Consultant to Options for Bundling and Stacking Payments for Forest Ecosystem Services with REDD+ Payments: Operationalizing National Policy in Vietnam

Country:          Vietnam
Organisation:    SNV – Netherlands Development Organisation
Program:          REDD +
Projects:          Exploring mechanisms to promote high-biodiversity REDD+: piloting in Vietnam (HB-REDD+); Forest Certification for Ecosystem Services (ForCES)
Abstract:          Explore options for bundling and stacking payments for forest ecosystem services with potential REDD+ under the framework of Decree 99 (on PFES) in Vietnam
Duration:     30 person-days
 
1. Background:
Options for bundling and/or stacking ecosystem service payments are being explored across a number of countries with existing experience in ecosystem service markets as a means of facilitating more cost effective transactions and validating the provision of different services at the landscape level. The concept of bundling refers to the packaging of ecosystem services (ES) into a single ES ‘credit’ which can then be marketed to potential buyers such as companies looking to off-set negative environmental and social impacts caused by development projects or production processes or through other mandatory and voluntary markets. Similarly, the concept of stacking refers to the packaging of different ecosystem services which are individually sold and accounted for using individual standards or regulations for each ES. For example, a stacked payment could pay for watershed services, carbon and pollination services as three individual payments coming from the management of a hectare of land. A bundled payment would package the three services in one credit and sell it accordingly.

In Vietnam, payments for forest ecosystem services (PFES) have been piloted in two provinces, Lam Dong and Son La. These pilots informed Decree 99, which came into force in 2011, providing a mandate for the payment of five forest ecosystem services nationwide: hydrological cycle regulation; soil conservation; carbon sequestration; ecotourism; and mangrove services to aquaculture. Vietnam is currently developing a national REDD+ programme as part of the progression from REDD+ phase one readiness to operationalisation of REDD+ in phase two. The existence of these two processes offers potential for exploring the option of bundling and stacking PFES around REDD+ payments as these two processes mature.

SNV is looking to explore the feasibility of bundling and stacking PFES, under Decree 99, as part of its broader REDD+ programme activities in Vietnam, with the potential to expand these lessons and recommendations to other countries where applicable. In particular, SNV sees this assignment as a key scoping exercise to identify options under two REDD+ related projects:

Forest Certification for Ecosystem Services (FORCES)
Exploring mechanisms to promote high-biodiversity REDD+: piloting in Vietnam (HB-REDD+)

2. SNV’s Assignment Objectives:
The feasibility of bundling and stacking payments for forest ecosystem services, as an economic mechanism to deliver higher environmental performance from REDD+, determined in Vietnam.

3. Tasks of the consultant:
Throughout this assignment, the consultants will be expected to focus on the following key aspects with respect to exploring options for bundling and stacking REDD+ and PFES payments in Vietnam:

1. Conduct a review of the latest international thinking1 around the concept of bundling and stacking, illustrating with examples of where bundling and stacking has already been trialled and lessons learnt from other countries
2. Review the benefits of bundling and stacking in terms of minimising transaction costs, producing management synergies between services, improved financial viability, and enhanced biodiversity conservation, etc.
3. Review the existing status of REDD+ and PFES market developments in Vietnam, including regulations2 supporting the national PFES scheme and options to adapt these regulations for the purpose of bundling and stacking payments with REDD+
4. Identify key challenges and/or barriers for bundling and stacking in the context of Vietnam, including existing capacity constraints, ease at which existing regulations could be adapted to include payments for carbon and PFES, economic viability, etc.
5. Provide recommendations of how best to develop national standards to support registration and trading of bundled services (could be seen in view of developing new ES standards for FSC)
6. Provide recommendations and indicative options for/contribute to the development of a new SNV project on Integrated Forest Ecosystem Services (IFES), which would aim to restore degraded natural forests through a more comprehensive economic valuation of FES

4. Expected outputs and deliverables:
1. Draft work plan for consultation and approval by SNV – 31 March 2012
2. Draft annotated Table of Contents, indicating final report structure, for consultation and approval by SNV – 31 March 2012
3. Draft technical report based on the key tasks highlighted above -31 May 2012
Final technical report incorporating comments from SNV and knowledge partners 30 June 2011.

5. Qualifications
The consultant should demonstrate:
A solid understanding of environmental economics as demonstrated by at least 5 years work experience and relevant qualifications in this area
A sound understanding of the concept of bundling and stacking
Proven experience in working in REDD+ and PES in the context of Vietnam
Excellent written and spoken English

6 Timeframe and Location
The consultant will be recruited for a period of 30 days over a period of 2 months (with possible extension if necessary) from the date of signing the contract for activities.
It is expected that the consultant must provide information indicating that they are qualified to perform these services to the highest professional standard.  A consultant for this assignment will be selected in accordance with the procedures set out by SNV. Interested individual consultants and may obtain further information from the SNV by contacting Adrian Enright at [email protected] . Interested consultants should submit their application letter and latest CV, by email to [email protected]   No later than 2 March 2012.

Job Details
Organisation Name: 
SNV
Location: 
Ha Noi
Application Deadline: 
Fri, 2012-03-02