Exploring the Opportunity of the
Payments for Ecosystem Services
(PES) within Forest Reserves in
Sabah, Malaysia
ROBERT MARTIN MIJOL
Location
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Malaysia Area: 34 million ha (84 million acre)
Malaysia Pop.: 31 million
Sabah Area: 7.4 million ha (18 million acres / 4 times smaller than Oregon)
Sabah Pop.: 3 million
Sabah - Forest Background
Forest Cover = 4 million ha (9.9 million acres)
Total Land Area = 7.4 million ha (18 million acres)
Estimate of Bio-Diversity: Sabah & The World
“…The island of Borneo, on which Sabah is situated,
has been listed as a key area for conservation.
What is lost here is lost to the whole world!
Conversely, however, what is achieved in Sabah
enhances the health and wealth of global biological
diversity…”
(Secretariat of the Convention on Biological Diversity,
United Nations Environment Programme: 15.11.2007)
Payments for Ecosystem Services (PES)
What is PES?
Why PES?
or
Timeline Forest Practices
1989 to Present
70’s & late 80’s
Non-SFM* practices
• Uncontrolled timber
harvesting (clear cutting)
• High timber royalty
• High commercial forests
*Sustainable Forest Management (SFM)
SFM*
Introduced
(1989)
SFM* practices
• Sustainable timber
harvesting (selective
logging)
• Low timber royalty
• Increase forest protection
PES
Sustainable
Financing for
Conservation
Low Gov. Income <10%
High Gov. Income 50%
Why PES in Sabah?
PES in Pacific Northwest
Pacific Northwest
Ecological
Values
Sustainable
Way
Economic
Social
Values
Values
• Different land ownership
ranging from industrial to
conservation management
focused
• Important to provide the
ecosystem value
Ecosystem Services
PES in Pacific Northwest
‘Ecosystem Services’ = ‘Not New’
• Has been discussed for decades & recognized the importance & value from local to global
• Popularized by the Millennium Ecosystem Assessment (MEA) UN
MEA
Value
Provisioning
Ecosystem
Services
Regulating
Supporting
Cultural
PES
Broad
Final
Product or Services
Direct Gov. Payment
&
Market-based Mechanisms
+
Pacific Northwest
Landowner
Cooperative
PES Mechanism in Pacific Northwest
Direct Government Payment
Water
Quality
Carbon
Seq.
Financial
Incentives
Gov. Incentive Progr., Tax Credit,
or Subsidy
“Not encourage big cooperative
and nonprofit organization”
Sellers
SFM
Forest Landowners
Big Cooperative/
Nonprofit Org.
Certified
Conservation
Works
Regulate by
US Federal
State Ag.
Wetland
Miti.
Market-Based Mechanism
Buyers
Credits
Species
Cons.
Bank
Credits
Market
Private Business
Payment Services
/Developers
Bundle
Stack
Regulate by
Market
US Federal
State Ag.
Markets for Ecosystem Services
Clean Water Act
USACE
Wetland Miti.
EPA
Water Quality
Species Cons.
USFWS
Endangered
Species Act
Carbon Seq.
No Kyoto Protocol’s
National Policy
Different ways of marketing
Land use Policy & Regulations
• Wetland Mitigation Banking
Statutory Mandate – Developers to purchase credit from
wetland banks to offset loss of wetland and habitat
• Water Quality Trading
Polluters to pay reduction of pollutants level to achieve
target for a watershed
• Species Conservation Banking
Developers require to mitigate impact to same species
and habitat on nearby land
Cap-and-Trade
Carbon Markets (Voluntary)
• Business company purchase offset credit from an
approved activity that compensates for emission
PES Application in Sabah
Water
Quality
Carbon
Seq.
Market-Based Programs
Sellers
Buyers
SFM
Government/
Local Community
Certified
Conservation
Works
Wetland Credits
Mit.
Species
Cons.
Bank
Credits
Market
Payment Services
Bundle
Stack
Local & Int.
Stakeholders
PES in Sabah
2013
Aug 2008
34,000 ha
Not New
Carbon
Seq.
Voluntary
PES mechanism is not new in Sabah
1. Conservation Bank (Malua BioBank)
 Generate biodiversity certificate
2. Carbon Trading
 Carbon Sequestration (INFAPRO)
 REDD+ Development (Readiness Stage)
World’s Largest
Tropical Conservation Bank
1 BCC = 100 Sq.m = USD 10
USD 34 million
No
Market
Voluntary
Regulatory
(Local)
Other Challenges:
• Financial
• Technology
• Capacity/ Human Resource
• Research and Development
• Education and Awareness
Sabah Way Forward
1. The value of ecosystem services must be created artificially via Government
Regulation
2. Clear forest management regulation and enforcement will lead to healthy
ecosystems that provide services
3. Convert existing conservation projects to certified ecosystem services that
are ready for marketing
4. Awareness raising about the importance of forest conservations should
happen among local and international stakeholders
Thank You
“Terima Kasih”