Call for Consultancy Services: Market assessment of ecosystem service demand in Vietnam

Country: Vietnam

Organisation: SNV – Netherlands Development Organisation

Program: Reducing Emissions from Deforestation and forest Degradation (REDD+)

Project: ForCES – Forest Certification for Ecosystem Services

Abstract: Consulting services to help determine the extent of market demand for forest ecosystem services in Vietnam.

Duration: 15 Days

1. Background

Emerging markets for forest and biodiversity based ecosystem services (ES) are growing in number and in the value of transactions. Estimates of the value of the carbon market alone suggest $178 million1 worth of carbon credit transactions occurred in 2010, following a steady increase in previous years of trading on both voluntary and compliance markets. However, despite being of higher economic importance, markets for ES often suffer from a lack of credibility and transparency. Very often, sustainability and good forest management practices are not explicitly covered, putting in doubt the long term provision of such services.

The Forest Stewardship Council (FSC) certification and its global coverage may well be attractive for the emerging PES systems by guaranteeing sustainable and responsible forest practices. To explore this idea, SNV in association with FSC and CIFOR are looking to test the idea of expanding the FSC certification label beyond timber and into other ES under the Forest Certification for Ecosystem Services (ForCES) project in Vietnam. This work will be conducted across two sites in Vietnam in Quang Tri and Ha Tinh Province over 4 years.

A key component of early activities under the ForCES project will be to understand the extent of market demand for ES. For many of the services such as carbon sequestration or biodiversity conservation, the potential demand is likely to be international. For others, such as watershed services, the demand will be driven nationally. Understanding the size of this demand, and who is demanding these services will be important for assessing the future financial viability of selling certified ES in Vietnam through an expanded FSC system. As such, the objective of this assignment will be to examine national market potential through demand studies and an analysis of the costs & benefits of incorporating ES through FSC certification.

2. Tasks of the consultant

• Review of existing nationally specific policies and regulations which are a source of existing ES demand (e.g. Decree 99, Corporate Social Responsibility (CSR) initiatives) and future ES demand (e.g. REDD+, CDM)
• Review of literature on PES projects in Vietnam (among them RUPES, SNVs internal market analysis for Vietnam)
• Develop a checklist to assess demand/interest for ES – this checklist should be completed alongside of national buyers identified earlier with the intention of determining the extent of the demand (i.e. willingness to pay), their motivations for purchasing the ES and their requirements from a demand-side if they are to pay for ES in future.
• Conduct a series of consultations/interviews using the checklist to illicit responses around individual stakeholders market demand
• Develop a list of potential national buyers for certified ES – this should consider existing buyers mandated under Decree 99, in addition to other potential sources of market demand within Vietnam such as organisations with interest in CSR initiatives and tourism operators.
• Assess the collected data to determine the size and trend of demand for different ES in Vietnam, key potential buyers of ES and the reasons for different stakeholders’ demanding these ES, listing key factors of success for an FSC certification scheme addressing ES.

3. Expected outputs and deliverables

a. Brief literature review of existing and future sources of ES demand fostered by different policies and initiatives in Vietnam.

b. Concise list of potential national buyers of ES for Vietnam

c. Checklist of questions to be asked to potential ES buyers (a draft of the checklist should be developed alongside of the ForCES Project Manager)

d. Draft and final reports of key findings, including;

• Synopsis of responses from different ES buyers based on the checklist developed
• Identification of most likely buyers of FSC certified ES in Vietnam
• Identification of the types of ES that are in greatest demand
• Discussion of key opportunities and constraints to future ES demand in Vietnam based on responses given by different potential buyers of ES (key factors of success)
• Recommendations of key changes to specific policies or regulations that could facilitate the trade of FSC certified ES in Vietnam.

4. Timeframe and Location

The consultant will be recruited for a total of 15 days over the period stated in this Letter of Assignment (with possible extension if necessary). Field time may be necessary and costs should be included for any such travel deemed necessary.

5. Expressions of interest

Expressions of interest for this assignment should consist of a letter of interest (including an indication of your daily rate) and CV detailing experience directly relevant to this assignment. Please send expressions of interest to Vu Thi Que, Anh at AVuThiQue@snvworld.org by 5:00pm Monday 9 July, 2012.