Turning back the tide of environmental degradation that often accompanies development may sound like a tall order. But offering rural inhabitants economic incentives to conserve ecologically sensitive areas could be the answer.

The Dai Ninh hydropower plant.

Recently, considerable public concern has been focussed on water pollution that may result from bauxite mining operations being launched in Lam Dong and adjacent Dak Nong provinces.

The scheme addresses Vietnam’s heavy loss of forest cover and rampant water pollution, while reducing the risk of landslides and flooding.

The payments are conditioned on each family’s cooperation in efforts to reduce deforestation, soil erosion and sedimentation. They are made through a non-profit fund run by the province. The pollution that is avoided is expected to save utility companies significant amounts of money, including annual dredging costs for the Da Nhim reservoir amounting to $3.75 million per year, according to USAID.

Residents are being encouraged to plant sustainable and profitable crops such as cacao and bamboo. These can be grown under forest cover, so that (unlike for upland rice or cassava, for example) no forest land must be cleared.

Most of the payments will be borne by consumers through tiny surcharges on each unit of power or water. Local governments receive a percentage of the payments to cover their administrative costs.

Asian expansion

The Lam Dong project, which started in April 2008, is modelled on successful watershed protection schemes in several Latin American nations. A second pilot project in Son La, a mountainous northern province, is expected to benefit a further 3,000 households. Project managers say the aim is to expand the project to 15 provinces. Cambodia and Laos hope to replicate the mechanism. Pilot initiatives are also being launched by another coalition in Indonesia and the Philippines.

Support is provided by the regional United Nations office (ESCAP), the Asian Development Bank (ADB) and the ASEAN Centre for Biodiversity (ACB), as well as USAID.

VietNamNet/Reuters