Paying cocoa farmers for environmental services part II

Cocoa farmers can make an important contribution to the preservation of biodiversity. Cocoa producing areas can act as a buffer for – or a corridor between -- nature reserves. However, famers are not compensated for such ecosystem services, the so-called ‘Payment for Ecosystem Services’ (PES).

Payment mechanism

The first phase of the project ‘PES and cocoa’investigated the best and most feasible payment mechanism. It is recommended to link existing cocoa producing areas to existing eco-labels for cocoa, such as Utz or Rainforest Alliance. In this way the PES-bonus is an add-on to the existing eco-label. There are also deserted or degraded cocoa areas, however, where it would be desirable to (re)encourage sustainable cocoa production. For such situations a fund would be desirable.

A fund is also important when approaching other parties outside the cocoa chain for a ‘willingness to pay’. Economic arguments could be:

• Enhancement of product and/or corporate image
• Secure long-term cocoa production
• Direct interests of other users of the area (for example the water industry and tourism)

The follow-up

In the second phase of the project CREM will analyse the ‘willingness to pay’ of various parties both within and outside the cocoa/chocolate chain.

Pilot projects for the follow-up will also be identified, in which the PES-mechanism will be tested. One pilot will focus on cocoa production close to biodiversity ‘hot spots’ and will be linked to existing certification. The second pilot deals with the fund that focuses on promoting sustainable cocoa production in degraded/deserted areas. CREM is implementing this project together with the Agro Eco-Louis Bolk Institute for the Ministry of Economic Affairs, Agriculture and Innovation.

• Download: Payment for Ecosystem Services and Cacoa Phase 1, 947kB >>
• Contact: Victor de Lange >>

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