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Capturing Economic Benefits from Ecosystem Services: Technical Assistance Completion Report

sector: Agriculture, Natural Resources, and Rural Development | country: | region: Regional

Demonstrating the value of ecosystem services: Informational, institutional and economic forces ? and how these forces interact – influence how ecosystem service values are demonstrated and how PES (payments for ecosystem services) schemes evolve on the ground. Improvements in quantification of ecosystem services that have global significance (carbon, biodiversity) are helping spur initiatives to better demonstrate the values of ecosystem services that provide local or regional benefits, primarily watersheds. With better information, more coordinated policies, and improved governance structures, private entities are becoming more willing to support provision of ecosystem services through PES schemes.

Monitoring, reporting and verification: PES payments, in principle, need to be performance-based to ensure payment is consistent with the desired results. However, very few of the PES schemes observed in Asia and the Pacific are performance-based, with beneficiaries typically receiving payment without any reference to the delivered services, such as quantity and quality of water flow, increase of forest cover and biodiversity. Evidence is weak on the presence of sanctions for non-compliance of both sellers and buyers.

Ensuring equity: Among the dimensions of equity ? economic, political and cultural ? the PES schemes reviewed have paid most attention to the economic dimension. Political and cultural dimensions need further integration.

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