Harnessing carbon finance to arrest deforestation: Saving the Javan rhinoceros

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Problem: Even before the recent global food price rises, the options for conserving the last population of Javan rhinoceros were looking dim. Land speculations by the richest and agricultural expansion by the poorest in Lam Dong province were resulting in encroachment onto Cat Tien National Park (CTNP). Coupled with this are plans to upgrade a track to a road within CTNP — right through the Javan rhinoceros’ range — which is expected to increase encroachment, the wildlife trade and anxiety of extinction.

Priority: This project is a priority for the Vietnamese government, who are keen to both avoid all talk of extinction and conserve the 82 critically endangered species resident in CTNP. Yet there are competing priorities facing the government. The poor in Lam Dong province are being lifted out of poverty by growing cash crops near and inside CTNP, while the Park is not delivering promised flows of economic benefits to the country, province or the local communities. This project seeks to reconfigure this by working with all parties to achieve ‘win-wins’ that result in conservation within the Park, economic flows to Vietnam and poverty alleviation for poor neighbouring communities.

At the vanguard of conservation in Vietnam is the Javan rhinoceros. CTNP hosts the last population of the sub-species Rhinoceros sondaicus annamiticus in the world. Yet, there are fewer than ten individuals remaining, using a range of 6,500 ha. CTNP is also renowned as one of Southeast Asia’s havens for the conservation of large mammals, including Asian Elephant, Wild Boar, Sambar Deer and Gaur as well as hosting all six native Vietnamese primate species.

CTNP is one of the few lowland forest ecosystems in Southeast Asia remaining relatively intact and conservable. It supports several habitats, including lowland evergreen forest, lowland semi-deciduous forest, freshwater wetlands and seasonally inundated grasslands. The diverse species include 1,300 species of plants, 76 mammals, 322 birds, 73 reptiles, 35 amphibian and 99 fish. These include 40 globally threatened species and 82 species included in the Vietnam Red Data Book.

Conservation through community-based natural resource management is a stated goal, and countering the wildlife trade are key priorities for Vietnam driven by international agreements. This project complements Vietnam’s responsibilities under the CBD which it ratified in 1994. Under CITES, Vietnam receives criticism for its role as a regional hub for the wildlife trade but is praised for its efforts at implementing legislation.

Threats: Gradual encroachment is having a devastating impact on the minimum viable range of many mammal populations in the park, in particular the Javan Rhinoceros. The main cause of forest conversion is to plant ‘cash crops’ – particularly cashew nuts. Vietnam is the largest cashew exporter in the world, with exports totalling US$505 million in 2006, increasing annually by 10% and showing no sign of abating. The area around CTNP is a major cashew growing area, chiefly for the poorest in society since this hardy crop can grow on marginal sloping land with minimal water requirements. In addition, the wildlife trade in this area is rampant and is of concern, particularly for the boar, gaur and deer populations. Furthermore, deforestation and degradation associated with agricultural expansion contributes to the emissions of greenhouse gases associated with climate change. The current rate of land cover change from forest to agriculture represents a significant release of carbon stored in the forest.

Developing innovative economic incentives to combat encroachment: Authorities and NGOs agree that the only way this situation can be reversed is by providing a stronger economic incentive for protection over conversion. To aid this reversal, this project will package two key elements of economic incentive – REDD and co-management. Structures for both will be developed in a participatory manner to ensure maximum community acceptance and participation. This participation will take place in an iterative manner, with interviews and group meetings held with communities held first in the idea-generating phase, next to discuss and evaluate a set of proposed structures, and finally to engage in a thorough learning process regarding implementation.

Following the UNFCCC Bali negotiations in 2007, there is renewed interest in the issue of reduced carbon emissions from deforestation and degradation (REDD). The World Bank is piloting REDD, with an expectation that operationally it will enable countries to gain ‘carbon credits’ for reducing deforestation and degradation. Vietnam is one pilot country and Indochina Carbon has been working closely with the Government to submit the R-PIN and to help design the REDD pilot. The Darwin project will enable feasibility and implement a mechanism, which allows local communities in the landscape around CTNP to be compensated for reduced deforestation.

The Government is keen to pilot REDD in CTNP/Lam Dong because of its conservation heritage, perceived threats and rhinoceros population. Once funded this project will tap into the mechanism and structures of the World Bank-supported REDD pilot and hence achieve benefits, far in excess of funding. It is hoped that this pilot will be used nationally to stimulate other REDD projects. This project will introduce and demonstrate best practice in participatory rural appraisal, pro-poor policy development and alternative livelihood schemes development. In essence, it will develop the local foundations to ensure equitable distribution of future financing that will genuinely benefit the rural poor. Plus, this work will help inform the Governments process of setting up a nation wide REDD scheme that helps the poorest.

Expected outcomes: In the longer term, establishing such mechanisms will provide sufficient funding to combat the major threats to the National Park and therefore ensure that the biodiversity within the Park is protected. Training of government staff in REDD techniques will help this rapidly growing initiative be implemented more successfully in the future in Vietnam. By examining a range of incentive mechanisms focused around paying for forest conservation, strengthening protected area management and by ensuring empowerment of local communities, the project will support the government’s implementation of CBD and CITES. Encroachment of agriculture into the habitat of critically endangered Javan Rhinoceroses and other species will be reduced.