be deprived of inheritance allowable in the personal law. Similarly, there were some other
Shariat Application Acts that have necessitated that property of a Muslim deceased shall be divided
as per Islamic law and no one can be deprived of inheritance property on the excuse of the customs
of a family or an area.
Now it is a settled position that property of a deceased shall be distributed amongst the legal heirs
as per the personal law of the deceased. In other words, the property of a Muslim deceased person
has to be divided as inheritance as per Muslim personal law and the property of a Hindu deceased
person has to be divided as inheritance as per Hindu personal law.
Inheritance gives unearned property rights to a person and these rights take effect after the death
of an owner of a property on the basis of blood relation and are recognized by the personal family
laws applicable to the deceased's faith. Such rights devolve automatically at the death.
There is no distinction in the Islamic law of inheritance between movable property and immovable
property or between ancestral property and self (UN-HABITAT, 2012).
Will
It is permissible for a citizen of Pakistan to make a Will about the disposal of a property. Every
person, male and female, of sound mind may dispose of his property by Will. Only an adult can
make a Will and a minor (under 18 years of age) cannot make a Will.
The form of the Will is immaterial and it can be made either verbally/orally or in writing. The
Muslims (Sunni) can make a Will for a maximum of 1/3 of the estate and the rest 2/3 shares have to
be compulsorily divided among the legal heirs. If the Will is made in favor of one or more of the
legal heirs, then it can be implemented when all other legal heirs consent to the Will, otherwise the
whole property shall be divided among the legal heir as per predetermined shares.
According to the Shia law, a testator may leave legacy to an heir so long as it does not exceed 1/3 of
his/her estate. Such a legacy is valid without the consent of other heirs, but if the legacy exceeds
1/3, it is not valid unless the other heirs consent .
Furthermore, under Islamic law, a person on deathbed is not allowed to make a Will. Even if he/she
makes a Will while he/she is on their deathbed, it may not be acted upon unless the legal heirs
agree.
A non-Muslim can make a will in his/her own life to gift away his/her entire estate unless regulated
by his/her personal law that shall be binding (UN-HABITAT, 2012).
Gifts
Gift (called Hiba) is a transfer of property made immediately, and without any exchange, by one
person to another and accepted by the latter. Gift means transfer of property in substance by one
person to another without consideration (price).
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Every Muslim of sound mind and not a minor may dispose of his/her property by Gift. However, a
gift made under undue influence, coercion, deceit and or domination is not valid.
A gift made by a Muslim during death illness (marz-ul-maut) cannot take effect beyond a third of
his/her estate after payment of funeral expenses and debts, unless the heirs give their consent, after
the death of the donor, to the excess taking effect. Nor can such a gift take effect if made in favor of
an heir unless the other heirs consent after the donor's death.
A gift is distinguished from a Will in many respects. It may be made of the whole of the donor's (the
person who makes a gift) property and it may be made to any donee (a person to whom a gift is
made) including an heir.
A gift may be made for a reason or without reason. Normally, the reasons for making a gift may
include: natural love and affection for an offspring, relative or somebody else, recognition of
services rendered to a cause, devotion for a social or religious institution like a Waqf/ Trust
dedicated for a specified cause etc.
No formal format is required to make a gift. It can be made orally as well as in writing, but it is
always better and safer to reduce it to writing and get it registered with the relevant authorities.
It is essential to the validity of gift that the donor should divest himself immediately of all
ownership and dominion on the property of the gift. It is essential to the validity of a gift that there
should be:
▪ A declaration of gift by the donor;
▪ Acceptance of the gift on behalf of the donee; and
▪ Delivery of possession of the gifted property by the donor to the donee.
▪ If these conditions are complied with, then the gift is complete. However, no transfer of
possession is required in case of a gift by a father to his/her minor child and in other cases,
the transfer of possession may be notional only as mere handing over of the keys of a gifted
house. The donor may revoke a gift at any time before delivery of possession, as gift is not
complete before the delivery of the possession. A gift may be revoked by the donor itself,
but not by his/her heirs after his/her death.
A gift may be revoked even after the delivery of possession except in the following cases:
▪ When the gift is made by a husband to his wife or by a wife to her husband;
▪ When the donee is related to the donor within the prohibited degree;
▪ When the donee is dead;
▪ When the thing given has passed out of the possession of the donee by further sale, gift or
otherwise;
▪ When the thing given is lost or destroyed;
▪ When the thing given has increased in value, whatever be the cause of the increase;
▪ When the thing given is so changed that it cannot be identified, as when wheat is converted
into flour by grinding; and
▪ When the donor has received something in exchange (iwaz) for the gift.
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Once possession is delivered, nothing short of a decree of the court is sufficient to revoke the gift.
Neither a declaration of revocation by the donor nor even the institution of a suit for resuming the
gift is sufficient to revoke the gift. Until a decree is passed, the donee is entitled to use and dispose
of the subject of gift.
B. Analysis of Land and Property Ownership and Transfer of Property Rights Laws
Laws with respect to ownership of land and private property as well as transfer of property rights
exist. However, the processes, steps and time involved in make smooth access to the provisions of
these laws can be and is quite cumbersome without adequate legal assistance. These may be
considered as problematic by some PES investors. Therefore, a lot of streamlining would be
required as discussed in the findings, gaps and recommendations sections.
4.2.3. Forestry and Wildlife Related Laws
A. Provisions of Forestry and Wildlife Related Laws
Following are the relevant Forestry, Biodiversity and Wildlife Related laws:
I. Pakistan Forest Act 1927 inclusive of amendments from time to time
The Pakistan Forest 1927 is a pre-partition forestry legislation which has been adopted by the
Government of Pakistan and is still in-vogue in Sindh Province, albeit with certain amendments.
Since, it is a dated legislation, therefore its focus is on forest protection from the perspective of the
state. It is unnecessarily focused on the use of command-and-control approach to forest
conservation. It defines the forest produce from a very narrow perspective and does not explicitly
recognize the many ecosystem services that forests perform. It has no provisions and chapter on
forest management or ensuring sustainable finances for forestry operations.
II. KP Forest Ordinance 2002
The KP Forest Ordinance 2002 has been adopted by the KP Government to consolidate and amend
the laws pertaining to protection, conservation, management and sustainable development of
forests and natural resources in the province. It has a number of improvements over the Pakistan
Forest Act. It has broadened the definitions section and has included certain needed definitions in
the section. It provides for the constitution of Forest Settlement Board as opposed to a Forest
Settlement Officer for the constitution of reserve and protected forests. The Settlement Board has a
community representative included in it as a member of the Board. In its objectives and guiding
principles in section 3, it asks for the involvement of local communities and interested parties in the
formulation and implementation of forest policies and forest management plans.
The Ordinance enhances as well as differentiates between penalties for different kinds of forest
offences. Deodar tree, which was hitherto a royal tree (and considered state property no matter if
it was growing on private property and people were having no rights in the proceeds from the sale
of the trees on their private lands), is no more so under the new legislation. The protection and
management of mazri forests, which was earlier done through a separate piece of old legislation of
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1953, has been integrated into this new law. Similarly, the Sawing and Sale of Timber Act of 1996
has also been updated and merged into the forest ordinance.
A chapter (Chapter-XI) on forest protection has been included in the ordinance and a forest force
constituted from the forestry establishment of the province under section 74. Unlawful assembly of
five or more people for committing or attempting to commit forest offence has been specifically
dealt with under the law. A separate chapter (Chapter-XII) on forest management has been
included in the ordinance. This chapter has provisions with regard to preparation of management
plans for forest areas under the management responsibility of forest department, puts restrictions
on commercial harvesting of timber unless adequate funds are available for regeneration of the
harvested forest, allows for community forest management and joint forest management,
appointment of village forest officers, establishment of forest development fund, and power to lease
out forests and strengthening of legal services.
The KP Forest Ordinance has a number of innovative provisions vis-à-vis the Pakistan Forest Act
1927. It, however, suffers from some shortcoming for the promotion of PES in the forestry sector as
discussed in subsequent sections.
III. KP Joint Forest Management (Community Participation) Rules 2004
These rules provide for the participation of local communities in joint forest management
initiatives. It has provisions for the establishment of village development committees, women
organizations, and joint forest management committees, and preparation and implementation of
joint forest management plans and village plans. The rules define and clarify the role of local
communities, Forest Department and other stakeholders in the preparation and implementation of
joint forest management plans. These also specify the extent of benefits that the communities can
get.
IV. KP Wildlife and Biodiversity (Protection, Preservation,. Conservation and Management)
Act, 2015
The KP Wildlife and Biodiversity Act repeals the KP Wildlife Act1975. It is an act to consolidate the
laws relating to the protection, preservation, conservation and management of wildlife and
biodiversity in the province. One of its aims and objects is the promotion of public awareness and
capacity building and proper awareness of the environmental significance and socio-economic
values of wildlife. The legislation among other things has provisions for the constitution of Wildlife
Force and Wildlife Board as well as the establishment of Wildlife Fund. It has provisions regarding
regulating hunting of wildlife, possession and display of animals and trade and traffic of wildlife.
For the in-situ conservation of wild animals, provisions have been made for establishing different
categories of Protected Areas. There are also provisions about the participation of local
communities in the management of Protected Areas. Besides in-situ conservation, at time ex-situ
conservation measures are needed. Therefore, the law provides for the establishment of ex-situ
measures like zoos etc. for wild animals conservation. The powers of wildlife department officers
have been defined and so have been wildlife offences and their associated penalties and
punishments.
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V. Sindh Wildlife Protection Ordinance 1972 including amendments
The Sindh Wildlife Protection Ordinance is a somewhat dated legislation and, therefore, does not
have newer provisions like the ones contained in the KP Act. For example, it does not contain
provisions with regard to the constitution of Wildlife Force nor it has provisions for the
establishment of Biodiversity and Wildlife Fund. Its provisions with regard to regulating of hunting
of wildlife, possession and display of animals, trade and traffic of wildlife, in-situ conservation of
wildlife through protected areas system and ex-situ conservation measures are limited vis-à-vis
that of KP Wildlife Act. Also, the penalties and punishments given in the Sindh Ordinance are not at
par with the ones given in the KP Act.
VI. The Balochistan Forest Regulations 1890
Main provisions of the Balochistan Forest Regulations 1890 include the constitution of State
Forests, bar of acquisition of rights in State Forests, prohibition of certain acts in State Forest,
declaration of certain trees to be reserve trees, prohibition of certain acts with regard to trees that
have been reserved, the control of timber in transit, prohibitions on cattle trespassing, penalties
and procedures for acts prohibited in State Forests and with respect to reserved trees, and powers
conferred on forest officers. The definition of forest produce in the forestry legislation is also very
restrictive and does not include and recognize the various critical ecosystem services that forests
perform including forest carbon rights or ecosystem services rights of local communities. The
legislation is purely of punitive nature and has no provisions for incentives to change and drive
human behavior. It thus does not make use of market-based incentives for forest resources
conservation as is envisaged under the concept of REDD+ and PES programs. It has no provisions
for the involvement of local communities in forestry management or their awareness creation and
capacity building. In fact, the legislation is focused on excluding communities from the affairs of the
forestry sector. It does not have provisions for the promotion of private sector or building public-
private and civil society partnerships. There are no supporting provisions for the promotion of
value chain or the engagement of women or other vulnerable groups. Thus it really falls short on
meeting the requirements of Free, Prior and Informed Consent and protecting the rights of local
communities.
VII. The Balochistan Wildlife Protection Rules 1975
The Balochistan Wildlife Act 2014 covers different aspects of wildlife protection, conservation and
management in the province. Section 3 of the Act mentions a number of principles for the
protection, conservation and sustainable of wildlife. These include the adoption of modern
concepts in implementing environmental laws in Pakistan; protection, promotion, conservation,
management and sustainable development of wild animals as key component of biological diversity
with due recognition of their social, cultural, economic and ecological significance for the present
and future generations; promotion of social, economic, cultural and ecological wellbeing of local
communities involved in conservation of wild animals and their habitats in conformity with the
concerns of international community; conformation of role and obligations of Government and
concessions, rights and obligations of local communities; strengthening the administration of the
organization to effectively manage wildlife species and their habitats in pursuit of these guiding
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principles; securing appropriately the goods and services produced from wildlife species and their
habitats at the level of local communities and Province while continually improving the
productivity of wildlife habitats; fulfilling the obligations envisaged under the biodiversity related
multilateral environmental agreements ratified by the Government of Pakistan; promotion of public
awareness and capacity building for proper appreciation of the environmental significance and
socio-economic values of wildlife; conservation of biological diversity and realization of its intrinsic
and extrinsic values through sustainable use and community participation; and empowerment of
community, community based organizations and non-governmental organizations for conservation
of biological diversity and their participation in its management for sustainable use.
Section 6 of the Act deals with the functions of Wildlife Department. Here, it specifically recognizes
and promotes collaboration with civil society organizations, and is to support the local
communities, the private sector, NGOs and relevant Government departments and other
stakeholders in protection, conservation and sustainable use of wildlife.
There is to be a supreme body (chaired by the Chief Minister of the Province) for managing the
affairs of wildlife in the province in the form of a Balochistan Council for Wildlife Conservation
(Section 7). The Council is to act as think tank and resource pool for the government and advise it
on different aspects of wildlife conservation and management in the province.
The Act has provisions with regard to protection of wild animals, prevention of cruelty against
animals, trapping and hunting of animals, possession, display and trade in wildlife and wildlife
products.
Chapter-VII (Sections 34 to 52) of the Act deals with the establishment of different types of
Protected Areas (National Parks, Wildlife Sanctuaries, Game Reserves, Private Game Reserves,
Community Game Reserves, Biosphere Reserve, National Natural Heritage Sites, Forest Biodiversity
Reserve, Sites of Special Interest, Wildlife Refuges, Sacred Protected Sites, Conservation Areas, etc.)
in the Province. It also covers pre-emptive application of MEAs.
Chapter-VIII (Sections 53 to 56) of the Act has provisions for Ex-situ Conservation of Wildlife
through captive breeding, establishment of captive breeding facilities, wildlife park and aviary, and
zoo and zoological garden.
Chapter-IX (Sections 57 to 63) of the Act covers the different MEAs. These include the UN-CBD,
CITES, Convention on Migratory Species (CMS), Ramsar Convention, The World Cultural and
Natural Heritage Convention (WHC), UNFCCC, and UN-CCD.
Chapter-X (Sections 64 to 67) of the Act is about Community Participation. It encourages
participation of local communities and the provision of economic incentives as well as benefit
sharing, co-management of protected areas, and commercial and community livelihood activities in
protected areas. This chapter is supportive of PES and PES like schemes for biodiversity
conservation.
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VIII. The Balochistan Wildlife Rules, 2015
The Balochistan Wildlife (Protection, Preservation, Conservation and Management) Rules 2015
have provisions with regard to issuance of licenses and permits (their validity, officers empowered
to issue these, and eligibility for license or permit), prohibiting serving of wild animals and birds
meat in hotels, constitution of raid parties to implement different provisions of the rules, provisions
with regard to regulating hunting of Houbara bustard, trophy hunting (both international level and
local level), benefit sharing mechanisms for proceeds of private hunting permits fees in Community
Game Reserves and Private Game Reserves), powers vested in the owners of Private Game
Reserves, categories of Protected Areas (government managed Protected Areas and community
managed Protected Areas), maintenance of Protected Areas, and rules regarding the establishment
and management of captive breeding farms, wildlife parks and aviaries. There is a lot to be learned
from these rules, particularly with regard to benefit sharing. For example, section 15 of the rules
deals with the private hunting permit and trophy hunting permit in Community Game Reserve and
Private Game Reserve. The rule proposes that the proceeds of trophy hunting will be distributed
between the owner/community and the government @ 80 % and 20 % share respectively. It
further says, that out of the private/community share, 60 % of the income will be spent on
community development works as per approved plan developed for the purpose.
B. Analysis of Forestry and Wildlife Laws
Existing forestry laws of Pakistan are narrowly focused on traditional products and roles of forests.
Their approach to resources conservation revolves around command-and-control approach and do
not make use of the market-based approaches to conservation. These are not properly integrated
to and related with international conventions and agreements on climate change, biodiversity, etc.
Also, the laws do not adequately address the main barriers to private businesses investment in the
sector. However, the Wildlife Acts and Rules of KP and Balochistan are quite innovative and are
supportive of PES like programs in their spirit and design as they have provision for trophy hunting
which itself is a kind of PES.
Main issues with the existing forest and wildlife laws are discussed below:
1. Narrow definition of forest produce
Forest produce in the existing forest laws is narrowly defined. The focus of the definition of
forest produce is on traditional wood and non-wood products. New and emerging forest
produce like forest carbon, forest biodiversity, etc. are not included in the definition of
forest produce. There is a need to broaden the definition of forest produce and ecosystem
services be included in the definition of forest produce.
2. Only Material Goods and Provisioning functions of forests are explicitly recognized
Forest ecosystems perform a host of ecosystem roles and functions. These include
provisioning services functions, regulating services functions, supporting services functions,
and social and cultural services functions. Existing forestry laws are narrowly focused only
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on the provisioning services functions of forests. The other key roles and functions of
forests are not explicitly recognized in the existing forestry laws. Therefore, there is a need
to include other ecosystem services to make these laws supportive for REDD+PES.
3. Non-inclusion and non-recognition of the ecosystem services rights of local people
Local communities are making use of and benefiting from different ecosystem services of
forests. Some of these, like grant of timber for construction purposes, collection of water,
fuelwood and fodder, grazing of livestock and share in the sale proceeds are explicitly
recognized in the laws and notifications of Forest Department. Other important ecosystem
services, mostly pertaining to regulating and supporting services, however, are not
explicitly mentioned in the forestry legislation and notifications. There is a need that the
rights of local people and communities to the different types of ecosystem services of
forests are explicitly provided for in the new forestry legislation so that communities can
benefit from them under the PES scheme.
4. Over-reliance on command and control approach to resources protection and conservation
There is a heavy reliance on the command-and-control approach to resources protection
and conservation. Implementation of such as approach is fraught with many problems,
including in-effectiveness in implementation, high costs of implementation, etc.
5. Less-to-no use of market-based approaches to resources protection and conservation
There is very little-to-no use of market-based approaches to resources protection and
conservation despite the fact that these tend to be the most effective, most efficient as well
as the most equitable approach to laws implementation.
6. Non-promotion of the public-private and civil society partnership arrangements in sector
Public-private and civil society and partnership arrangements, which are useful and
effective tools for resources protection and conservation, as these create ownership and
build capacities, are not made use of in the existing legislation,
7. No provisions for mandating ecosystem services valuation
There are no provisions in the existing laws with regard to mandating proper valuation of
ecosystem services. As a result, the total economic value of forest ecosystems is not getting
recognition.
8. No provisions for management of forests from the perspective of ecosystems appro ach
The ecosystems approach to resources management is not institutionalized in the existing
forestry laws.
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9. Non-integration with international agreements pertaining to climate change, biodiversity,
desertification
The existing forestry laws are not properly integrated with various multi-lateral
environmental agreements such as the United National Framework Convention on Climate
Change, the Biodiversity Convention, the Convention on Combating Desertification, etc.
10. Lack of exchange of information and knowledge between the business sector and
conservationists
Investors do not have enough knowledge and information about existing and in the offing
and developing PES opportunities in the forestry and biodiversity sectors. This is further
compounded by the fact that forestry officials and forestry laws are also not providing
sufficient assistance to the investors to explore PES opportunities in the sector. Moreover,
PES project managers often lack expertise and experience in structuring their funds in such
a way that they meet the strict investment criteria of institutional investors.
Existing forestry and wildlife laws are not adequately addressing the issues of collection of
relevant information and the provision of this information to the potential investors. Also,
there is no emphasis in the legislation on the promotion of PES in the forestry and wildlife
sectors. There is also no provision for regular monitoring of the resources.
11. PES business projects face high risks
There can be multiple risks in PES investments in the forestry sector. One is the lack of
predictability concerning the outcome. This is related to the fact that only a few front
runners have successfully engaged in the PES business. There are no examples of successful
private sector investments in PES in Pakistan. Even internationally, the experiences and
examples are rather limited. This lack of successful case studies will prevent large investors
from considering PES business as an opportunity in Pakistan. Another risk relates to the fact
that PES projects will have to be implemented in forest areas that have somewhat weak
governance mechanisms and an inadequate regulatory environment. Successful PES
projects, however, require secure ecosystem rights and tenure as well as effective
enforcement of and compliance with forest laws and needed provisions for different aspects
of PES.
Existing forestry laws do not have the requisite legal provisions and will, therefore, need
suitable amendments to make them pro-PES
12. High enforcement costs to secure ecosystem services
The relatively high costs of forest laws enforcement and of due diligence required to meet
ecosystem services related and financial criteria also constitute an impediment to PES in the
forestry sector. As most forestry PES projects aim at a long-term life cycle, they require
adequate enforcement of forest law as well as assessments of the outcomes of enforcement
over long periods of time.
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It is, therefore, important to make changes in forest laws and make use of incentives for
forest protection in support of ecosystem services provision instead of punitive measures
so as to lower this rather high cost of forest law enforcement.
13. Lack of specific PES supportive provisions in forestry laws
In order to manage forests for their different ecosystem services, and especially to develop
an effective PES system for forestry, the existing forest laws need to be amended in order to
have specific PES supporting provisions that will help achieve PES outcomes in a cost-
efficient manner.
In addition to the above deficiencies, forestry and wildlife legislation at the national and
provincial levels do not address among others, the following aspects of UNFCCC Framework
for REDD+, Cancun Safeguards, and social and environmental policies of World Bank and
other donor organizations pertaining to REDD+PES.
• Address the drivers of deforestation and forest degradation.
• Develop national forest reference emission and/or forest reference levels, including
subnational forest reference emission levels and/or forest reference levels in
combination and/or as an interim measure. Develop national MRV including the
integration of subnational monitoring systems into a national monitoring system
and/or as an interim measure.
• Develop information systems on how the safeguards are addressed and respected.
• Promote and support effective and transparent forest governance structures.
• Address land tenure Issues.
• Address gender Considerations.
• Promote and support actions to address the risks of reversals.
• Promote and support actions to reduce the displacement of emissions.
• Undertake activities consistent with national sustainable development and
adaptation needs and goals, including reducing poverty while responding to climate
change.
• Promote and support that actions complement or are consistent with relevant
international conventions and agreements.
• Promote and support the knowledge and rights of local peoples and of local
communities.
• Promote and support the full and effective participation of relevant stakeholders, in
particular local communities in activities as well as in developing and implementing
REDD+.
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4.2.4. Fisheries Related Laws
A. Provisions of Fisheries Laws
I. Sindh Fisheries Ordinance 1980 including amendments
The Sindh Fisheries Ordinance regulates the marine fisheries sector in the province. It has
provisions for the lease or issue of licenses for fishing and fish trade; permit requirement for
possessing and operating net, fixed engine or trap etc. for fishing; powers with regard to
declaration of any waters to be a sanctuary of fish; prohibitions on taking out or destruction of fish
or aquatic life; prohibitions on discharge of effluents, waste of sewerage; provisions for marketing
and processing of fish; and for dealing with various offences prohibited under the law.
Of particular relevant to PES are the provisions of law with regard to declaring any waters to be a
fish sanctuary, prohibitions on discharge of effluents and waste into waters, and various regulations
pertaining to issue of licenses and permits. Help can be sought from these laws while designing and
implementing a PES scheme in the mangrove areas, once this law has been suitably amended.
II. West Pakistan Fisheries Ordinance 1961 in its application to KP Province
This Fisheries Ordinance is applicable in KP Province for the protection and management of
fisheries in KP. The fisheries legislation of KP also has provisions for the protection of water and
fisheries in water bodies. It regulates the sector through a number of provisions which inter alia
include licensing and leasing out of water for fisheries purposes; prohibition of use of explosives
and other actions that kill fish or other aquatic life; declaration of a water body to be a fish
sanctuary; and dealing with various offences relating to the fisheries sector.
B. Analysis of Fisheries Laws
The fisheries legislation in both Sindh and KP provinces revolves around the protection of fisheries
in the water systems and, therefore, can contribute to the protection of the fisheries resources if
effectively enforced. While the laws can help in fisheries protection; these, however, fall short of
promoting PES in the fisheries sector. If PES is to be introduced, suitable amendments in the
fisheries legislation will be required so as to strengthen the business and trade aspects of fisheries
legislation.
4.2.5. Environment Related Laws
A. Provisions of Environmental Laws of Pakistan
I. Pakistan Environmental Protection Act 1997
The Pakistan Environmental Protection Act 1997 is an Act to provide for the protection,
conservation, rehabilitation and improvement of the environment, for the prevention and control of
pollution, and promotion of sustainable development. It is applicable to areas under the
management control of the federal government. This Act defines environment very broadly and
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has provisions with regard to adverse environmental effects. It defines ecosystem but does not have
provisions with regard to ecosystem services or payment for ecosystem services.
II. KP Environmental Protection Act 2014
The KP Environmental Protection Act is an Act to provide for the protection, conservation,
rehabilitation and improvement of the environment, for the prevention and control of pollution,
and promotion of sustainable development in the Province of the Khyber Pakhtunkhwa. It is an
improvement over the national Act in that it has provisions for strategic environmental impact
assessment in section 12 and has revised a number of sections of the Pakistan Environmental
Protection Act.
III. Sindh Environmental Protection Act 2014
The Sindh Environmental Protection Act 2014 resembles the KP Environmental Protection Act in
its provisions. It has provision for establishment of Sindh Environmental Protection Council, Sindh
Environmental Protection and Sindh Sustainable Development Fund. It outlines prohibition of
certain discharges and emissions, initial environmental examination and environmental impact
assessment strategic and environmental assessment and environmental protection tribunals.
IV. The Balochistan Environmental Protection Act 2012
The Government of Balochistan has promulgated Provincial Environmental Protection Act in 2012
for the protection, conservation, rehabilitation and improvement of the environment, for the
prevention and control of pollution, and promotion of sustainable development. It is much
approved piece of legislation and besides the general environmental protection provisions, it has
provisions regarding the management and protection of water resources and wetlands {section 20
(2) (e)- measures to protect wetlands and their associated ecosystems}. It also has provisions for
the protection of coastal zone {section 23- to prevent the pollution and environmental degradation
caused by the following multi-magnitude and multidisciplinary units: (a) Ports and shipping, (b)
Fisheries, (c) Ship dismantling, (d) Shipping Traffic (Oil Tankers & Vessels) & dredging, (e) Oil and
gas mineral exploration, (f) Coastal power plants and Energy sector, and (g) Oil refineries and
Industries}.
In common with environmental legislation of other provinces and the national environmental
protection legislation it also requires Initial Environmental Examination and Environmental Impact
Assessment of development projects under section 15.
B. Analysis of Environmental Laws of Pakistan
Following are the major issues with the environmental laws of Pakistan and their enforcement:
Vast roles and functions have been assumed by EPAs at the federal as well as provincial levels.
Their implementation and enforcement capacities are extremely limited vis-à-vis the vast mandate
assigned to the organization. Therefore, legal and institutional arrangements for environmental
protection in Pakistan are and will remain ineffective as long as there is no credible monitoring and
enforcement system in place.
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The EPAs and other relevant bodies have done very little in terms of imparting knowledge on
environmental legislation in the country. Most of the industrial units in the country are not moved
about environmental issues within their establishments due to limited technical and financial
capacities and lax enforcement of the environmental laws by EPAs. These regulatory bodies in the
four provinces have to supervise enforcement of the law in about 10,000-12,000 industrial units on
a regular basis. At present, they have extremely limited resources and trained manpower to deliver
on their assigned mandate. It is, therefore, critically important the required human resources and
technical capacity are increased in the government as well as in the corporate sector.
While there are provisions with regard to Initial Environmental Examination and Environmental
Impact Assessment in the legislation, provisions of the concerned sections are not implemented in
their spirit.
The field of environment is broad, whereas the technical capacities existing in the EPAs are not in
consonance with the broad spread of the discipline of environment.
However, certain provisions are there in both national and provincial environmental laws which
can be made use for promoting PES under compliance arrangement. The following sections of PEPA
1997 are illustrative of environmental law provisions regarding environmental protection and PES.
Section 9 of the Act provides for the establishment of Provincial Sustainable Fund under which PES
arrangement can be accommodated. Beside it is based on the polluters pay principles under section
11 titled prohibition of certain discharges or emissions. This provision can be made use of for
promoting both compliance and voluntary PES payments by the polluters. It mandates under
section 12 that all development projects which have the potential to cause adverse environmental
effects should undertake initial environmental examination and/or environmental impact
assessment as the case may be and undertake mitigation activities besides preparing
environmental management plan. Section 16 of the Act provides for environmental protection
order by the federal EPA or provincial EPA to direct persons to take such measures that the
agencies may consider necessary within such period as may be specified in the order to prevent the
discharge or emissions of any affluent, waste, air pollutant or noise, or the disposal of waste, or the
handling of hazardous substances, or any other act or omissions that is likely to occur, or is
occurring or has occurred in violation of the provision of the Pakistan Environmental Protection
Act. The measures in the protection order may ask for payment for PES. Thus the act can be made
supportive of PES.
