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Forest Canopy Research and Sustainable Use of Forest Canopy Biodiversity

Malaysian National Workshop

University of Malaysia Sabah, Kota Kinabalu, Sabah, Malaysia 5-7th March 2007

Generously funded by the Global Opportunities Fund,

UK Foreign and Commonwealth Office

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Institute for Tropical Biology and Conservation, University Malaysia Sabah The Institute for Topical Biology and Conservation has allowed for local scientists to work more

closely together exploring the diverse and vast centre of natural resource - the Tropical Rain Forest. ITBC’s objectives are to: 1) To be a research and reference centre in the field of tropical biology and conservation. 2) To be the node for database for the purpose of management and assessment. 3) To carry out studies on tropical rain forest and freshwater bodies as well as the conservation of

the organisms and habitats. 4) To provide well trained and skilful manpower in the fields of tropical biology and conservation through long and short term programmes and supervision. 5) To

organize forum (conference, training and workshops) in the field of tropical biology and conservation.

Global Canopy Programme (GCP) ‘A global alliance linking major studies of forest canopies worldwide into a collaborative

programme of research, education and conservation addressing biodiversity, climate change and poverty alleviation’

www.globalcanopy.org

Acknowledgements

This workshop was supported with funds from the UK Government Foreign Office Global Opportunities Fund. Additional financial support was provided by the University of Malaysia Sabah

(UMS) and the Global Canopy Programme. The workshop was organised by UMS with support from the Global Canopy Programme. Special thanks should go to Dr Henry Bernard and to Katherine Secoy of the Global Canopy Programme and their respective teams, for their tireless efforts in undertaking the workshop and in compiling

this report. On behalf of all the delegates we would like to pay special thanks to the donors for their support without which the workshop would not have been possible.

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CONTENTS

1.0 Welcoming Remarks Summary of Workshop Outputs 2.0 Malaysian and The UNEP / Whole Forest Observatory Project 2.1 Whole Forest Observatories: An International Network for Monitoring Canopy Biodiversity and Global Climate Change. An introduction and update 2.2 Strategic Importance of the WFO Project to Malaysia 2.3 Progress in Malaysia on the Whole Forest Observatory Project 2.4 Discussion – Redefining the Malaysian WFO Steering and Technical Committee and Determining stakeholders to be involved in each aspect of the WFO project 3.0 What is the status of canopy science in Malaysia today? 3.1 Canopy research in Danum valley, Sabah – a synopsis 3.2 Building Capacity for Canopy Research 3.3 Existing Canopy Atmospheric Research in Malaysia – a synopsis 3.4 Discussion: Future Needs in Malaysian Canopy research. Meeting the Policy Needs of Malaysian Government. 3.5 Discussion: The Role of Malaysia in the Global Network of Whole Forest Observatories 4.0 Supporting Local Livelihoods through Sustainable Use of Forest Canopies 4.1 Current Human Use of Forest Canopies in Malaysia 4.2 Discussion: Agreeing the Strategy to identify and replicate best practice models for canopy horticulture. 4.3 New Opportunities for Canopy Ecotourism in Malaysia 4.4 Existing Canopy Ecotourism in Malaysia 4.5 Discussion: Agreeing a Strategy to identify and replicate best practice models for canopy ecotourism. 5.0 Developing Strategies for the Future 5.1 Valuation of Forest Canopy Ecosystem Services 5.2 Evaluating and Trading Canopy Ecosystem Services

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5.3 Peatland Degradation and Climate Change – A case Study 5.4 Discussion: Agreeing a strategy for estimating the Value of Canopy ecosystem services to identify the links between the economic value for canopy biodiversity and ecosystem services and benefits to people. Discussion: Creating a Strategy for Applying Compensated Reduction and Payments for Ecosystem services to Malaysian Forest Conservation Policies. 6.0 Concluding Remarks

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Acronyms BCAP Basic Canopy Access Proficiency FSP Full Scale Project GAW Global Atmosphere Watch GCP Global Canopy Programme GEF Global Environment Facility GEFSEC Global Environment Facility Secretariat MonRE Ministry of Natural Resources and the Environment MoSTI Ministry of Science and Technology OFP Operational Focal Point PDFB Programme Development Fund (A) or (B) RAF Resource Allocation Fund STAP Scientific and Technical Advisory Panel SUSCAN Sustainable Use of Forest Canopies UKFCO United Kingdom Foreign and Commonwealth Office UMS University of Malaysia Sabah UNDP United Nations Development Programme UNEP United Nations Environment Programme UPM University Putra Malaysia VOCs Volatile Organic Compounds WFO Whole Forest Observatory

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Forest Canopy Research and Sustainable Use of Forest Canopy Biodiversity

