Elti & PRORENA Conference report

CONFERENCE REPORT

Watershed Management for Ecosystem Services in Human Dominated Landscapes of the Neotropics Earl S. Tupper Conference Center, Smithsonian Tropical Research Institute Panama City, Panama March 19-22, 2014 A conference organized by: The Environmental Leadership & Training Initiative (ELTI) and The Native Species Reforestation Project (PRORENA) With support from: The Inter-American Development Bank (IDB)

Photo: Christian Ziegler

Summary: Water is an essential element that supports life, as well as shapes ecosystems, sustains livelihoods and drives economic development (Stallard et al. 2010, Ogden et al. 2013). Over a billion people live in the tropics and rely upon forests for their well-being, including for drinking water, flood mitigation, energy generation, timber production and cultural services. Given that tropical land use change still represents ten percent of global carbon dioxide emissions, land management in the tropics is of great concern to many. Continued forest loss coupled with an ever-increasing human population growth requires that we understand and efficiently manage land to maintain and restore an array of ecosystem services (Hall et al. 2011).

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Smithsonian Tropical Research Institute ELTI Neotropics Training Program Report

While national governments interact with the international community and set national policy, regional and municipal governments, corporations, rural farmers and other stakeholders often make local land use decisions in isolation of national governments. Engaging the diverse group of stakeholders that manage land can be a challenge, particularly as local stakeholders may question the motivations of what they perceive as being the outside interests of national governments. While governments have significant experience managing public lands, the shift from the need to manage privately owned lands –where many tropical forests are located - create new challenges in land management for the greater good of society. One challenge, for example, can be simply defining the boundaries of the management unit.

Rural lands and urban centers tend to be linked to the service of water provision since upstream land use practices within watersheds often determine water quantity and quality for downstream areas. Thus, decisions made by rural or industrial farmers, park managers, forest dwellers and managers of hydroelectric dams directly impact the daily lives of downstream residents, especially in urban centers. Conversely, decisions deemed necessary to ensure quality of life and to fuel the economy for downstream communities can directly impact the livelihoods of residents living upstream, as well as the production of global services from biodiversity and forests.

While many Latin American economies are experiencing an exciting period of growth and prosperity, in many regions this process is occurring without careful planning. As a consequence, increasing human populations, coupled with activities such as urban and agricultural expansion, road construction, mining activities and the construction of hydroelectric dams, is having adverse impacts on natural resources.

It is, therefore, essential to understand the flow of goods and services that come from forests and how they change with different land use practices in order to ensure sustainable management of land. Interest in watershed management is on the rise in Latin America, as watersheds provide ideal biophysical and social boundaries with which to approach natural resource management and land use planning.

One approach to disseminate scientific knowledge about watershed management is to create a forum that links decision makers to the work of scientists and researchers on this theme. Since 2006, the Environmental Leadership and Training Initiative (ELTI) and the Native Species Reforestation Project (PRORENA), both initiatives of the Yale School of Forestry and Environmental Studies in collaboration with the Smithsonian Tropical Research Institute (STRI), have coordinated conferences that invite leading scientists and practitioners to discuss themes of critical importance for conserving and restoring ecosystem services and biodiversity. Watershed management was selected as the 2014 conference theme to better understand the relationships between watersheds and land use practices in order to determine how best to manage land for the long-term provision of ecosystem services in human dominated landscapes.

Background: Panama is at the forefront of ecosystem services research, as the country has been the focus of the second highest number of publications on the subject of ecosystem services in Latin America (Balvanera et al. 2012; also see Hall et al. 2011). The Smithsonian Tropical Research Institute (STRI), which is located in Panama and was established during the construction of the Panama Canal, has produced over 10,000 publications on this theme, the majority of which are focused within the Panama Canal Watershed (PCW).

The Panama Canal Authority (ACP) hosts the Inter Institutional Commission of the Panama Canal Watershed (Comisión Interinstitucional de la Cuenca Hidrográfica del Canal de Panamá - CICH), through which it brings together the diverse group of stakeholders involved with land management within the PCW. An underlying theme of the ACP management strategy is that rural landowners will make better long-term decisions when they have clear land tenure. The ACP, therefore, has invested significant resources in helping rural landholders obtain clear land titles. Further, they are implementing a program that combines sustainable land management incentives aimed at improving rural livelihoods and ecosystem services with restoration activities focused primarily on reforestation and agroforestry systems, such as silvopastoral and shade coffee systems (ACP 2006, 2010, 2012; Cerezo 2011).