Green Benches and Environmental Tribunals in Pakistan
A two-day South Asia Conference on Environmental Justice took place on 24-25 March 2012 in
Bhurban Pakistan under the auspices of the Supreme Court of Pakistan with support from the Asian
Development Bank (ADB), United Nations Environment Program (UNEP), and the International
Union for Conservation of Nature (IUCN). The Conference resulted in the adoption of Bhurban
Declaration 2012 on 25 March, which gives “A Common Vision on Environment for the South
Asian Judiciaries”. Some of the most ground breaking decisions of the Bhurban Declaration 2012
include: establishment of green benches at the Supreme Courts of Pakistan and Azad Jammu &
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Kashmir (AJK) and all High Courts of Pakistan and the proposed constitutional amendment to
declare “Clean Environment” as a fundamental human right in the Constitution of Pakistan.
Following is the text of this unanimous declaration:
1. TO COLLABORATE among themselves and, as appropriate, engage others in the environmental
enforcement processes, to significantly improve the development, implementation, and enforcement of,
and compliance with, environmental law and collaborate to make an Action Plan to achieve the same;
2. TO SHARE information on South Asian countries’ common environmental challenges and, as
appropriate, among the legal professionals, law schools, and the general public;
3. TO DISSEMINATE information on environmental challenges and legal issues, and best practices in
environmental adjudication among themselves, whilst acknowledging the differences among their
respective legal systems, on the website of Asian Judges Network on Environment;
4. TO STRENGTHEN specialized environmental tribunals and provide environmental training for the
judiciary and other members of the legal fraternity;
5. TO INVITE members of the South Asian Judiciaries to share their respective experiences and
participate in training programs for judges from the South Asia region;
6. TO IMPLEMENT existing rules of procedure for environmental cases and develop the same where
they do not exist, which may include a flexible approach to legal standing, special rules of evidence for
environmental cases, expeditious disposal of cases, special remedies, injunctive relief, and other
innovative environmental processes;
7. TO ENSURE that judicial decisions on environmental cases are shared within the Asian Judges’
Network on Environment and made available to the public;
8. TO ENCOURAGE law schools to include environmental law in their curriculum;
9. TO PROVIDE environmental law training to judges through judicial academies, including making
such training available for members of lawyers professional associations;
10. TO HOLD a South Asia Justices’ Conference on Environment annually on rotational basis to foster
cooperation on environment, as a sub-regional group of the Asian Judges Network on Environment;
11. TO DEVELOP a system to recognize whenever exceptional contribution is made by judges and
environmentalists for the cause of environment;
12. TO DRAFT a memorandum of understanding to foster cooperation amongst the South Asia
judiciary and send the same for signature and adoption by the South Asian region judiciaries, which
may lead to a South Asia Convention on Environmental Justice;
13. TO ESTABLISH green benches in courts for dispensation of environmental justice; and
14. TO RECOMMEND that the right to clean and healthy environment be incorporated as a
Fundamental Right in the Constitution.
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Pursuant to this declaration, Green Benches have been established in the Supreme Courts of
Pakistan and AJK and in all High Courts throughout Pakistan. Also, Environmental Tribunals have
been established under section 20 of the Pakistan Environmental Protection Act, 1997.
According to Preston (2008) the benefits of establishing specialized environmental courts include:
(i) creating a comprehensive, integrated jurisdiction that deals with a range of environmental
matters—a “one-stop shop” for merit appeals, judicial reviews, and criminal and civil enforcement;
(ii) providing a forum for experts in environmental law where they can engage in a free and
beneficial exchange of ideas and information;
(iii) enabling the formation of panels of officers with expertise for the purpose of interdisciplinary
decision making;
(iv) facilitating the development of specialized knowledge of environmental law and issues;
(v) allowing the adoption of a holistic approach to the resolution of environmental matters, through
comprehensive jurisdictions and interdisciplinary decision making;
(vi) furthering the use of innovative practices and procedures, such as public-interest litigation, to
broaden access to justice;
(vii) encouraging innovative solutions to environmental problems;
(viii) fostering the growth of a coherent and consistent body of environmental precedents and
jurisprudence;
(ix) making possible the quick progress of complex environmental cases, thereby boosting the
efficiency and reducing the cost of litigation;
(x) relieving other courts of some of their backlogs by taking over cases involving environmental
issues and resolving them more efficiently; and
(xi) appealing to the conscience of the public, thereby encouraging adherence to environmental
laws and greater participation in programs to protect the environment.
Preston (2014) cites the following characteristics of successful environmental courts and tribunals
(ECTs):
▪ Successful ECTs have more comprehensive and centralized jurisdictions;
▪ Successful ECTs are usually recognized by governments, stakeholders and wider
community alike as the appropriate and legitimate forum for resolving environmental
disputes;
▪ The status and authority of a more successful ECT are often enhanced through the presence
of judges who are environmentally literate, or alternatively who may be trained to be so
literate, and who can contribute to the development of environmental jurisprudence. Such
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expertise maintains public trust and confidence in the ECT as the forum for resolving
environmental disputes;
▪ The ECTs are independent from government and are impartial;
▪ Successful ECTs operate as multi-door courthouse including provisions for Alternative
Disputes Resolution (ADR) mechanisms;
▪ Successful ECTs have access to and provide access to scientific and technical expertise;
▪ These facilitate access to environmental justice;
▪ Help in achieving just, quick and cheap resolution of disputes;
▪ Are responsive to environmental problems and are relevant;
▪ Are competent enough and have the capacity to develop environmental jurisprudence;
▪ Are flexible, innovative and provide value adding function; and
▪ Have underlying ethos and mission having a statement of purpose, mission statement and
charter.
It is therefore proposed that ECTs in Pakistan be constituted and made operational keeping in view
the above criteria and principles for the operation of successful ECTs.
4.2.6. Climate Change Related Laws
A. Provisions of Climate Change Laws of Pakistan
I. Pakistan Climate Change Act, 2017
The Pakistan Climate Change Act 2017is an act of the Parliament to meet Pakistan's obligations
under international conventions relating to climate change and address the effects of climate
change. The Act has provisions with respect to establishment of the Pakistan Climate Change
Council (supreme national body on the issue of climate change in the country and is chaired by the
Prime Minister of Pakistan), establishment of the Pakistan Climate Change Authority, and
establishment of the Pakistan Climate Change Fund. The Climate Change Authority has a
chairperson, a member (climate change adaptation), a member (climate change mitigation), a
member (climate change finance), and a member (coordination). Besides, there is one member
from each of the four provinces. Main functions of the Climate Change Authority are given as
Annex-XI.
B. Analysis of Climate Change Laws of Pakistan
The Climate Change Act is focused on three major aspects of climate change: establishment of a
Climate Change Council, establishment of a Climate Change Authority and establishment of Climate
Change Fund. The Climate Change Act has given a brief reference to different international funding
opportunities for climate change mitigation and adaptation like REDD+, Clean Development
Mechanism, Global Environment Facility and Green Climate Fund, asking for preparation of projects
under these mechanisms. However, there is no mentioning of other environmental services.
Vast mandate has been given to the Climate Change Authority. It has the right combinations of
tasks assigned to authority. It remains to be seen how the authority will deliver on its mandate.
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Although the Act has been passed and promulgated, but the Climate Change Authority is yet to be
operationalized. Given the fact that the Authority is the most important body dealing with the
subject of climate change at the national level, it is proposed that this authority be established on a
priority basis. It is further proposed that on the analogy of Federal EPA and Provincial EPAs,
similar Provincial Level Climate Authorities be established in each province. Proper coordination
mechanisms are also required for better coordination of work at the national and provincial levels.
The Climate Change Act also provides for the establishment of Climate Change Fund. This Fund also
needs to be established and made operational not only at the national level but also the provinces
and territories levels.
4.3 REVIEW OF EXISTING POLICIES
4.3.1 Review of National Level Policies
The detailed analysis of the different national policies has been provided in Annex-X. It has to be
noted that except for the National Forest Policy, Climate Change Policies (both at the national and
provincial levels) and Framework and Implementation Plan for Climate Change Policy, all the other
national and provincial policies have been developed at a time when although climate change was
recognized as an important global issue, but REDD+ itself had not evolved as a policy instrument for
climate change mitigation and adaptation. Therefore, most of these policies make no specific
references to REDD+ in their policy statements. However, due to their sector wide orientation,
these do cover issues that are important at the sector level as well as for the REDD+ approach.
Therefore, these policies do have utility for and can be used for most of the things needed for the
design and implementation of REDD+ schemes except for some very specific provisions like the
Cancun safeguards.
The goal of National Forest Policy, 2015 includes expansion, protection and sustainable use of
national forests, protected areas, natural habitats and watersheds for restoring ecological functions,
improving livelihoods and human health in line with the national priorities and international
agreements. The objectives of the policy mention enhancing role and contribution of forests in
reducing carbon emissions and enhancing forest carbon pools. It also includes facilitating
implementation of international conventions and agreements related to Forestry, Wetlands ,
Biodiversity and Climate Change. Policy measures suggested for the different thrust areas include
launch of REDD+ programs. It has also mentioned REDD+ as policy measure for curbing
deforestation and promoting forest conservation. Thus, National Forest Policy has adequate
provision for REDD+PES implementation in the country.
Pakistan Climate Change Policy 2015 has also included forestry as an option of climate change
mitigation. It calls for promotion of Carbon Sequestration Programs in the Forestry Sector.
Conservation of biodiversity, protection of other vulnerable ecosystems such as mountain areas,
desert and arid areas, Mangroves and other coastal ecosystems are given importance in the policy.
It also emphasizes on securing financial resources for climate change initiatives. Thus it can be
concluded that the policy is supportive of REDD+PES in the country.
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Framework and Implementation Plan for National Climate Change Policy 2014-2020 suggests actions to plan a framework, sketch REDD strategy and work out the CDM (A/R) to effectively shape the process and programming of the mentioned mechanisms in Pakistan. Its objectives include to build institutional and professional capacities for development and implementation of REDD plus and afforestation/reforestation projects under CDM mechanism. Development of strategy for establishing regulatory, governance and law enforcement framework for REDD mechanisms in consultation with all stakeholders including communities depending on forests for their livelihoods is mentioned in the framework. It also calls for making institutional and legislative arrangements to clearly define the rights on carbon stored in the forests. It also emphasizes to develop and enhance national capacity for assessing existing forest carbon stocks, monitoring and accounting capacity in accordance with globally accepted Monitoring, Reporting and Verification (MRV) system for REDD plus projects. Developing and implementing mechanisms to avoid deforestation, reduce carbon emissions and enhance forests’ capability to sequester more emissions from the atmosphere have been properly highlighted in the action plan.
Pakistan National Environment Policy 2005 objectives include conservation, restoration and
efficient management of environmental resources; and integration of environmental considerations
in policy making and planning processes. Thus it has indirect support for REDD+PES which are
conservation tools. The policy has sectoral guidelines for forestry sector which include sustainable
forest management of natural forests and increasing tree cover. It also calls for conservation of
threatened ecosystems. As this policy was developed during 2005 when there was no REDD+ in the
international climate change agenda, therefore there is no specific reference to REDD+. There is
also no provision for payment for environmental services.
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4.3.2 Review of Provincial Level Policies
The following provincial level policies have been studied and reviewed: KP Forest Policy 1999, KP Climate Change Policy 2017, KP
Rangelands Policy 2012, and KP Environment Policy 2008 (draft). These analyses have been done keeping in view the main provisions of
the policies and their support for the different aspects of REDD+ as used in the national policies analysis section.
Table No. 3: Provincial Policies Analyses
Policy Dimension
KP Forest Policy 1999 KP Climate Change Policy 2017
KP Rangelands Policy 2012
KP Provincial Environment Policy 2008
Policy Goal The Government of KP by sustainably managing and developing the forests of the Province is to foster the economic, social and ecological well-being of the people residing around the forests, the people of KP and of Pakistan and of international community.
To ensure that the climate action is mainstreamed in developmental planning, especially in the economically and socially vulnerable sectors and to steer Khyber Pakhtunkhwa Province towards green growth and climate compatible development .
The goals of the policy are set as follows: • Protect, conserve and develop the rangelands of Khyber Pakhtunkhwa in a sustainable manner through participatory approach, with social equity. • Enhance the production of the desirable mix of goods and services of rangelands to the level of potential productivity. • Support livelihood and well-being of dependent communities and other stakeholders. • Contribute to biodiversity conservation, control and reversal of desertification and land degradation and climate change mitigation and adaptation
The main aim of KP Environment Policy is to achieve sustainable development through protection, conservation and restoration of KP’s environment in order to improve the quality of life of the general public of this province.
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Policy Objectives The objectives of this policy shall be as follows: ▪ Meeting the domestic
needs of the local communities for timber, firewood, grazing and medicinal plants.
▪ Increasing the incomes of the local people by providing them gainful employment while adding value to the traditional outputs of forests.
▪ Enhancing the protective functions of watersheds for regulating their water regimes, retarding soil erosion and siltation of reservoirs, and protecting downstream cultivation and infrastructure from flood damages.
▪ Managing and rehabilitating range lands so as to harness their full potential through appropriate range management
▪ Formulate a more appropriate and province specific policy that is in line with National Climate Change Policy of Pakistan 2012.
▪ Enhance awareness of the impacts of Climate Change among all stakeholders for necessary adaptation/ mitigation measures to combat and minimize these impacts.
▪ Integrate adaptation and mitigation measures into the key relevant sectors’ policies, strategies, and plans.
▪ Facilitate action in Khyber Pakhtunkhwa on climate adaptation and mitigation, while, promoting long term sustainable development.
▪ Enhance interdepartmental coordination and cooperation for effective actions against Climate Change phenomenon.
▪ Ensure water, food and
The main objectives of the policy are as follows: To establish baseline of range resources and its periodic review and updating. To improve planning for rangeland management. To adopt sustainable management of rangelands on sound scientific basis to achieve the desired selected goals. To uphold the multiple functions of rangeland ecosystems. To enhance the production, productivity and ecological functions of the range ecosystems. To protect rangelands against degradation and desertification by controlling overexploitation and mismanagement of the range resources. To stop and remove encroachments on
Objectives of the KP Provincial Environment Policy include: Conservation, restoration and efficient management of environmental and natural resources. Integration of environmental considerations in policy making and planning processes. Strengthen, at all levels, capacity of public and private partners for better environmental management. Fulfill national and international obligations effectively in line with the provincial aspirations. Raise demand for healthy environment through mass awareness and community mobilization.
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practices such as controlled grazing systems and grass cutting besides other needed interventions.
▪ Contributing towards meeting Pakistan’s demand for constructional timber, eco-tourism, and medicinal plants.
▪ Conserving, promoting, developing and managing fisheries, wildlife, sericulture and other natural resources for the benefit of individuals, communities and societies.
▪ Generating income for forest owners of Guzara Forests and share- holders in Protected Forests.
▪ Conserving Biological Diversity.
▪ Promoting Non-consumptive Uses of Forests such as eco-tourism, etc.
▪ Improving the quality of human environment through promoting urban
energy security for Khyber Pakhtunkhwa province in the face of a changing climate.
▪ Address Climate Change risks particularly those arising from climate induced disasters.
▪ Ensure that interests of vulnerable groups and communities are adequately addressed in climate development strategies and planning.
▪ Develop bases to secure sufficient financial and technological support, and strengthen institutional and human resource capacities to achieve policy objectives; and to be able to tap financial and technological opportunities available internationally.
rangelands and control their conversion to other uses. To rehabilitate the degraded rangelands. To maintain and conserve biodiversity of the rangelands. To contribute to climate change mitigation and adaptation. To promote amicable settlement of rangelands related disputes. To promote rangeland enterprises for the socio-economic uplift of the rangeland dependent communities, particularly the poor and marginalized segments, including nomads, local pastoralists and women. To promote socio-economic uplift of the dependent communities. To strengthen the institutional setup for rangeland management
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forestry. ▪ Fostering attitudinal
change in support of sustainable forest management among individuals, communities and the society at large.
▪ Assisting the Government of Pakistan in meeting the obligations of relevant international agreements such as the UN Convention on Biodiversity, UN Framework Convention on Climate Change, the UU Convention on Combating Desertification, CITES, Agenda 21, etc.
and inter-sectoral coordination. To undertake research and extension services for development of rangelands and related activities. To contribute to ecological obligations under national and international agreements and protocols. To raise public awareness and build the capacity of the key stakeholders for conservation and sustainable development of the rangeland resources.
Major Provisions Major thrust areas: ▪ Integrated Resource
Management. ▪ Participation of
People. ▪ Devolution of
Authority and Responsibility.
▪ Promotion of the Private Sector.
Policy Measures include both climate change adaptation and climate change mitigation measures. Following are some of the prominent proposed policy measures: Awareness Raising
Following are the policy thrust areas: Rangelands Resources Assessment. Integrated Range Resources Planning. Sustainable Management of Range Resources.
The Policy has Sectoral Guidelines for the following Sectors: Water Supply and Management. Air Quality and Noise. Waste Management. Forestry.
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▪ Promotion of Equity. ▪ Increasing Public
Awareness and Education.
▪ Capacity Building. ▪ Provision of
Incentives. ▪ Development of
Cross-Sectoral Linkages.
▪ Ensuring Sustainable Forest Management.
▪ Institutional Transformation of the Forestry Sector.
▪ Updating Forestry Legislation.
▪ Liberalizing the imports of timber and other wood products.
▪ Improving the local economy.
▪ Defining the rights of owners and users.
▪ Streamlining the procedure for the distribution of shares in forestry income among people.
▪ Designing with stakeholders the criteria and indicators for sustainable forest management.
Research Reforms in Governance Enhancing Adaptive Capacity Sustainable Forest Management Arrest Soil Erosion Reduce Forest Fires, Disease Outbreaks and Other Damage Conserve Biodiversity Protect Other Vulnerable Ecosystems such as Mountain Areas, Desert and Arid Areas. Protect Mangroves and Other Coastal Ecosystems. Protect Rangelands and Alpine Pasture Lands. Protect Wetlands. Undertake Disasters Preparedness Measures. Mainstream Gender in Climate Change Planning.
Promotion of Rangelands Related Enterprises and Marketing. Rangelands Management for soil protection and water regulation. Rangelands Management for biodiversity conservation. Rangelands Management for ecotourism and recreation. Rangelands Management for climate change mitigation and other natural disasters risk reduction. Awareness raising and capacity building. Rangelands related research, education, technology and extension. Generation of financial resources and establishment of Rangelands Fund. Promotion of fodder and
Biodiversity and Protected Areas. Climate Change and Ozone Depletion. Energy Efficiency and Renewables. Agriculture and Livestock. Multilateral Environmental Agreements. In addition to Sectoral Guidelines, the Policy also has Guidelines for the following Cross-Sectoral Aspects: Poverty and Environment. Population and Environment. Gender and Environment. Health and Environment. Trade and Environment. Local Government and Environment. Natural Disasters
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▪ Empowerment of local communities.
▪ Promoting women role in forestry.
▪ Improving the environment.
▪ Ensuring the sustainability of forestry resources including biodiversity conservation, protection of ecologically sensitive sites, etc.
▪ Evolving and implementing sustainable management systems for the Guzara and Protected Forests.
▪ Ensuring effective regeneration of forest areas.
▪ Improving the efficiency of timber harvesting and reducing soil erosion in mountain areas.
▪ Development of Management Information System for the forestry sector.
▪ Strengthening Forestry Education,
Protect and Conserve Existing Forests and Promote Carbon Sequestration Programs in the Forestry Sector. Undertake Capacity Building and Institutional Strengthening Measures. Promote Regional and International Cooperation. Securing Financial Resources for Climate Change Initiatives. Promote Technology Transfer in support of Climate Change.
fuelwood resources on non-rangelands.
Management. In order to achieve the stated policy objectives, it is to make use of the following Policy Instruments: Integration of Environment into Development Planning. Legislation and Regulatory Framework. Capacity Development. Use of Economic and Market-Based Instruments. Public Awareness and Education. Making use of Public-Private-Civil Society Partnerships.
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Training and Research.
▪ Review and Evaluation of Policy Implementation Outcomes.
▪ Documentation of Lessons Learnt from Policy Implementation.
Institutional Development Support for REDD+
KP Forest Policy is oriented towards institutional development in the sector.
Has the requisite orientation.
General institutional development provisions in support of rangelands exist.
Only general provisions exist.
Support to improving Forest Governance and Land and Forest Tenure system
Support to improving forest governance and land and forest tenure system is the corner stone of this policy.
Has supportive provisions.
Has supportive provisions in the context of rangelands.
Does cover it in generic terms.
Support to addressing the drivers and underlying causes of deforestation and forest degradation.
Forest protection is an integral part of the policy and is considered an imperative of the policy.
Does discuss it. Does cover degradation of rangelands.
General provisions with regard to enhancing the role of forests in climate change mitigation and adaptation.
Support to technical aspects of REDD+ Project development
Covers enhancing the technical capacities of department staff and other stakeholders.
Has some provisions for development of technical aspects.
Supports such measures in the context of rangelands.
General support to technical issues does exist.
Support to Stakeholders engagement in REDD+.
Participation of stakeholders is considered crucial for the conservation and
Encourages engagement of stakeholders.
Supports such measures in the context of rangelands.
Encourages engagement of stakeholders.
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development of forest resources in the provinces.
Support to Incentives Allocation and Benefits Distribution System
Incentives and benefits provision are central to the policy provisions.
Does emphasize the provision of incentives.
Supports such measures in the context of rangelands.
Promotes markets based instruments.
Support to conflicts resolution and management
Asks for resolving issues hampering sustainable forest management.
Caters to this requirement.
Supports such measures in the context of rangelands.
Has general provisions.
Support to Social and Environmental and REDD+ Cancun Safeguards
Sustainable forestry and equity issues are important policy dimensions.
Supports social and environmental issues in the forestry sector.
Supports such measures in the context of rangelands.
Asks for integrating environment and other Concerns into development planning.
Support to REDD+ Finance
Sustainable finance for forestry is considered crucial in the policy.
The policy is supportive of it.
Supports the establishment of Rangelands Development Fund.
Supports the establishment of Environment Fund for Sustainable Development.
Support to Legal Issues
Asks for revision and strengthening of forestry sector laws.
Policy asks for legal reforms.
Supports such measures in the context of rangelands.
Policy encourages the use of legislative measures for environmental protection.
Support to Marketing and Contractual aspects of REDD+.
Promotes marketing and value chain promotions.
Policy is supportive. Supports such measures in the context of rangelands.
Covered in generic terms.
Support to Awareness Creation and Capacity Building
Awareness creation and capacity building are high on the agenda in the policy.
Supportive provisions do exist.
Supports such measures in the context of rangelands.
Supports awareness creation and capacity building on environmental issues.
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of Stakeholders in REDD+ Projects. Support to Research on REDD+ and Climate Change issues
Emphasizes research in the forestry sector.
Asks for carrying out research.
Supports such measures in the context of rangelands.
Covers in generic terms.
Support to Influencing and Advocacy related to REDD+ and Climate Change
Supports influencing and advocacy work.
Influencing and advocacy work is supported.
Supports such measures in the context of rangelands.
Generic support is there.
Support to meeting International Requirements and Obligations regarding different Multilateral Environmental Agreements
Specifically caters to this need.
Does cover the MEAs. Supports such measures in the context of rangelands.
Specifically covers the MEAs.
Support to Human and Women Rights in the context of REDD+.
Gender development and equity issues in the forestry sector are explicitly covered in the policy.
Covers the subject. Supports such measures in the context of rangelands.
Generic support is there.
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Sindh Forest Lands Agroforestry Forest Lands Lease Policy
The Sindh Forest Lands Lease for Agroforestry 2004 is a special policy initiative to integrate
forestry and agricultural activities on riverine forest lands which are leased out to agriculturalists
for a period of five years. This lease period is renewable for another term. As per policy, at least 80
% of the land is to be used for tree growing and the remaining 20 % will be for growing of
agricultural crops.
The framework used for assessing the impact of the Lease Policy has been its saliency, its
legitimacy, its credibility and its usability. This is presented below:
Policy Assessment Dimension Assessment Saliency-to what extent the relevant stakeholders care about the policy?
The policy has lost its saliency aspect with the policy makers as well as policy implementers. It is for this reason that the policy has been suspended. The negative impacts produced as a result of the poor implementation of the policy will however continue and most of the forest lands encroached by land grabbers under the guise of this policy is continuing.
Legitimacy-do the concerned stakeholders trust the policy?
Most of the forestry professionals of Sindh Forest Department have started questioning the legitimacy of the policy given the fact that the lessees of the forest lands are not abiding by the provisions of the policy with regard to maintaining a tree cover of up to 80 % of the leased land. The lessees instead are changing the land cover and land use of the land in question from forest land to agricultural land and are primarily using the land for agricultural purposes only.
Credibility-do the stakeholders believe in the usefulness of the policy?
The credibility of the policy has also been questioned on two main grounds, viz., time period specified in the policy for its renewal is not being followed in its letter and spirit, besides that it has contributed to institutionalization of the encroachments on forest lands.
Usability-do the stakeholders understand it and can make use of it.
The policy is easy to understand and quite simple and understandable in concept. The problem is that it is not getting implemented in its spirit and as per its intentions. Therefore, it is not producing the intended results.
Balochistan Province has neither a Provincial Forest Policy nor any other policy, strategy or action
plan specific to the management of mangrove forests in the province to address the above
mentioned drivers of deforestation and forest degradation, and challenges that hinder the
promotion of sustainable forest management. Similarly there is no Land Allocation and Land Use
Policy, which can help in allocating land resources in the province. These are serious policy gaps
and need to be filled on priority basis. Without a conducive policy framework, it is apprehended
that the resource will keep on getting degraded because there is no formal mechanism in place to
get the required policy support in terms of fiscal, market-based or regulatory provisions that can
meaningfully contribute to the conservation of the resource or initiation of a REDD+ or PES
program for these mangrove forests.
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Legal support to policies
Policy provisions may relate to fiscal measures, regulatory measures or market measures. A fiscal
measure is any solution that involves a fiscal reform, i.e. changes in revenue realization and
expenditure making. Revenue realization is effectuated through taxation or modification of a
subsidy’ regime. Expenditure measures entail the authorization of public spending for
conservation of natural resources.
Regulatory measures pertain to any policy solution that involves a regulatory reform, i.e.,
imposition of a certain behavior through the law or a regulation. Policy level market measures
include any solution that involves a market transaction, e.g., payments for ecosystem services and
carbon markets under the REDD+ mechanism. Following are some of the fiscal, regulatory and
market reforms that are relevant from the perspective of policies and need to be adopted on a
priority basis by the government:
▪ Bio-prospecting licenses and fees;
▪ Ecological Fiscal Transfers;
▪ Taxes on polluting industries, businesses and agencies;
▪ Taxes on fuels causing carbon dioxide and other greenhouse gases emissions;
▪ Taxes on pesticides and other agro-chemicals;
▪ Taxes on the use and extraction of various natural resources including timber, medicinal
and aromatic plants, water and various other biodiversity products;
▪ Biodiversity Offsets;
▪ Carbon Markets;
▪ Climate Credit Mechanisms;
▪ Disaster Risk Insurance;
▪ Payments for Ecosystem Services;
▪ Green Bonds;
▪ Impact Investments;
▪ Crowd funding;
▪ Public Guarantees;
▪ Lotteries; etc.
Some of the above policies provisions require legal backing for their effective implementation. It is
therefore suggested that wherever needed, legal backing be provided for the above proposed fiscal,
regulatory and market measures in support of the different policies meant for forest and
biodiversity conservation.
4.4 REVIEW OF MAIN MULTILATERAL ENVIRONMENTAL AGREEMENTS (MEAs)
Multilateral Environmental Agreements (MEAs) are protocols that international community use to
help address environmental problems facing the world and to ensure sustainable development.
Pakistan is signatory to a number of MEAs and has also acceded to several non-legally binding
environmental instruments such as the Agenda-21, Rio Principles and Johannesburg Plan of
Implementation which aim at conservation and sustainable development of natural resources
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including forests. As a Party to these Conventions and their Protocols, Pakistan has been
participating in their Conferences of the Parties (CoPs), Meetings of the Parties (MoPs), and
international consultative and technical meetings organized by the United Nations and other
international fora. It has also been actively participating in and keeping close liaison with
institutional elements of each of these MEAs. These include CoPs, the secretariat, advisory bodies,
implementing bodies, subsidiary bodies, and clearing-house mechanisms, and have thus been
contributing in a number of ways including effective decision making regarding the over-all
implementation and development of strategic plans and program of work, budget and the revision
of annexes to these MEAs. As a country, Pakistan attaches great emphasis to both the core
objectives of the MEA as well as the cross-cutting themes such as strengthening of the capacities to
meet the country’s obligations or responsibilities under these agreements, enhancing coordination
among implementing agencies, awareness creation, strengthening scientific basis for decision-
making, and building and strengthening international partnerships.
Swati (2006) has discussed global environmental institutional arrangements, regional and sub-
regional organizations, politics of international environment and national environmental initiatives
in Pakistan. He has made a number of suggestions and recommendations for effective
implementation of different MEAs in Pakistan. These suggestions among others include: awareness
creation, training and capacity building, technology transfer, provision of adequate financing,
information exchange, institutional development and better coordination with international bodies
and at the national level.