Malaysian National Workshop

University of Malaysia Sabah, Kota Kinabalu, Sabah, Malaysia 5/7th March 2007

1.0 Welcome remarks of Y.Bhg. Prof. Datuk Dr. Mohd. Noh Dalimin, vice chancellor of Universiti Malaysia Sabah Y.Berusaha Prof. Datin Dr. Maryati Mohamed, Director of the Institute for Tropical Biology and Conservation, UMS; Mr. Andrew Mitchell, Executive Director of the Global Canopy Programme (or GCP), United Kingdom; Deans; Professors; Head of Departments of UMS; Participants of the workshop; Ladies and gentlemen, Good morning. It is a great pleasure to welcome all of your to this Malaysian National Workshop on “Forest Canopy Research and Sustainable use of Forest Canopy Biodiversity”. I am pleased to note the presence of participants from Organizations from as far as the United Kingdom, and that many of you have come from the Federal Government’s Departments and Agencies based in the Peninsular Malaysia. I am equally pleased to see the strong presence of participants from the Departments and Agencies of the Sabah State Government. I am sure your inputs from your different backgrounds, varying interests and experiences in your respective fields will contribute towards a lively discussion and fruitful workshop. I am very positive the workshop will generate a high level of exchange in knowledge and communication about the policy, management, research and sustainable use of natural resources; the forest canopy in particular, and the environment in general. I was informed that the canopy is one of the richest, if not the richest, in terms of biodiversity. It is thought that 40% of all species live in the canopy; 10% of all vascular plants are canopy dwellers and 20-25% of all invertebrate species may be unique to the canopy. Yet the canopy is most threatened and least explored habitat on the surface of the earth. Recent studies estimated that 70-80% of invertebrates captured in the upper canopy of tropical rainforests are not described by science. The canopy is also important as it influences global climate. Forest canopies intercept 25% of precipitation over 45 million hectares of the land surface globally and 90% of the earth’s biomass interfaces with the atmosphere through forest canopies. As you know Sabah contains some of the oldest and richest rainforests on earth with trees growing to more than 75 m tall. Bornean lowland dipterocarp rainforest is the tallest rainforest on the earth, but due to the difficulties in reaching and studying the forest canopy, this habitat is least studied. In recent years, however, more and more pioneering scientists have begun to develop ways to reach the canopy. The development of the “Canopy Training course for ASEAN region in Sabah” heralds the start of a new era of research for ASEAN forest scientists. The course which is the first of its kind to be conducted in this region to teach scientists, students, conservationists and forest managers to climb into the trees and to conduct canopy studies has been developed by the Global Canopy Programme and Universiti Malaysia Sabah in collaboration with the Yayasan Sabah and the Royal Society south East Asian Rainforest Research Programme of the United Kingdom. The three-year

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programme which started in 2005 received the U.K. Government’s Darwin Initiative funding. Recently in January/February 2007, at Danum Valley, this programme has completed its third and final training course. In total more than 60 people have participated on the training course, many of whom are postgraduate students and young scientists from six ASEAN countries, including China, Japan and Papua New Guinea. Although the canopy training programme has ended, its contents have been adopted as part of the Academic Curriculum of UMS and will therefore continue to be taught under the leadership of UMS. We believe that the training course, which is now available as a 2 credit hour optional module (called Canopy Biology) under the Masters in Taxonomy and Biodiversity Programme offered by the Institute for Tropical Biology and Conservation, UMS, will attract more students and young scientists from around the ASEAN region in the near future. In this connection, we are confident that UMS will emerge as one of the first institutions of high learning in Malaysia, and probably in the ASEAN region as well, which offers such module. A number of development activities on research and management of the forest canopies and other associated projects are under way or planned in the next few years in Sabah. The Canopy Biology module has already been established in UMS. Two canopy walkways (platforms suspended from 20 to 30 m above ground) are available in Danum Valley and Poring, Kinablalu Park, respectively. A 100 m tall canopy flux tower is installed in Danum Valley under the Global Atmospheric Watch (GAW), and one of the five ‘Whole Forest Observatories’ (WFOs), which will include the construction of a canopy crane and associated research, including the economic potential of NTFPs from the canopy and ‘Canopy based eco-tourism’ as well as the establishment of the global canopy based conservation network, is in planning phase with UNEP and GEF of the World Bank. We are very grateful that Universiti Malaysia Sabah has been identified as the National Executing Agency (NEA) of the WFO initiative for Malaysia in collaboration with the Ministry of Natural Resources and the Environment (MoNRE). As the Vice Chancellor of UMS, I promise you that UMS would assist wherever necessary to ensure that the WFO project will get off the ground. Having said that however, no one individual or institution could ensure of guarantee the success of this project. Therefore, I would like to take this opportunity to invite all of your to state your stakes in the WFO and to join in this extremely useful and exciting project. Together, let’s make this project we all can be proud of. In my opinion the decision of placing the WFO project in Sabah is justified, as we believe that no other Malaysian States and in fact, no other ASEAN countries has invested so much for canopy science and infrastructure. We are proud that Sabah is fast becoming the centre of canopy science not only in Malaysia but in the ASEAN region, and we are happy that UMS is contributing significantly to this encouraging development. Although the WFO project will be conducted in Sabah, the project clearly will benefit everyone. I wish you all the best in this workshop and hope that the workshop will achieve its intended objectives. I would like to thank Mr. Andrew Mitchell, the Executive Director of the Global Canopy Programme, U.K. for assisting UMS with the running of this workshop and the British High Commissioners for sponsoring this workshop. Finally, I wish you all a productive and fruitful workshop. With that, I have pleasure to declare the Malaysian National Workshop on “Forest Canopy Research and Sustainable use of Forest Canopy Biodiversity” open. Thank You.

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Summary of Workshop Outputs

• Dissemination of current concepts and methods in canopy science among Malaysian scientists.

• Dissemination of current concepts and methods in canopy ecotourism among Malaysian stakeholders.

• Dissemination of current concepts and methods in canopy farming and sustainable livelihoods to Malaysian stakeholders.

• Further engagement of the ITBC with the UNEP/GEF funded ‘Whole Forest Observatory’ project.

