Joint CEENRG / CCI Conservation Seminar - Dr Ivan Hajdukovic

Joint CEENRG /  CCI Conservation Seminar - Dr Ivan Hajdukovic, Euro-Mediterranean Economists Association (EMEA)

A sustainable financing scheme for agroforestry in Europe

 

Abstract:

This paper outlines a sustainable financing scheme for agroforestry, emphasising payments for ecosystem service. Agroforestry is a multifunctional system that can play an important role in advancing the objectives of the European Green Deal, given its known environmental, economic and social benefits. To promote the uptake of agroforestry in Europe, it is essential to develop innovative financial instruments and policies based on payments for ecosystems, which recognise the co-benefits of agroforestry practices and reward farmers for providing them. In this context, this study proposes a scheme that integrates ex-ante payments, action-based payments, result-based payments, and advisory services. The scheme is underpinned by key design principles and aims to overcome financial and knowledge barriers, while being practical and flexible, to accommodate different local conditions and project scales. Building on this framework, I propose a methodological approach structured around six key steps to effectively design and implement a sustainable financing scheme for agroforestry. These include identifying environmental results related to ecosystem services, mapping land management practices, estimating associated costs, identifying financing mechanisms, developing measurable indicators, and setting payment rates based on an economic valuation of ecosystem services. The study then examines potential public and private financing mechanisms for agroforestry, emphasising the need to combine different sources of funding to cover the costs of establishing and managing agroforestry systems, rewarding farmers for environmental results, and providing advisory services to farmers. It proposes a flexible approach to setting payment rates based on the costs of implementing specific land management practices and/or on an economic valuation of ecosystem services. The practical application of the scheme in the living labs as part of the ReForest project will ensure real-world case studies and thorough testing of the scheme to tailor it to the needs and local conditions of agroforestry practitioners.

Bio:

Ivan is a researcher at the Euro-Mediterranean Economists Association. His main areas of interest are economic policies, international economics, environmental and resource economics, agroforestry and humanitarian. He previously obtained his PhD in Economics from the University of Barcelona in 2021. He has worked as a data analyst at the International Federation of Red Cross and Red Crescent Societies, as a research intern at the World Trade Organisation and as a research assistant at the University of Oxford. His work mainly focuses on academic research and EU-funded projects on issues ranging from economic policies, international trade to energy resources and agroforestry.