Hussain and Gilani, (2012) reviewed Pakistan’s position in relation to Multilateral Environmental
Agreements (MEAs). They mentioned that MEAs help address the environmental problems being
faced by the international community as a whole. The ultimate goal of reaching MEAs is to realize
sustainable development across the globe. Pakistan is signatory to several MEAs and has acceded to
other non-legally binding instruments, such as Agenda-21, Rio Principles and Johannesburg Plan of
Implementation aiming at sustainable development of natural resources. Priorities and objectives
of MEAs vary significantly from one international instrument to another while the common aspects
include the sustainable development and use of natural resources and the protection of the
environment in such a way as to ensure its judicious use. Based on different stages of
implementation of these MEAs, the spectrum in priorities of Pakistan has been quite broad.
Pakistan attaches greater emphasis to crosscutting themes for MEAs that are primarily of a
functional nature, such as strengthening of the capacities to meet the country’s obligations or
responsibilities under these agreements; enhancing coordination among implementing agencies;
public education and awareness; strengthening scientific basis for decision making; and
strengthening international partnerships.
Analysis of MEAs
Major themes and various obligations that Pakistan and other participating countries have to fulfill
with respect to their responsibilities under these different MEAs are all supportive of REDD+ PES
implementation in the country (Annex-XI). It would, therefore, be befitting that REDD+ PES
initiatives at the two pilot sites are closely linked to and integrated with the implementation of
these different MEAs. This however would require proper awareness creation and capacity
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building in the provinces with regard to these MEAs and their linkages to REDD+ and PES. Of
particular importance in this regard are the provisions of Paris Agreement regarding the promotion
of REDD+ as a climate change mitigation tool. Similarly, the provisions of UN-CBD and its protocols
about the conservation, sustainable use and access to fair and equitable benefits from the use of
these biodiversity resources have relevance to PES schemes. These aspects of the MEAs need to be
highlighted and integrated with the REDD+ PES scheme. Also, the REDD+ Office and the
Biodiversity Directorate at the Ministry of Climate Change need to work closely with each other so
as to increase synergies in the implementation of various MEAs. Similar cooperation and joint
working would be required at the Provincial levels also.
It is worth mentioning though that since the different MEAs like UNFCCC, UN-CBD and UNCCD
were all negotiated and agreed to in 1992, concepts of Ecosystem Services and PES were not
formalized at that time. Therefore, most of these lack specific references to PES. These, however,
support PES in their intentions, when these make reference to the use of incentives for the
achievement of their objectives.
4.5 INSTITUTIONAL ANALYSIS
Main forestry sector institutions at the federal level relevant to implementation of PES program is
the Office of Inspector General of Forests (OIGF) in the Ministry of Climate Change, Government of
Pakistan. Right now, the OIGF is supported by the National REDD+ Office (NRO) through a World
Bank’s FCPF Project. Since, this support is of temporary nature, it is proposed that this NRO be
strengthened over time and made a regular part of the OIGF. Initially, it can be done through a
development project. Subsequently it will have to be brought on normal budget. The apex policy
making body is the National Steering Committee of REDD+ which is headed by the secretary of the
Ministry of Climate Change and represented by all provinces and federating units including civil
society and women representatives.
The federal and provincial level institutions have been analyzed from the perspective of their
capacities to perform multi-functions with regard to PES and REDD+ program including program
planning, design and management; their ability to effectively engage the relevant stakeholders; and
their capacities to work at and deliver at multiple scales. Also, PES programs are multi-objectives
and dealing with aspects like carbon sequestration, biodiversity conservation, watershed
protection, coastal protection and shoreline stabilization, community development, etc. These
different objectives are to be achieved in an effective, efficient and equitable manner. Moreover,
different principles and elements of good governance such as access to information, transparency,
accountability and results-based orientation will have to be paid attention too. Accordingly the
following matrix has been used to undertake institutional analysis:
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Institutional Analysis Dimension
Federal Level Set-up
KP Level Provincial Set-up
Sindh Level Provincial Set-up
Balochistan Level Provincial Set-up
Existing Organizational and Institutional Set-up
At the federal level the set-up exists in the Office of Inspector General of Forests in the form of a National REDD+ Office under project arrangements. The set-up comprises of a National REDD+ Coordinator, a number of experts (National Inventory Expert, GIS/RS Expert, Procurement Specialist and Finance Manager). There are two Research Associates as well (GIS/MRV and a REDD+ Strategy Associate), an Office Secretary and an Office Boy. The Office of Inspector General of Forests is the National Focal Office and the Inspector General of Forests is the National Focal Person. There is also a National Level REDD+ Steering Committee headed by the Secretary, Ministry of
In the KP province, there is an Administrative Department headed by Secretary Forests, Environment and Wildlife. At the Attached Department level there are three Chief Conservator of Forests (Central and Southern Region; Northern Region and Malakand Region). Each Forest Region has its usual set-up of Forest Circles, Forest Divisions, Forest Sub-Divisions, Forest Blocks and Forest Beats. In addition there are a number of Specialized Directorates. These include: Institutional Development and Human Resource Development Directorate; Research Development Directorate; Community Development, Extension and Gender Development Directorate; Non-Timber Forest
The Sindh Provincial Forest Department has recently been re-organized. As a result of this re-organization the following three Forest Regions have been created at the Province level: Chief Conservator of Forests Riverine and Inland Forests; Chief Conservator of Forests Coastal Region and Range Management; and Chief Conservator of Forests Social Forestry Region. The three Forest Regions have the requisite Forest Circles, Forest Divisions, Forest Sub-Divisions, Forest Blocks and Forest Beats. Under the new set-up, there are now two Coastal Forest Divisions, one for the left bank and the other for the right bank. A Provincial REDD+ Coordination and Management Committee has
Balochistan Forest Department has two Forest Regions, the Northern Forest Region and the Southern Forest Region. Each Forest Region has Forest Circles, Forest Divisions, Forest Sub-Divisions, Forest Blocks and Forest Beats. A Provincial REDD+ Focal Person has been notified by the Province. The Department does not have Specialized Directorates on the pattern of KP Province.
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Climate Change and having representatives from different provinces/ territories and other concerned Ministries and Divisions of the Federal Government as well as representatives from International Organizations, civil society and the private sector.
Products Directorate; and a Forest Planning and Monitoring Forest Circle. There are two other Attached Departments supporting forestry affairs. These include the Pakistan Forest Institute (PFI) and the KP Forest Development Corporation (FDC). There is a Provincial REDD+ Steering Committee headed by the Secretary Forests, Environment and Wildlife Department and having representation from various other relevant sector. There is also a Provincial REDD+ Focal Person. The Department is implementing two REDD+ Projects, one for the Design and Formulation of REDD+ Program in the Province and the other one for Carbon Stock Assessment of different Forest
yet to be notified. There is a Provincial REDD+ Focal Person. The Department also has a GIS laboratory.
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Types in the Province. This latter project is being implemented by the Pakistan Forest Institute. Under the auspices of these two projects, the following progress has been made so far: Provincial REDD+ Strategy. Provincial Action Plan for Implementation of REDD+ Strategy. Criteria and Mechanisms for Pilot Sites Selection. Provincial REDD+ Safeguards System. Provincial REDD+ Benefits Distribution System. Provincial Forest Inventory and Monitoring System. Provincial Forest Reference Emissions Level/ Forest Reference Level. Allometric Equations for
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Major Forest Species of KP Province. The Provincial Forest Department and PFI both have GIS laboratories.
Existence and Quality of Technical and Program Functions related to PES/REDD+: Program Planning Function Program Technical Aspects Management Function Program Service Delivery Function Program Monitoring and Evaluation Function Use and Management of Other Needed Knowledge and Skills
The existing capacities will need further building.
Existing capacities are not sufficient and therefore will have to be built up.
Existing facilities will need further building.
Existing capacities require further building.
Administrative and Support Functions related to PES/REDD+: Administrative procedures and management systems Financial management
Existing capacities will have to be built up and further strengthened.
Existing capacities are not enough and therefore require strengthening and further building.
Existing capacities are not enough and therefore require strengthening and further building.
Existing capacities are not enough and therefore require strengthening and further building.
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(budgeting, accounting, fund raising, and sustainability) Human resource management (staff recruitment, placement and support) Management of other resources (information, equipment, infrastructure, etc.) Resources Needed for PES/REDD+: Human Resources Financial Resources Technical and Other Resources
Human, financial and other resources require further strengthening.
Capacities of KP Forest Department will have to be built as it is seriously considering implementing a REDD+ PES Program.
Provincial capacities will have to be built.
Provincial capacities will have to be built.
Structure and Culture: Vision and purpose Governance Approach External Relations Management
Existing capacities are not sufficient; therefore, will have to be built up.
Existing capacities cannot cater to the requirements. Therefore, capacity building is required.
Existing capacities are not enough.
Existing capacities are deficient in may ways.
Capacity regarding meeting International Requirements for preparation of REDD+ Strategy
A consultancy has been given to Indufor and CHIP Pakistan under the FCPF Grant Funding to assist the OIGF in this assignment.
KP Province has prepared a Provincial REDD+ Strategy using its own technical and financial resource.
Sindh Province has not initiated any work on the development of a Provincial REDD+ Strategy or the adoption of National REDD+
Balochistan Province has not initiated any work on the development of a Provincial REDD+ Strategy or the adoption of
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Capacities for implementation of the REDD+ Strategy on a regular basis however will be needed.
Strategy. National REDD+ Strategy.
Capacity regarding meeting International Requirements for understanding, addressing, respecting and reporting on UNFCCC Cancun Safeguards and World Bank Social and Environmental Policies
A consultancy has been given to Climate, Law and Policy and Hagler Bailly Pakistan under the FCPF Grant Funding to assist the OIGF with regard to UNFCCC Cancun Safeguards and World Bank Social and Environmental Policies. It is a one-time technical and financial support. Proper institutional capacities are needed.
KP Province has developed a Safeguards System with regard to the UNFCCC Cancun Safeguards. Its on-ground implementation has yet to be tested.
No work has been done in Sindh Province as yet.
Balochistan Province has not started work on it.
Capacity regarding meeting International Requirements for establishing a Forest Inventory System and MRV System
A consultancy has been given to Arbonaut, a Finnish Consultancy Company under the FCPF Grant Funding to assist the OIGF in this assignment. This however is a one- time technical and financial support. There is a need for proper institutional capacity development in this aspect.
KP Province has developed a system through joint collaboration of Provincial Forest Department and PFI.
Work is not yet done on it in the province.
Work has yet to be started in Balochistan province on the Inventory and MRV system.
Capacity regarding
A consultancy has been given to
KP Province has prepared a
No work started as yet.
Work not done on this aspect so far.
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meeting International Requirements for preparation of Forest Reference Emissions Level/ Forest Reference Level
Arbonaut, a Finnish Consulting Firm under the FCPF Grant Funding to assist the OIGF in the preparation of FREL/FRL for Pakistan. This however is a one- time technical and financial support. In-house capacities will have to developed to carry on the process on a sustainable basis.
Provincial FREL/FRL. The national level FREL/FRL has adopted it for the preparation of the National level FREL/FRL.
Capacities for revision and strengthening of Policies, Laws and Regulations in support of PES
A consultancy has been given to Climate, Law and Policy and Hagler Bailly Pakistan under the FCPF Grant Funding to assist the OIGF in this assignment. This however is a one-time technical and financial support. In-house capacities will be needed to carry on the process on a sustainable basis.
KP Province has revised its Policies, Laws and undertaken Institutional Development work through an Institutional Transformation Project which was implemented from 1998 to 2003. These however will need re-furbishing to cater to the requirements of PES in the province.
No concrete work done except for the recent re-organization of the Department. Policies, laws and regulations need revamping for effective implementation of the PES program.
Concrete work is needed to accomplish the task
Balochistan Forest Department comes under the Ministry of Forests and Wildlife and is headed by a
Provincial Secretary Forests and Wildlife. The Forests & Wildlife Department of the province has a
history of over a century, initially established under the British Colonial Rule. Later on, the
department has worked under the West Pakistan Forest Service. It became a Provincial
Department in 1970 after the dissolution of One Unit.
The stated mission of the Balochistan Forests and Wildlife Department is the conservation and
development of natural living resources on sustainable use basis through stakeholders’
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participation to ensure healthy environment and continue supply of goods and services for the
benefit of people.
At the Attached Department level, it has two Forest Regions, North Forest Region and South Forest
Region. Each Forest Region is headed by a Chief Conservator of Forests (BS-20). The North Forest
Region has 10 Forest Circles/Director. Each of these Forest Circles/Directorates is headed by a
Conservator of Forests/Director of BS-19. These include: Conservator of Forests Quetta Forest
Circle, Conservator of Forests Sibi Forest Circle, Conservator of Forests Zhob Forest Circle,
Conservator of Forests Planning, Conservator of Forests Administration, Conservator of Forests
Research, Conservator of Forests Wildlife and National Parks, Conservator of Forests Range
Management, Conservator of Forests Watershed Management, and Director Soil Conservation.
The South Forest Region has five Forest Circles. These include: Conservator of Forests Coastal,
Conservator of Forests Mekran, Conservator of Forests Kalat, Conservator of Forests Nasirabad, and
Conservator of Forests Watershed.
While the Department has a number of Specialized Forest Circles/Directorates, the capacities of the
existing professionals in their respective specialty needs further strengthening.
The Department has notified a Provincial REDD+ Focal Person. It however has not started work
either on the preparation of a Provincial REDD+ Strategy or the adoption of National REDD+
Strategy at the province level. It also has not initiated work on the preparation of a Provincial
Forest Inventory System and MRV System for REDD+. Work on UNFCCC Cancun Safeguards and
World Bank Social and Environmental Safeguards is not yet started. Similarly, Provincial Forest
Reference Emissions Level/Forest Reference Level is not developed. Provincial REDD+
Coordination and Management Committee is not established.
This means that a lot of work is needed on the institutional development side to make the province
REDD+ and PES ready. This is a priority area and needs to be addressed in timely manner for
successful implementation of the REDD+ PES Pilot Program in the coastal areas of Balochistan.
The Department also has serious funding problems and is not getting the required funds for the
conservation and development of forest resources in the Province.
Provincial/Regional REDD+ Focal Persons have been notified by the Provincial Forest Departments
of Balochistan, Khyber Pakhtunkhwa, Punjab and Sindh, as well as the Territorial Forest
Departments in AJK and Gilgit-Baltistan (GB). Some provinces/territories including AJK and GB
have also established provincial REDD+ Management Committees to oversee the REDD+ activities
at the provincial level. Other provinces are in the process of establishing provincial REDD+
management committees. To be established under the chairpersonship of Provincial Secretaries of
Forest Departments, these provincial REDD+ Management Committees shall ensure participation of
major stakeholders of REDD+ including NGOs/CSOs and private sector. These would also act as
inter-departmental institution for REDD+ activities. . Additionally, the committees will deal with
issues referred to them by the Provincial Grievance and Implementation Units. The Committees will
authorize and endorse REDD+ plans, programs and projects, as well as approve annual budget for
the respective province.
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These are weak and adhoc arrangements and need to be properly built. It is, therefore,
recommended that provinces develop project proposals for developing PES Institutional
Infrastructure. This is important as development of institutional arrangements is essential and
required for building the foundations for PES in the country.
It is, therefore, proposed that the existing National REDD+ Office in the Ministry of Climate Change
is re-designated as National PES/REDD+ Office and suitably strengthened to have all the above
resources which are needed for its functioning. On similar lines, a Provincial PES/REDD+ Office be
established in KP, Sindh and Balochistan Province where the two pilots will be implemented. To
start with, these Offices can be established through development budgets. Later on, these will be
transferred to normal budget once these have proved their worth.
Over time Punjab Province and the Other Territorial Forest Departments in AJK, GB and FATA also
need to build their capacities for the design, planning and implementation of PES programs in their
respective jurisdictions.
5. Review of international research and experiences on REDD+ PES and select, describe
and evaluate the most appropriate PES/REDD+ Benefit Sharing and Distribution
System
Following section presents the analysis of policies, legal regulations and institutional best practices by synthesizing further several international research or pragmatic meta-studies. These meta-studies are based on numerous other scientific articles or practical reports prepared by international scientists and professionals around the world. The lessons learned from these international experiences have been highlighted to cater for designing of the PES schemes in pilot sites of Pakistan.
5.1 Early PES Experiences
The application of market-based incentive (MBI) mechanisms such as payments for ecosystem
services (PES) to deal with the challenges of landscape and environmental protection, climate
change mitigation, wetland restoration and biodiversity conservation has continued to gain interest
and growing investment around the world. This indicates an underlying shift in national and
international natural resource use policy. The emergence of PES is justified as it intends to correct
market failures, reduces information asymmetry, provides price signals for decision makers, and
bridges conservation funding gaps. Despite these endorsements, concerns remain about their
success on many occasions. Several researchers and professionals see these instruments as
conflating conceptually different philosophies and mechanisms like rewards, incentives and
markets - addressing social–environmental problems – while not adequately addressing
externalities arising from market failures. Some also express doubts over the ability of PES to
adequately secure the provision of relevant public ecosystem goods and services whilst providing
cost-effective outcomes. PES arrangements may on occasions try to commoditize nature, which
could lead to reductions in ecological complexity and ‘commodity function’ instead of realistically
covering the ecosystem resources and services. Nonetheless, the payment for ecosystem services
have been applied in many developing countries as a policy tool intended to address a spectrum of
land management challenges. PES has been presented as an alternative to the traditionally used
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command- and control-approaches of regulation, which through decentralized management has the
potential to advance both conservation and rural livelihood development goals (Hejnowicz et al.,
2014). In Pakistan, where forests have been traditionally managed for obtaining maximum wood
production and revenue generation for the state or the forest owners, no attention has been given
to monetize the environmental services of forests.
Widespread adoption of PES may hide some important issues. The validity and suitability of
preparing PES activities can sometimes be challenged because of the complexity, uncertainty, and
asset specificity involved in managing ecosystem services. It may be argued that win-win
conservation and development outcomes are likely when schemes are well designed, but this may
often fall short when the influence of diverse contingent factors become too complex. Practical
obstacles may hinder PES implementation in terms of scheme design problems; modes of managing
trade-offs arising from the need to balance efficiency, effectiveness, and equity; institutional set-ups
and participation agreements; spatial boundaries, monitoring, and compliance; the existing
property rights; and social and well-being outcomes.
Given that PES adoption will continue to expand, it is useful to assess both environmental and social
effects to ensure long-term PES validation and effectiveness. To do so Hejnowicz et al. (2014)
conducted a systematic review of the measured environmental and socio-economic outcomes of
PES schemes. The assessment looked at PES schemes as an effective environmental management
tool based on effects from four main angles: Human and social; natural resources management;
financial; and institutional aspects. The assessment identified 50 first hits from scientific databases,
internet searches and international financier websites as well as journal special issues (Heinowicz
et al., 2014).
Human and social aspects: Of all the assessed studies by Hejnovicz et al. (2014), only 52% had
been specifically considering human and social implications of PES schemes. The low degree of
focus on PES’ social dimensions may reflect the general division among researchers and
professionals on those who mainly view PES as a development tool and on those that argue for its
social development function being secondary to its conservation function. In many cases the extent
and influence of pro-poor PES have been inadequately quantified. While this is the case, evidence
from the meta-study indicated that PES schemes can have a conservative, but positive social impact
that needs larger assessment on its validity.
The measured human and social outcomes in PES indicated that there are broad human
development implications relating to living standards (included in only 26% of assessed studies),
better access to environmental and social services (26%), poverty alleviation (17%), food security
(13%), and resilience to environmental change (11%). These outcomes support realistic PES
designs based on achieving attainable human and social objectives and benefits. The studies further
indicated that about 70% of all PES sellers are grassroots level community farmers or other
primary livelihood households in rural communities, who should be properly, accommodated in the
PES arrangements.
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One of the two pilot sites for PES designing in Pakistan is moist temperate forests of Kaghan where
more than 50% of the forest area is owned by private landowners. Besides, there are a large
number of forest users who depend on these forests for their domestic requirements. Thus. it is
essential to ensure their active participation in the designing of the proposed scheme and get their
free, prior and informed consent. Otherwise, the scheme will not result in the desired outcome. For
the second pilot site i.e. Mangroves forests, the ownership belongs to the state but the local
communities have rights and concessions and the forests are crucial for their livelihood. Therefore,
involvement of local communities is also important for designing PES Scheme in coastal areas.
Natural resources aspects: The assessed schemes extended across various landscape types, but
the main focus was on agricultural (74%) and tropical rainforest and dry forest landscapes (65%).
The schemes were established at altitudes ranging from lowland (69%) to highland (48%) areas
and across rural areas (52%). However, there were a lot of heterogeneity, even over small scheme
areas, with most being multi-functional landscapes dominated by smallholder farmers.
Most schemes (91%) were implemented over areas that covered three or more distinct landscape
types and focused foremost on services related to hydrology/watershed (52%), carbon/forest
(61%), biodiversity (56.5%), as well as food and fibre (22%) resources. Only a few schemes had
arrangements for bundled PES (22%) while the rest had only a single or double PES arrangement.
The findings of the Hejnowicz et al. (2014) study contrasted with another Martin-Ortega et al.
(2013), that indicated 73% of PES transactions involved bundled services. A study of Ingram et al.
(2014) has argued that bundling and stacking PES can reduce the risks associated with unstable
markets.
The proposed pilot sites in Pakistan have distinct ecological and landscape features which provide
numerous environmental services. In Mangroves site, the key environmental services which can be
included in the PES design are carbon sequestration, fish and shrimps spawning, pollution from
industries and shipping, and coastal protection. In case of moist temperate forests of Kaghan, the
key environmental services are watershed/hydrology, ecotourism and carbon sequestration. Thus,
bundling approach will be more efficient in both pilot sites.
Financial aspects: Two thirds of the Hejnowicz et al. (2014) publication assessed studies focused
on the financial aspects of PES programmes as the potential of PES to strengthen livelihood
development strategies rests upon the financial ability of the schemes to support household and
community needs through the provision of payments. The ecosystem service providers were
usually paid on annual, ex-post or per hectare basis, and for assessed ecosystem service proxies (i.e.
measured land-use impacts) rather than ecosystem service supply. Several schemes recognized the
variations in effort that different land-use practices required and paid accordingly. The majority of
schemes (60%) implemented a single payment arrangement instead of adopting a multiple stream
one, with payments normally made in cash (62%) or technical assistance (21%). Of the remaining
schemes 30% opted for two payment arrangements (primarily cash and technical assistance), while
only 9% employed three payment arrangements (i.e. in-kind payments). The narrow payment
arrangement design of most schemes had an important effect on their capacity to support
individuals, households and communities as these schemes failed to widen the available options.
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About 50% of the studies suggested schemes positively increased household income, which mainly
occurred in China. Numerous cases failed to provide information of household income streams that
enlightened household incomes. Where such information was detailed, 29% of studies indicated
that payments contributed between 0% and 50% of household income, and only 8% showing
payments contributing over 50% of household income - demonstrating the variable nature of
payment contributions to household incomes. For comparatively poorer households, was
household wealth identified by 11% of studies as a constraint to participation and thus also to
scheme effectiveness. Despite that, 50% of studies indicated an enabling diversification of
household economic activities, only 12% attributed payments as sufficient to meet household needs
or provide an alternative income source. Thus, payment contributions mostly provided insufficient
income to enhance household economic productivity and diversity.
Based on the findings of the above studies and land tenure issues in the pilot sites of Pakistan, it is
proposed to have two types of payment i.e. cash payment and in kind contributions from the
proposed PES schemes. Direct cash payment will be applied where land tenure is crystal clear and
the owners have full control on the management and use of the forests such as Guzara forests of
Kaghan. In-kind payment in the form of social welfare works will be applied where ownership
belongs to the state e.g. in Mangroves forests.
Institutional aspects: The Hejnowicz et al. (2014) study analysis supports the view that
institutional factors of PES schemes are usually ‘undervalued’ as only 58% of studies assessed
institutional aspects and context. There are often substantial knowledge gaps relating to the direct
and indirect institutional involvement, and to the information on whether it was short or long-term
institutional performance and involvement. The PES schemes are never established in an
institutional vacuum and scheme success always relies on involved institutions and on maintaining
functional institutional relationships and strengthening such frameworks and ties. Some 40% of
studies recognized that schemes actually improved and sharpen institutional capacity, cooperation
between sectors and across groups, and positively affected engagement with local organizations.
Some 50% of studies indicated developing improved institutional coordination was vital for
facilitating and enhancing capacity-building and technical assistance. Therefore, the achievement of
lasting outcomes for institutions required an understanding and an assessment of the interactions
between agents, institutions, and sectors, and their collective cultural effects. In addition,
legitimacy, transparency and accountability are central for successfully building institutional
capacity and increasing effectiveness. Approximately 11% of the assessed studies recommended
the need to optimize governance, accountability, and transparency to improve scheme
effectiveness, while 44% of the studies actually addressed matters of institutional accountability
and 73% of these studies further registered improvements in accountability and transparency.
Improved governance, accountability and transparency are the key conditions for PES
implementation and will be taken care of in the design of the proposed PES schemes in Pakistan.
5.2 PES as a REDD+ tool According to Wunder (2009) Payments for Ecosystem Services (PES) can be defined as voluntary,
conditional transactions between at least one buyer and one seller for well-defined environmental
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(ecosystem) services or corresponding land use proxies. The conditionality is a core feature in any
PES as payments to land stewards will only be made if the service provider complies with the
contract. The PES contracts should be prepared in such a manner that the service users (i.e. the PES
buyers) rent certain land use right(s) from providers (i.e. the PES sellers) for a specified time-
period, which has been fixed in a contract. PES service providers should be seen in the contract as
‘land stewards’, such as legal landowners, informal but recognized occupants, communities with
traditional rights, or long-term concession or lease holders.
Current national-scale PES and PES-like schemes in developing countries can provide countries
implementing REDD+ with information on what works and what does not work in contracted
conservation. Such PES schemes exist, for instance, in China, Costa Rica, Mexico, South Africa,
Vietnam and recently Ecuador – and in developed countries like Australia, European countries and
the USA.
The PES concept has been practiced in numerous versions and forms and although most of these
PES schemes are stated to be functioning, there are substantial differences between these scheme
set-ups. A rather small number of the world’s PES schemes have been actually properly evaluated
on their performance and the results indicate that imperfect ‘PES-like’ transactions are more
common than ‘pure all the conditions meeting PES’ transactions. The evaluations already
performed on PES, however, still can provide some evidence that well-designed PES schemes can
result in efficient, cost-effective and equitable conservation of environmental services from the
landscapes in which the schemes have been established and managed. To date, the mainstream of
the established fully operational PES transactions has focused on conserving watersheds,
protecting biodiversity, preserving scenic landscapes and capturing and storing carbon. The REDD+
criteria are near to the PES criteria when it comes to carbon services that are voluntary, conditional
and defined by forest conservation proxies and their carbon services (Wunder, 2009).
In Pakistan, substantial progress has been achieved in REDD+ readiness whereas few studies have
been conducted to valuate environmental services. Both the approaches area aimed at forest
conservation and livelihood improvement. PES implementation will require a lot of changes in the
laws and rules because the environmental services have been used without making any payment
for these services in the past and also in the present time. Thus, it is possible to have flexibility in
the PES design at this stage so that PES like schemes are in place first and later on refine it to more
defined arrangements.
5.3 Preconditions for REDD+ payments for PES
According to Wunder (2009) there are four main types of preconditions that need to be met by a
PES scheme in order for it to be effective. These four main precondition types relate to information,
economics, culture and institutions and their main gist is shortly presented below:
Information: Information is vital as any potential buyers/investors of environmental services will
normally want to know what the relevant services providers will deliver in return for positive and
wanted impacts in forests. A PES scheme must, therefore, have sufficient data and calculations
synthesized in a presentable form.
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There will also be cases when the simplicity and clarity is difficult to obtain. For instance, in
watershed protection, the biophysical links can be complex and it is often difficult to obtain or
separate reliable information from non-reliable data to verify impacts. The solution will be to either
construct the PES scheme around those issues which can be clearly verified and leave out the rest
from the forthcoming scheme, or to bundle many different aspects of biophysical or biodiversity
values together in such a manner that a combined PES value can be obtained.
Economics: The economic value of the environmental service provided to all buyers combined
must exceed the total cost of providing the environmental service which comprises the opportunity
costs, and the protection and transaction costs of the achievable impact (i.e. sustainable
management of an environmental good or service). If this condition is not met, service providers
will become worse off from PES, and are, therefore, not likely to participate. The opportunity costs,
are usually the main cost to be covered, whereas protection costs (e.g., establishing firebreaks,
monitoring intrusions) and transaction costs (e.g., area delimitation, contracting) are normally
supplementary. This is usually the case with the main categories of PES arrangements, but there are
also cases when transaction costs are insurmountable. Such cases, for instance, concern carbon
trading arrangements from numerous small-holder farms which have high potential leakage of
carbon from the area, and, therefore, the MRV will be exceedingly expensive to measure and
monitor to such an extent that the results are reliable for the carbon market.
Culture: Service users need to develop a new kind of “payment culture” for PES which can be
locally seen as a natural way of dealing with environmental services. This may not be an easy task
to accomplish as it may upset local practices and perhaps even traditional customs. Irrigators, for
example, could often benefit economically from watershed protection PES, but in most locations
there is a history of free water services, which means that entrenched attitudes are likely to prevail
when it comes to put a price on water that flows in a river or creek. However, without pricing the
scarce water resources remaining water will be used ineffectively and perhaps excessively leading
to a situation of almost no water availability for the future. The new payment culture must
therefore well justified and exemplified to the users, so that people are more willing and motivated
to adopt the needed measures.