2.0 Malaysia and the UNEP/Whole Forest Observatory Project

2.1 Whole Forest Observatories (WFO): An international network for monitoring canopy biodiversity and global climate change. Introduction and Update Andrew Mitchell, Executive Director, Global Canopy Programme Andrew Mitchell presented a talk addressing the state of canopy science today and the needs for the future. Emphasising the importance of joined up science & multidisciplinarity he detailed the work of the GCP and it’s associated international network of scientists and introduced a groundbreaking new initiative to examine the world’s forest canopies through a pan-tropical network of Whole Forest Observatories. Andrew updated delegates on the progress with funding application for the WFO, which is currently stalled due to restructuring within the Global Environment Facility (GEF). Whilst the delays were unexpected all partner countries have done a good job to maintain the project’s progress, without funding and Andrew thanked all the Malaysian National Execution Agency (NEA), ITBC for maintaining the projects viability. Whilst there will be continued delays, the GEF restructuring should be finalised by the June GEFSEC meeting. GEF will then be seeking project proposals in the autumn. Andrew reported that all partner countries had supported the idea of merging the PDFB design phase of the project with the full scale project to try and regain some of the planned timeline. Andrew stressed the importance of maintaining the support of the Malaysian GEF operational focal point (OFP) and stressed the need for both cash and in-kind co-financing from Malaysia. 2.2 Strategic Importance of the WFO project to Malaysia Professor Datin Dr Maryati Mohamed Professor Datin Dr Maryati, Mohamed gave an outline of Malaysia’s contribution to the WFO Project and iterated that it was important that the ITBC research existing canopy science activities that are going on within Malaysia and that future work was prioritised. She stressed the need for collaboration amongst the various Malaysian stakeholder groups and that it was time to identify who was willing to participate in the in the project. She stressed the importance of collaboration if the WFO project is to be successful. Professor Maryati recognised ITBC’s obligation to both the National and International communities and stated the importance of the WFO project if the global community is to understand the

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interactions between forests and the atmosphere. As signatories to the Convention on Biological Diversity it is important that Malaysia participates in international projects and gains a full understanding of their immense biodiversity and encourage sustainable use and management of Malaysia’s resources. As Malaysia is also a signatory to the Kyoto Protocol Prof Maryati stressed the importance of creating linkages between the GAW and WFO projects. The Whole Forest Observatory project will provide opportunities for scientists, including social scientists and economists from various agencies to work together. UMS cannot do it alone. Professor Maryati called on all relevant Universities, NGO’s and Government departments to work together to take a multidisciplinary approach. Malaysia has always been criticized for its deforestation activities, which make way for socioeconomic development. Now it is timely that Malaysia be acknowledged to being more environmentally concerned and ahead in Research and Development on biodiversity and climate change issues. The WFO project could change the global view on Malaysia, illustrating that Malaysian is not only using their forests but they are working hard to maintain them and that they are more environmentally concerned. Professor Maryati called on other national organisations to help UMS carry the national banner. 2.3 Progress in Malaysia on the WFO Project Dr Henry Bernard Dr Henry Bernard gave delegates an overview of the progress that has been made in the preparation for the WFO project. Working groups and Steering Committees have been approved and staff have been hired at ITBC to work directly on the project. RM166,000 cash, and 243,000RM has been obtained as co financing for the project. The Operational Focal point in Malaysia has been fully informed about the project and has written letters of endorsement to UNEP. 62 ASEAN participants have been trained under the Basic Canopy Access Proficiency Course, two to instructor level and the Chief Minister of Sabah has agreed to provide the necessary support to ensure that the course is run as part of the Canopy Biology course curriculum at the UMS. Several members of staff have been undergoing training at ITBC and preliminary data has been collected in preparation for the project. International linkages are being made with organisations in the ASEAN region. ITBC has also been successful in gaining MOSTi research grants for canopy research including 1) Inventory and ecology of canopy organisms, 2) Biogenic VOCs in the landscape and its role in the Malaysian cycle; 3) Ecology of the Crocker Range from Mt Kinabalu to Kimanis Bay. 2.4 Discussion – Redefining the Malaysian WFO Steering and Technical Committee and

Determining stakeholders to be involved in each aspect of the WFO project It was agreed that the Steering Committee needed to be re-established especially as some members have moved on including Prof Huzaimah, originally the chair, has now retired. It was agreed that

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MonRE should chair the meeting and liaise with the GEF focal point and UNDP to smooth requirements at the national level. There was a request to have someone from the GCP to facilitate international collaboration. It was decided that MonRE should take the lead in the project seeing as it is a national project but UMS needed to identify who this should be. There was a suggestion that Datuk Satu Subo could be a potential chair. Other organisations that should be represented in the committee included:

• Conservation Section of MONRA • MOSTI • UNDP • State Secretary of Sabah • Key partners (MMS, UPM) • Economic Planning Unit • Ministry of Higher Education • Ministry of Finance

It was agreed that this committee should meet once a year. For particular decisions that needed to be made it was agreed that Ad hoc committees should be brought together as needs be.

3.0 What is the status of canopy science in Malaysia today?

3.1 Canopy Research in Danum Valley, Sabah - a synopsis Dr Glen Reynolds, South East Asian Rainforest Research Project, Royal Society

After describing the facilities available at Danum Valley Research Station, Dr Glen Reynolds gave an overview of the canopy research that has been undertaken at in the conservation area over the past 20 years. Of the 120 post doctoral, PhD and Masters project that have been completed over this time only 3 have focussed solely on forest canopies. This included ‘Effects of logging on arboreal ants’, the role of canopy epiphytes in supporting canopy biodiversity’ and ‘plant animal interactions in the canopy of primary and selectively logged forests’. More researchers are focusing on canopy research but due to difficulties of access canopy research remains in its infancy in Danum valley.

A new £2.5 million project has recently been funded by the British Natural Environment Research Council to investigate the oxidant and particle photochemical processes above SE Asian tropical rainforests. This project is a collaboration with the Malaysian Meterological Department, University of Malaysia Sabah and Yayasan Sabah. It will involve 50 leading scientists from 12 UK and Malaysian university and research institutions. It aims to investigate ho trace gas emissions from the rainforest canopy may be influencing local, regional and global atmospheric composition, chemistry and climate. This will be a very good project to complement the WFO project, once on-stream.

