Ecosystem Services & their Role in Poverty Alleviation in Suynik Province, Armenia

Armenia

The Project – Overall objective

• To strengthen the knowledge base & capacity at the national, provincial and local levels in ecosystem valuation

• Independent expertise in ecosystem valuation in order to provide scientific based evidence to stakeholders & decision makers

Key questions to be addressed through valuation study

• How do ecosystem services in Armenia support economic growth, employment and prosperity?

• What risks / costs are associated with their damage / loss?

• What are the links between ecosystem services and poverty alleviation?

Key steps in the economic assessment `

•Undertake qualitative assessment of ecosystem services•Determine data availability (scientific / quantitative)•Select ecosystem services to be valued.•Select key economic indicators

•Derive monetary estimates of the ecosystem services under the elected scenarios using appropriate valuation approach

•CBA (economic & financial perspective). Aggregation, discounting, sensitivity analysis •Impacts of different scenarios on key indicators – e.g. employment, incomes, tax revenues•Distributional analysis and implications for poverty alleviation •Identification of sustainable financing / development mechanisms

Step 6: Analysis of economic evidence

Step 5: Undertake valuation of ecosystem services

Step 2: Characterize the study and determine the context for the assessment

Step 7: Understanding the institutional requirements

Step 3: Define the scope of the economic assessment

Specify the institutional barriers to achieving the sustainable and equitable economic development

2a. Develop a conceptual understanding of the physical characteristics of the area to be studied e.g. its size, soil type, typography, hydrology 2b. Undertaken a socio-economic analysis 2c. Define the issues. What are the main threats to ecosystem services who is being affected and how?2d. Define scenarios to be analyzed

•Quantify (in bio physical terms) the impacts of each scenario, taking into consideration both on-site and off-site impacts

Step 4: Quantification of impacts

Step 1: Stakeholder consultation and site selection

•Consult on project and potential study sites •Select pilot site•Specify & agree the policy issue with stakeholders

Study Site

• Bardzradir (Musra), Suynic Region

• Proposed gold mine

• Community opposition

• Alternatives?

Draft Scenarios

Scenario Description

Mining (as currently proposed)

Analysis based on production quantities and mining practices proposed by company

Best practice mining

Analysis based on best practices and restoration of damage to ecosystems and equitable distribution of benefits from mining

Alternative use of ecosystems

Development of local communities enterprise, based on NTFPs and ecotourism. No mining. Potential for skiing / horseriding? Bee keeping, fruit orchards?

Challenges & Opportunities

• Challenges– New area for Armenia

– Data

• Opportunities– Framework law on environmental protection being

drafted

– Best practice principles and tool for assessing future mining investments