Service providers additionally need to feel motivated by any PES incentives to boost the services.
Local landholders are rarely motivated by pure profit - they may also want to conserve forests for
the common good or have some other altruistic motives. PES can therefore sometimes be
counterproductive as too high rewards may undermine the providers’ pre-existing altruistic
motives so that these become distorted or downscaled. It is therefore of vital importance to
properly assess whether any pre-existing altruistic motives exists and if so, incorporate these
motives into the payment scheme in such a manner that the level of reward is set in most beneficial
manner.
Institutions: Institutional preconditions for PES are several and may affect the outcome in a
complex manner. In most cases, PES schemes are either bilateral or multilateral contracts with
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often limited competition for providing the environmental services - and more importantly – with
even less service buying options. This may lead to a situation where either party or parties will be
somehow be forced into the PES agreement by a third party (i.e. a local government authority or
even a national authority). To reduce the amount of force in setting up PES agreements, the
situation can be resolved in the following alternative manners. The third party match-maker can a)
prepare a well-prepared information package with good justification for the PES arrangement; b)
make the two parties (i.e. sellers and buyers) sit down and mutually solve an environmental
problem in such a way that it can be fixed in a sustainable manner on their own accord; or c) make
environmental laws and regulations more stringent that a PES scheme becomes an apparent
solution in order to meet the more stringent pollution or resource use reduction requirements. The
best practice scenario is likely to require that all the above mentioned three solutions combined.
To achieve a good PES scheme arrangement, there must be sufficient trust between users and
providers as they should preferably be entering into a voluntary PES contract, which should feel
rather justified and right from both sides. To achieve such voluntary contract, the PES
arrangements must be rather transparent and participatory for both parties, so that each party can
influence on the outcome and perhaps between themselves agree on manner of monitoring and
verification. In Pakistan, there has been traditional mistrust and conflicts between the government
agencies and the custodian forest communities. Forest Department, being incharge of the forest
protection, considers local communities as enemy of the forests and hence it often uses punitive
regulations and state authority to deal with local communities. In this situation a lot of work will be
required to build mutual trust between the government and the local communities and make them
realize that they are equal partner to sustain and benefit from the ecosystem services.
The institutional set up must keep seller and buyer transaction costs reasonably low. An important
issue is land tenure on particularly the seller’s side. Scenarios in which many smallholders hold
complex, overlapping forest rights could be challenging for effective REDD+ PES schemes – unless
these tenure rights can be bundled into collective contracts. There is a well-known Costa Rica case
(see e.g. Wunder 2009 for more details) where this approach has been successfully adopted. Service
providers must therefore be, or become, land stewards with actual exclusion rights. If they are
unable to defend their land against third party intruders (e.g. loggers or new immigrants) or land
grabbers (e.g. large-scale ranchers or squatters), then they cannot provide reliable services – and
paying them may not buy the full amount of services stipulated. In remote forests areas – which is a
common REDD+ or PES scenario - often both local tenure rights and governance are weak and
therefore service providers often suspect that PES contracts constitute hidden land expropriation
or unwanted restrictions on poor people’s livelihoods. This has more common grounds with
Pakistani situation in the proposed pilot sites where there are large numbers of poor people who
traditionally depend on forest ecosystem for their livelihoods but they do not have documented
rights as per law such as nomads in Kaghan and fishermen in coastal areas. This will be properly
taken care of in the design of the PES schemes for these ecosystems.
For countries to choose the PES route for implementing REDD+, some basic local preconditions
must be met:
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• Changes in forest carbon stocks must be monitored, payments and revenues must more
than cover the costs, and conservation payments must motivate land stewards.
• Identifying land stewards with reasonably good control over clearly demarcated lands is the
foremost priority condition.
5.4 The elements of a good PES scheme Based on the findings of Hejnowicz et al. (2014) and Le Velly and Dutilly (2016) the main building elements of a good PES scheme should be as follows:
• Design • Mechanism • Geographical and temporal boundaries • Targeted impacts • Impact interpretation
5.4.1 Design:
The design element of the PES scheme comprises the main concrete building blocks of the PES
scheme, which are here grouped into four blocks as follows:
• Human and social considerations: Social aspects measured and improved (food security, poverty
alleviation, gender, living standards, resilience to environmental change and access to
environmental and social services), characteristics of PES and non-PES participants (education, land ownership and labour arrangements), participation levels of poorer groups and level of
social impacts;
• Natural resources considerations: Area under the payment scheme, management modalities
applied, landscape change (forest size, deforestation rate, agricultural intensity and biodiversity
levels), ecosystem services (types, links to management practices and preservation);
• Institutional considerations: Devolution of natural resource use governance, sector involvement
in institutional arrangements, institutional development and cooperation, institutional accountability and transparency, presence of legal and regulatory frameworks, seller selection
criteria, conditionality, monitoring, sanctions and contract agreement;
• Programme operational and implementation arrangements: country and environmental
conditions, PES considered, single or bundled PES, management modalities, project initiator
issues, land-use ecosystem service links, environmental legislation and regulations, programme
activities;
The planning and design of the PES scheme is highly dependent on how the above-mentioned
building blocks are mixed together, which in turn stems from what kinds of objectives and aims are
set for the final scheme that will be implemented. The most important issue is to determine the
importance of human and social benefits versus environmental (or ecosystem) benefits. This issue
will be examined in more detail in the section on Governance and Benefit Sharing.
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According to FONAFIFO et al. (2012), there are some key lessons to be taken from making participation agreements:
• The political and institutional context for these agreements is incredibly important – particularly when the PES involves urban buyers of these services.
• Good coordination among relevant regulatory bodies will further be vital to keep PES administrative costs down and enhancing a financial success of the program.
• Access to technical support and training is necessary to increase scheme outreach and efficiency, although it will affect cost and time investments negatively at first.
• Tenure and/or land and resource rights often remain challenging for PES, but to recognize possessory rights short of formal title is likely to provide a solution in many places.
The participatory agreements for REDD+ PES should be standardized and quite short, referencing more detailed scheme guidelines for procedural details. There is often a lack of experience with contracting for concrete ecosystem outcomes, for instance, containing emission reductions or removals. To address this gap, REDD+ PES participation agreements will likely need to borrow solutions from emission reduction purchase agreements now used in the voluntary and compliance carbon markets (FONAFIFO et al. 2012). Participation agreement will be developed for the proposed pilot sites keeping the standards of voluntary and compliance markets in mind so that PES performance can be judged objectively. Recently performed forest monitoring in Costa Rica, Mexico and Equador at both the national, provincial and the programme-specific level can provided increasingly reliable estimates of the expected emissions and carbon storage of lands enrolled in PES and incentive programs, and modeling efforts can therefore begin to estimate realistic reference scenarios to approximate the overall level of emissions reductions that these programs may be producing. This combination of forest cover monitoring, carbon stock assessments and credible reference scenarios now allow national PES schemes to quantify the contribution of reduced emissions from deforestation for an area and thereby potentially access carbon markets or results-based payments. The variations of estimates over effectiveness and deforestation risks that stem from the varying analyses, however, still imply a difficulty to ascribe precise volumes of reduction in deforestation or emissions to these schemes. It is even more difficult to precisely attribute avoided emissions to a specific landholding or participant. One should therefore be aware of the risks that exists when using these technologies, which also is dependent on the professionalism of the users (FONAFIFO et al. 2012). Changes in forest area are currently being assessed and monitored for Forest Reference Emission Level of Pakistan and at subnational scale in Khyber Pakhtunkhwa. These FRELs will be utilized to assess PES impacts in the pilot sites. Given these above presented methodological and quantification challenges it is still useful to utilize them in developing national REDD+ strategies and PES planning, while other forms of international results-based REDD+ finance could contribute to their expansion and deeper focus areas. At their current stage, these schemes could be seen and financed as support tools for monitoring efforts focused on estimating deforestation and emissions reductions according to changes in forest cover and carbon stocks against a programme-specific reference scenario (FONAFIFO et al. 2012).
5.4.2 Mechanisms
This element of a PES scheme comprises the various financial considerations and outcomes that
will be made to get the PES scheme financially functioning. The main issues of this element can
thereby be grouped as follows:
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Financial considerations : valuation methods for each included ecosystem service, payment
distribution, payment equity, household and community income, economic diversification and
payment dependency, transparency and accountability issues as the coverage of total costs
including opportunity cost, implementation cost and transaction cost;
Programme/scheme financial and funding arrangements: overall payment collection, payment
mode, payment amount, payment heterogeneity, payment frequency, benefit sharing arrangements,
external donor support, programme cost and investments, sustainability of financial payments;
According to Wunder (2009) there are some key clear-cut lessons from financing to consider when
designing and implementing effective and cost-efficient PES schemes that stand out, which are the
following:
• Apply hard conditionality: monitor performance closely, enforce explicit sanctions for non-
compliance and pay according to performance, preferably ex post to maintain leverage on the
suppliers of services.
• Differentiate payments: set payment rates according to the opportunity costs of service
providers, the threat to the forest and the potential of services to deliver mitigation.
PES and REDD+ usually exist in a set of complex, conflicting frameworks of social, environmental, and economic schemes and aims. The role of the policymaker is to determine where, when, and how various incentives should be used, and therefore they must evaluate, manage, and provide clarity on trade-offs and synergies within the overall framework. PES schemes that reward multiple benefits have several advantages over programs that pay for a single service. Multiple payments usually provide stronger incentives for conservation, whereas payments for a single service may not cover the main opportunity costs. PES programmes will have an enhanced chance of success as funds from different services are combined. However, the challenges associated with multiple ecosystem service payments may substantially increase the overall transaction costs due to crisscrossing levels of activities. Several PES schemes have explored ways of rewarding multiple benefits such as payments for different services over time; tied payments based on the importance of areas for specific services; and payments tied to a point system. Monitoring data from a Costa Rican project suggest that payments tied to a point system has resulted in greater environmental benefits and additionality than some other PES schemes in the region. Payments that reward multiple services can better ensure that a narrow focus on carbon in REDD+ PES does not constrain trade-offs with other vital ecosystem services such as biodiversity and water (FONAFIFO et al. 2012).
A key challenge for PES and REDD+ is financial sustainability that implies the establishment of a stable long-term funding path to achieve some desired environmental outcomes while some local people and other stakeholders are enabled to reduce their livelihood related impact. The financial success hinges on substantial integration at various levels: of different sources of finance; of funding commitments of varied duration; of private sector participants; of clearly defined objectives and adaptive management approaches; and of administrative processes for fund disbursement, MRV, and registration.
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Figure 1: Theory of Change for Factors determining the environmental and welfare effects of a PES Program Source: Börner et al (2017)
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According to FONAFIFO et al. (2012) some PES scheme experiences from Mexico, Costa Rica, and Ecuador show the potential of environmental endowment funds to increase financial sustainability of PES and REDD+ national programs. These entities have tested to incorporate both short and long-term payment solutions, that are targeted to priority areas or activities using funds from combined sources. Clear advantages have been seen of using funding mechanisms that can leverage national, public, donor and market revenues to support funding gaps in the early stages of a project’s development. Integrating private sector participation was also seen critical to success of public REDD+ programmes. Co-finance mechanisms must further make direct links between users and providers of ecosystem services and be complemented by continued outreach to build the case for ecosystem services as an investment opportunity CSR-minded companies. The idea of endowment fund is very useful for the proposed pilot sites in Pakistan. This will help in attracting multiple donors and support from the governments both federal and provincial to invest in PES schemes. Private companies will also find it reliable to contribute in endowment funds created for sustainability of interventions in the PES pilot areas. Good baseline work and reliable natural resource and financial calculations behind PES or REDD+ schemes are needed to decrease perceived investor risks. Experiences from PES in Mexico, Costa Rica, and Ecuador show the correlation and importance of clearly defined, measurable objectives, with evaluating and rewarding performance at both the project level and national REDD+ contexts. Targeting should be supported by integrating parameters and qualifications for entry, education and outreach to key participants, eligible areas under high threat of deforestation, and incentives differentiated by land type. Additionally, incorporating frequent adaptive management will be important to maintaining the cost-effectiveness of PES schemes (FONAFIFO et al. 2012). Programmes that are too ambitious become costly in terms of MRV and other transaction costs. The country experiences in Mexico, Costa Rica, and Ecuador indicate that the costs can be limited by combining local technical expertise with international technology, aggregating smallholders, and integrating administrative processes with already existing institutions. Designing PES and REDD+ schemes with a focus on integration with existing institutional structures will facilitate participation, maximize co-investment, and spread out transaction and administration costs across institutions and projects in an area (FONAFIFO et al. 2012).
5.4.3 Geographic and temporal boundaries
This element deals with the framing of the PES scheme both geographically and time-wise as
follows:
Geographical boundaries: Clearly demarcated boundaries, boundaries fit in a logic manner to a
landscape, size of scheme vis-à-vis PES required to be determined;
Duration of scheme: Clear and logic timeframe for the scheme, considerations on time-wise services
provision, timeframe fixed together with providers/sellers and buyers of PES;
All REDD+ PES schemes must have clearly demarcated boundaries, which allows the PES
implementers to include such PES services that are found inside the PES scheme boundaries. In this
manner, ecosystem goods and services can be quantified and valuated (i.e. monetized). The
geographical area should be framed so that there are some meaningful services included for which
there are found both potential providers/ sellers and buyers of PES. Sometimes the buyers of the
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PES (e.g. carbon credit buyers) are found outside the framed area and in this case the buyer’s or
buyers’ purchase is channeled into the PES area as it forms a suitable managed PES scheme that can
provide services in such an amount that also the outside purchases can be covered. This is the case
with international, national or corporate social responsibility investments into an area.
More recently in the developments accompanying REDD+, there are several layers of boundaries
that can be applied to a REDD+ and avoided deforestation project area. These areas can be
constructed as:
Level 1: Project area, for which the intervention should have its intended impacts;
Level 2: Buffer areas, for which the project anticipates impacts (positive or negative) beyond the
intended project intervention site; and
Level 3: Leakage monitoring, for potential displacement of emissions. Leakage monitoring is
important and quite complex to define an appropriate boundary, as it can also be cross-border in
nature, and therefore out of the control of the project area and national context.
All these levels need to be monitored for REDD+ projects. In some cases, a completely different
approach to monitoring is possible, that can include the intervention area and monitor for leakage,
using the Jurisdictional Nested REDD+ (JNR) approach.
According to Wunder (2009) there are some key clear-cut lessons related to geographical boundary
selection, which are the following ones:
• Target high-threat areas: spatial modelling, or even certain proxies, e.g., nearness to roads or
markets, can tell where the risk of deforestation is highest. Only PES in areas that are truly
threatened will mitigate climate change.
• Target high-service areas: other things (e.g., threats, costs) being equal, give priority to forests
with high carbon densities, to maximize the potential for mitigation.
As an additional consideration to Wunder (2009), one must consider the scope of revenue flows in
the context of geography. Wunder’s (2009) PES REDD+ lessons are pertinent to the international
context of using REDD+ and PES to halt deforestation in high forest cover with High deforestation
risk areas. Naturally this is highly applicable to larger countries with high forest carbon stocks at
risk, such as Brazil, Indonesia and the Congo Basin. However, other factors that should be
considered for allocating geographical boundaries includes the land ownership structure, as this
will ultimately determine what project interventions can be considered, and the associated
transaction costs.
Pakistan has moved quickly through its forest transition curve and has already lost a lot of its forest
cover and associated ecosystem services that those forests provided, therefore in the case of
Pakistan, geographical boundaries should be considered where the most important ecosystem
services can be recovered using forests (Indufor 2017; Arbonaut 2017). The proposed PES pilot
sites are situated in landscapes with highest carbon densitites and high risk of forest degradation.
Thus, there are high chances of avoidance of emissions through REDD+PES schemes in these areas.
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All PES schemes must also have clear time frames set from the establishment and this should be
evident in the PES contract. It is important to note that timeframes can vary depending on the PES.
For example, forest carbon project interventions and associated contracts can range between 20-
100 years depending on the voluntary market mechanism and the project methodology applied.
Debt-for-nature swaps are indefinite contracts that are used to remove a specified amount of debt
from a country’s accounts in return for a commitment to conserve nature, usually in the form of an
extended or newly established protected area. Watershed payments with hydropower utilities are
usually determined through national legislation, such as in the case of Lao PDR’s Nam Thun 2
hydropower PES. Biodiversity offsets are contracted lump sum payments, usually between a mining
company and a community to restore an allocated area. The contract duration typically extends for
the expected duration of the restoration period. This timeframe is normally set at twenty or more
years and can be extended with a renewal of PES contracts if involved parties so want. In pure PES
schemes such contracts are always voluntary, but it may sometimes be justified for a government
or authority organization to put some pressure on normally a buyer of PES services if it is
warranted from an environmental (or ecosystem) viewpoint. In the latter case, the PES scheme is
not considered pure, but it may be as effective, efficient and equitable as one that is considered
pure.
5.4.4 Perceived impacts
This element forms an impact assessment and evaluation tool, which should be thought through
already in the planning stages of a PES scheme. It will foremost deal with the following kinds of
issues:
Perceived impact expectations and assessments: Baseline assessment (ex-ante assessment),
intermediate and final assessments (ex post assessment), with and without scheme assessments
(i.e. also comparisons with external areas), effectiveness, efficiency, equity (or fairness),
sustainability of payments and services.
Lessons learned show that equity (or fairness that both relate to poverty reduction) and efficiency
(that relate to environmental improvements) objectives must be achieved simultaneously in
designing and implementing a sustainable PES scheme, especially in developing country contexts.
Neither equity (or fairness) nor efficiency is primary aim but an intermediate ‘fairly efficient and
efficiently fair’ PES may bridge the gap between PES theory and practice to increase sustainable ES
provision and improve livelihoods (Leimona et al., 2015).
Martin et al. (2014) further define effectiveness as the achievement of stated objectives additional
to what would have been achieved in the absence of the PES intervention. They provisionally define
efficiency in utilitarian, economic terms as maximizing total welfare it typically implies a ‘value for
money’ characteristic whereby human wellbeing outcomes are achieved at least cost so that we can
afford more of them. This is exactly opposite to the Leimona et al. (2015) definition in the previous
paragraph above that reserve efficiency for environmental improvements. These two contrasting
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definitions are good to keep in mind, when assessing international scientific articles on PES
arrangements.
Engel et al. (2008) also apply ambiguity in the definition of efficiency as they state that initially, the
PES concept was strictly defined as a market-based environmental policy instrument to achieve
environmental protection in the most efficient manner. Now they see that efficiency means
producing the greatest social value (that is determined subjectively by individuals and measured by
economists either in market or non-market valuation methods) for the least possible social cost. In
short, efficiency is achieved when net value is maximized, ideally resulting in positive net benefits.
Martin et al. (2013) further state that equity is not so amenable to a universal definition because it
is typically understood through reference to both objective and contextual assessments. In search
of a more objective and universal definition of equity, many professionals have tended to consider
‘equity’ to mean ‘pro-poor’. The equity refers in particular to impacts on the distribution of financial
costs and benefits but can further refer to the inclusion of local human interaction between
communities and authority bodies. In its strongest meaning equity considers that any deviation
from equal treatment should be positively in favour of the poor and, most particularly, the poorest.
In practice, this tends to be interpreted as a call for positive discrimination of the poorest and thus
to a narrowing of the gap between rich and poor. Whilst nobody denies that equity is important,
there is disagreement as to whether it should be a first order objective of PES.
FONAFIFO et al. (2012) found little evidence of trade-offs in poverty or equity objectives being sacrificed for environmental objectives in Costa Rica, Equador nor in Mexico. The challenge they saw was how to move towards a higher carbon additionality regime that targets higher risk forest areas without sacrificing social objectives. The same report argues that social trade-offs in REDD+ programmes can be minimized by combining a policy, governance and rights-based approach to REDD+ with targeted incentives to resource managers. The incentives system will need to tread a delicate balance between equity and carbon efficiency objectives so that it does not go too far in the direction of fairness and equity to enable a reduction in emissions from deforestation and degradation. If it goes too far in the direction of efficiency it will end up rewarding wealthy groups for inappropriate and often illegal behavior, increasing inequality, and undermining the political legitimacy of the entire endeavor (Kaimowitz 2008). FONAFIFO et al (2012) analysis also underlines the need to conduct rigorous ex-ante assessments
of the likely social outcomes (both beneficial and detrimental) according to different REDD+ PES
strategies. This will support PES planners to identify and prioritize strategies that minimize trade-
offs and/or aim for ‘win-win’ outcomes. Credible monitoring systems are also important for
adaptive management and to improve programme design—until there is better quality data, the
design structure will be constrained by contested perspectives on social impacts. One should try to
avoid loading too many social objectives on PES and REDD+ agendas, as other project interventions
are better at reducing poverty and empowering women. In REDD+ PES programmes it may be
better to favour a ‘do no harm’ strategy.
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5.4.5 Impact interpretation
Impact interpretation is important both during PES scheme design and later when the PES scheme
is being assessed at various stages of its duration. We see at least the following issues covered here:
Impact interpretation: Dealing with multiple objectives; Dealing with various changes; and
Allocating impacts for incorporated services.
5.5 Governance and benefit distribution systems
5.5.1 Governance structures in REDD+ PES projects The implementation of REDD+ PES projects is expected to generate benefits, both monetary and non-monetary. For most countries that carry out REDD+ PES activities, one of the most pressing tasks is to develop governance structures to distribute these benefits among stakeholders in an effective, efficient and equitable manner. A key feature that differentiates PES from other economic instruments is conditionality, that is, payments are made only if the actual service or the land use providing the services is delivered. To support performance there are also ways to improve the effectiveness of benefit sharing in a multi-level governance structure and to reduce the costs of REDD+ benefit-sharing mechanisms. Furthermore, the idea is to motivate both buyers and sellers of ecosystem services to participate in performance-based REDD+ PES and address the question of how to balance multiple objectives of REDD+ benefit sharing (Loft et al. 2014). An important question for REDD+ PES benefit sharing concerns the governance level at which benefits should be distributed. Experiences with PES schemes reveal a need to identify the scale and spatial distribution of providers (sellers) and beneficiaries (buyers) of ecosystem services when planning management. This will require both benefit distribution and cost compensation, as well as the support of existing or design new governing institutions. In the cases where providers and beneficiaries of an ecosystem service are both local, institutions can collect and distribute payments, which is the common case for most PES schemes related to watershed management. In contrast, services such as biodiversity, landscape beauty and carbon sequestration are managed locally but the beneficiaries are mostly sub-national, national or global. The benefit-sharing mechanism needs then to connect global beneficiaries with the local providers through intermediaries, to ensure the transfer of monetary benefits. The providers of the ecosystem service of carbon sequestration, achieved through afforestation and reforestation activities in developing countries, for instance, may be linked with the industrialized countries that benefit from enhanced uptake of CO2. This was the idea behind the Clean Development Mechanism (CDM) under the Marrakesh Accords. Intermediaries typically transfer knowledge, negotiate and/ or communicate the offered payments, make contracts with interested providers, monitor compliance and make payments. The World Bank has been one of the key intermediaries in relation to CDM and afforestation/reforestation programs. Since the largest buyer of carbon offsets prohibited the sale of land-based carbon credits on the European Union’s Emission trading Scheme (ETS), a fund based approach was used to transact Certified Emission Reductions (CERs) from Afforestation/Reforestation (AR) CDM schemes has been implemented through the World Bank’s Biocarbon Fund. Pham et al. (2010) found that the effectiveness of PES and its benefit-sharing mechanisms greatly depends on the following:
• the quality of intermediaries’ participatory work • the level of political influence over intermediaries’ activities
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• the neutrality of intermediaries • the capacity and accountability of each governance level in handling financial transactions
and the costs incurred by such multilevel governance. For national PES programs, most government intermediaries are state agencies that act on behalf of the end users by paying for the services provided or distributing payments to service providers. This is because such PES schemes are enacted through national legislation with an appointed agency to oversee and regulate such transactions. Government organizations can support the scheme by collecting payments and distributing the benefits to ecosystem service providers directly, or through involvement in trust fund models. In Son La Province in Vietnam, the Provincial Forest Protection and Development Fund arranges contracts with ecosystem service providers and signs contracts with buyers on the providers’ behalf. It then acts on behalf of the providers to collect payments from buyers and distributes these payments among the providers. In addition, the fund monitors the provision of ecosystem services (Tan, 2011). Using existing government administrative structures to set up PES schemes can reduce transaction costs, but operational costs of trust funds either within or outside government administrative structures can be high and often absorb a large proportion of PES payments (Vatn et al., 2011). For example, in Son La Province, the distribution of PES payments and administration of the Provincial Fund involves more than 3500 staff members and thus withhold more than 10% of total PES revenue. Weak financial management capacity and corruption at various government levels delayed the PES process has resulted in misuse of PES revenue (Pham et al., 2013). An analysis of 55 conservation trust funds suggests that having multi-stakeholder governance bodies can reduce the risk of corruption and political influence over spending decisions (Spergel and Taieb, 2008). Buyers often create their own intermediaries when they are the direct users of an ecosystem services (Wunder et al., 2008). These intermediaries are often non-governmental organizations (NGOs) that promote the interests of the poor, protect the environment, provide basic social services or undertake community development. Intermediaries that are outsiders often cannot capture and represent local interests, but few local intermediaries have the capacity to act on behalf of local interests. Connecting local providers of the ecosystem service of carbon sequestration and storage, with beneficiaries across the globe, requires government and/or private intermediaries at various scales. It is important to ensure that intermediaries at all levels have high-quality management skills and to build the capacity of local-level intermediaries (Loft et al., 2014). Based on the above mentioned experiences, existing government administrative structures will be used to set up PES schemes which will reduce transaction costs. Multi-stakeholder governance bodies will be established both at multiple levels to reduce the risk of corruption and political influence over spending decisions in the PES sites. 5.5.2 Monitoring and assessment of PES An essential element of performance-based benefit-sharing mechanisms under REDD+ and PES is monitoring the provision of the ecosystem service and the conditional disbursement of revenues. As in PES, REDD+ benefit sharing can take the form of an input-based, output based- or performance-based payment system, in which the landholders are rewarded for the actual performance or outcomes in terms of a verified provision of the ecosystem service. Benefit sharing schemes can also operate at the national level or subnational level.
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According to Clarke et al. (2011), an Input based benefit sharing set up, beneficiaries agree with the
benefit sharing mechanism management body to carry out specified actions, or refrain from certain
actions, in return for up-front monetary or non-monetary inputs from the benefit sharing
mechanism. No link is provided between the distribution of benefits and future measurable
performance of the outcome (e.g. sustainable forest management).
Potential funding sources for a subnational input-based benefit sharing mechanisms include public
funds (e.g., state-owned enterprise profits, or tax revenues collected at the subnational level or
allocated from the national budget) and international “Fast Start” donor funding. These funds are
directed into a subnational (e.g., provincial government) budget or benefit sharing mechanism fund.
This will be the preferred option for REDD+PES in the selected pilot sites as forests in these sites
are under the direct control of provincial governments.
A subnational benefit sharing mechanism administration body may be managed by a provincial
national REDD+ agency – e.g. provincial forest office, REDD cell etc. If a trust fund model is used, the
board may be composed of representatives from all the aforementioned stakeholder groups.
Funding is disbursed to the subnational benefit sharing mechanism administration body and/or
local government bodies for further disbursement to the benefit sharing mechanism beneficiaries.
Alternatively, monetary benefits may be disbursed directly from the subnational budget or benefit
sharing mechanism fund to benefit sharing mechanism beneficiaries. Subnational benefit sharing
mechanism seems to be more effective in the selected pilot sites of mangroves and moist temperate
forests of Kaghan as these areas are either owned by the provincial government such as reserved
forest in Kaghan and protected forests of coastal areas in Sindh and Balochistan or managed by the
government such as Guzara forests of Kaghan.
Non-monetary benefits (e.g., capacity building and training in forest management, FPIC, or
construction of public infrastructure) could be disbursed directly from the sub-national benefit
sharing mechanism administration body, local government bodies. For the first two options,
without the involvement of a technical intermediary, the potential to disburse non-monetary
benefits to benefit sharing mechanism beneficiaries is likely to be limited.
The degree of difficulty for making payments based on monitored outputs can be complicated further if the provided ecosystem service can only be measured and directly linked to the chosen land-use option, for which the expense of monitoring might be prohibitively high (Engel et al., 2008). In addition to monitoring the provision of ecosystem services and impacts, PES schemes require monitoring of timely provision of payments that also are included in contractual obligations. Such monitoring is in many PES schemes challenging because of weak law enforcement, low willingness to pay among buyers and low involvement of local people in designing benefit-sharing mechanisms. A trade-off exists between the precision in monitoring ecosystem services and the costs of measurement (Loft et al., 2014).