3.2 Building Capacity for Canopy Research Dr Henry Bernard, ITBC, University Malaysia Sabah

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Over the past 3 years UMS has been working with the GCP to build capacity for canopy research in Malaysia. A total of 62 participants from 9 different countries, including Japan, Australia, UK, Singapore, Papua New Guinea, Philippines, Indonesia and Malaysia, have been trained. Institutions from Malaysia include, UMS, UNIMAS, UPM, Uitam, SOSRhino, Yayasan Sabah, Forest Research Centre Sarawak, Sabah Wildlife Department, Sabah Parks and FRIM. Two participants have been trained to instructor level and will continue to run the course as part of the Canopy Science Course run at UMS. The courses enable the participants to acquire the skills to safely work in forest canopies and learn canopy research techniques. Modules include:

History of Canopy Science Introduction to canopy biota Patterns in canopy biodiversity Processes in canopy biota Dynamics and ecology of tree crowns Climate and the canopy Canopy Based ecosystem services Canopy science techniques Canopy microclimates

The course is assessed in 5 ways. A practical examination on canopy access methods carries 50%. There is also a written examination on canopy access methods and a written examination on canopy science and the students also have to carry out a small research project. The Course is accompanied by two manuals, which have been developed jointly with the GCP and UMS; BCAP training manual and the Canopy science training manual, both of which have been translated into Bahasa Malayu. To ensure the continuity of the programme it will be important to train more instructors at UMS, link the course to other universities in the ASEAN region and gain additional funding for the costs of invited lectures, student expenses and equipment which needs replacing. 3.3 Existing Canopy Atmospheric Research in Malaysia – a synopsis Dr Lim Sze Fook, Director of Environmental Studies, Meterological Department, Malaysia Dr Lim Sze Fook gave delegates an overview on the work of the Malaysian Meteorological department. With over 1000 staff its work is extensive in the fields of weather forecasting, climatology, environment, cloud seeding research and radar technology. It has a network of 23 air pollution monitoring stations, 3 Global Atmospheric Watch (GAW) towers (1 urban 1976, Regional 1976 and Danum Valley 2004). The Danum station is one of the 23 baseline GAW stations in the world, of which 2/3 are in the tropics. The GAW Programme aims to understand the complex mechanisms with retrospect to natural and anthropogenic atmosphere change. It aims to improve the understanding of the interactions between the atmosphere, oceans and the biosphere and to provide reliable scientific evidence for decision makers. GAW towers collect a variety of information including, chemical and physical data. There are very few CO2 monitoring stations along the equator.

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Future research programmes to use the GAW tower include surface ozone measurements in Danum, aerosol optical depth measurements. There is a lot of potential for collaboration with canopy research programmes and the GAW tower would be a good support facility. Future research should include gaining a greater understanding of atmospheric hydrogen and its effect on the atmosphere, which can be linked to the canopy. 3.5 DISCUSSION: Future needs in Malaysian canopy research. Meeting the policy needs of the Malaysian Government ITBC focuses on four research areas; 1) Biosystematics and biodiversity 2) Ecological processes 3) Advancement of biodiversity 4) Research. All of which can be linked to canopy research. Delegates were asked to list the current gaps in Malaysian canopy research. An initial list was compiled that will be circulated amongst research institutions in Malaysia for expansion. Climate What is the impact of Climate Change on canopy disease vectors? Policy Relevance What are the ecosystem services that forest canopies provide? What is the economic value of these ecosystem services? To what extent can canopy research contribute to forest management practices? Is reduced impact logging maintaining the canopy effectively? Are rehabilitation treatments sufficient in restoring forest ecosystem services/creating functional forests? Biodiversity How is herbivory effecting VOC production? To what extent can you ‘thin’ the canopy? What is the impact of disturbance? Health Do insect vectors increase with disturbance? 3.6 DISCUSSION: The Role of Malaysia in the Global Network of Whole Forest Observatories. Malaysia has international obligations and protocols, which it must meet. These include reduction of its CO2 emissions. Responsible forestry management and maintenance of its biodiversity. It was agreed that it was necessary to agree a programme that helps the Government fulfil its obligations under the United Nations Convention on Climate Change and its Kyoto Protocol and the Convention on Biological Diversity. It was thought that a top down approach to secure funding would be necessary and that this could be achieved if a coordinated, integrated and multidisciplinary research programme was developed. It was agreed that ITBC should develop consortiums to be submitted to MoSTi for long term research addressing major issues that could constitute as associated research.

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With the Whole Forest Observatory network the delegates saw Malaysia taking the following roles: 1) Research 2) Training for the ASEAN region 3) International Policy decisions

a. Forest Management considerations at an international level 4) Environmental Awareness programmes

a. Based on Forest Canopy Research Malaysia has a long history of canopy research and so will be well placed to lead the way in the ASEAN region. It was agreed that an International Programme with an emphasis on regional basis would be attractive to potential donors other than GEF. 4.0 Supporting Local Livelihoods through Sustainable Use of Forest Canopies 4.1 Current Human Use of forest canopies in Malaysia

