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Title: Environmental Fiscal Reforms- Saadullah Ayaz


1
Environmental Fiscal Reforms
Saadullah Ayaz
2
  • ABOUT IUCN
  • IUCN- International Union for Conservation of
    Nature and Natural Resources is the worlds
    oldest and largest global environmental network-
    a democratic membership union with more than
    1,000 government and NGO member organizations,
    and almost 11,000 volunteer scientists in more
    than 160 countries worldwide
  • IUCN helps the world find pragmatic solutions to
    our most pressing environment and development
    challenges. It supports scientific research,
    manages field projects all over the world and
    brings governments, non-government organizations,
    United Nations agencies, companies and local
    communities together to develop and implement
    policy, laws and best practice
  • IUCN has a status of an Observer in UN General
    Assembly

3
WHAT DOES IUCN DO?
  • Knowledge IUCN develops and supports cutting
    edge conservation science, particularly in
    species, ecosystems, biodiversity, and the
    impact these have on human livelihoods
  • Action IUCN runs thousands of field projects
    around the world to better manage natural
    environments
  • Influence IUCN supports governments, NGOs,
    international conventions, UN organizations,
    companies and communities to develop laws,
    policy and best-practice
  • Empowerment IUCN helps implement laws, policy
    and best-practice by mobilizing
    organizations, providing resources, training
    people and monitoring results

4
IUCN- A GLOBAL UNION
Headquarters in Gland, Switzerland
5
THE DRIVING FORCE
  • IUCNs VISION
  • A just world that values and conserves nature
  • IUCNs Mission
  • Influence, encourage and assist societies to
    conserve the integrity and diversity of nature
    and ensure any use of natural resources is
    equitable and ecologically sustainable

6
CORE PROGRAMME AREAS
7
OUR STRUCTURE
8
IUCNs VALUE PROPOSITION
9
IUCN IN PAKISTAN
  • A long term commitment since 1985
  • Several offices, around 112 staff, Country office
    at Karachi
  • largest Country Programme of the Union in the
    World since 1996

10
MEMBERS IN PAKISTAN 29
11
Introducing Environmental Fiscal Reforms
Banking with Nature
12
ENVIRONMENT AND POVERTY NEXUS
  • A healthy environment is crucial to poverty
    reduction and sustainable growth
  • With the degradation of ecosystems comes a
    decline in the quality of environmental services
    that ecosystems provide
  • The annual cost to Pakistans economy of
    environmental damage and natural resource
    degradation is nearly 365 billion rupees, or 6
    of GDP (WB 2006)
  • Immediate and most severe effects of
    environmental degradation are suffered by the
    poor
  • Strengthening environmental management can
    support economic growth, while improving health
    and productivity. Financing pro-poor
    environmental management in conjunction with
    other development activities is of the utmost
    importance

13
WHAT IS EFR?
  • Innovative policies are required to achieve
    development targets while ensuring environmental
    sustainability. Environmental Fiscal Reform (EFR)
    is one such approach, and allows fiscal resources
    to be managed in such a way that development
    challenges can be tackled without sacrificing
    environmental conservation
  • BANKING WITH NATURE
  • EFR has been described as a strategy that
    redirects government taxation and expenditure
    programmes to create an integrated set of
    activities in support of sustainable development
    and conserves environment
  • The idea is to use fiscal instruments, directly
    or indirectly modifying the prices of
    biodiversity related goods and services, to
    influence behavior in order to provide incentives
    for environmental protection. The funds raised
    through these measures can be channelled to
    specific priority sectors, such as environmental
    conservation and poverty reduction

14
ENVIRONMENTAL FISCAL REFORMS
  • It is in this context that environmental fiscal
    reforms (EFR), and particularly pro-poor EFR, can
    assist the government in broadening the revenue
    base, while achieving both poverty reduction and
    environmental goals
  • The environmental benefits of EFR includes
    pollution prevention and improved natural
    resources management mobilization of funds for
    investment in pollution control and safe disposal
    of waste and mobilization of funds for
    enforcement activities
  • VIABLE EFR INSTRUMENTS FOR PAKISTAN
  • Charging appropriate prices and user charges
    for various natural resources extraction
    activities and social services
  • Making polluters pay for internalizing
    externalities that polluters impose on the
    society rationalizing environmentally harmful
    subsidies and taxation measures and streamlining
    budgetary processes so as to further the goals of
    environmental improvement and poverty reduction

Environmental Fiscal Reforms
15
BENEFITS OF EFR (WIN-WIN-WIN)
16
EFR TESTING AND APPLICATION IN PAKISTAN
17
EFR PROJECT PROFILE
  • AIM
  • Poverty reduction and environmental improvement
    through undertaking a set of environmental fiscal
    reforms initiatives.
  • FINANCIAL SUPPORT
  • Swiss Development Cooperation (SDC)
  • DURATION
  • May 2006 to April 2009- Extended till June 2010
  • PROJECT PARTNERS
  • IUCN, Planning Commission, district Government,
    Abbottabad
  • RESEARCH PARTNERS
  • Pakistan Institute for Development Economics
    Sustainable Development Policy Institute
  • PILOT DISTRICT Abbottabad

18
PROJECT COMPONENTS
  • Action Research and
  • Awareness Raising
  • Enabling Institutional,
  • Legal and Policy Framework
  • Capacity Building
  • Piloting Select EFR Options
  • Wider Dissemination for Replications