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5.5.3 Increasing the efficiency of benefit sharing mechanisms The costs of performance-based benefit-sharing mechanisms such as REDD+ PES take various forms that may comprise transaction costs of negotiations, contracting, administration, monitoring and enforcement of ecosystem service provision, and costs of incentivizing land-use change (Vatn et al., 2011). If the funds available through the benefit-sharing mechanism fall short of these costs, performance-based benefit-sharing mechanisms for REDD+ are unlikely to achieve their stated objectives (Karsenty et al., 2014). Studies from Costa Rica, Cambodia, Mexico, Tanzania, Mozambique, and Ecuador found that transaction costs can total up to 66% of the income generated through the PES schemes (Alston et al., 2013). PES transaction costs are influenced by the following (Loft et al., 2014):
• The number of actors involved in the scheme and the size of the area of the program, as transaction costs are lower when there are fewer actors in relation to the size of the scheme;
• The clarity of property rights over the ecosystem service itself or the land providing the ecosystem service, as clarity of property rights reduces the costs of determining landowners and reduces liability risks (here bundling of services could be useful to circumvent lack of clarity);
• The physical and economic characteristics of the ecosystem service (scale of benefit provision and degree of public good characteristics), as the more public good characteristics the ecosystem service has, the costlier it is to exclude actors without use rights;
• The governing institutions of the PES program, as the use of existing governance structures reduces costs.
Given the expense of linking the actual provision of an ecosystem service to a specific management activity, an alternative to the performance-based, and output-based approaches is to link conditional payments to effort and input (Alston et al. 2013). This means, for instance, that land-use types and land-use changes are used as a proxy for the provision of ecosystem services (Engel et al. 2008), and financial rewards are distributed to landholders so long they carry out activities that are assumed to improve forest conditions and hence enhance carbon stocks. Payments are then made on a per hectare basis (or other SI unit) to measure inputs (Engel et al. 2008). The high transaction costs pose a major challenge for performance-based benefit-sharing mechanisms. Options to reduce transaction costs include bundling large numbers of smallholders into groups of beneficiaries, making use of existing governance structures and conducting input-based monitoring for a transitional phase (Loft et al. 2014). Ultimately the design of the PES REDD+ mechanism, and its accompanying organizational set up will determine the viability of implementing such as scheme. Based on the above mentioned experiences, input based performance assessment will be used for non-carbon ecosystem services whereas for carbon sequestration or emissions avoidance performance based approach will be used for monitoring of PES schemes. 5.5.4 Improving the cost-effectiveness of payments The OECD (2010) recommended that enhancing the efficiency of PES benefit-sharing mechanisms within a tight budget can be done with target payments according to predefined objectives. Such PES should target areas with high provision of ecosystem services. If PES objectives include issues related to equity such as poverty alleviation, relative poverty can serve as a targeting criterion. The
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criteria can be combined with flexible payments proportional to criteria fulfillment. The challenge in cost targeting lies in estimating site-specific costs of ecosystem service provision, particularly opportunity costs (Engel et al. 2008). This is also part of the rationale behind input-based benefit sharing mechanisms, mentioned above. Payments may sometimes fail to reach the stakeholders that were actually targeted according to pre-defined objectives. Sometimes the participation of targeted poorer households may be limited because these households depend on their land for their livelihoods and so had less land available to include in the scheme. For REDD+ PES benefit sharing to be efficient and achieve its objectives, it is important not only to identify the specific objectives of the benefit-sharing mechanism and set targeting criteria accordingly, but also to monitor and adapt payments and targeting criteria where necessary (Loft et al 2014). In Indonesia, there are several PES initiatives in particular for watershed and biodiversity ecosystem services. The challenges in developing and managing PES schemes in Indonesia have been exacerbated by the complexity of institutional arrangements. Fiscal constraints are often the main obstacle of sustainable financing of PES mechanisms. Rules and regulations linked to the PES fiscal mechanism are many times missing, making it difficult for effective management of the schemes. Therefore, an efficient mechanism between users (companies) and environmental services is rather weak (Fauzi and Anna, 2013). The case of Indonesia reinforces the importance of design and organizational set up of the PES REDD+ mechanisms and benefit sharing arrangements, as critical success factors. In Pakistan sites selected for PES piloting have high provision of ecosystem services. Consideration has also been given to equity issues such as poverty alleviation and livelihood improvement. Pre-defined objectives will ensure that payments reach to the real stakeholders. Stakeholders participation will be ensured particularly owners and custodian communities of the forests in the selected areas. Institutional arrangements and transparent and equitable benefit sharing mechanism agreed by all stakeholders will be the key elements of the PES schemes. 5.5.5 Bundling of payments of ecosystem services According to Karsenty et al. (2014) changing land-use decisions should require that the REDD+ benefits distributed to landholders cover both the opportunity costs of potential loss of income from alternative use and the costs of actively protecting the land use against external threats. Such costs may vary substantially due to factors such as location, soil quality and type of production. It has been observed that PES programs that reflect ecosystem providers’ opportunity costs via differentiated payments are more cost-effective (OECD, 2010). Instead of designing a PES scheme for a single ecosystem service paid for by the beneficiaries at the same scale at which that service is provided, it is often better to increase the total benefits and match opportunity costs by bundling payments from several ecosystem service beneficiaries for the simultaneous provision of several ecosystem services across multiple scales (OECD, 2010). One could, for instance, combine payments by local beneficiaries for watershed services with international carbon finance, or with national or international payments for habitat conservation. Additionally, bundling can reduce transaction costs because a single institution could administer the whole scheme and thus manage the monitoring, reporting and verification of all the ecosystem services. Such coordination, however, will require the collection and distribution of benefits at multiple governance levels (Loft et al. 2014).
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5.5.6 Motivation of stakeholders to participate in PES schemes The size, type and timing of benefits distributed through performance-based mechanisms in PES schemes impact on land-use change, ecosystem potential and poverty alleviation among local communities. Alston et al. (2013) showed, for instance, that the provision of initial financial benefits upfront (i.e. tree or crop seeds) enables landholders to cover large upfront labour and opportunity costs of needed land-use change. This suggests that it may be advantageous to disburse benefits in intervals. Other PES schemes provide payments upon delivery of the service (i.e. conditional payments) and still some mix these approaches and provide payments both in intervals and for performance. In most of assessed the PES schemes, payments have been distributed annually on a per-hectare basis. Cash payments are not the only type of benefit, however. With PES generally in the pilot stage, most
programmes included capacity building activities, such as training and extension services (Branca
et al. 2012), and in-kind payments to individuals and communities (To et al. 2012; Pham et al.
2013). The term “Rewards from Ecosystem Services” (RES) constitute a broader concept, not only
focusing on financial transactions between stakeholders but also including in-kind rewards, such as
access to land, access to markets, capacity building and the recognition of identity and rights
(Leimona et al. 2014). In-kind compensation and capacity building are important as they have been
shown to enhance the effectiveness of payment schemes and “may reduce a breakdown in social
norms,” in contrast to cash payments, which potentially have a crowding-out effect on intrinsic
motivations for conservation (Vatn 2010, Alston et al. 2013).
Assuming PES and REDD+ participants as rational decision makers, they will most likely engage in a scheme if they receive benefits equal to or exceeding the costs of engagement (net benefits or rent) (Wunder et al. 2008, Karsenty et al. 2014). On the other hand, if priority is given to equal sharing of benefits regardless of beneficiaries’ legal, social or economic status, and regardless of the condition of the forest they are paid to conserve, each beneficiary may end up receiving only a small proportion of the total PES payments as they actually manage only a small area of forest (Pham et al., 2013). Such an approach does not create sufficient incentives to protect the forest or enhance its quality, which renders it ineffective. A major criterion for determining the level of benefits is therefore to include some form of cost calculation. In most of the cases reviewed, the benefit levels were set after partial cost calculation (Loft et al., 2014). In practically every case, payments should be based implicitly or explicitly on the cost of ecosystem service provision, rather than on the value of the ecosystem service (Wunder et al., 2008). The involvement of the local buyer of PES in measuring the environmental impact is emphasized as the buyers may have access to such measurement equipment, which a third-party institution will not have. The buyers and sellers should be involved in PES contract negotiations themselves in a transparent manner for achieving a good voluntary agreement between parties (Fauzi and Anna, 2013). In PES schemes where the government acts as intermediary, buyers and sellers alike have generally been uninvolved in the design and establishment of the benefit-sharing mechanism. This has happened in Vietnam, for example, where the government’s practice of unilaterally setting the level of payment with limited consultation with the involved buyer groups (water supply companies, hydropower plants) has led to a lack of compliance by buyers. The willingness to pay has therefore been low. On the other hand, if the Government establishes such a scheme through regulation, and
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can ensure implementation, the scheme has a higher potential to be effective. However, when it comes to price setting, the importance of a minimum level or awareness and consultation is important, to ensure that industry benchmarks and stakeholder expectations are managed. Also, NGOs often conduct monitoring of ecosystem service provisions and payment delivery. As the case of Vietnam shows, both buyers and sellers have demanded or expressed strong interest in participating in transparent monitoring and verification and in determining ways on measuring impacts (Loft et al., 2014). The exact value of an ecosystem service is often difficult to monetize when a market value does not exist, and the decision of the rational land user thereby depends on the income generated through other land uses – i.e. the opportunity costs. For a PES scheme to achieve its objectives, it requires sufficient and sustainable financing, which is better accumulating with multiple ecosystem services than with a single ecosystem service (OECD, 2010). Transparency through information exchange among actors is important for benefit-sharing mechanisms to be equitable and effective. However, this task is rarely completed, which weakens buyers’ willingness to continue to participate in the PES scheme. Some cases highlight a need for complaints procedures and dispute resolution mechanisms also (Loft et al., 2014). Pakistan has solid experience in setting up and managing grievance, redress and feedback mechanisms, and can therefore draw on nationally applicable lessons. 5.5.7 Secured rights to ecosystem services enhances benefit distribution Most PES schemes require some specific land use that will result in the actual provision of the ecosystem service. A question arises about which type of property right (common property or full private property, or usufruct) to the underlying ecosystem service resources and flows (such as trees, forest or land) service providers must have the right to use to be able to trade the service (Vatn, 2010). In many countries, including Pakistan, the property rights to the needed environmental resources that can provide the ecosystem service, not specifically defined, and therefore it remains unclear who has the right to the benefits. Therefore, necessary changes will be required in the existing laws and rules. Corbera et al. (2007) has argued that when specific legislation on property rights to ecosystem services is absent, the property rights to the environmental resources providing the service determines usually to whom ownership over the services is attributed and hence to whom the benefits from their commercialization accrue. This has also been the case in many of the PES schemes reviewed where such arrangements also apply to land held in common, in addition to private, individual land (Loft et al. 2014). Such complexity is normally related to conflicting legal systems, where an overlap between legal and factual property rights exist, i.e. where formal government or private ownership of land is not enforced and where local ownership is not formally recognized (Alston et al. 2013). 5.5.8 Balancing of conflicting objectives Assessed PES schemes often have enforced multiple objectives, such as the achievement of both the provision of ecosystem services (i.e. environmental effectiveness) and the reduction of poverty (i.e. equity) (Muradian et al. 2010). It is therefore necessary to state these objectives clearly and separately in terms of effectiveness, efficiency, equity, to support the scheme designing, and enhance transparency and avoid later political influence (OECD, 2010). REDD+ is developed as per definition, as a mechanism that aims to reduce emissions by securing the continued provision of carbon sequestration and storage by forests (Angelsen 2009). Similarly,
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many scientists and professionals want to see the primary objective of PES to be the provision of ecosystem services efficiently and effectively (Engel et al. 2008; Wunder et al. 2008). But, PES schemes mostly also involve an emphasis on equity in benefit sharing and livelihoods, as this will strengthen the perceived legitimacy of the scheme (Corbera et al. 2007; Muradian et al. 2010). The main reason for including the equity objective is to secure political support at the scale of implementation (Wunder et al. 2008). It has been noted many times that, where income generation is improved and poverty is reduced, service providers have a very good incentive to assist with service delivery rather than to undermine the project. This assistance additionally reduces the need for extensive external monitoring and helps to reduce transaction costs. Therefore, equity should be a central consideration when designing REDD+ benefit sharing (Alston et al. 2013). The challenge is that efforts to achieve all 3Es equally will most likely not succeed due to the inherent trade-offs between them (Muradian et al. 2013). Given the existence of socio-economic impacts over payments for the provision of ecosystem services, it is necessary, when designing conditional benefit-sharing mechanisms, to decide whether to build equity directly into the mechanism or address it through one or several instruments that accompany the mechanism. In both ways, PES benefit sharing will need to better link and integrate efficient conservation and social targets, as these jointly will determine the ultimate land-use decision. In many countries there are laws and regulations can at least be interpreted as providing the basic rules and incentives for PES schemes (Loft et al. 2014).
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Table 4. Characteristics of Selected International PES schemes.
Country & Name of PES
Type of PES Scheme
Total value of the Scheme
Financers Period Benefit Distribution Mechanism
Costa Rica: Pago por Servicios Ambientales, PSA)
(i) mitigation of greenhouse gas emissions; (ii) hydrological services, including provision of water for human consumption, irrigation, and energy production; (iii) biodiversity conservation; and (iv) provision of scenic beauty for recreation and ecotourism
US$ 10 million per year plus a one-time GEF grant of US 10 million and another German KfW grant of US$ 11.9 million (in 2003 rate).
The PES scheme is managed by FONAFIFO, a semi-autonomous agency with independent legal status. Most PSA financing obtained from FONAFIFO 3.5% of the revenues from a national fossil fuel sales tax (about US$10 million a year). The initial funding came from an airport fossil fuel tax. 2001-2006, the PSA was supported by a loan from the World Bank and a grant MUSD 10.0 from GEF (through Ecomarkets Project). A new Mainstreaming Market Based Instruments for Environmental Management (MMBIEM) project continued supporting the programme from 2007. Grants also from German aid agency KfW via the Huetar Norte Forest Programme.
From 1997 to date
FONAFIFO’s governing board composed of 3 public sector representatives (One each from Ministry of Environment and Energy, the Ministry of Agriculture, and the National Banking System) and 2 representatives from the private forest sector. Special Forest Law No.7575 explicitly recognized the role of forests in providing hydrological services. Payments from hydropower producers and other water users is envisaged as one of the legs on which the PSA programme stand. In 2005, Costa Rica expanded the use of water payments by revising its water tariff and introducing a conservation fee earmarked for watershed conservation. This fee generates an estimated US$19 million annually, of which 25% (about US$5 million) is channeled through the PSA. This new tariff is embedded in a Water Law. For forest conservation contracts, the service providers were paid US$43/ha/year, while a timber plantation contract paid US$550/ha over five years. In 2006 the same payments rose to US$64/ha/ year, and US$816/ha (over 10 years).
Vietnam: PES Scheme in Lam Dong Province and
Various Ecosystem Services from forest lands such as water regulation, soil
Annual revenue accumu-lation of US$
Government Decision 380 set an environmental service fee for hydropower plants in Lam Dong province at 20 VND (0.125
First payments made in 2009 and
Almost all forestlands in the Lam Dong province are managed by 13 state entities (i.e. management boards of protection and special use forests, state forest enterprises, and private
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Son La Pilot PES Scheme (the later has a similar structure). However, here is mainly Lam Dong PES described
protection and scenic landscape preservation were the most important services of this forest area to be included. Other services such as carbon sequestration and biodiversity conservation were not included.
2.8 million (at 2009 prices)
cents) per kilowatt hour of electricity produced; for water supply companies the fee was set at 40 VND (0.25 cents) per cubic meter (m3) of water supplied.
thereafter continu-ously each year. No end date set.
enterprises renting the land for agroforestry production and ecotourism. The remaining land is managed by 564 households, that have been allocated 2,356 ha of forest with land titles in Lam Dong. Initially three watershed areas were selected as pilot sites. These areas provided ecosystem services to four buyers: two hydropower plants, one water supply organization and one tourism company. The provincial Peoples’ Committee requested the buyers to pay the service fee from the beginning of 2009, generating a total annual revenue of US $2.8 million. Three annual payments were included at US $16/ha for water regulation, US $15/ha for soil protection, and US $0.5/ha for scenic landscape values. the money paid to 3400 households, that each has been allocated 20 ha, which makes USD 630/ household/year.
Mexico: The National Programme for Hydrological Environmental Services - PSAH
Constitute three national PES programmes: Payments for the Carbon and Biodiversity Services (PSA-CABSA), Payments for Environmental Services (PSAB), and the National Forestry Fund
Totally, 2.2 million ha are covered by the PES programmes (94pprox.. US$ 132 million per year).
Mexico’s lakes, rivers and lagoons are considered national property, the government invoked the Federal Rights Law (Ley Federal de Derechos) to levy a fee for water use. A share of this taxation is channeled into the 3 national PES programmes.
The 3 programmes provide economic incentives for farmers and landowners all over Mexico to conserve forests, thereby improving the country’s aquifers. Landowners are paid US$40/ha/yr for preserving cloud forest and US$30/ha/yr for conserving other types of forest. Maximum limits are 200 hectares for private landowners and between 20 and 3,000 hectares for communities, depending on their size. Unfortunately, the payments are now often lower than other land opportunity cost. Payments have thus been since 2011 set between USD 28 to USD 100 per ha by considering service providers’ unique opportunity and transaction costs and starting points.
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Equador: Payments for Hydrological Environmental Services Ecuador
Forest ecosystem protection including water regulation, watershed protection, forest protection.
The budget is based on an excise tax to companies that is defined as a maximum of 10 % of the drinking water tariff to be used for basin conservation
The leaders of the process are bottled water companies, municipalities, and other social groups (corporations, associations, and councils) to encourage conservation. Payments for Hydrological Environmental Services are supported by the Constitution of Ecuador, through its public interest in the conservation of biodiversity and maintenance of ecosystem services. At the legal level, recognition of PES is given in the Law on conservation and sustainable use of biodiversity. Tax incentives aimed at environmental actions are constitutional. All experiences are based on bylaws and regulations for the operation of the collection and payment mechanisms for watershed conservation.
From 2005 forward
Programs of environmental protection and sustainable use. Economic incentives for productive activities focused on environmental protection. Fees for the right to water use. Specialized business cards intended for protection areas. Exemption from taxation of rural property. Fees or charges for the service water supply for consumption. Trust in government and non-government budget. Quote from private companies 10 % investment watershed protection.
Other benefits relate to environmental communication. Community resource management. Creating basin management agencies. Institutional Support.
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Indonesia: The payment for environ-mental services scheme in Lombok, West Nusa Tenggara (several similar schemes in Sumber Jaya, Lampung; in Sungai Wain, East Kalimantan; in Cirebon-Kuningan, West Java; and in other locations)
Mountain forest ecosystem services including water regulation (both quality and quantity)
Since the disbursement of the first funding in 2009, more than US$44,500 has been distributed to four farmer groups in different villages by 2013
The PES scheme is relatively simple. Farmers in the upstream area are compensated for planting trees and preserving water resources. The source of funding derives from the downstream users of the water resources. In this case, the funding source comes from households in the city of Mataram who use tap water from the regional drinking water company known as Perusahaan Daerah Air Minum (PDAM) or Regional Company of Drinking Water. The water users (i.e. the registered tap water households) pay a flat rate of Rs. 1000 per month (approximately 10 USD). Even though the initial proposal of PES scheme also included having hotels and restaurants pay the same charge, this has not been implemented due to legal reasons.
From 2009 forward
The payment is embedded in the residents’ monthly water bill and is designated specifically as a PES. It is enforced by local regulation (bylaw). The payment is mandatory rather than voluntary, which differentiates this scheme from a typical PES scheme. The money collected from the water users is then managed by a multi-stakeholder institution (IMP) consisting of local government agencies (led by the forestry agency), NGOs, the drinking water company (PDAM), and representatives of the upstream communities. The IMP is recognized in the Mataram City Bylaw and, there-fore, is the official agency that manages the PES scheme in the watershed areas of Lombok. The revenue is collected from PDAM by Dinas Pendapatan Daerah (DISPENDA) or the Local Revenue Office and is deposited in the Local Revenue Office under the Local Forestry Office’s account. The Local Revenue Office then distributes the funding to the IMP, which then allocates the money throughout the forested community based on proposal programs submitted to the IMP. After a proposal is approved and funding is received, the forest restoration programme is then carried out by the community. Payments are results-based and monitored by a hydropower company.
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5.6 Lessons learned from International PES Experiences The environmental services of Costa Rica PES scheme are very similar to conditions in Kaghan where there is a good opportunity of services like (i) mitigation of greenhouse gas emissions; (ii) hydrological services, including provision of water for human consumption, irrigation, and energy production; (iii) biodiversity conservation; and (iv) provision of scenic beauty for recreation and ecotourism. The scheme is co-financed by GEF and German KfW as well as revenues from a national fossil fuel sales tax. Such type of payment mechanism can be devised for Kaghan where international donors like GEF can contribute for biodiversity conservation, GCF can provide fiancés for mitigation of greenhouse gases and WAPDA can contribute for provision of water for Hydropower and Irrigation. This new tariff is embedded in a Water Law to generate revenue for the PES. The Vietnam PES scheme can also provide good example for Pakistan to design PES for scenic area like Kaghan where thousands of tourists visit the area and enjoy the landscape every year. This tourism industry can be regulated through law to collect revenue for PES. Beside the Government of Vietnam has set an environmental service fee for hydropower plants 0.125 cents per kilowatt hour of electricity produced; for water supply companies the fee was set at 0.25 cents per cubic meter (m3) of water supplied. Similar environmental service fee can be imposed by WAPDA to secure finaces for PES in Kaghan and other similar areas. Three annual payments were included at US $16/ha for water regulation, US $15/ha for soil protection, and US $0.5/ha for scenic landscape values. These estimates can be considered while valuating the environmental services in Kaghan and other similar areas. The Mexico PES schemes are also based on taxation on hydrological services. The government has amended the law to levy a fee for water use. A share of this taxation is channeled into the 3 national PES programmes. Landowners are paid US$40/ha/yr for preserving cloud forest and US$30/ha/yr for conserving other types of forest. Maximum limits are 200 hectares for private landowners and between 20 and 3,000 hectares for communities, depending on their size. Similar PES schemes have been put in place in Equador where bottled water companies, municipalities, and other social groups (corporations, associations, and councils) have brought under tax regime to pay for Hydrological Environmental Services. In Indonesia farmers in the upstream area are compensated for planting trees and preserving water resources. The water users pay a flat rate of USD 10 per household month. These experiences carry meaning for Pakistan where no compensation is paid to the upstream communities for protecting watershed areas.
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6. FINDINGS, GAPS AND PROPOSED MEASURES
6.1 FINDINGS
The findings given below are based on an analysis of the existing policies, laws, rules and
institutional arrangements using the analytical framework given in section 4.1 of the report as well
as international experiences for the design and effective implementation of REDD+ and PES
schemes in Pakistan. It has to be noted that some of the proposed measures will require substantial
political and policy makers’ commitment if these are to become a reality. For example, addressing
the skewed distribution of landed property ownership will require land reforms which is a difficult
political issue in the context of Pakistan. Similarly addressing the squatting and encroachments on
forest lands are other issues that would need substantial political and policy makers’ commitment.
Also, some of the findings and proposed measures lie outside mandate and influence of forestry
sector and therefore forestry professionals will have to do a lot of awareness creation and
sensitization of the policy makers as they cannot do this on their own.
The constraints mentioned below are linked to the threshold conditions provided in the analytical
framework.
Level I Threshold Conditions: The first level Threshold Conditions for PES ensure that the
fundamental or threshold conditions are in place for buyers to feel that there is sufficient stability in
place to consider entering in these business arrangements. These are therefore critical to and without
which PES implementation will be constrained. Therefore, removing or easing these constraining
factors will contribute to smooth implementation of PES in the country. Level I issues are described
below:
▪ Although there are constitutional provisions pertaining to private property ownership,
there are no specific constitutional provisions that mandate payments to upstream
custodians of watershed resources by the downstream beneficiaries of hydel power and
water resources.
▪ Foreign-controlled companies that are incorporated in Pakistan can own land in Pakistan.
Foreign individuals must obtain permission from the Home Department before acquiring
land in Pakistan (Martindale- Hubbell 2008).
▪ Skewed distribution of landed property ownership in Pakistan.
▪ Widespread squatting and encroachments on forest lands.
▪ Protracted and prolonged property and land disputes resolution mechanisms under the
civil laws of Pakistan.
▪ Costly process of land disputes resolution.
▪ Complicated and cumbersome encroachments evacuation problem.
▪ Inter-gender differences in property and land ownership, mostly due to customary
practices. Linking statutory law with local customary law could be an option for ensuring
that women have rights to property as established in statutory law.
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Level II Essential Aspects to be developed in Parallel with PES: The second level of preparedness,
while important for well-functioning PES, may be developed adaptively as needs and options become
clearer via PES experience on the ground. Problems associated with Level II include the following:
▪ Lack of awareness and capacity for property disputes resolution.
▪ Non-computerization of land records.
▪ Land scarcity, competition for land for alternative land uses and non-availability of land use
planning process.
▪ Lack of capacity for resolving various institutional elements pertaining to property and land
ownership. These among others include: tenure security, land policy, legal framework, and
dispute resolution, organization & mandates, capacity and human resources, land
administration process, data organization, coordination & data sharing, and financing &
data costs.
▪ Lack of capacity for resolving various technical elements of property. These include:
strategic plans users’ needs, technology adoption, training and development, land
information system design, workflows, quality standards, and services & products.
▪ Poverty is highly correlated with landlessness and is seen as contributing to political and
social instability. Enactment of a comprehensive legal framework for establishing more
equitable access to property and more transparent land administration could, many
analysts believe, contribute to both political and economic development objectives.
▪ Repeated government attempts to address inequality of access to land and tenure insecurity
have largely failed to transform the system.
▪ Tenants and sharecroppers have little incentive to invest in sustainable production
practices.
▪ Insecure land tenure at times have led to increasing degradation of land.
▪ Given Pakistan’s history, however, the preparation and administration of conducive and
equitable land ownership and access framework would require substantial and sustained
leadership on the part of both federal and provincial governments.
▪ The establishment of a land registration system that incorporates the current tax-revenue-
based system of records with standardized documents and registries could increase tenure
security and reduce land-based conflicts.
Level III Conditions for Streamlining PES: Streamlining PES conditions include non-urgent
aspects that may be important to streamline or scale up PES, depending on the particular
circumstances. These are mostly related to maintaining and expanding PES infrastructure and
ensuring financial resources for PES. Constraints to Level III include the following:
▪ PES projects investors in Pakistan are exposed to a high number of risks. These can be
broadly classified into technical risks, commercial risks, market risks and, and political
risks. Given the long duration of many PES investments, the likelihood of a so-called ‘risk
event’ occurring over the life of an investment is higher than for other shorter-term
investments. Accordingly, the return requirements of PES investors are high as well.
▪ Technical risks of PES investments are related to leakages and non-permanence issues.
Leakages refer to the displacement of the problem. The displacement could be due to
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geographical shifting of the problem from one place to another, or due to product shifting or
alteration in the source of the problem. Non-permanence problems arise when the solution
to the ecosystem degradation problem is not considered long-term and permanent. For
example, for forest carbon, a reversal of carbon storage can happen from human activity
(e.g., logging) or unforeseen natural events (e.g., forest fires, pest outbreaks).
▪ Commercial risks are also present. These happen when the commercial operations of eco-
system services of a PES investment itself will fail – or fail to create adequate value.
▪ Market risks are a possibility when the surrounding business or financial market
environment will cause a PES business to fail or reduce the value to the investor of the
returns generated by a PES business.
▪ Political risks of a PES investment in Pakistan are associated with actions of sovereign or
sub-sovereign entity that will cause a PES business to fail or reduce the ability of the
investor to extract capital from a PES investment.
▪ Within these four risks types, there are a number of specific risks that an investor will either
accept or attempt to mitigate.
▪ The current NFC Award does not have any specific allocation for the development of
watersheds and PES related financial transfers. Making such provisions would help in
institutionalizing PES in the energy and water sectors.
6.2 GAPS IN EXISTING LAWS WITH RESPECT TO REDD+PES
There are gaps in forestry and wildlife laws regarding the promotion of PES in Pakistan. These gaps
will have to be fulfilled through revision of the laws. Meeting these gaps are critical as laws provide
the threshold conditions for implementation of PES in a country.
Fisheries laws for the most are outdated and cannot serve the purposes of PES.
Environmental laws have too vast mandates given to the Environmental Protection Agencies which
do not have the capacities to deliver on their mandates. As a result, most of the environmental laws
that affect PES program implementation remain un-enforced.
Climate Change related legislation is new and in accordance with modern day requirements
regarding climate change adaptation and mitigation needs of the country. Though cursory
references have been made to REDD+, the concept of PES and REDD+ have not been fully
incorporated in the legislation. At present appropriate institutional mechanisms do not exist for
implementation of the climate change laws.
There is lack of a comprehensive legal framework governing land rights, absence of standardized
documentation and registries of land rights, ineffective formal dispute-resolution systems, and the
strength of multiple customary laws create insecurity of land tenure for owners and potential
purchasers (Jacoby and Mansuri 2005).
At times there are issues pertaining to property rights protection, property and land ownership
concentration, legal framework, organizational/administrative framework, and property and land
administration processes for the land record preparation and maintenance from the stakeholders’
point of view. These are discussed below:
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There have been problems in addressing the skewed distribution of property and land ownership
in Pakistan.
There are procedural problems in addressing squatting and encroachments on landed property.
Vacation of encroachments is a cumbersome and lengthy process.