Dr Rahim Nik, Forestry Senior Director, Forest Research Institute Malaysia, (FRIM) Dr Rahim Nik gave an overview on the current use of forest canopies in Malaysia. Canopy Walkways are the most common use of forest canopies and canopy walkways have been present in Malaysia since 1986. There are also canopy observation platforms, which have been built for birders. More recently zip lines have been developed for adventure tourism. All generate fairly substantial revenues for the parks service, but due to its open access for all, costs have been kept low and therefore they have not realised the income that may have been realised. Other more traditional uses of forest canopies in Malaysia include honey collection, wild orchid farming and farming of ornamental, medicinal plants and fruits. Over 1500 species of orchids can be found in Malaysia and could be developed into a significant industry. 4.2 DISCUSSION: Agreeing the strategy to identify and replicate best practice models

for canopy horticulture. A discussion followed on the existing extend and value of canopy horticulture in Malaysia, how it can be valued and how can benefits be filtered to local communities. It was agreed that it is crucial to get the engagement of the local community as well as all stakeholders. Participants were asked to consider future developments in canopy horticulture in Malaysian and to discuss potential demonstration projects that the WFO project could carry out. Very little is known about the potential for canopy horticulture in Malaysia. As yet there has been no inventory and the extent to which plants are taken from the forest to sell in markets is not yet known. University Putra Malaysia is starting to work in this area with a commercial set up. It was agreed that there is an urgent need to assess the extent of canopy horticulture and review the facilities available within Malaysia to develop commercial enterprises. Delegates agreed that for canopy horticulture to be success the project should concentrate on the rare, high value and Malaysian endemics. They agreed that a new market could not compete with the established plant markets of Thailand and so this approach would be necessary.

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Delegates noted that permits would be required if specimens for canopy horticulture development were to be extracted for development. Honey Delegates also thought that development of Wild honey could be potential sustainable revenue for local communities. In a forest reserve there are only about 20-30 trees with honey. At present this is shared between a team that collect it. It is currently an important source of income for local communities but is not a large source of revenue. A box of bees can be hired out for approximately 120 RM for 2 weeks. Some communities rent bees for the flowering season (in particular Dragon fruits and Honey melons), which can increase yield by 15-20%. University Putra Malaysia are assessing whether there is an actual increase in productivity. However there is a security issue. When hiring out bees, bee keepers are weary about loosing the Queen bee. The delegates discussed the potential for developing rainforest canopy honey and thought that it would be worth investigating developing this as a potential canopy product. However, it was noted that there would need to be research into Bee behaviour to understand why trees go back to the same tree each year. Perhaps canopy science could improve pollination methods. Other potential NTFP’s that could be investigated included: Butterfly farms, Ant nests (sold for medicinal uses against diabetes) and various pharmaceutical properties. 4.4 New Opportunities for Canopy Ecotourism in Malaysia Katherine Secoy, Research and Conservation Programme Manager, Global Canopy Programme Katherine Secoy gave an overview of a study that the GCP had commissioned on the status of canopy ecotourism in Malaysia and potential for expansion, which was carried out by Markus Seibel, GCP Research Associate. There are currently 11 canopy access facilities both on Mainland Malaysian and Malaysian Borneo, which are a draw for international tourism, which is well established in Malaysia. However the study did note that there were significant opportunities for improving interpretation at each of the facilities. Whilst the facilities employ members of the local community and they provide jobs through the associated activities, there is a lot of scope for engaging with the local communities in a more sustainable manner to show them that they too can benefit from the forest, through ecotourism. There is considerable potential for more canopy tourism in Malaysia. Developments ought to be accompanied by a set of guidelines addressing sustainability in order to avoid an uncontrolled growth of this tourism segment. Given that canopy tourism development is still in its infancy and no such criteria exist yet, Malaysia could take on a pioneering role in the development of such criteria. Cooperation between NGOs, GOs, academic institutions and canopy tourism projects should ensure the feasibility and quality of measures and guidelines for sustainable canopy tourism. 4.5 Existing Canopy Ecotourism in Malaysia Mr Makiarin Lakim, Sabah Parks

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Mr Makiarin Lakim gave an in depth view of the management of Poring Canopy Walkway near Kota Kinabalu, Sabah, which is managed by Sabah Parks Authority. He described the management structure of Sabah Parks, describing the parks that fall within its remit. Kinablu National Park is one of the 7 parks under its jurisdiction and was established in November 2000. Covering 75,370 ha (an area approximately the size of Singapore) it covers 3 districts and a variety of ecosystems. 455 villages border the park with a population of 15,850. There has been a long history of canopy activities in the park, with balloon expeditions, the canopy walkway and rope climbing expeditions. The walkway has been established since 1986 and its aim was to utilise the forest as a value added ecotourism product. He described the walkway structure and that it is jointly used for tourism (157.6m) and research (133m) and its highest point is 41m. 10 staff are employed for the day-to-day operation of the facility and its annual maintenance and operational budget is 30,000RM. There is a strict maintenance protocol, which has paid off to date, with there being no accident case since its establishment. He described the visitor control and showed the growth in usage with large increases in both the local and foreign visitor sectors. In 1994 around 5,000 foreign and 5,000 local individuals visited the facility. This rose to around 40,000 local and 58,000. Annual revenues from the facility are just short of 600,000RM per annum. This is putting significant pressures on the facility and Sabah parks is needing to address this increase in demand. There is currently discussion on developing further canopy walkway facilities in different habitats (riverine, mid-elevation forest and high elevation forest), which will hopefully disperse the impact of the increased visitor numbers. There are also plans to develop canopy walkway facilities Tawau Hills Park and Crocker Range Park. There are no direct local benefits for the local communities, other than the direct employment of staff working on the facility. However they are positively encouraged to develop their own businesses such as selling souvenirs, fruit stalls, laundry, home stays and restaurants. Sabah Parks have found that canopy ecotourism has proven to be a sustainable use of forest resources and that they contribute to rural development. Poring canopy walkway is an example of sustainable use of forests and is a success in forest conservation. 4.7 DISCUSSION: Agreeing a strategy to identify and replicate best practice models for

canopy ecotourism. The study carried out by GCP Research Associate, Markus Seibel has provided a first pass on the extent and value of canopy ecotourism in Malaysia. Delegates were asked to consider how benefits could be delivered to local communities and how the local communities could be more engaged in canopy ecotourism activities. The delegates discussed the future of canopy ecotourism in Malaysia and were agreed that it is already fairly established and there are already significant plans to establish new canopy ecotourism facilities. When considering the role of the Whole Forest Observatory Project in the development of Canopy ecotourism it was agreed that data coming from the project could be used in a unique way to interpret canopy biology and bring the forest canopy to life. This is especially needed at new and even the existing facilities, which at present lack engaging interpretation materials.