Although the livelihood benefits of improved agricultural systems are well documented (e.g., Murgueitio et al. 2011), the ecosystem services provided by such systems are not well understood (Hall et al 2011). For this reason, the ACP is a founding partner in the Agua Salud Project (http://www.ctfs.si.edu/aguasalud/), a STRI-led interdisciplinary research project with the goal of understanding ecosystem services provided by different forest compositions in the seasonal tropics and how they are affected by land use practices and by climate change.

The project goes beyond the quantification of services by working to gain a mechanistic understanding of how the services are produced, as well as by developing models in order to provide an enhanced understanding of these services throughout the tropics. The Agua Salud Project acquired land use rights to land within the PCW, which is the location of the project’s focal research sites. Nine experimental watersheds of different land uses are being monitored as water enters, moves through and exits the catchments. A variety of monitoring activities and process-based studies are being undertaken within these catchments and across the landscape to understand the suite of ecosystem services provided by the watersheds. Study sites include a native and exotic species plantation, a secondary forest and silvopastoral and shade coffee systems.

ELTI has established a network of interpretative trails and demonstration areas within these study sites to facilitate field-based forest restoration courses. These training sites enable course participants to actively engage in scientific observations and practice, which are critical to train practitioners on the importance of integrating scientific knowledge when making land use decisions.

With the presence of the ACP and STRI, Panama provides a unique environment in which to implement the biophysical and social science research that is necessary to advance the understanding of the provision and management of ecosystem services within watersheds. These two institutions, along with their partners, have made significant advances on this theme during the last five years. Given the need to optimize land use within watersheds for the production of different suites of ecosystem services, it is an appropriate time to take stock of and to assess the state of the art in watershed management with the end goal of improving watershed management practices throughout Latin America.

Objectives The goal of this conference was to provide land use decision makers, including policy makers, practitioners and community members who influence or work within human modified forest landscapes, with the knowledge and networks to advance the protection and management of tropical ecosystems.

The specific objectives of the conference were to: • Review the state of the knowledge (biophysical and social) regarding land management in the humid tropics for the production of different goods and services with a focus on water related services; • Discuss the tradeoffs involved with managing for goods and services in the watershed context, with a particular emphasis on the spatial juxtaposition of land uses and the use of buffer zones, living fences and other forestry and agricultural techniques to mitigate the adverse hydrological impacts of some land practices; • Prepare a “white paper” report on the guiding principles of sustainable watershed management in the humid tropics for policy makers; and • Provide a unique one-day field based learning experience for both the conference presenters and selected participants to learn about watershed management science and practice by visiting ELTI’s training sites located within the Agua Salud Project.

Format March 19: Field trip to Agua Salud Project for conference presenters The conference activities began with presentations about STRI’s Agua Salud Project and ELTI’s Permanent Training Site Initiative within the Agua Salud Project, in order to familiarize the conference presenters with the Agua Salud Project site before the field trip.

At the site, Dr. Jefferson Hall and Dr. Bob Stallard of STRI explained the objective of the research site; to understand the ecosystem services provided by forests in a seasonal climate and how they change with land use and climate change. Dr. Hall explained the following three different pillars of research at Agua Salud: (1) the hydrology component, which tests for the forest “sponge effect” and whether forest soils moderate stream and river flow; (2) secondary forest dynamics and their ability to replace the services lost from mature forests; and (3) native species plantations and their ability to meet the increasing demands of humans while also providing and regulating ecosystem services. In addition, Dr. Hall described the publications and ongoing research conducted by scientific collaborators in the site and their importance for applied ecology.

Panama Coordinator of the Neotropics Training Program for ELTI, Jacob Slusser, discussed how ELTI has utilized the infrastructure of Agua Salud to develop interpretative trails and demonstration areas to facilitate forest restoration courses for practitioners. He also explained how ELTI has developed training materials based on Agua Salud research to create capacity building courses on forestry ecology, ecosystem services and restoration strategies that have a strong scientific foundation and that highlight the importance of using science to make informed land use decisions.

Throughout the day, the participants visited the following five key sites within the Agua Salud Project: • The ridge top, which provided a view of the Agua Salud property including the landscape mosaic of forests and agricultural systems established as part of the study and each system’s associated watershed catchments where measurements are taken; • The mature forest, where ELTI established a demonstration plot and a soil profile used to teach concepts of forest ecology and methods to quantify ecosystem services; • A poorly growing teak-wood timber plantation, which illustrates the importance of conducting site analysis before reforesting with a particular species as well as the limited provision of ecosystem services provided by an exotic monoculture plantation; • The native species plantations, which demonstrates STRI’s Smart ReforestationTM model of planting appropriate native species that perform well in degraded conditions and produce both timber and other

ecosystem services. ELTI has developed an interpretative trail through these plantations to illustrate the range of forest restoration strategies and experiments conducted by researchers; and • The silvopastoral system (SPS) which demonstrates a productive agricultural landscape where native tree species and shrubs are integrated into a cattle pasture. A local rancher manages the SPS using a pasture rotation system and provides participants with the local perspective of using new technologies and practices to improve rural livelihoods. In addition, SPS highlights the socio-economic benefits of forest restoration in productive landscapes, as farms become more productive and generate more economic opportunities in impoverished rural areas.