Most of the sector policies have been prepared from the perspective of the sector as a whole. They
are not and cannot be PES specific. Therefore, the best approach to address their gaps vis-à-vis PES
is to incorporate those concerns in REDD+ Strategies at the national and provincial levels.
Changing the sector policies will be a lengthy and protracted process.
At present appropriate institutional arrangements for PES and REDD+ do not exist either at the
national level or provincial levels. Putting in place appropriate institutional arrangements is critical
for successful implementation of PES in the country. This gap will have be met on a priority basis as
it is one of the essential conditions for PES implementation.
6.3 PROPOSED MEASURES
In order to fill the gaps in the existing policy, legal and institutional frameworks and create
conducive environment for REDD+ PES implementation in the country in general and the two
selected ecosystems in particular, different measures related to policy, legal , institutional and
governance frameworks are proposed in the following lines.
6.3.1 PROPOSED POLICY MEASURES
Policy innovations in support of Pakistan REDD+ Program and Provincial REDD+ Programs can be
implemented in a number of ways. Here we present three possible options:
▪ Providing for and incorporating all the below given REDD+ Policy Innovations in the
National REDD+ Strategy and Provincial REDD+ Strategies. This option seems to be the
easiest, least disruptive and the most pragmatic option implementation-wise given the fact
that work is on-going on the preparation of Pakistan National REDD+ Strategy and KP
Province has also prepared first draft of its Provincial REDD+ Strategy. Sindh Province will
either adopt the National REDD+ Strategy or follow KP province and start work on
preparing its own strategy which is integrated with the National REDD+ Strategy.
▪ The proposed REDD+ Policy Innovations are incorporated into the existing Forest Policies
by revising them and then following the process used in approving a revised policy
document. This involves some time and effort in revising the existing documents and then
following them through the approval process. It is intermediate in difficulty wise.
▪ A new REDD+ Policy Document is prepared and adopted. Time and effort wise this is the
most laborious option and will require political and policy makers support.
Whichever route is followed, following are the key elements which will have to be provided for so
as to cater to the policy needs of REDD+:
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▪ Provisions for effective engagement of stakeholders at all stages of the REDD+ process, from
design, development, and implementation all the way up to monitoring and evaluation
following a cyclic and adaptive approach.
▪ Strengthening of social inclusion and addressing equity issues, inter-gender, inter-
generation and intra-generational.
▪ Creating an appropriate framework for building a strong land and resource related tenure
foundations of REDD+.
▪ Provisions for developing and sustaining an appropriate REDD+ Architecture.
▪ Provisions for addressing, respecting and reporting on all Cancun Safeguards and other
Social and Environmental Safeguards.
▪ Provisions for building and institutionalizing a National/Sub-national Forest Monitoring
System and Measurement, Reporting and Verification of REDD+ Activities.
▪ Provisions for Establishing Credible Forest Reference Emission Level/Forest Reference
Level.
▪ Provisions for ensuring adequate finances for the REDD+ program.
▪ Provisions for Incentives and fair and equitable distribution of incentives and benefits.
▪ Provisions of strengthening legal aspects of the REDD+ program.
▪ Provisions for the engagement of private sector, knowledge providers and other
stakeholders.
▪ Provisions for controlling the direct and indirect drivers of deforestation and forest
degradation.
▪ Provisions for effective cross-sectoral linkages and coordination mechanisms with other
key sectors in the economy like energy, agriculture, livestock, social welfare, poverty
reduction, etc.
▪ Provisions for strengthening forest governance.
▪ Provisions for addressing the risks of non-permanence.
▪ Provisions for addressing the risks of leakages shifting and displacements control.
▪ Provisions for ensuring no-harm principles.
▪ Provisions for the involvement of women in the whole REDD+ process.
▪ Provisions for ensuring value chain.
▪ Provisions for awareness creation and capacity building of all stakeholder groups including
Free, Prior and Informed Consent for REDD+ projects.
6.3.2 PROPOSED LEGAL MEASURES
Legal reforms are needed so as to ensure that REDD+ programs are efficient, effective, and
equitable besides being ingrained in good governance including transparency and accountability.
This also means that human and resources rights of people are not adversely affected. Cancun
REDD+ safeguards ensure no harm to people, no harm to environment, and no harm to governance.
By doing so they protect among others the following human rights: right to self-determination;
right to culture; rights to land, territories and natural resources; right to participation; access and
right to information; free, prior and informed consent; access to justice and effective remedy; right
to non-discrimination and equality; protection of rights of indigenous peoples; protection of women
rights; protection of rights of children; freedom of assembly; freedom of expression; right to fair
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trial; right to life; right to food; right to water; freedom from torture/violence; freedom from
servitude; right to religion; right to health; and protection from displacement/involuntary
resettlement.
There are a number of international instruments that are relevant to REDD+. These, for example
include:
▪ United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)
▪ International Labor Organization’s Convention No. 169 (ILO 169)
▪ Universal Declaration of Human Rights
▪ International Covenant on Civil and Political Rights (ICCPR)
▪ International Covenant on Economic, Social and Cultural Rights (ICESCR)
▪ International Convention on the Elimination of All Forms of Racial Discrimination (ICERD)
▪ Convention on Elimination of All Forms of Discrimination Against Women (CEDAW)
▪ Convention on the Rights of the Child
▪ UNESCO’s Convention on Protection and Promotion of Diversity of Cultural Expressions
(CPPCDE)
▪ World Heritage Convention
▪ Convention on Biological Diversity Decision on REDD+ Safeguards
▪ UNFCCC Decision on REDD+ Safeguards
While ensuring legal preparedness for REDD+, relevant sections and provisions from these laws
will have to be provided in the country’s and sub-national laws. Currently, the rights associated
with carbon benefits that will accrue from REDD+ program implementation are ill-defined in
Pakistani laws. Hence, it is important that carbon benefits related rights are provided in the
national and provincial forestry legislation. In addition, it is not just provision of these rights in the
laws, awareness about the existence of rights, the strength of rights enforcement systems and local
governance systems are crucial for providing the security that carbon benefits are realized at the
local level and they are distributed to the appropriate stakeholders.
It is therefore proposed that the existing laws be revised so as to have appropriate definitions
related to ecosystem services of forests in the definitions section and an exclusive chapter on
strengthening and codifying the role of forests in the provision of its various ecosystem services.
Accordingly, the following terms as defined below may be included in the forestry legislation:
“Ecological character” means combination of the ecosystem components, processes, and services
that characterize the forest ecosystem at a given point in time.
“Economic instrument” means one of the tools for environmental protection that makes use of fiscal
incentives (subsidies) and deterrents (taxes, levies, charges, etc.) as well as market measures such
as carbon credits and tradable emissions permits, rather than regulating specific outcomes.
“Ecosystem” means a dynamic complex of plant, animal, microorganism communities and their
non-living environment, interacting as a functional unit. Ecosystems are irrespective of political
boundaries.
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“Ecosystem approach” means a strategy for the integrated management of land, water, and living
resources that promotes conservation and sustainable use in an equitable way.
“Ecosystem services” means processes and functions provided by natural ecosystems that sustain
life and are critical to human welfare. These are benefits people obtain from ecosystems and
include provisioning services such as food, water, fiber, timber, biochemicals, fodder, fuel wood,
etc.; regulating services such as climate regulation, biodiversity conservation, regulation of floods,
drought, land degradation, diseases and pests regulation; supporting services such as soil
formation, nutrient cycling, habitat provision; and cultural services such as recreational,
educational, scientific, spiritual, religious and other non-material benefits.
“Ecotourism” means travel undertaken to witness sites, areas, or regions of unique natural or
ecologic quality, or the provision of services to facilitate such travel.
“Endangered ecosystem” means an ecosystem of exceptional biodiversity value or habitat of an
endangered or endemic species which has undergone severe degradation.
“Forest carbon” means carbon that is stored in forest biomass, forest soil and other forest carbon
pools, and the carbon that will be sequestered in them over time.
“Forest carbon flux” means the exchange of forest carbon between different forest carbon pools and
the atmosphere.
“Forest carbon pools” means those parts of the forest ecosystem where forest carbon is stored and
includes above ground biomass (both live and dead); below ground biomass (both live and dead);
small twigs, leaves, herbs, grasses and litter; organic forest soil carbon; and carbon stored in
harvested wood products.
“Forest carbon rights” in relation to forest land means the exclusive legal right to obtain the benefit
(whether present or future) associated with the stored forest carbon and any carbon sequestered in
the future, by any existing or future tree or forest on the land. It is thus the right of a person, group
or an entity to the legal, commercial, economic or other benefits (whether present or future) from
exploiting the forest carbon.
“Forest carbon sink” means the natural features (forest, trees and soil) that hold and absorb carbon
from the atmosphere.
“Forest carbon stock” means the total carbon stock existing in different forest carbon pools at a
given time.
“Forest produce” includes:
(a) The following wherever found: timber, bark, charcoal, gum, natural varnish, resin, rosin, lac
wax, wood oil and derivatives thereof;
(b) The following when found in or brought from a forest:
(i) Trees, leaves, flowers, fruits, seeds, roots and all other parts or produce of trees including
fuel wood;
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(ii) Plants not being trees including grasses, creepers, reeds, mosses, mushrooms, medicinal
and aromatic plants and brushwood, and all plants and produce of such plants and other
non-wood produce;
(iii) Biodiversity and biodiversity services found within forest area;
(iv) Forest carbon and forest soil carbon and carbon sequestration by forest;
(v) Wildlife and all other parts or produce of wildlife, including skins, horns, bones, silk,
cocoon, honey, wax;
(vi) Peat, surface soil, water, snow, salajeet, sand, stones, rocks and minerals including mineral
oil, limestone, laterite, marble and all products of mines and quarries;
(vii) Standing or harvested crops and grains thereof such as wheat, barley, maize, rice, pulses,
and any other crop and produce thereof;
(viii) Any other produce or ecosystem services, which may be notified as forest produce by
Government from time to time.
“Forest Reference Emission Level/Forest Reference Level” means the amount of gross/net carbon
dioxide equivalent expressed in tons per year that is a bench mark for assessing each country’s
performance in implementing REDD+ activities under the UNFCCC.
“Indigenous knowledge system” means the system of norms, culture, rites, rituals and other
biodiversity, forest and wildlife conservation and management related practices of communities
which have been proved to enable communities interact with and utilize these resources in a
sustainable manner.
“Indigenous peoples” means people whose social, cultural and economic conditions distinguish
them from other sections of the national community and whose status is regulated wholly or
partially by their own customs or traditions or by special laws or regulations.
The ecosystem services chapter inter alia should have sections to address the following issues:
Valuation of Forest Ecosystem Services.---(1) Department shall take steps to estimate the total
economic value of forest ecosystems using internationally acceptable valuation techniques for
valuing such system services.
(2) Government may make rules for the purpose.
Building Payments for Ecosystems Services Projects.--- (1) Department, in consultation with
Government, build Payments for Ecosystems Services Projects to mitigate climate change, conserve
biodiversity, watershed protection, or any other ecosystem service to strengthen forest tenure and
benefit sharing arrangements and for socio-economic development of local communities.
(2) Government may make rules for the purpose.
Protection of Forest Carbon Rights.--- Government shall take steps to protect and enforce forest
carbon rights of local communities.
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Forest Rights and Resources.---(1) Forest rights are related to and linked with forest resources.
Government shall therefore ensure the protection, conservation, development and sustainable
management of forest resources.
(2) Government may make rules for the purpose.
Benefit Sharing of Forest Ecosystem Services.--- (1) Government shall ensure equitable sharing of
forest ecosystem services including forest carbon rights to the forest owning communities and
relevant stakeholder groups.
(2) Government may make rules for the purpose.
Cancun and other Social and Environmental Safeguards.--- (1) Government shall ensure that the
Cancun and other applicable social and environmental safeguards are addressed, respected and
properly reported on to the concerned forum.
(2) Government shall develop a proper Safeguards Information System (SIS) for the purpose.
(3) Government may make rules for the purposes of this section
6.3.3 PROPOSED GOVERNANCE AND INSTITUINAL ARRANGEMENT FOR REDD+PES
REDD+ program management in Pakistan as well as at the Provincial level is a multi-objective,
multi-functional, multi-actor and multi-scale phenomenon. It is multi-objective because the person
at the helm of affairs has to ensure that the multiple program objectives (carbon sequestration,
biodiversity conservation, community development) are achieved in an effective, efficient and
equitable manner. There also has to be an effective participation of all the relevant groups.
Moreover, different principles and elements of good governance such as access to information,
transparency, accountability and results-based orientation will have to be paid attention too.
REDD+ program is multi-functional because in involves numerous functions such as program
design and planning, program implementation and coordination, program monitoring and
oversight, program evaluation, networking and public relations management, motivation and
communication etc. It is multi-actor as it involves different roles and functions like putting in place
and strengthening policy, legal and governance frameworks; carrying on planning and decisions
making processes and functions; and implementing, compliance and enforcement. Finally the
program is multi-scale as it can be implemented as a project, at the provincial level as well as at the
national level
Having so many dimensions means it requires very meticulous design and planning. Therefore, the
governance and institutional arrangements for REDD+ must ensure that all these dimensions of
REDD+ are implemented with due diligence and care too.
The proposed innovation is to make use of institutional arrangements that can perform and deliver
on the following:
Technical and Program Functions related to PES/REDD+:
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▪ Program Planning Function
▪ Program Technical Aspects Management Function
▪ Program Service Delivery Function
▪ Program Monitoring and Evaluation Function
▪ Use and Management of Other Needed Knowledge and Skills
Administrative and Support Functions related to PES/REDD+:
▪ Administrative procedures and management systems
▪ Financial management (budgeting, accounting, fund raising, and sustainability)
▪ Human resource management (staff recruitment, placement and support)
▪ Management of other resources (information, equipment, infrastructure, etc.)
Resources Needed for PES/REDD+:
▪ Human Resources
▪ Financial Resources
▪ Technical and Other Resources
Structure and Culture:
▪ Vision and purpose
▪ Governance Approach
▪ External Relations Management
The Following Institutional and Governance Mechanism is Proposed for REDD+PES
Federal Level
National REDD+ Office already established in the Ministry of Climate Change be strengthened
through provision of the resources mentioned in the above section and its scope should be
expanded to cover other ecosystem services as well. The set-up should be regularized and brought
under normal budget. National REDD+PES Office should perform the roles of coordination,
facilitation with provinces and accessing national and international donors for REDD+PES Schemes.
Provincial Level
Provincial level institutional arrangements are currently being established in the provinces for
REDD+. Provincial REDD+ Focal Points have already been notified and Provincial REDD+
Management Committees have been established in the provinces. Provincial Grievance and
Implementation Unit (PGIU) will also be established in provinces. In addition to these
arrangements, Khyber Pakhtunkhwa has proposed a comprehensive governance
mechanism for REDD+. It is suggested that its scope should be broadened to include other
ecosystem services and payment mechanisms for all of them. The proposed institutional
setup is given below:
Provincial Level Set-Ups
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- Provincial REDD+/PES Board
- Provincial REDD+/PES Management Committee
- Provincial REDD+/PES Thematic Working Groups
- Provincial REDD+/PES Management Unit
- Provincial REDD+/PES Research Unit
Regional and Forest Circle Level Set-ups
- Regional REDD+/PES Management Units, one each at Forest Region Level in the province.
- Forest Circle Level REDD+/PES Social and Environmental Safeguards and Grievance
Redress Mechanism.
Forest Division Level Set-Ups
- Forest Division Level REDD+ Social and Environmental Safeguards and Grievance Redress
Mechanism
I. Provincial REDD+ Board
Provincial REDD+ Board will be the REDD+ Apex Body at the province level.
Composition of the Provincial REDD+ Board
The Provincial REDD+ Board will have members from government departments, international
organizations, community groups, civil society organizations, industry, women and relevant
academic institutions. It will be chaired by the Additional Chief Secretary of the province. Its
members will include:
▪ Secretary Forestry, Environment and Wildlife Department.
▪ Secretary, Finance Department.
▪ Secretary, Planning and Development Department.
▪ Secretary, Agriculture and Livestock Department.
▪ Secretary, Fisheries Department.
▪ Senior Member Board of Revenue.
▪ Secretary Mines and Minerals Department.
▪ Secretary Local Government and Rural Development Department.
▪ Secretary, Law Department.
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▪ Representative of IUCN Pakistan
▪ Representative of WWF Pakistan
▪ Representative of Civil Society
▪ Representative of Industry
▪ Representative of Academic Institutions
▪ Representative of Women
Secretary Forestry, Environment and Wildlife Department shall act as Secretary of the Provincial
REDD+ Board.
Roles and Functions of the Provincial REDD+/PES Board
The REDD+ Board will carry out steering and liaison function involving the approval of REDD+/PES
policies, plans, laws and programs. Detailed functions of the Provincial REDD+ Board with respect
to the above role include:
▪ Act as a Think Tank and Strategic Resource for Sustainable Forest Management and
REDD+/ PES related matters by giving vision and framework;
▪ Review, develop and advocate for policies, laws and institutions for Sustainable Forest
Management and REDD+/PES;
▪ Review and approve the State of Forestry and REDD+ /PES Report of the Province;
▪ Brief and Inform the Chief Minister and Minister-Incharge about the State of Forestry and
REDD+/PES Report of the Province;
▪ Appraise the performance of the Department with regard to Sustainable Forest
Management and REDD+/PES;
▪ Coordinate with Federal Government on REDD+ /PES related matters;
▪ Coordinate with United Nations Framework Convention on Climate Change (UNFCCC) and
Other International Forums on REDD+/PES matters;
▪ Identify and resolve basic issues hampering the implementation of REDD+/PES in the
province;
▪ Identify and study the impact of various incentive measures for promoting Sustainable
Forest Management and REDD+/PES in the province;
▪ Increase transparency and accountability in the working of the REDD+/PES program; and
▪ Any other relevant function as may contribute to effective REDD+/PES implementation in
the province.
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II. Provincial REDD+/PES Management Committee
Composition of the Provincial REDD+/PES Management Committee
The Provincial REDD+/PES Management and Coordination Committee shall be headed by the
Secretary Forests, Environment and Wildlife Department. Its members shall include the following:
Chief Conservators of Forests in the province
Chief Conservator Wildlife/Conservator Wildlife
Director General, EPA
Director General, Tourism Department
Director General, Industries Department
Conservator of Forests, Planning/Working Plans
Provincial REDD+/PES Focal Person
One Representative of Forest Owners/Forest Concessionists
One Representative of Forest Users Groups
Head of Environment/Forestry Department from a public sector university
Representative of Chamber of Commerce and Industries
The Provincial REDD+/PES Focal Person shall be the Secretary of this Committee.
Functions of the Provincial REDD+/PES Management Committee
The Provincial REDD+/PES Management Committee shall have different, yet mutually reinforcing
functions, which include:
▪ Supportive Function: involving preparation of REDD+/PES policies, plans, laws and
institutional mechanisms, searching funding oppurtunities
▪ Implementation Function: carrying out the previously determined mandate.
▪ Supervisory Function: involving progress review and monitoring the implementation of
REDD+/PES programs.
III. Provincial REDD+/PES Thematic Working Groups
The Provincial REDD+/PEs Board and the Provincial REDD+/PES Management and Coordination
Committee will need regular support on certain technical, managerial and social aspects of REDD+/
PES implementation in the province. Accordingly, the following Thematic Working Groups will be
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established to support the working of the Provincial REDD+/PES Board and the Provincial
Management Committee:
▪ Technical Working Group on Forest Reference Emissions/Forest Reference Levels.
▪ Technical Working Group on Provincial Forest Inventory and Measurement, Reporting and
Verification (MRV)
▪ Technical Working Group on REDD+ Social and Environmental Safeguards and Grievance
Redress Mechanism
▪ Technical Working Group on REDD+/PES Finance and Marketting
VI. Provincial Level REDD+/PES Research Unit
This REDD+/PES related Research Unit will be established in the relevant forestry research
organization of the province. It is to carry on research on various REDD+/PES related issues. This
Research Unit will also coordinate with other relevant Research Institutes in the province.
Forest Circle Level REDD+/PES Social and Environmental Safeguards and Grievance Redress
Mechanism
This Forest Circle Level forum will be coordinated by the respective Conservator of Forests and will
ensure adherence to the Social and Environmental Safeguards. It will have representation of the
relevant stakeholder groups at the Forest Circle level.
Forest Divisions/District Level REDD+/PES Committees
Forest Division/District Level REDD+/PES Committees shall be established at each District Level
where REDD+/PES Program is implemented. The Committee shall be chaired by the Divisional
Forest Officer of the Forest Division of the concerned district headquarter. Its members shall
include:
▪ DFO Wildlife
▪ District Officer of Agriculture Extension Department
▪ District Officer of Livestock and Dairy Development
▪ District Officer of Fisheries Department o
▪ Assistant Commissioner Revenue Department
▪ A representative of Forest Owners/Forest Concessionists
▪ A representative of Forest Users Groups
▪ A representative of Civil Society Organization
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▪ A representative of Women;
▪ A representative of Media.
▪ Any other co-opted member.
The District Advisory Committees shall perform the following functions:
▪ Work as Think Tank and Resource Pool for the Provincial REDD+/PE Management
Committee;
▪ Serve as platform for discussions on and resolution of REDD+/PES related issues at the
district level;
▪ Provide information and data on REDD+/PES implementation at the district level to the
Provincial REDD+/PES Management Committee.
7. START THE PROCESS OF DEVELOPING OF AWARENESS RAISING/ CAPACITY BUILDING MATERIAL (5 MANUALS)
One of the main objectives of the study “Designing REDD+ Payment for environmental services” is to develop capacities and increase awareness of relevant stakeholders in PES schemes and its linkages with REDD+. Capacity-building programme for the target areas and the stakeholders is a pre-requisite for initiation and successful implementation of any REDD+ or PES scheme. Towards this end, the study has designed a multi-pronged approach such as intense community consultations, training sessions, seminars, workshops, focus group discussions and meetings with key stakeholders. This interactive programme is aimed at capacity building of the stakeholders to one hand and taking their inputs in the design of the proposed REDD+PES Scheme on the other hand. All the relevant government departments e.g. Forest Department, Wildlife Department, Fisheries Department, Agriculture Department, Livestock Department, Pakistan Maritime Security Agency, Karachi Port Authority, University of Karachi, Fishermen Society, Friends of Sea, local communities, IUCN and WWF have been included in the capacity building and consultative programmes. The capacity building programme is focusing on the following aspects of REDD+PES.
▪ Identification, quantification and valuation of potential ecosystem services and design of
PES ▪ Governance and institutional arrangements for proposed PES scheme ▪ Benefit sharing and distribution mechanism including to whom, how much, kind/form and
timing of the benefits ▪ To monitor results of REDD+ activities, as part of measurement, reporting and verification
(MRV) of REDD+ climate, social and biodiversity impacts. ▪ To understand what is REDD+, and the potential benefits and risks of REDD. ▪ Social and environmental safeguards ▪ Land tenure and conflict resolution mechanism ▪ To manage efficiently and effectively activities that will generate reduced emissions from
deforestation and forest degradation as well as carbon sequestration.
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A well-designed resource material is of paramount importance for any successful training programme and launching a REDD+PES Pilot Scheme. With the help of technical experts, training manuals/Guides will be developed on the following topics in English and Urdu. For this purpose, eminent professionals have been contacted and assigned with the development of manuals/guides as given in the Table 7. Table 5. Development of Capacity Building Material S.No Topic/theme Resource Person 1 What is REDD+? A Guide for Local
Communities.
Mr. Anwar Ali, Deputy Team Leader, REDD+PES
2 Risks and Benefits of REDD+.
Dr. Asadullah, Assistant Professor, University of Agriculture, Peshawar
3 Climate Change and the Role of Forests- A Community Guide.
Dr. Irfan Ashraf, Assistant Professor, University of Arid Agriculture, Rawalpindi
4 REDD+ PES Monitoring- A Community Guide.
Mr. Alamgir Khan Gandapur, Team Leader, REDD+PES
5 A Manual to Measure Forest Carbon Stocks.
Mr. Anwar Ali, Deputy Team Leader, REDD+PES
Outlines of the Manuals/Guides
Preliminary outlines have been developed for the manuals/guides which will be improved with
inputs from our international consultants, National REDD+ Office and other eminent professionals.
A. WHAT IS REDD+? A COMMUNITY GUIDE
1. Introduction
1.1 Background and Concept of REDD+
1.2 Emergence and evolution of REDD+
1.3 Importance of REDD+
2. Phases of EDD+
2.1 Phase 1: Readiness Phase
2.2 Phase 2: Piloting / Demonstration Phase
2.3 Phase 3: Full scale implementation
3. International Requirements for REDD+ implementation
3.1 REDD+ Strategy / Action Plan
3.2 National Forest Monitoring System including Measurement, Reporting and Verification
3.3 Forest Reference Emission Level and/ or Forest Reference Level
3.4 Safeguards Information System
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4. Co-Benefits of REDD+
4.1 Forest Conservation
4.2 Wildlife conservation
4.3 Medicinal Plants conservation
4.4 Watershed Protection
4.5 Landslide control and soil conservation
4.6 Coastal areas protection
4.7 Increased Fish & Shrimp Production
4.8 Promotion of ecotourism
4.9 Social awareness and capacity building
4.10 Capacity building of forest departments and communities
4.11 Livelihood improvement of local communities
5. Challenges for REDD+ implementation
5.1 Additionality
5.2 Leakage or displacement of emissions
5.3 Exclusion of marginalized sections of society
5.4 Conflicts
5.5 Low prices of carbon credits
5.6 Lack of sustainability or permanence of REDD+ interventions
5.7 Availability of finances
5.8 Institutional Challenges
6. REDD+ Finances
7. Examples of REDD+ Projects in the World
8. Preparation of REDD+ Projects for Voluntary Carbon Market
8.1 Developing the Project Idea
8.2 Designing a REDD+ Project
8.3 Project validation and Registration
8.4 Project Implementation
8.5 Verification
8.6 Accessing Finances for REDD+ Project
B. RISKS AND BENEFITS OF REDD+
1. Introduction
1.4 Background
1.5 Introduction and evolution of REDD+
1.6 Pre-requisites for accessing result based payments under REDD+
2. REDD+ in Pakistan
2.1 Scope of REDD+ in Pakistan
2.2 Progress made so far
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2.3 Challenges for REDD+ implementation in Pakistan
3. State of Pakistan’s Forests
3.1 Land use statistics
3.2 Policies laws and regulations supporting REDD+ in Pakistan
3.3 Institutional framework for REDD+ implementation
3.4 Interest and influence of various stake holders in forests
3.5 Customary and legal rights and privileges of various stake holders
3.6 Bottlenecks in REDD+ implementation
4. Environmental Benefits of REDD+
4.1 Forest Conservation
4.2 Wildlife conservation
4.3 Medicinal Plants conservation
4.4 Watershed Protection
4.5 Landslide control and soil conservation
4.6 Improvement of ecosystem services
5. Social Benefits of REDD+
5.1 Social awareness and capacity building
5.2 Capacity building of forest department
5.3 Improved linkages between Forest Department, local communities and other
stakeholders
5.4 Livelihood improvement of local communities
5.5 Community development interventions
5.6 Introduction of Payment for Environmental Services
6.7 Enhanced sense of Corporate social and environmental responsibility
6. Risks associated with REDD+ implementation
6.1 Lack of awareness in forest communities
6.2 Inadequate capacities of the custodian departments
6.3 Ineffective policies, laws and regulations
6.4 Exclusion of marginalized sections of society
6.5 Conflicts between Forest Department and local communities
6.6 Conflicts among different tiers of governments (e.g between provinces and
Federation, among provinces, between provincial and local governments)
6.7 Conflicts among different groups of the community
6.8 Low prices of carbon credits
6.9 High transaction cost
6.10 Lack of reliable data
6.11 Unavailability of buyers of carbon credits
6.12 Leakage or displacement of emissions
6.13 Lack of sustainability or permanence of REDD+ interventions
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C. A MANUAL TO MEASURE FOREST CARBON STOCK
1. Introduction
1.1 Background and Concept
1.2 Objectives of the Manual
1.3 How to use the Manual
2. Inventory Planning
2.1 Use of allometric models and volumetric approaches for biomass estimation
2.2 Setting of Project Area Boundaries
2.3 Stratification of Forest Area
2.4 Estimation of variance through pilot inventory
2.5 Sample Size Calculation
2.6 Size and Shape of Sample Plot
2.7 Plots allocation
2.8 Permanent Sample Plots
2.9 Carbon Pools to measure
2.10 Sampling Techniques
2.11 Team formation and Training
2.12 Equipment and tools
3. Field Measurements
3.1 Information at Plot level
3.2 Slope correction
3.3 Measurement of trees
3.4 Measurement of dead wood and stumps
3.5 Measurement of shrubs, saplings and regeneration
3.6 Measurement of leaf, litter and grass
3.7 Measurement of soil carbon
3.8 Measurement of aboveground biomass in Mangroves Forests
3.9 Measurement of soil carbon in Mangroves
4. Data Processing and Analysis
4.1 Aboveground Tree Biomass
4.2 Aboveground shrub/sapling biomass
4.3 Dead wood and stumps biomass
4.4 Leaf, litter and grass biomass
4.5 Belowground Biomass
4.6 Soil organic carbon
4.7 Total carbon density
4.8 Calculation of Emission Factors
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5. Quality Assurance and Quality Control
5.1 Field Measurement
5.2 Laboratory Measurement
5.3 Data entry and analysis
6. Annexures
6.1 Data collection form
6.2 Description of Equipment
6.3 Slope correction table
D.CLIMATE CHANGE AND THE ROLE OF FORESTS-A COMMUNITY GUIDE
1. Introduction to forest and climate change
2. Role of forests in driving climate system 3. Impact of climate change on forests
4. Mitigation potential of forests to climate change 5. Adaption to climate change
6. Strategies and methods of managing and valuing forests to benefit climate 7. Recommendations for community
E. REDD+ AND PES COMMUNITY MONITORING MANUAL
1. Introduction
1.1 Forests and Ecosystem Services of Forests
1.2 REDD+ and Forests
1.3 PES and Forests
1.4 National Definition of Forests
1.5 Principles of Data Collection: Relevance, Comprehensiveness, Consistency, Robustness,
Transparency, Efficiency
2. Requirements for Establishing a REDD+ and PES Project
2.1 International Requirements for REDD+
2.2 UNFCCC Cancun Safeguards
2.3 World Bank Environmental and Social Safeguards Operational Policies
2.4 Establishing Baselines for PES and REDD+
3. Guidance on Establishing Baselines
3.1 Establishment of Forest Reference Emissions Level/Forest Reference Level
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3.2 Establishment of Biodiversity Baseline
3.3 Establishment of Baseline for Watershed Services
3.4 Establishment of Baseline for Coastal Protection and Shoreline Protection
3.5 Establishment of Baseline for Non-Timber Forest Products
3.6 Establishment of Baseline for Ecotourism
4. Monitoring and Methodological Guidance on Monitoring
4.1 Monitoring of Changes in Forest Area
4.2 Monitoring of Changes in Carbon Stocks
4.2 Monitoring of Changes in Biodiversity
4.3 Monitoring of Changes in Watershed Services
4.4 Monitoring of Changes in Coastal Protection and Shoreline Protection Services
4.5 Monitoring of Changes in Non-Timber Forest Products
4.6 Monitoring of Changes in Ecotourism
5. Field Measurements and Standard Operating Procedures (SOPs) for Field Measurements
5.1 Biodiversity Measurement
5.2 Watershed Services Measurement
5.3 Coastal Protection and Shoreline Stabilization
5.4 Non-Timber Forest Products
5.5 Ecotourism
6. Data Analysis and Summarization
7. Data Reporting
8. Integration with Provincial and National Monitoring System
9. Annexes
9.1 Materials, Equipment and Other Requirements
9.2 Data Collection Sheets
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REFERENCES
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Policy and Institutions Working Paper.