5.0 Developing Strategies for the Future

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5.1 Valuation of forest canopy ecosystem services Prof. Dr. Mohd Shahwahid Hj. Othman, University Putra Malaysia (UPM) Professor Mohamed Shahwahid presented on how to place a value on the ecosystem services that forests provide. He described the reasoning behind placing economic values on the services, determining what those values are based on the five economic valuation approaches: Market price-based Surrogate market-based Hypothetical market-based Cost-based Benefits transfer The challenges that lie before anyone trying to value forest canopy ecosystem services are:

o Values differ depending on the stakeholder. o How do we communicate that local communities must act as stewards of forest

canopy ecosystem resources? o How do we initiate policy changes and governance reforms that facilitate

optimization of benefits and participation of local communities in conservation and management of biodiversity?

Because of the inaccessibility of forest canopy biodiversity to scientists, tourists and local communities, the valuation of forest canopy biodiversity and its ecosystem services is limited in relation to climate change and the provision of benefits to local livelihoods. This has weakened arguments in favour of the sustainable use of forest canopy biodiversity. We need a greater interaction between scientist and economists to address these problems. It is important that the benefits are shared accordingly. 5.2 Evaluating and Trading Canopy Ecosystem Services Andrew Mitchell, Executive Director, Global Canopy Programme Andrew Mitchell introduced the delegates to the concept of trading the ecosystem services forests provide using financial markets. This concept is based on unrealised values of services that forests provide but to date, countries have not been able to benefit from. Much in the same way as the carbon markets, the trading in ecosystem services will financially reward countries, which keep their forests stocks. Due to the amounts of forest in question and the huge value of the services to the global community these markets will be able to out compete traditional land uses such as cattle farming, oil palm plantations and Soya farming. Andrew Mitchell proposed that the WFO project would provide the underpinning science case to support this concept and that the proposal should be amended to reflect this. 5.3 Peatland degradation and climate change – A case study. Mr Rashid Abdul Samad, National Expert Sabah, United Nations Development Programme Mr Rashid Samad presented on the UNDP’s work in Sabah on Peatland degradation. Of the original 60,500 has of peat deposits, 50% has been classified as forest reserves and 90% is converted to agriculture, which is resulting in significant habitat fragmentation. Of the existing peat

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forest reserves it is now becoming vital to regulate and monitor developments to ensure hydrological balance and habitat viability of the reserves. UNDP is working in Klias conservation area to demonstrate a multi-sectoral approach to integrated development planning over an extensive populated area. The main threats and challenges include, fire for agriculture conversion, drainage, poaching and habitat loss, from the local communities. UNDP are working with the local communities to raise awareness of the importance of peat forests and are carrying out a canal blocking trial to re-flood and rehabilitate the peat forests. They are then working with the local community to develop alternative livelihoods such as fish farming. 5.4 DISCUSSION: 1) Agreeing a strategy for estimating the Value of canopy ecosystem services to identify the

links between the economic value of canopy biodiversity and ecosystem services and benefits to people

Delegates discussed current work regarding environmental valuations and the need for future valuations to support the case for payments for forest ecosystem services. It was noted that not much work had been done in this area, but that economic valuations would be a very important prerequisite for the development for payments for ecosystem services. It was also agreed that There is an Economy and Environment Programme in SE Asian, which is based in Singapore, which provides funding for the region for small proposals, in the region of USD 80,000. They invite keynote speakers to their meeting and it was suggested that Andrew Mitchell, should present a paper about the concept of payments for forest ecosystem services. They also sponsor key economists and so it was suggested that this could be a source of co financing for the WFO project. The ASEAN centre for Biodiversity is also looking for projects and may be interested in a proposal on the concept of Payments for Ecosystem services. Other potential sources of co financing that were identified were Diversitas, Malaysian Ministry of Science and Technology, the Ministry of Higher Education and the Economic Planning Unit of Malaysia. 2) Creating a Strategy for Applying Compensated Reduction and Payments for

Ecosystem services to Malaysian forest conservation policies. There are several companies in Malaysia including YTL, is keen on reducing carbon emissions in Malaysia. The Malaysian Ministry is taking the lead in this area and Dr Nadzri is writing up the national communication to the United Nations Framework Convention on Climate Change. There are many agencies in Malaysia who are trying to obtain GEF funding for energy reduction projects that are eligible under the Clean Development Mechanism. FELDA is also working to get carbon credits for increasing efficiency of palm oil production. It was agreed that it was important to get policy and decision makers involved and that it might be beneficial to hold an information workshop and the scientists should be brought to the policy makers. 6.0 Concluding Remarks

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Datuk Dr Selleh Mohamed Nor thanked all of the delegates for their participation in the workshop and those organisations that generously funded the workshop including the UK Foreign and Commonwealth Office Global Opportunities Fund and the University of Malaysia Sabah. He also stressed that it was extremely important for Malaysia to participate in the global network and that the project would assist the Malaysian Government meet its commitments under the UN Convention of Biological Diversity and Framework Convention on Climate Change. He saw a lot of complementarity between the work on the GAW tower and the proposed WFO and that delegates should investigate potential collaborations between the two. As there is a long history of canopy activities in Malaysia, Datuk Nor pointed out that the Malaysian partners are in a position to take a lead in the Whole Forest Observatory project.