The field trip concluded with a visit to the Madden Dam of the Panama Canal Authority located on Alajuela Lake, which serves as a reservoir for Panama City’s water and generator of electricity needed for Canal operations during the pronounced dry season. Dr. Stallard reiterated the importance of practicing sustainable forest management within these watersheds, especially due to importance of the region´s forests for mitigating storm and flood risks that can potentially destroy the Panama Canal infrastructure and disrupt the Panamanian economy and world commerce.

March 20: Day 1 of Conference The first day of the conference was well attended and introduced participants to the goal of the conference as a forum to present and discuss the state of scientific knowledge (biophysical and social) related to watershed management in the Neotropics for the production of different goods and services and specifically those related to water. The presentations of the day focused on the first two panels; land-use effects on ecosystem services and the importance of watersheds for ecosystem services (speakers and the titles of their presentations are listed below).

PANEL 1: Land-Use Effects on Ecosystem Services • Robert Stallard, PhD., US Geological Survey & Smithsonian Tropical Research Institute. Land-use effects on stream flow and water quality: experiences from Agua Salud and Eastern Puerto Rico • Michiel van Breugel, PhD., Yale NUS. Land-use effects on carbon sequestration and diversity in a tropical landscape • Heidi Asbjornsen, PhD., University of New Hampshire. Eco-hydrological impacts of land use and climate change in tropical montane cloud forests and implications for payment for hydrological services policies: A case study from Veracruz, Mexico • Sunshine Van Bael, PhD., Tulane University. Tropical biodiversity and ecosystem services in fragmented landscapes

PANEL 2: Importance of Watersheds for Ecosystem Services • Esteban Payan, PhD., Panthera. The conservation of the Magdalena River Watershed of Colombia, as strategy for promoting the connectivity of jaguar populations and its related biodiversity • Carlos M. Padín, PhD., Metropolitan University of Puerto Rico. Watersheds: The green infrastructure • Ciara Raudsepp-Hearne, PhD., Independent. Minimizing trade-offs among ecosystem services in multi-functional landscapes • Marco Tschapka, PhD., University of Ulm. Forest fragmentation influence on ecosystem health: the ecosystem services of bats

Keynote Speaker • Patricia Balvanera, Ph.D., Autonomous University of Mexico. Ecosystem services provided by Neotropical forests: advances and perspectives from Latin America

March 21: Day 2 of Conference The second and final day of the conference focused on approaches to the management of watersheds and the policies and socioeconomic drivers from within and outside the watershed that impact and drive management decisions (speakers and the titles of their presentations are listed below). The objective of these panels was to recognize the complexity of managing ecosystem services amongst diverse stakeholders. Organized as a round table discussion, the second panel of the day gave the audience the opportunity to interact with the presenters, which led to a stimulating dialogue about management responsibilities for decision makers with varying interests. Beyond the forum, the invited experts would help develop a “white-paper” report focused on best practices in watershed management that would translate the scientific knowledge into a language that policy makers, practitioners and other decision makers would be able to understand and use. The publication of the white paper would facilitate further dissemination of watershed management science to other audiences.

PANEL 3: Approaches to the Management of Watersheds • Zoraida Calle, MSc., Center for Research in Sustainable Systems of Agriculture (CIPAV). Participatory research for sustainable agricultural production and ecological restoration • Jefferson Hall, PhD., Smithsonian Tropical Research Institute. Reforestation and restoration for ecosystem services in watersheds of the humid tropics in Latin America • Enrique Murgueitio, DVM., Center for Research in Sustainable Systems of Agriculture (CIPAV). Sustainable livestock in watersheds • Arturo Cerezo, Panama Canal Authority (ACP). Approaches in productive landscapes: The Panama Canal Authority’s Program for Environmental Economic Incentives • Edgar Araúz, Natura Foundation. NGO experiences in the management of watersheds

PANEL 4: Beyond the Watershed • Jorge Maldonado, PhD., University of the Andes. Economic tools for valuing conservation and ecosystem services • Daniel Moss, MSc., Daniel Moss Consulting. Watershed management and governance: How can we get it right?