Engel S, Pagiola S and Wunder S. 2008. Designing payments for environmental services in theory and practice: an overview of the issues. Ecological Economics 65:663–74. FAO. 2011. Assessing Forest Degradation, Towards the Development of Globally Applicable
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ANNEXURES
Annex I: List of Laws and UN Conventions and Documents
Laws and Rules
▪ Constitution of the Islamic Republic of Pakistan 1973 inclusive of 18th Amendment
▪ Pakistan Forest Act 1927
▪ Pakistan Climate Change Act 2017
▪ Pakistan Environmental Protect Act 1997
▪ Contract Act 1872
▪ Land Acquisition Act 1894
▪ KP Forest Ordinance 2002
▪ KP Environmental Protection Act 2014
▪ KP Wildlife and Biodiversity (Protection, Preservation,. Conservation and Management) Act,
2015
▪ KP Joint Forest Management (Community Participation) Rules 2004
▪ KP Rules of Business (Peshawar, Pakistan, April 1985)
▪ Sindh Environmental Protection Act 2014
▪ Sindh Wildlife Protection Ordinance 1972
▪ Sindh Wildlife Protection Amendment Act 2008
▪ Sindh Fisheries Ordinance 1980
▪ Sindh Fisheries Amendment Act 2011
▪ Sindh Rules of Business (Karachi, Pakistan, 1988)
▪ The Balochistan Forest Regulations 1890
▪ Pakistan Forest Act 1927
▪ Kalat Division Mazri Control Rules, 1970
▪ Kalat Division Reserved Tree Rules, 1970
▪ Quetta Division, Reserved Tree Rules, 1966
▪ Balochistan Forest Produce Transit Rules, 1998
▪ Balochistan Forest Produce Transit Rules, 2007
▪ The Balochistan Wildlife Act, 2014
▪ The Balochistan Wildlife Rules, 2015
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▪ The Balochistan Environmental Protection Act , 2012
UN Conventions and Documents
▪ Ramsar Convention on Wetlands Text and appendices
▪ Convention on Migratory Species Text and appendices
▪ Convention on International Trade in Endangered Species Text and appendices
▪ Convention on Law of the Seas Text
▪ Vienna Convention on the Protection of Ozone Layer Text
▪ Montreal Protocol on Ozone Depleting Substances
▪ Basel Convention on the Control of Trans-boundary Movement of Hazardous Wastes Text
▪ UN Convention on Biological Diversity Text
▪ UN Convention on Combating Desertification Text
▪ UN Framework Convention on Climate Change Text
▪ Rotterdam Convention on Prior Informed Consent for Certain Hazardous Chemical and
Pesticides Text
▪ Stockholm Convention on Persistent Organic Pollutants Text
▪ Kyoto Protocol Text
▪ Paris Agreement Text
▪ Cartagena Protocol on Biosafety Protocol to UN-CBD
▪ Nagoya Protocol on Access to Genetic Resources to UN-CBD
▪ Aichi Biodiversity Targets
▪ Sustainable Development Goals
▪ United Nations Declaration on the Rights of Indigenous Peoples
▪ COP decision 1/CP.16 (III C Paragraph 73; UNFCCC 2010)
▪ Food and Agriculture Organization of the United Nations. “Global Forest Resources
Assessment,” (Rome, Italy, 2005)
▪ United Nations Framework Convention on Climate Change “The Bali Road Map Intro,”
(March
2013)
▪ United Nations Framework Convention on Climate Change. ‘Clean Development Mechanism
(CDM),’ (November 2015)
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ANNEXURE II
LIST OF PARTICIPANTS OF FIRST CONSULTATIVE/TRAINING WORKSHOP
FEBRUARY 8-10, 2018, PC HOTEL KARACHI
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ANNEXURE III
GROUP PHOTO OF FIRST CONSULTATIVE/TRAINING WORKSHOP FEBRUARY, 8-10, 2018 PC HOTEL, KARACHI
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ANNEXURE IV
LIST OF PARTICIPANTS OF SECOND CONSULTATIVE/TRAINING WORKSHOP MARCH 12-13, 2018 REGENCY PLAZA, KARACHI
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ANNXURE V
SELECTED PICTURES OF 2ND CONSULTATIVE WORKSHOP HELD IN KARACHI ON 12-13 MARCH, 2018
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ANNEXURE VI
LIST OF PARTICIPANTS OF SEMINAR ON PAYMENT FOR ENVIRONMENTAL SERVICES 6th FEBRUARY 2018, SDPI ISLAMABAD
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ANNEXXURE VII
SEMINAR ON PAYMENT FOR ENVIRONMENTAL SERVICES 6th FEBRUARY 2018, SDPI ISLAMABAD
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ANNEXURE VIII
Criteria for selection of pilot PES sites
S.No. PES Site Selection
Criteria
Site-1 Site-2 Site-3 Site-4 Site-5 Site-6 Site-7
1. Social &
Environmental
benefits.
1.1 Biodiversity
conservation
1.2 Water regulation
1.3 Soil conservation
1.4 NTFPs
1.5 Cultural values (e.g.
recreation and
tourism)
1.6 Potential for poverty
alleviation.
2. Carbon Project
Potential
2.1 Size of the
forest/landscape
2.2 Carbon density
2.3 Availability of
baseline data
2.4 Leakage risks
2.5 Non-Permanence
risks
2.6 Additionality
2.7 Biophysical risks
3. Carbon related
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technical aspects for
forest rehabilitation,
restoration and
carbon
sequestration.
3.1 Size of degraded
forest areas available
for rehabilitation and
restoration.
3.2 Size of less vegetated,
un-vegetated and
barren areas available
for reforestation and
afforestation.
3.3 Presence of restored
forest area or
plantation forest.
3.4 Carbon sequestration
potential.
3.5 Site conditions.
3.6 Environmentally
Sensitive and Priority
Areas.
4. Feasibility of
effective project
implementation.
4.1 Likelihood of effective
project
implementation (the
nature, type and
magnitude of drivers
of deforestation and
forest degradation).
4.2 Presence of potential
partners.
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4.3 Opportunity cost of
implementing the
project in the area.
4.4 Presence of conflicts
over forests and
forest resources.
4.5 Population size of
forest dependent
communities.
4.6 Level of local
community
cooperation.
4.7 Level of local
community
organization.
5 Institutional
Readiness
5.1 Availability of existing
REDD+ Pilot
initiative/other
project
5.2 Inventory data/other
data availability
5.3 Benefit Sharing
Mechanism
Name of the Participant:
Designation and Department of the Participant:
Date and Venue: 16-01-2018, Hillview Hotel, Islamabad.
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Annex-IX
Functions of the Climate Authority
▪ Formulate comprehensive adaptation and mitigation policies, plans, programs, projects and
measures designed to address the effects of climate change and meet Pakistan's obligations
under international conventions and agreements relating to climate change and within the
framework of a national climate change policy as may be approved by the Federal
Government from time to time.
▪ Establish institutional and policy mechanisms for implementation of Federal and provincial
adaptation and mitigation policies, plans, programs, projects and measures, including plans
for renewable energy and clean technology measures for energy efficiency and energy
conservation and awareness-raising and capacity-building programs.
▪ Prepare suitable adaptation and mitigation projects for submission to international and
local institutions for funding, including the Clean Development Mechanism, Global
Environmental Facility, Green Climate Fund and Adaptation Fund.
▪ Prepare the National Adaptation Plan and its constituent provincial and local adaptation
action plans, the Nationally Appropriate Mitigation Action Framework and the Intended
Nationally Determined Contributions, Nationally Determined Contributions and National
Communication to be submitted to the concerned Secretariat of the United Nations
Framework Convention on Climate Change and monitor implementation thereof.
▪ Carry out Technology Needs Assessment and prepare Climate Change Technology Action
Plan in accordance with international best practices for seeking technical and financial
support, amongst others, through the Technology Mechanisms.
▪ Prepare projects for funding under the Reducing Emissions from Deforestation and Forest
Degradation (REDD+) Mechanism.
▪ Prepare the National Climate Change Report for consideration of the Council.
▪ Formulate, and after approval of the Council coordinate implementation of low carbon and
green growth strategies.
▪ Formulate guidelines for the protection and conservation of renewable and non-renewable
resources, species, habitats, and biodiversity in general which are adversely affected or
threatened by climate change; advise the Government regarding appropriate legislative,
policy and implementation measures and actions relating to disaster preparedness, capacity
building, institutional strengthening and awareness raising in relevant sectors affected by
climate change.
▪ Advise the Government regarding implementation of international conventions, treaties
and agreements on climate change and the environment to which Pakistan is a party and
fulfill reporting requirements thereunder.
▪ Design, establish and maintain a national registry and database on greenhouse gas
emissions in accordance with internationally adopted emissions quantification
methodologies, standards and protocols.
▪ Coordinate and monitor implementation of goals and objectives and fulfill reporting and
verification obligations under international conventions, treaties and agreements;
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▪ Prepare policy papers and concept notes and provide technical input for formulating
national policy positions for international conferences or negotiations.
▪ Coordinate conduct of research on current and emerging issues of climate change,
particularly assessment of Pakistan's vulnerability to climate change, identification of
climate change opportunities and technology transfer, in association with specialized
research institutions and disseminate research findings and outputs to stakeholders,
▪ Undertake education and awareness campaigns and programs to enhance understanding
and awareness of different aspects of climate change and promote their integration in
educational curricula.
▪ Work in collaboration with relevant Government Agencies and non-governmental
organizations and after the conduct of relevant research and studies, set targets and
coordinate actions for the reduction of greenhouse gas emissions and development of
carbon markets.
▪ Design programs providing for incentives relating to matters of climate change, including
incentives for reduced emissions from deforestation and degradation;
▪ Mobilize resources for the purposes of achieving the objects and purposes of this Act;
▪ Regularly publish, update and disseminate, through electronic and other means, climate
change strategies, policies, plans, programs and other information.
▪ Perform such functions as may be assigned to it by the Council or by the Government for
purposes of this Act.
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Annex-X
National Policies Analysis
Policy Dimension National Forest Policy 2015
Pakistan Climate Change Policy 2012
Framework and Implementation Plan for National Climate Change Policy 2014-2020
Pakistan National Environment Policy 2005
Policy Goal Expansion, protection and sustainable use of national forests, protected areas, natural habitats and watersheds for restoring ecological functions, improving livelihoods and human health in line with the national priorities and international agreements.
To ensure that climate change is mainstreamed in the economically and socially vulnerable sectors of the economy and to steer Pakistan towards climate resilient development.
To ensure that climate change is mainstreamed in the economically and socially vulnerable sectors of the economy and to steer Pakistan towards climate resilient development.
The National Environment Policy aims to protect, conserve and restore Pakistan’s environment in order to improve the quality of life for citizens through sustainable development.
Policy Objectives In line with the Federal functions of national policy, planning and implementation of international agreements, specific objectives of the National Forest Policy include: ▪ Promoting ecological,
social and cultural functions of forests through sustainable management and use of forest produce
The main objectives of Pakistan’s Climate Change Policy include: 1. To pursue sustained economic growth by appropriately addressing the challenges of climate change; 2. To integrate climate change policy with other inter-related national policies; 3. To focus on pro-poor gender sensitive
The main objectives of Pakistan’s Climate Change Policy include: 1. To pursue sustained economic growth by appropriately addressing the challenges of climate change; 2. To integrate climate change policy with other inter-related national policies; 3. To focus on pro-poor gender sensitive
Objectives of the National Environment Policy include: Conservation, restoration and efficient management of environmental resources. Integration of environmental considerations in policy making and planning processes.
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including wood and non-wood forest products
▪ Implementing a national level mass afforestation program to expand and maintain optimum forest cover
▪ Maximizing forest areas by investing in available communal lands/ shamilat, and Guzara forests and urban forestry
▪ Inter-linking natural forests, protected areas, wetlands and wildlife habitats to reduce fragmentation
▪ Enhancing role and contribution of forests in reducing carbon emissions and enhancing forest carbon pools
▪ Facilitating implementation of international conventions and agreements related to Forestry, Wetlands , Biodiversity and Climate Change
▪ Promoting standardized and
adaptation while also promoting mitigation to the extent possible in a cost-effective manner; 4. To ensure water security, food security and energy security of the country in the face of the challenges posed by climate change; 5. To minimize the risks arising from the expected increase in frequency and intensity of extreme weather events such as floods, droughts and tropical storms; 6. To strengthen inter-ministerial decision making and coordination mechanisms on climate change; 7. To facilitate effective use of the opportunities, particularly financial, available both nationally and internationally; 8. To foster the development of appropriate economic incentives to encourage public and private sector investment in adaptation
adaptation while also promoting mitigation to the extent possible in a cost-effective manner; 4. To ensure water security, food security and energy security of the country in the face of the challenges posed by climate change; 5. To minimize the risks arising from the expected increase in frequency and intensity of extreme weather events such as floods, droughts and tropical storms; 6. To strengthen inter-ministerial decision making and coordination mechanisms on climate change; 7. To facilitate effective use of the opportunities, particularly financial, available both nationally and internationally; 8. To foster the development of appropriate economic incentives to encourage public and private sector investment in adaptation
Capacity building of government agencies and other stakeholder groups at all levels for better environmental management. Meeting international obligations effectively in line with the national aspirations.
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harmonized scientific forest planning, research and education including for community-based management
measures; 9. To enhance the awareness, skill and institutional capacity of relevant stakeholders; 10. To promote conservation of natural resources and long term sustainability.
measures; 9. To enhance the awareness, skill and institutional capacity of relevant stakeholders; 10. To promote conservation of natural resources and long term sustainability.
Major Provisions Major thrust areas: ▪ Conserving the
existing forests by curbing deforestation and promoting conservation.
▪ Bringing more trees in and outside forests by mass afforestation, involving all sections of the society. Particular focus will be on communal lands, shamilats and guzara forests.
▪ Meeting International Obligations and Opportunities through scientific planning, Legal reforms and capacity building.
Policy measures
Policy Measures include both climate change adaptation and climate change mitigation measures. Following are some of the prominent proposed policy measures: Awareness Raising Research Reforms in Governance Enhancing Adaptive Capacity Sustainable Forest Management Arrest Soil Erosion Reduce Forest Fires, Disease Outbreaks and Other Damage
It develops a concrete Action Plan for the Policy Measures given in the National Climate Change Policy. Implementation of each action proposed has been designed into following four time frames. Priority Actions (PA) : within 2-years Short term Actions (SA): within 5-years Medium term Actions (MA): within 10 years Long term Actions (LA): within 20-years
The Policy has Sectoral Guidelines for the following Sectors: Water Supply and Management. Air Quality and Noise. Waste Management. Forestry. Biodiversity and Protected Areas. Climate Change and Ozone Depletion. Energy Efficiency and Renewables. Agriculture and Livestock. Multilateral Environmental Agreements.
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suggested for the different thrust areas include: Launch of mass afforestation programs. Integrating forests with the economic sectors. Establishment of ecological corridors. Launch of REDD+ programs. Streamlining forest ownership and rights. Promoting integrated approach of forests, wildlife and biodiversity management. Take steps to meet international obligations and avail opportunities. Initiate scientific planning, policy and legal reforms. Promote research, education, training and monitoring.
Conserve Biodiversity Protect Other Vulnerable Ecosystems such as Mountain Areas, Desert and Arid Areas. Protect Mangroves and Other Coastal Ecosystems. Protect Rangelands and Alpine Pasture Lands. Protect Wetlands. Undertake Disasters Preparedness Measures. Mainstream Gender in Climate Change Planning. Protect and Conserve Existing Forests and Promote Carbon Sequestration Programs in the Forestry Sector. Undertake Capacity Building and Institutional Strengthening Measures. Promote Regional and International Cooperation.
In addition to Sectoral Guidelines, the Policy also has Guidelines for the following Cross-Sectoral Aspects: Poverty and Environment. Population and Environment. Gender and Environment. Health and Environment. Trade and Environment. Local Government and Environment. Natural Disasters Management. In order to achieve the stated policy objectives, it is to make use of the following Policy Instruments: Integration of Environment into Development Planning. Legislation and Regulatory Framework.
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Ensure economic coordination and financial support.
Securing Financial Resources for Climate Change Initiatives. Promote Technology Transfer in support of Climate Change.
Capacity Development. Use of Economic and Market-Based Instruments. Public Awareness and Education. Making use of Public-Private-Civil Society Partnerships.
Institutional Development Support for REDD+
Policy has provisions for institutional development at the sector level.
Policy has specific provisions
The Action Plan has specific provisions.
The policy has generic support but no REDD+ specific Institutional Development support.
Support to improving Forest Governance and Land and Forest Tenure system
Policy sufficiently caters to this need.
Policy has the needed provisions.
The Action Plan caters to this need.
Generic support exists.
Support to addressing the drivers and underlying causes of deforestation and forest degradation.
Policy makes specific reference to this aspect.
Policy caters to this need. The Action Plan is covering the need.
Only generic provisions are there.
Support to technical aspects of REDD+ Project development
It is a policy focus area. It is a policy focus area. Action sufficiently covers it.
Generic provisions do exist.
Support to Stakeholders engagement in
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
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REDD+. Support to Incentives Allocation and Benefits Distribution System
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
Support to conflicts resolution and management
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
Support to Social and Environmental and REDD+ Cancun Safeguards
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
Support to REDD+ Finance
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
Support to Legal Issues
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
Support to Marketing and Contractual aspects of REDD+.
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
Support to Awareness Creation and Capacity Building of Stakeholders in REDD+ Projects.
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
Support to Research on REDD+ and
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
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Climate Change issues Support to Influencing and Advocacy related to REDD+ and Climate Change
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
Support to meeting International Requirements and Obligations regarding different Multilateral Environmental Agreements
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
Support to Human and Women Rights in the context of REDD+.
Specific provisions exist.
Specific provisions exist. Specific provisions exist. Generic provisions do exist.
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Annex-XI
MEAs Analysis
S.No. Name of Convention Signing Date
Ratification Date
Main Theme Major Obligations
1. Ramsar Convention on Wetlands
1971 July 1976 Conservation and wise use of all wetlands through local, regional and national actions and international cooperation.
▪ Designate at least one Wetland to be
included in the list of Ramsar Sites when
signing the convention.
▪ Contracting parties shall endeavor through
management to increase waterfowl
population on appropriate wetlands.
▪ Contracting Parties shall promote the
training of personnel competent in the fields
of wetlands research, management and
wardening.
▪ Contracting Parties have to formulate
National Wetland Policies as an important
step towards facilitating conservation and
wise use of wetlands.
▪ Contracting Parties to establish procedures
with guarantee that the local communities
are involved in the decision making process
related to wise use of wetlands.
▪ Contracting Parties have to establish
National Committees according to their
needs to provide a focus at national level for
implementation of the convention.
▪ Every Contracting Party will develop
management plan for wise use of Wetlands
of Ramsar Sites.
▪ Every Contracting Party has to develop
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Communication, Education and Public
Awareness (CEPA) program task force.
2. Convention of Migratory Species
1971 December 1987
Conservation and protection of terrestrial, aquatic and avian migratory species.
▪ Provide immediate protection for migratory
species included in Appendix-I of the
Convention.
▪ Develop Agreements covering the
conservation and management of migratory
species included in Appendix-II of the
Convention.
▪ Range States for migratory species listed in
Appendix-I or Appendix-II should inform
the COP through the Secretariat about the
measures that they are taking to implement
the provisions of this Convention for these
species.
▪ Any dispute on application or interpretation
of this Convention, which may arise between
two or more Parties, should be solved
through negotiation between the Parties
involved in the dispute.
▪ Keep the Secretariat informed with regard
to which of the migratory species listed in
Appendices I and II they consider
themselves to be Range States.
3. Convention on International Trade in Endangered Species (CITES)
1973 April 1976 Cooperation among the signatory countries for protection of certain endangered species of wild flora and fauna to prevent their over-exploitation resulting from international trade.
▪ Export, import, permit or re-export
certificates for specimen enlisted in CITES
should be granted by specific procedures
and format.
▪ Permit should be issued by designated
Management Authority of the country with
its stamp control number for six months.
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Separate permit or certificate should be
issued for each consignment of specimen.
▪ To take appropriate domestic measures like
penalize trade and possession of such
species. To confiscate or return to state of
export such specimen to enforce the
convention and prohibit trade violations.
▪ Designate ports of exit and port of entry for
clearance of specimens.
▪ During transit, specimens should be given a
proper care to minimize the risks of injury,
damage to health or cruel treatment.
▪ A rescue center must be organized for
confiscated living specimen for look after by
management authority of the state.
▪ Each party should nominate management
and scientific authorities.
▪ Management authority of the state of import
of any specimen shall cancel and retain the
export permit of re-export certificate and
any other corresponding import permit
presented in respect of the import of that
specimen.
4. Convention on Law of the Seas
Dec. 1982
February 1997
Peaceful uses of the seas and oceans; the equitable and efficient utilization of their resources; conservation of their living resources; and study, protection and preservation of the marine environment.
▪ Establishment of National and Marine
Scientific Technological Centers.
▪ Cooperation among international
organizations that will take all appropriate
measures to ensure, either directly or
indirectly or in close collaboration among
themselves, the effective discharge of their
functions and responsibilities.
157 | P a g e
▪ Ensure sustainable use of Marine
Biodiversity as a common concern of human
kind.
▪ Make appropriate and safe use of the rapidly
expanding field of biotechnology and
scientific research.
▪ Control illegal, unreported and unregulated
fishing, including as it might relate to
international organized crime.
▪ Control piracy and armed robbery and
ensure maritime safety and security.
▪ Enhance the role of oceans in climate change
mitigation and adaptation measures.
▪ Protect and preserve the marine
environment from the harmful effects of
climate change.
▪ Ensure safety of navigation and the
production of nautical charts.
▪ Cooperation and coordination among the
flag states, coastal states, and port states in
the implementation of the convention.
5. Vienna Convention on the Protection of the Ozone Layer
January 1989
December 1992
Protection of the ozone layer for conserving environment for present and future generations.
▪ The Parties shall take appropriate measures
in accordance with the provisions of this
Convention and of those Protocols in force
to which they are party to protect human
health and the environment against adverse
effects resulting or likely to result from
human activities that modify the ozone
layer.
▪ To this end, the Parties shall in accordance
with the means at their disposal and their
158 | P a g e
capabilities:
➢ Cooperate by means of systematic
observations, research and information
exchange in order to better understand
and assess the effects of human
activities on the ozone layer and the
effects on human health and the
environment from modification of the
ozone layer.
➢ Adopt appropriate legislative or
administrative measures and co-
operate in harmonizing appropriate
policies to control, limit, reduce or
prevent human activities under their
jurisdiction or control should it be
found that these activities have or likely
to have adverse effects resulting
modification or likely modification of
the ozone layer.
➢ Cooperate in the formulation of agreed
measures, procedures and standards
for the implementation of this
Convention, with a view to the adoption
of Protocols and annexes.
➢ Cooperate with competent
international bodies to effectively
implement this Convention and
Protocols to which they are a Party.
▪ The provisions of this Convention shall in no
way affect the right of Parties to adopt, in
accordance with international law, domestic
159 | P a g e
measures additional to those referred to in
paragraphs above, nor shall they affect
additional measures already taken by a
Party, provided that these measures not
incompatible with their obligations under
this Convention.
▪ The application of various provisions shall
be based on relevant scientific and technical
considerations.
6. Montreal Protocol on Ozone Layer Depleting Substances
January 1989
December 1992
Protecting human health and the environment by reducing the emissions of certain substances that deplete or change the ozone layer.
▪ As Above for Vienna Convention.
7. Basel Convention on the Control of Transboundary Movement of Hazardous Wastes
May 1992
July 1994 Controlled trans-boundary movement of hazardous wastes.
▪ Reduce trans-boundary movement of
hazardous wastes.
▪ Minimize the production of hazardous and
toxic wastes.
▪ Ensure that safe disposal of wastes is done
in environmentally safe and sound manner
and as close to the possible sources as
possible.
▪ Assist developing countries in the
environmentally sound management of
hazardous and other wastes they generate.
8. Convention on Biological Diversity (CBD)
June 1992
July 1994 Conservation of biological diversity, the sustainable use of its components, and equitable sharing of the benefits arising out of the utilization of genetic resources.
▪ In-situ conservation of biodiversity.
▪ Ex-situ conservation of biodiversity.
▪ Sustainable use of components of
biodiversity.
▪ Research and training on ecosystems
management.
160 | P a g e
▪ Public education and awareness programs.
▪ Exchange of information with Parties.
▪ Technical and scientific cooperation among
Parties.
9. United Nations Convention to Combat Desertification (UNCCD)
October 1994
February 1997
To combat desertification and mitigate the effects of drought in countries experiencing serious drought and/or desertification, supported by international cooperation and integrated approach for sustainable development in the affected areas.
▪ Prepare National Action Programs to
cooperate in implementation of the Sub-
Regional Action Program (SRAP) and
Regional Action Program (RAP).
▪ Give due priority to combating
desertification and mitigating the effects of
drought, and allocate adequate resources in
accordance with their circumstances and
capabilities.
▪ Establish strategies and priorities within the
framework of sustainable development
plans and/or policies to combat
desertification and mitigate the effects of
drought.
▪ Address the underlying causes of
desertification and pay special attention to
the socio-economic factors contributing to
desertification processes.
▪ Promote awareness and facilitate the
participation local populations, particularly
women and youth, with the support of NGOs
in efforts to combat desertification and to
mitigate the effects of drought.
▪ Provide an enabling environment by
strengthening as appropriate, relevant
existing legislation and where they do not
exist, enacting new laws and establishing
161 | P a g e
long term policies and action programs.
10. United Nations Framework Convention on Climate Change (UNFCCC)
June 1992
June 1994 Stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.
▪ Designation of National Implementing Entity
(NIE).
▪ Grant of host country approval to CDM
projects and endorsement for registration
with CDM Executive Board.
▪ Preparation of Climate Change Policy and
National Adaptation Plan.
▪ Research and development and new projects
in the field of climate change.
▪ Development of institutional mechanisms.
▪ Preparation of inventories of GHG emissions.
▪ Preparation of National Communication.
▪ Development and implementation of a
Capacity Building Framework.
▪ Technology Transfer Mechanism
(Framework).
▪ Development and implementation of
Climate Change Adaptation and Mitigation
Strategy.
▪ Coordination and liaison with all relevant
stakeholders at federal and provincial levels.
▪ Participation in COPs and MOPs meetings.
▪ Strengthening of compliance with MEAs.
▪ Identification of linkages of climate change
with all other MEAs and streamlining the
climate change policies and plans with the
national policies.
11. Kyoto Protocol to UNFCCC
Dec. 1997
January 2005 Mitigation of climate change so as to reverse the pace of climate change and promote
▪ As Above under UNFCCC.