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Appendix I – Workshop Delegates # Participants/Speakers Address

1. Mr. Andrew Mitchell Global Canopy Programme John Krebs Field Station University of Oxford Wytham Oxford OX2 8QJ United Kingdom Tel: +44 (0) 1865 724 222 Fax: +44(0) 1865 724 555

2. Ms. Katherine Secoy Global Canopy Programme John Krebs Field Station University of Oxford Wytham Oxford OX2 8QJ United Kingdom Tel: +44 (0) 1865 724 222 Fax: +44(0) 1865 724 555

3. Dr. Glen Reynolds Programme Manager & Senior Scientist The Royal Society SEARRP Danum Valley Field Centre Contacts: Tel (Field Centre): +60 (0)88 709101 Tel (H/P Malaysia): +60 (0)19 8073974 Tel (H/P UK & Intl.): +44 (0)7811 398844 Fax (Sabah): +60 (0)89 883091

4. Tom Fayle, Department of Zoology, University of Cambridge, UK

5. Dr. Rahim Nik

Senior Director (Forestry),Forest Research Institute Malaysia (FRIM)

6. Mr. Rashid Abdul Saman NE Sabah (UNDP/GEF Funded Project) Klias Pear Swamp Forests Conservation Project Tel: 088-912449 / 915759

7. Prof. Dr. Mohd. Shahwahid Timbalan Pengarah Institut Perhutanan Tropika dan Produk Hutan Universiti Putra Malaysia 43400 UPM Serdang Selangor Darul Ehsan, Malaysia. Tel: 03-8947 2179 (Zira) Fax: 03-8947 2180

8. Dr. Stephen Sutton Dr. Stephen Sutton (c/o ITBC) Honorary Overseas Consultant Borneo Books 2, A 235-237 (F) 2nd Floor, Phase I Wisma Merdeka 88845 Kota Kinabalu, Sabah.

9. Mr. Lim Sze Fook Meteorological Department (Sabah) Jabatan Kaji Cuaca

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# Participants/Speakers Address Cawangan Sabah 7th Floor, Wisma Dang Bandang 88000 Kota Kinabalu SABAH Tel: 03-79678067 Fax: 03-79578046

10. Assoc. Prof. Dr. Mohd. Ainuddin Nuruddin

Institute of Tropical Forestry and Forest Product, Universiti Putra Malaysia 43400 UPM Serdang, Selangor Tel: 03-89467205 Fax: 03-89432514

11. Prof. Dr. David Bignell Visiting Professor ITBC, UMS

12. Prof. Dr. Zaidi Md. Isa School of Environmental Sciences Faculty Science & Technology Universiti Kebangsaan Malaysia 43600 Bangi Selangor Tel: 03-89215983/73 Fax: 03-89253357

13. Prof. Dr. Idris Abd. Ghani Head Biology Programme School of Environmental Sciences Faculty Science & Technology Universiti Kebangsaan Malaysia 43600 Bangi Selangor Tel: 03-89215983/73 Fax: 03-89253357

14. Prof. Datuk Dr. Noramly Muslim Visiting Professor ITBC, UMS

15. Mr. Maklarin Lakim Sabah Parks

16. Dr. Waidi Sinun Section Head Sabah Foundation (YS) P. O. Box 11623 88817 Kota Kinabalu Sabah Tel: 088-326314 Fax: 088-326216

17. Mr. Jimmy Omar Manager Danum Valley Field Centre Sabah Foundation (YS) P. O. Box 11623 88817 Kota Kinabalu Sabah Tel: 088-326314 Fax: 088-326216

18. Dr. Yap Sau Wai Forestry Officer Sabah Foundation (YS) P. O. Box 11623 88817 Kota Kinabalu Sabah Tel: 088-326314

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# Participants/Speakers Address Fax: 088-326216

19. Andrew Hearn Bornean Wild cats and Clouded Leopard Project GCP Research Associate

20. Joanna Ross Bornean Wild cats and Clouded Leopard Project GCP Research Associate

21. Mr. Jadda Suhaimi Sabah Foundation (YS) P. O. Box 11623 88817 Kota Kinabalu Sabah Tel: 088-326314 Fax: 088-326216

22. Prof. Datin Dr. Maryati Mohamed ITBC, UMS 23. Dr. Henry Bernard ITBC, UMS 24. Dr. Idris M. Said ITBC, UMS 25. Ms. Azniza Mahyudin ITBC, UMS 26. Mr. Ahmad Sudin ITBC, UMS 27. Ms. Kalsum Md. Yusah ITBC, UMS 28. Mr. Lai ITBC, UMS 29. Mr. Daniel Pamin Bornean Wild Cat and Clouded

Leopard Project - Darwin Initiative Global Canopy Programme, UK and Institute for Tropical Biology & Conservation Universiti Malaysia Sabah

30. Ms. Jovinia Jowinis ITBC, UMS 31. Ms. Nurzhafarina Othman ITBC, UMS 32. Mr. Azrie Alliamat ITBC, UMS 33. Mr. Alvin Azril Mahat ITBC, UMS 34. Ms. Suzen Immit ITBC, UMS 35. Ms. Alessandra ITBC, UMS 36. Ms. Kim Asbiyallah ITBC, UMS 37. Ms. Fiffy Hanisdah Saikim ITBC, UMS 38. Ms. Hamilda ITBC, UMS 39. Mr. Maximus ITBC, UMS 40. Ms. Jacqueline ITBC, UMS 41. Ms. Juliana ITBC, UMS 42. Mr. Mustafa ITBC, UMS 43. Mr. Azman Sulaiman ITBC, UMS 44. Mr. Kan Yaw Chong Daily Express, Sabah

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APPENDIX II Malaysian National Workshop on Forest Canopy Research and Sustainable use of Forest

Canopy Biodiversity 5th -7th March 2007

Location – Institute for Tropical Biology and Conservation (ITBC), UMS, Kota Kinabalu, Sabah, MALAYSIA

Sunday 4th March Delegates Arrive in Kota Kinabalu, Sabah

1900 Welcome Dinner

Monday 5th March The aim of this day is to bring all participants up to date with the Whole Forest Observatory Project, redefine

the National Committees and discuss the future needs of Malaysian canopy research.