19
  • Action Research
  • - Research reports on solid waste, drinking
    water, and quarrying and
  • mining, fiscal decentralization
  • - Five (05) fact sheets completed (for easy
    understanding)
  • - Sector wise recommendations translated
    into Urdu
  • - Situation analysis of solid waste
    management in Nawanshehr town
  • - Water analysis of natural water resources
    (survey by PCRWR)

20
http//www.iucn.org/about/union/secretariat/office
s/asia/asia_where_work/pakistan/projects/archived_
projects/proj_arc_efr/
21
  • Advocacy, Partnerships and Capacity Building
  • - Liaison with City District Government of
    Abbottabad
  • - Extensive awareness, community
    organization/ mobilization for
  • development participatory solid waste
    management system in
  • Nawanshehr (pilot)
  • - Trainings
  • (Community) PSWM, waste segregation,
    reduction, disposal,
  • composting)
  • (Local administration) solid waste
    management, efficient collection,
  • waste segregation, safe disposal, route
    planning/ mapping

22
PILOTING EFR OPTIONS (Case Study of Solid Waste
Management in Abbottabad)
23
  • Development and operationalization of a
  • participatory solid waste management
    system in UC Nawanshehr
  • - Social Mobilization
  • community groups, youth associations,
  • school children and women folks
  • dialogue conducted (70 shopkeepers)
  • door to door campaign (725 houses)
  • Citizens seminar, youth forum
    operationalized
  • - Social Organization
  • sixty two (62) community activists
  • School Environmental Clubs (09
    established)

24
  • Capacity building
  • training of staff of Town Committee on
  • participatory solid waste management, mapping,
    segregation, recycling, coordination with line
    agencies (district government)- 16 staff members
    trained
  • training community groups on participatory solid
    waste management system, developing and
    sustaining primary collection system,
    organizational management, financial record
    keeping, coordination and liaison development
    (62 activists trained)
  • Other training of communities ( women) on
    kitchen gardening and compositing (90 trainees)

25
  • Improved measures for primary collection of
    waste
  • model system nine (09) beads were developed
    in the area (each comprising of around 120
    households)- at source segregation of organic
    and recyclables have also been introduced in 09
    beads
  • (08) mohellahs where communities have hired
    their own waste collectors through nominal
    contribution (pro- poor initiative)

26
  • Development of secondary waste collection system
  • - Proper designed secondary collection points
    have been developed in
  • nine (09) mohellahs,
  • - Route planning for waste collectors (map
    developed)
  • - Repair of tractor and improvisation of
    existing trolley

27
the change
28
  • Application of Pro- poor fiscal measures
  • in solid waste sector
  • - Eight (08) mohellahs have hired waste
  • collectors (paid from revenue)
  • - Revenue from selling recyclables by
  • School Environment clubs
  • - Nineteen (19 kitchen gardens from
  • organic compost)
  • - (19) garbage merchants have been
  • registered in lieu of payment
  • of tax to the Town Committee
  • - A frame- work for scavengers is also
  • being devised to regulate
  • their working

29
ACHIEVEMENTS OF EFR PROJECT
  • Progress achieved as per MTR recommendations
  • Research work received high appreciation
  • Chapter from EFR project was published in the
    Oxford University Press, London
  • Technical paper on EFR (Pakistan Engineering
    Congress 2010)
  • Three papers on EFR presented in Special
    Technical Session on EFR at the 23th Annual
    General Meeting of Pakistan Society of
    Development Economics
  • Panel discussion were held on Pro-poor
    Environmental Fiscal Reforms during Conference
    on Peace and Sustainable Development in South
    Asia Issues and Challenges of Globalization
    held at SDPI
  • EFR as subject at PIDE (M. Phil/ MSc. Env.
    Economics Programme
  • Wider replication of EFR in IUCNs on- going
    programmes (BPSD)
  • Opportunities for up- scaling (district level)

30
LESSONS LEARNT
  • Efficacy of EFR proved (revenue, pro-poor support
    and env. sustainability)
  • In-depth research. Findings to be tailored to
    create real understanding and integration into
    policy and decision making process
  • EFR being new concept putting in pace a self
    sustaining long term EFR mechanism requires
    improved coordination mechanisms essential to
    obtain long term results in this regard. local
    level consultations extremely important to
    develop consensus among stakeholders to select
    and adopt EFR options
  • Buy-in from policy-makers is only possible if the
    project is able to demonstrate concrete changes
    on the ground dedicated attention to carry out
    work is of essence, at least for a next couple of
    months till the system is effectively tested and
    completely adopted
  • Capacity building at all level is a must since
    expertise not available anywhere
  • Strong linkages with provincial and federal
    government tiers are required
  • Up scaling and replication of EFR activities is
    essential

31
WAY FORWARD (RECOMMENDATIONS FOR PAKISTAN)
  • Successful institutionalization of - Reform
    Process.
  • Quite an easy job??? (in complex socio-
    political situation)
  • Support translation of learning form EFR research
    in to actions (elsewhere in Pakistan)
  • Long- term impact integration into sectoral
    polices/ plans-
  • buy- in from policy makers
  • Ensuring self- sustenance of pilots continue
    provision of technical backstopping
  • Capacity building/ awareness (at all levels)-
    gaps?
  • Up- scaling and wider replication of EFR is
    suitable areas in Pakistan in other sectors
    (drinking water, eco-tourism, quarrying and
    mining etc)

32
  • Thanks

For more information Saadullah
Ayaz Coordinator Climate Change/ Environmental
Fiscal Reforms/ Clean Air Initiative for Asian
Cities IUCN Pakistan Email saad.ayaz_at_iucn.org
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