162 | P a g e
carbon sequestration and carbon credits through Certified Emissions Reductions (CERs) trading.
12. Rotterdam Convention on Prior Informed Consent (PIC) for certain Hazardous Chemicals and Pesticides
Sept. 1999
July 2005 Promotes shared responsibility and cooperation among parties in the international trade of certain hazardous chemicals in order to protect human health and the environment from potential harm and to contribute to their environmentally safe use.
▪ The parties shall implement appropriate
legislative and administrative measures to
comply with the decisions.
▪ The parties will provide an export
notification to the importing party regarding
the banned or severely restricted chemicals.
▪ The exchange of scientific, technical,
economic and legal information including
toxicological, eco-toxicological and safety
information to be furnished.
▪ To implement the Convention and various
suggested measures in the Convention.
13. Cartagena Protocol on Bio-safety of the CBD
June 2001
May 2009 A Protocol to CBD that deals with the safe handling, storage and trans-boundary movement of the Genetically Modified Organisms (GMOs).
▪ Application of Precautionary Principle. ▪ Risk assessment of LMOs and GMOs. ▪ Establishment of bio-safety clearing house
by parties. ▪ Advance Informed Agreements between
Parties. 14. Nagoya Protocol on
Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization (ABS) to the Convention on Biological Diversity
Nov. 2015
February 2016
air and equitable sharing of benefits arising from the utilization of genetic resources, thereby contributing to the conservation and sustainable use of biodiversity.
▪ Fair and equitable benefit sharing. ▪ Access to Genetic Resources. ▪ Access to Traditional Knowledge Associated
with Genetic Resources. ▪ Contributions to Conservation and
Sustainable Use. ▪ Global Multilateral Benefit Sharing
Mechanism. ▪ Transboundary Cooperation. ▪ Designation of National Focal Points and
Competent National Authorities. ▪ ABS Clearing-House and Information
163 | P a g e
Sharing. ▪ Compliance with Domestic Legislation or
Regulatory Requirements on ABS. ▪ Monitoring the Utilization of Genetic
Resources. ▪ Awareness Creation. ▪ Capacity Building. ▪ Technology Transfer, Collaboration and
Cooperation. 15. Stockholm
Convention on Persistent Organic Pollutants (POPs)
Dec. 2001
April 2008 Protecting human health and the environment from the harmful effects of persistent organic pollutants.
▪ Bans Production and Use of Chemicals. ▪ Asks for measures to reduce or eliminate
releases from unintentional production. ▪ Asks for measures to reduce or eliminate
releases from stockpiles and wastes. ▪ Asks for National Implementation Plan
(NIP). 16. Paris Agreement April
2016 November 2016
To strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty, keeping in view the principles of equity and common but differentiated responsibilities.
▪ Keep global temperature rise well below 2°C above pre-industrial level while pursuing efforts to limit it to 1.5°C and increase the ability to adapt.
▪ Aims to reach global peaking of emissions as soon as possible, to achieve a balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century
▪ All countries to submit INDCs and ensure they progress over time.
▪ Establishes a global goal on adaptation to ensure an adequate adaptation response in the context of the temperature goal.
▪ All countries should submit Adaptation Communication, detailing adaptation priorities, support needs, plans and actions which should be updated.
▪ Developed countries will provide financial
164 | P a g e
resources to developing countries to assist them with their mitigation and adaptation efforts, and will report their public.
▪ The commitment of US$100 billion annually will be the floor– a higher goal will be set sometime before 2025.
▪ Existing technology mechanism to serve the Agreement.
▪ A technology framework that provides strategic guidance.
▪ The agreement also stipulates that financial support will be provided to developing countries to address technology development and transfer.
▪ Emphasizes the capacity building needs of countries with the least capacity such as the Least Developed Countries (LDCs) and Small Island Developing States (SIDS).
▪ Establishes an enhanced transparency framework to enhance the transparency of action and support.
▪ It is facilitative and non-punitive. ▪ Developing countries will receive support
for the implementation of the transparency arrangements.
▪ A global stock-take will take place every five years from 2023 onwards, to assess collective progress towards achieving the purpose of the Agreement and its long-term goals.
▪ The Agreement establishes a mechanism, consisting of a committee of experts, to facilitate implementation in a transparent and non-punitive manner, and promote compliance with the Paris Agreement.
165 | P a g e
Annex-XII
Proforma for Identification, Quantification and Valuation of Key Ecosystem Services and their assessment for potential PES
Scheme Development- The case of Mangrove Ecosystems of Pakistan
Eco
syste
m G
oo
d a
nd
Se
rvice-E
cosy
stem
Fu
nctio
n
Un
it of P
hy
sical M
ea
sure
me
nt
To
tal P
hy
sical Q
ua
ntity
Un
it Va
lue
To
tal V
alu
e
Va
lua
tion
Me
tho
d
Cu
rren
t Use
rs of th
e R
eso
urce
Po
licy, L
eg
al o
r Institu
tion
al A
rran
gem
en
ts for E
xe
rcising
the
Cu
rren
t Use
of th
e R
eso
urce
Imp
act o
f the
Cu
rren
t Re
sou
rce U
se P
atte
rn o
n E
cosystem
C
on
ditio
n
Cu
rren
t Ow
ne
r/M
an
age
r of th
e R
eso
urce
Po
licy, L
eg
al a
nd
Institu
tion
al Arra
ng
eme
nts fo
r Cu
rren
t M
an
ag
em
en
t of th
e R
eso
urce
Crite
ria fo
r De
ve
lop
me
nt in
to a
PE
S S
che
me
-Is the
Se
rvice
of V
alu
e to
on
e o
r mo
re p
ote
ntia
l bu
ye
rs wh
o h
av
e th
e
willin
gn
ess a
nd
ab
ility to
pa
y fo
r the
Se
rvice
; A S
erv
ice
ov
er w
hich
Se
llers h
av
e cle
ar o
wn
ersh
ip a
nd
influ
en
ce; M
an
ag
em
en
t Actio
ns o
f the
Ma
na
ge
rs ha
ve
the
cap
acity
to in
crea
se se
rvice
sup
ply
.
Am
en
ab
ility o
f the
Eco
syste
m F
un
ction
for d
ev
elo
pm
en
t a
s PE
S S
che
me
-Lo
w, M
ed
ium
, High
Will p
ack
ag
ing
of m
an
y E
cosy
stem
Se
rvice
be
ne
ed
ed
for
de
ve
lop
ing
in
to P
ES
Sch
em
e a
nd
the
kin
d o
f pa
cka
gin
g th
at w
ou
ld b
e
req
uire
d
Po
ten
tial E
cosy
stem
Se
rvice
Bu
ye
rs
Po
ten
tial E
cosy
stem
Se
rvice
Se
ller
Po
ten
tial In
term
ed
iary fo
r facilita
ting
link
age
s be
twe
en
b
uy
ers a
nd
selle
rs
Po
ten
tial K
no
wle
dg
e Pro
vid
ers fo
r de
sign
ing
of th
e P
ES
S
che
me
an
d fa
cilitatin
g lin
kag
es a
nd
trad
ing o
f the
E
cosy
stem
Se
rvice
Pre
-Co
nd
ition
s for e
ffectiv
e imp
leme
nta
tion
of th
e P
ES
S
che
me
-Po
licy, L
eg
al, In
stitutio
na
l, Go
vern
an
ce, E
con
om
ic, Po
litical, C
ultu
ral, N
etw
ork
ing
,
Tim
be
r
Fu
el-w
oo
d
166 | P a g e
Fo
dd
er
Eco
syste
m G
oo
d a
nd
Se
rvice-E
cosy
stem
Fu
nctio
n
Un
it of P
hy
sical M
ea
sure
me
nt
To
tal P
hy
sical Q
ua
ntity
Un
it Va
lue
To
tal V
alu
e
Va
lua
tion
Me
tho
d
Cu
rren
t Use
rs of th
e R
eso
urce
Po
licy, L
eg
al o
r Institu
tion
al A
rran
gem
en
ts for E
xe
rcising th
e Cu
rren
t Use
o
f the
Re
sou
rce
Imp
act o
f the
Cu
rren
t Re
sou
rce U
se P
atte
rn o
n E
cosyste
m C
on
ditio
n
Cu
rren
t Ow
ne
r/M
an
age
r of th
e R
eso
urce
Po
licy, L
eg
al a
nd
Institu
tion
al Arra
ng
eme
nts fo
r Cu
rren
t Ma
na
gem
en
t of
the
Re
sou
rce
Crite
ria fo
r De
ve
lop
me
nt in
to a
PE
S S
che
me
-Is the
Se
rvice
of V
alu
e to
on
e
or m
ore
po
ten
tial b
uy
ers w
ho
ha
ve
the
willin
gn
ess a
nd
ab
ility to
pa
y fo
r th
e S
erv
ice; A
Se
rvice
ov
er w
hich
Se
llers h
av
e cle
ar o
wn
ersh
ip a
nd
in
flue
nce
; Ma
na
ge
me
nt A
ction
s of th
e M
an
ag
ers h
av
e th
e ca
pa
city to
in
crea
se se
rvice
sup
ply
.
Am
en
ab
ility o
f the
Eco
syste
m F
un
ction
for d
ev
elo
pm
en
t as P
ES
Sch
em
e-
Lo
w, M
ed
ium
, Hig
h
Will p
ack
ag
ing
of m
an
y E
cosy
stem
Se
rvice
be
ne
ed
ed
for d
ev
elo
pin
g in
to
PE
S S
che
me
an
d th
e k
ind
of p
ack
ag
ing
tha
t wo
uld
be
req
uire
d
Po
ten
tial E
cosy
stem
Se
rvice
Bu
ye
rs
Po
ten
tial E
cosy
stem
Se
rvice
Se
ller
Po
ten
tial In
term
ed
iary fo
r facilita
ting
link
age
s be
twe
en
bu
ye
rs an
d
selle
rs
Po
ten
tial K
no
wle
dg
e Pro
vid
ers fo
r de
sign
ing
of th
e P
ES
Sch
em
e a
nd
fa
cilitatin
g lin
ka
ges a
nd
trad
ing
of th
e E
cosy
stem S
erv
ice
Pre
-Co
nd
ition
s for e
ffectiv
e imp
leme
nta
tion
of th
e P
ES
Sch
em
e-P
olicy,
Le
ga
l, Institu
tion
al, Go
ve
rnan
ce, E
con
om
ic, Po
litical, C
ultu
ral, N
etw
ork
ing
,
167 | P a g e
Oth
er F
ore
st P
rod
ucts
NT
FP
s
Sp
aw
nin
g p
lace
for
Fish
erie
s
168 | P a g e
Eco
syste
m G
oo
d a
nd
Se
rvice-E
cosy
stem
Fu
nctio
n
Un
it of P
hy
sical M
ea
sure
me
nt
To
tal P
hy
sical Q
ua
ntity
Un
it Va
lue
To
tal V
alu
e
Va
lua
tion
Me
tho
d
Cu
rren
t Use
rs of th
e R
eso
urce
Po
licy, L
eg
al o
r Institu
tion
al A
rran
gem
en
ts for E
xe
rcising th
e Cu
rren
t Use
o
f the
Re
sou
rce
Imp
act o
f the
Cu
rren
t Re
sou
rce U
se P
atte
rn o
n E
cosyste
m C
on
ditio
n
Cu
rren
t Ow
ne
r/M
an
age
r of th
e R
eso
urce
Po
licy, L
eg
al a
nd
Institu
tion
al Arra
ng
eme
nts fo
r Cu
rren
t Ma
na
gem
en
t of
the
Re
sou
rce
Crite
ria fo
r De
ve
lop
me
nt in
to a
PE
S S
che
me
-Is the
Se
rvice
of V
alu
e to
on
e
or m
ore
po
ten
tial b
uy
ers w
ho
ha
ve
the
willin
gn
ess a
nd
ab
ility to
pa
y fo
r th
e S
erv
ice; A
Se
rvice
ov
er w
hich
Se
llers h
av
e cle
ar o
wn
ersh
ip a
nd
in
flue
nce
; Ma
na
ge
me
nt A
ction
s of th
e M
an
ag
ers h
av
e th
e ca
pa
city to
in
crea
se se
rvice
sup
ply
.
Am
en
ab
ility o
f the
Eco
syste
m F
un
ction
for d
ev
elo
pm
en
t as P
ES
Sch
em
e-
Lo
w, M
ed
ium
, Hig
h
Will p
ack
ag
ing
of m
an
y E
cosy
stem
Se
rvice
be
ne
ed
ed
for d
ev
elo
pin
g in
to
PE
S S
che
me
an
d th
e k
ind
of p
ack
ag
ing
tha
t wo
uld
be
req
uire
d
Po
ten
tial E
cosy
stem
Se
rvice
Bu
ye
rs
Po
ten
tial E
cosy
stem
Se
rvice
Se
ller
Po
ten
tial In
term
ed
iary fo
r facilita
ting
link
age
s be
twe
en
bu
ye
rs an
d
selle
rs
Po
ten
tial K
no
wle
dg
e Pro
vid
ers fo
r de
sign
ing
of th
e P
ES
Sch
em
e a
nd
fa
cilitatin
g lin
ka
ges a
nd
trad
ing
of th
e E
cosy
stem S
erv
ice
Pre
-Co
nd
ition
s for e
ffectiv
e imp
leme
nta
tion
of th
e P
ES
Sch
em
e-P
olicy,
Le
ga
l, Institu
tion
al, Go
ve
rnan
ce, E
con
om
ic, Po
litical, C
ultu
ral, N
etw
ork
ing
,
169 | P a g e
Bio
div
ersity
C
on
serv
atio
n
Clim
ate
Ch
an
ge
M
itiga
tion
an
d
Ad
ap
tatio
n
Co
asta
l P
rote
ction
Sh
ore
line
S
tab
ilizatio
n
170 | P a g e
Eco
syste
m G
oo
d a
nd
Se
rvice-E
cosy
stem
Fu
nctio
n
Un
it of P
hy
sical M
ea
sure
me
nt
To
tal P
hy
sical Q
ua
ntity
Un
it Va
lue
To
tal V
alu
e
Va
lua
tion
Me
tho
d
Cu
rren
t Use
rs of th
e R
eso
urce
Po
licy, L
eg
al o
r Institu
tion
al A
rran
gem
en
ts for E
xe
rcising
the
Cu
rren
t Use
of th
e R
eso
urce
Imp
act o
f the
Cu
rren
t Re
sou
rce U
se P
atte
rn o
n E
cosyste
m
Co
nd
ition
Cu
rren
t Ow
ne
r/M
an
age
r of th
e R
eso
urce
Po
licy, L
eg
al a
nd
Institu
tion
al Arra
ng
eme
nts fo
r Cu
rren
t M
an
ag
em
en
t of th
e R
eso
urce
Crite
ria fo
r De
ve
lop
me
nt in
to a
PE
S S
che
me
-Is the
Se
rvice
of
Va
lue
to o
ne
or m
ore
po
ten
tial b
uy
ers w
ho
ha
ve
the
w
illing
ne
ss an
d a
bility
to p
ay
for th
e S
erv
ice; A
Se
rvice
ov
er
wh
ich S
elle
rs ha
ve
clea
r ow
ne
rship
an
d in
flue
nce;
Ma
na
ge
me
nt A
ction
s of th
e M
an
ag
ers h
av
e th
e ca
pa
city to
incre
ase
serv
ice su
pp
ly.
Am
en
ab
ility o
f the
Eco
syste
m F
un
ction
for d
ev
elo
pm
en
t as
PE
S S
che
me
-Lo
w, M
ed
ium
, Hig
h
Will p
ack
ag
ing
of m
an
y E
cosy
stem
Se
rvice
be
ne
ed
ed
for
de
ve
lop
ing
into
PE
S S
che
me
an
d th
e k
ind
of p
ack
ag
ing
tha
t w
ou
ld b
e re
qu
ired
Po
ten
tial E
cosy
stem
Se
rvice
Bu
ye
rs
Po
ten
tial E
cosy
stem
Se
rvice
Se
ller
Po
ten
tial In
term
ed
iary fo
r facilita
ting
link
age
s be
twe
en
b
uy
ers a
nd
selle
rs
Po
ten
tial K
no
wle
dg
e Pro
vid
ers fo
r de
sign
ing
of th
e P
ES
S
che
me
an
d fa
cilitatin
g lin
kag
es a
nd
trad
ing o
f the
E
cosy
stem
Se
rvice
Pre
-Co
nd
ition
s for e
ffectiv
e imp
leme
nta
tion
of th
e P
ES
S
che
me
-Po
licy, L
eg
al, In
stitutio
na
l, Go
vern
an
ce, Eco
no
mic,
Po
litical, C
ultu
ral, N
etw
ork
ing
,
Re
crea
tion
al
Se
rvice
s
171 | P a g e
Ed
uca
tion
al a
nd
Re
search
S
erv
ices
Wa
ter Q
ua
lity
Ma
inte
na
nce
Po
llutio
n
Pre
ve
ntio
n
Cu
ltura
l an
d
Sp
iritua
l Se
rvices
172 | P a g e
Annex-XIII: Identification, Categorization and Effective Engagement of Stakeholders in REDD+ PES Program
Stakeholder Group
Stakeholder Category: Primary, Secondary, Tertiary
Kind and Nature of Stake
Magnitude of Stake
Impact of current exercise of stake: Positive, Negative, Neutral, Not able to determine
Requirements for Effective Engagement
Government Departments
Immediate or Subsequent
Stakeholder Accessibility for Engagement
Key Objectives for Engagement
Engagement Methods/ Techniques: Organization as a body, Incentive ; Consultative Meetings Workshops; Tours; Information Briefs; Fact Sheets; Documentary; Other Media, Social Media; Website/ MIS ; Provision of Novel Items, (souvenirs) Alerts; Press Releases; Networking; Guidelines; Trainings; Others;
Personnel, Materials and Logistic Requirements
Budget Requirements
Forest Deptt: P I Establishment of
173 | P a g e
Environmental services Coordination, promotion and marketing wing in Sindh Forest Department.
Wildlife Deptt:
P I
Fisheries Deptt:
P I
Agriculture Deptt:
S S
Livestock Deptt:
P I
Rural Development Deptt:
S S
Power and Energy Deptt:
S S
Tourism Deptt:
S S
Irrigation /Drainage
P I
Planning and Development Deptt:
P I
Finance Deptt:
P I
Law Deptt: S S Revenue Dept:
P I
Administration
S S
174 | P a g e
Police S S Judiciary S S EPA P I K-Electric/WAPDA
S S
Disasters Management Authority
S S
Education S S Social Welfare Deptt:
S S
Coastal Development Authority
P I
Alternative Energy Board
S S
Pakistan Navy
S S
Local Government
S S
FBR/Excise and Taxation Department
T S
Health S S
175 | P a g e
EFFECTIVE ENGAGEMENT OF STAKEHOLDERS IN REDD+ PES PROGRAM
Stakeholder Group
Stakeholder Category: P:Primary, S:Secondary, T:Tertiary
Kind and Nature of Stake
Magnitude of Stake
Impact of current exercise of stake: Positive, Negative, Neutral, Not able to determine
Requirements for Effective Engagement
Community Groups
Immediate or Subsequent
Stakeholder Accessibility for Engagement
Key Objectives for Engagement
Engagement Methods/ Techniques: Organization as a body, Consultative Meetings, Workshops, Tours, Information Briefs, Fact Sheets, Videos, Other Media,
Personnel, Materials and Logistic Requirements for Engagement
Budget Requirements for Engagement
176 | P a g e
Social Media, Website, Provision of Novel Items, Alerts, Press Releases, Networking, Guidelines, Trainings, Other
Forest Users P I Fishermen P I Farmers P I Livestock Owners
P I
Businesses S S Traders S S Religious Leaders
S S
Local Level Leaders and Other Opinion Makers and Influencers
P I
Tourists S S Civil Society and Media
Advocacy
177 | P a g e
Groups Media INGOs IUCN WWF Local NGOS SDPI Fishermen Society
Friends of the Sea
Academic and Research Institutions
Marine Biology Department, University of Karachi
Relevant Research Institutes
Local Financing Institutions
Banks Other Lending Institutions
International Agencies
UNDP UNEP FAO
178 | P a g e
USAID World Bank Asian Banks Knowledge Providers
Project Design Developers
S
Brokers S Validators S Verifiers S ES Potential Buyers
Industries P Energy Companies
P
Utility Companies
P
Airlines and Other Transport Agencies
P
Water Utilities
P
Tourism Companies
P
Coastal Authorities
P
Disasters Management Agencies
P
Pharmaceutical Companies
P
179 | P a g e
ANNEX-XIV: QUESTIONNAIRE FOR SOCIO ECONOMIC DATA OF MANGROVES FORESTS
Project Title: DESIGNING REDD+ PAYMENTS FOR ENVIRONMENTAL SERVICES Questionnaire for Focus Group Discussion
General Information of Village ____________________
Village: Union Council:
Tehsil: District:
Total Area of the Village
Total Population of the Village
Altitude of the
Mean Annual Rainfall
Temperature
Acres
ft
mm
Average maximum temperature is ° C
Average minimum temperature is ° C
Total number of Households in the Village:
Number of hamlets in the Village
Demographic information of the Village S.
No.
Tribe/Section Number of households Population
Total Male
headed
Female
headed
Total Male Female
180 | P a g e
Total
Literacy Rate in the Village Literacy Total [%] Male [%] Female [%]
Tribe wise Livelihoods Practices S. No.
Tribe Livelihoods
Fisherie
s
Livest
ock
Agricultur
e
Forest
Labour
Govt. Service
Business
Any other
Total
Land Use of the Village:
S. No Land Use Area in Acres
1 Agriculture
2 Forest
3 Range Land
4 Waste Land
5 Habitation
181 | P a g e
6 Nallas/Streams
Total
Forest Facilities:
1. Issues and Problems in Access to and availing forest products and services: ______________
___________________________________________________________________________
2. Proposed Solutions for tackling the issues and problems of access to goods and services:
___________________________________________________________________________
___________________________________________________________________________
What are the sources of Energy? House Hold Size ______________________________
Type of energy Quantity/month Unit cost Source
Firewood Mangrove
Non mangrove
Farm land
Market
Sui gas
LPG
Agriculture residuals
Other
Uses of Mangrove forests:
Use Quantity Price Issues?
Timber
Firewood
Fodder
Thatching
material for
huts
construction
Packing
material
Processing of
fish and fish
182 | P a g e
products
Others
Fisheries:
1. Overtime trends of fisheries ___________________________________________________
2. Increasing ____________, Decreasing________________, No Change______________
3. If Change how significant ______________________________________________________
4. Is it over all change or any particular Spp. __________________________________________
5. What are the reasons for the Change _____________________________________________
6. Any other issue related to fisheries that you are currently facing: ________________________
______________________________________________________________________________
_________________________________________________________________________
7. Proposed Solutions for tackling the issues and problems of access to goods and services:
______________________________________________________________________________
Agriculture information: Crop Area Production
per acre
Source of
irrigation
Inputs quantity
seed Fertilizers Pesticides Labour
183 | P a g e
Economics of Agriculture production:
Crop Area Production
per acre
Source of
irrigation
Inputs cost Revenue
Seed Fertilizers Pesticides Labour
1. Issues and Problems in Access to and availing agricultural products and services:
______________________________________________________________________________
2. Proposed Solutions for tackling the issues and problems of access to goods and services:
______________________________________________________________________________
______________________________________________________________________________
Wildlife and Biodiversity:
Type Trend Reasons Major Issues
Solutions
Increasing Decreasing No change
Birds
Mammals
Reptiles
Turtles
Frogs / other amphibians
Fish
Crab
Shrimps
Mudskipper
184 | P a g e
Others
Livestock in the Village:
Livestock No. of Animals
Source of Feed
Grazing in Mangroves
Outside Mangroves
Stall Feeding
Price
Price/cost of Mangroves feed
Price/cost of outside mangroves feed
Stall feeding
• Issues and Problems in Access to and availing livestock products and services: _____________
_____________________________________________________________________________
• Proposed Solutions for tackling the issues and problems of access to goods and services:
______________________________________________________________________________
______________________________________________________________________________
Information about Disaster
Types Frequency Severity No. of
people
affected
Estimated
damages
Existing
mechanism
for dealing
with
disasters
Measures
you like to
propose
for dealing
with
disaster
185 | P a g e
Recreational information
Types Recreational
spots
Estimated
no. of
visitors
Existing
facilities
for
tourists
Role of the
community
How to
enhance
recreational
opportunities
in the area
How to
maximize
your benefits
from
recreational
opportunities
3-W Matrix of Village _________________________ Sr
.#
Name of
Organization
Activities Done or
ongoing
Impacts Your impressions
about these
activities
1 Govt.
2 Port authorities
3 INGOs
4 NGOs
5 Navy
6 Others
7 Philanthropists
8 Karachi university
9
10
186 | P a g e
Seasonal Calendar of the Village Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Agricultural Land preparation Sowing/planting
Weeding
Irrigation Harvest Grass cutting/collection Cleaning/maintaining irrigation channel
Vegetable cultivation / kitchen gardening
Livestock Deworming Vaccination Transfer to range lands Fuel wood collection Seasonal migration of people (transhumance)
Festivals Floods Rainy season Etc.
187 | P a g e
ANNEX-XV: QUESTIONNAIRE FOR SOCIO ECONOMIC DATA OF MANGROVES FORESTS
(HOUSEHOLD SURVEY)
House Holed Headed by: ____________________________________________
Village: Union Council:
Tehsil: District:
Number of persons in the HH Male: _________________ , Female: _____________
Number of person educated in HH
Highest level of education in HH
Main income source (rank the relevant ones) Income Source Ranke % Share in total
income No. of HH members engaged in this activity
Fishing
Farming
Livestock
Transport/driver
Merchant/Business
Forest Based
Pension
Service
Labour
Other (Specify)
Landholding and land Use of the HH:
S. No Land Use Area in Acres
Non owned land uses by HH
Mangrove Waste land
Rangeland Rented Agriculture land
1 Agriculture
2 Forest
3 Range Land
4 Waste Land
188 | P a g e
What are the sources of Energy at HH Level?
Type of energy Quantity/month Unit cost Source
Firewood Mangrove
Non mangrove
Farm land
Market
Sui gas
LPG
Agriculture residuals
Other
Uses of Mangrove forests by HH:
Use Quantity Price Issues?
Timber
Firewood
fodder
Thatching
material for
huts
construction
Packing
material
Processing of
fish and fish
products
Others
Fisheries:
8. Overtime trends of fisheries ___________________________________________________
9. Increasing ____________, Decreasing________________, No Change______________
10. If Change how significant ______________________________________________________
11. Is it over all change or any particular Spp. __________________________________________
12. What are the reasons for the Change _____________________________________________
13. Any other issue related to fisheries that you are currently facing: ________________________
189 | P a g e
______________________________________________________________________________
_________________________________________________________________________
14. Proposed Solutions for tackling the issues and problems of access to goods and services:
______________________________________________________________________________
Agriculture information of HH: Crop Area Production
per acre
Source of
irrigation
Inputs quantity
seed Fertilizers Pesticides Labor other
Economics of Agriculture production per HH:
Crop Area Production
per acre
Source of
irrigation
Inputs cost Revenue
Seed Fertilizers Pesticides Labor
3. Issues and Problems in Access to and availing agricultural products and services:
______________________________________________________________________________
4. Proposed Solutions for tackling the issues and problems of access to goods and services:
______________________________________________________________________________
______________________________________________________________________________
190 | P a g e
Wildlife and Biodiversity:
Type Trend Reasons Major Issues
Solutions
Increasing Decreasing No change
Birds
Mammals
Reptiles
Turtles
Frogs / other
amphibians
Fish
Crab
Shrimps
Mudskipper
Others
Livestock in the Village per HH:
Livestock No. of Animals now
No. of Animals 10 years ago
Source of Feed
Grazing in Mangroves
Outside Mangroves
Stall Feeding
Price
Price/cost of Mangrove
s feed
Price/cost of outside mangroves feed
Stall feeding
191 | P a g e
• Issues and Problems in Access to and availing livestock products and services: _____________
_____________________________________________________________________________
• Proposed Solutions for tackling the issues and problems of access to goods and services:
______________________________________________________________________________
______________________________________________________________________________
Information about Disaster from HH
Types Frequency Severity No. of
people
affected
Estimated
damages
Existing
mechanism
for dealing
with
disasters
Measures
you like to
propose
for dealing
with
disaster
Recreational information
Types Recreational
spots
Estimated
no. of
visitors
Existing
facilities
for
tourists
Role of the
community
How to
enhance
recreational
opportunities
in the area
How to
maximize
your benefits
from
recreational
opportunities
3-W Matrix of HH_________________________
192 | P a g e
Sr
.#
Name of
Organization
Activities Done or
ongoing
Impacts Your impressions
about these
activities
1
2
3
4
5
6
7
Seasonal Calendar at HH Level Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Agricultural Land preparation Sowing/planting
Weeding
Irrigation Harvest Grass cutting/collection Cleaning/maintaining irrigation channel
Vegetable cultivation / kitchen gardening
Livestock Deworming Vaccination Transfer to range lands Fuel wood collection Seasonal migration of people (transhumance)
Festivals Floods Rainy season Etc.
