Direct benefits from trees on farm? Bac Kan Province

• REALU is a better option if payments offered by the global REDD market are added to the incentives already proposed.
• However, the province’ target of 84% forest cover and 6% agricultural land by 2020 suggests that significant economic tradeoffs
may make local people poorer than they currently are.
• The sustainability of a REALU mechanism is faced with uncertainty, not only in terms of sustained financing, but also in terms of
addressing widening economic tradeoffs and not further harming the poor.
• We therefore proposed the elements of a sustainable and adaptable REALU mechanism: (i) bundling environmental services and
payments; (ii) linking the mechanism with rural development support programs; (iii) national guidance and support for building
the capacity of local implementers; and (iv) removing national legal/regulatory and technical barriers.
• Finally, integrating in mainstream national and rural development strategies with a clear focus on ‘emissions reduction’ may make
a REALU mechanism not only feasible but also sustainable.