0800 Registration/Refreshments

0830 Opening Speeches Vice Chancellor of UMS

0850 Welcome, Introduction and aims of the workshop Prof. Datin Dr. Maryati Mohamed, Director of ITBC, UMS 0900 Group Photo

Malaysia and the UNEP/Whole Forest Observatory Project

Chair: Dr. Rahim Nik, Senior Director (Forestry),Forest Research Institute Malaysia (FRIM)

0915 Whole Forest Observatories (WFO): An International Network for Monitoring Canopy Biodiversity and Global Climate Change. Introduction and Update

Mr. Andrew Mitchell, Executive Director, Global Canopy Programme

0945 Strategic Importance of the WFO Project to Malaysia Prof. Datin Dr. Maryati Mohamed

1015 Progress in Malaysia on the WFO Project Dr. Henry Bernard, Deputy Director of ITBC, UMS.

1045 Discussion – • Redefining the Malaysian WFO Steering and Technical Committees • Determining stakeholders to be involved in each aspect of the WFO project

1115 Break

What is the status of canopy science in Malaysia today? Chair: Prof. Dr. Ridzwan Abd. Rahman, Director of Center of Research and Innovation, UMS

1130 Canopy Research in Danum Valley, Sabah – A Synopsis Dr. Glen Reynolds, Global Canopy Project

1200 The Ant Community of a Common Raid Forest Epiphyte Tom Fayle, Department of Zoology, University of Cambridge, UK

1230 Building Capacity for Canopy Science - Training and Education Dr. Henry Bernard

1300 Lunch

1400 Existing Canopy Atmospheric Research in Malaysia - A Synopsis Mr. Lim Sze Fook, Director of Environmental Studies, Meteorological Department Malaysia

1430 DISCUSSION: Future needs in Malaysian canopy research. Meeting the policy needs of the Malaysian Government

1530 Tea Break

1600 DISCUSSION: The Role of Malaysia in the Global Network of Whole Forest Observatories.

1700 End

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Tuesday 6th March

Supporting Local Livelihoods through Sustainable Use of Forest Canopies Chair: Prof. Dr. David Bignell, Visiting Professor, ITBC, UMS

Today’s programme will look in more depth at canopy ecotourism and canopy horticulture in Malaysia as potential examples for the provision of alternative income from forest canopies, to local communities. By the end of the day participants will have agreed the various strategies to take forward during the design phase of

the Whole Forest Observatory Project.

0900 Current Human Use of Forest Canopies in Malaysia Dr. Rahim Nik, Forestry Senior Director, Forest Research Institute Malaysia (FRIM) 0930 DISCUSSION: Agreeing the strategy to identify and replicate best practice models for canopy

horticulture. • What is the existing extent and value of canopy horticulture in Malaysia? • How can this be valued – benefits to local livelihoods? • Engaging the local community and stakeholders • What is the potential for future canopy horticulture in Malaysia • How can we realise potential through demonstration of best practise?

1100 Tea Break

Chair: Prof. Dr. Shahwahid Othman, Deputy Director, Institute of Tropical Forest and Forest Product, Universiti Putra Malaysia

1130 New Opportunities for Canopy Ecotourism in Malaysia Ms. Katherine Secoy, Research and Conservation Programme Manager, Global Canopy Programme 1200 Existing Canopy Ecotourism in Malaysia Mr. Maklarin Lakim, Head of Zoology Section, Kinabalu Parks, Sabah Parks 1300 Lunch 1400 DISCUSSION: Agreeing a strategy to identify and replicate best practice models for canopy

ecotourism. • What is the existing extent and value of canopy ecotourism in Malaysia? • How can this be valued – benefits to local livelihoods? • Engaging the local community and stakeholders • What is the potential for future canopy ecotourism in Malaysia? • How can we realise potential through demonstration of best practise (small pilots in wlkways, towers

or zip lines)? 1500 Tea Break

Chair: Mr. Andrew Mitchell, Executive Director Global Canopy Programme

1530 DISCUSSION: Defining the WFO Design Phase work programme 1700 End 1900 Farewell Dinner

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Wednesday 7th March

Developing Strategies for the Future Chair: Assoc. Prof. Dr. Ainuddin Nuruddin, Universiti Putra Malaysia (UPM)

0800 Valuation of Forest Canopy Ecosystem Services Prof. Dr. Mohd Shahwahid Hj. Othman, Universiti Putra Malaysia (UPM). 0830 Evaluating and Trading Canopy Ecosystem Services Mr. Andrew Mitchell, Executive Director, Global Canopy Programme 0930 Peatland Degradation and Climate Change – A Case Study

Mr. Rashid Abdul Samad, National Expert Sabah, Conservation and Use of Tropical Peat Swamp Forests and Associated Wetland Ecosystems, UNDP/GEF Funded Project

1000 DISCUSSION: 1) Agreeing a strategy for estimating the Value of canopy Ecosystem services to identify the

links between the economic value of canopy biodiversity and ecosystem services and benefits to people

2) Creating a Strategy for Applying Compensated Reduction and Payments for Ecosystem

services to Malaysian forest conservation policies. 1100 Conclusions from the workshop 1130 End

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Appendix III – News cuttings from Workshop