• Raisa Banfield, Sustainable Panama Foundation (PASOS). The importance of integrated management of Panamanian watersheds • Vidal Garza, PhD., Mexican Economic Development (FEMSA). Scaling models of sustainable conservation through coordination between sectors: the case of the Latin American Water Funds Partnership

Keynote Speaker • Carlos Vargas, Panama Canal Authority (ACP). The Panama Canal: The Green Route of the 21st Century

March 22: White paper workshop and field trip to Agua Salud Project for invited guests The activities during this day involved the following two separate events that occurred simultaneously: 1. Dr. Hall and Vanessa Kirn (ELTI Intern and Peace Corps Response Volunteer) facilitated a workshop with the conference presenters focused on developing a “white paper” report that will include best practices of watershed management in the Neotropics. The goal of the white paper is to translate the scientific body of knowledge on watershed management into a document that policy makers, practitioners and other decision makers are able to understand and use. The publication of the white paper will facilitate further dissemination of watershed management science to other audiences. The workshop focused on developing a strategy for writing the publication by discussing the scope and content for the paper and determining who would be responsible for writing text for each component. Experts contributed their knowledge for each section and their specific research on watersheds in the Neotropics to highlight regional case studies. The session concluded with the production of a work plan and timeline to provide direction to the contributors over the next six months. Information and written materials provided by the experts are continually being organized and integrated into the document. The document is scheduled to be published in December 2014 and will available to the public in both English and Spanish.

2. Estrella Yanguas, Manager of the Agua Salud Project, and Jacob Slusser (ELTI) facilitated a field trip for invited guests. The Inter-American Development Bank (IDB) selected the guests for this field trip since they are important practitioners involved with watershed management in Latin America. In addition, ELTI identified and invited two influential Panamanian land-use decision makers from a private environmental consulting firm and the National Assembly of Legislators. The content of the field trip, which was similar to the visit that the conference presenters had taken to Agua Salud earlier in the week, included: (1) an explanation of Agua Salud’s research objectives; (2) a review of past and current research and results and their influence in land use decision making; and (3) a visit to the ELTI permanent training areas to understand how they are utilized to teach applied ecological restoration concepts to course participants.

Presenters: The conference presenters all work within watersheds of the Neotropics and represent experts from top research organizations of seven countries - Panama, Colombia, Mexico, USA, Puerto Rico (USA), Canada, the Netherlands and Germany.

Participants: The conference was developed for an audience of professional practitioners from the public, private and NGO sectors. Participants were diverse and included practitioners, professors, students, rural community members and indigenous leaders. Representatives of the following Panamanian organizations also attended: Ministry of the Presidency, Ministry of Agriculture, Ministry of Education, National Assembly of Legislators, the National Environmental Authority (ANAM), the Nature Conservancy, Food and Agriculture Organization (FAO), German Agency for International Cooperation (GIZ), University of Panama, The National Environmental Conservation Association (ANCON), Audubon Panama and the United Nations Development Programme (UNDP).

In addition, representatives of the following international entities and organizations attended: the Mayor’s Office of Medellin, Colombia, the Colombian Institute for Rural Development, the National University of Costa Rica, the Costa Rican Ministry of Agriculture, the National University of Loja, the National Forestry Commission of Mexico, the Ministry of Environment and Natural Resources of El Salvador and the Ecuadorian Metropolitan Company of Water and Sanitation. Approximately 120 people attended each day of the conference, in addition to 26 connections via the online webcast.

Facilitators: Jacob Slusser and Saskia Santamaría of ELTI and Dr. Jefferson Hall of STRI developed, coordinated and facilitated the conference, with support from STRI’s Special Events Department (Ambar Avila and Ana Matilde Ruiz) and STRI’s Audio/Visual Department (Jaime Naranjo). Dr. William Wcislo (STRI), Dr. Jefferson Hall (STRI), Dr. Eva Garen (ELTI), Jacob Slusser (ELTI) and Silvano Vasquez (ANAM) provided opening remarks for the conference.

Outcomes and Follow-up: Participants and presenters were actively engaged in learning and sharing experiences throughout the two-day event. In order to continue disseminating information on watershed management to interested parties, all conference presentations will be published on ELTI’s website (elti.org) and video recordings will be published on STRI’s website (stri.si.edu). In addition, ELTI is currently developing a conference summary document, which will include the key points of the presentations and provide links to associated references for further reading. The document will be published in English and Spanish on the ELTI website and promoted through ELTI and STRI social media. Finally, the white paper publication continues to be coordinated and developed, with an anticipated completion date of December 2014.

This event was possible thanks to Arcadia Fund, whose Environmental Conservation grants support programmes that protect and enhance biodiversity, and provide field training and academic research.