The US Government has funded forest conservation through Vietnam’s pilot Payment for Forest Environmental Services (PFES) policy, the first of its kind in Asia that encourages investment to protect forests and livelihoods.
The Da Nhim and Dai Ninh Hydropower Plants gave their first quarterly contribution of nearly VND 12 billion (about US $680,000) to the Lam Dong Forest Protection and Development Fund.
These are the first power utilities to take advantage of the pilot PFES policy to invest funds. It is expected that the province will use these financial resources in an appropriate manner within local communities to help reduce overall operating costs while preserving forests.
Other companies are also expected to invest in the fund that, in turn, will help support rural families to choose more sustainable crops or join forces to help reduce illegal logging and deforestation and safeguard forests in the watershed of the Dong Nai River Basin.
Provincial authorities are working hard to ensure that communities can benefit from these resources.
More disbursement will be made for districts and local communities based on priority conservation targets in the local, district, and provincial conservation and development plans.
Monitoring and evaluation will be made to ensure that the funds reach beneficiaries and that conservation activities are conducted.
The PFES pilot policy promotes investments by hydropower companies, municipal water supply agencies, and the tourism sector to maintain valuable forest areas while decreasing water and electricity costs.
Following the pilot, a full PFES decree would help stimulate local economic growth, public-private partnerships for biodiversity friendly economic activities, and increase financial support for environmental protection.
Such a policy could reduce the cost of water and power consumption in urban areas, provide additional income for thousands of poor families living in forest areas, and provide funds for meeting Vietnam’s National Forest Management and Biodiversity Conservation Action policies.”
Once adopted, a PFES decree could be replicated throughout Southeast Asia. Similar programs are being prepared for Cambodia and Laos.
