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PAYMENT FOR ECOSYSTEM SERVICES (PES) - Coggle Diagram
PAYMENT FOR ECOSYSTEM SERVICES (PES)
Types of PES system
Public Payment Scheme
The govt pays land or resources managers to improve ecosystem services
Private Payment Scheme
Users of ecosystem services connect with service providers directly
Public-private Payment Scheme
Both government and private funding are used to compensate landowners or other resource managers for the offering of ecosystem services.
Criteria for PES Design
Providers delivered a clear ecosystem service in accordance with their contract's requirements.
With the PES scheme, compliance results in ecosystem change.
Clear identification of participants.
The cost-based method is used to calculate compliance penalty payments.
Whether a PES strategy is successful in producing the desired result depends on how well a number of steps are finished.
IMPLEMENTATION OF PES
STEP 2: Assessing institutional and technical capacity
Analyze the legal, policy, and land ownership context while looking at the PES markets' existing rules.
STEP 3: Structuring agreements
Determine the aim of the project
STEP 4: Implement PES Agreements
When the sellers and buyers are aware of the upcoming transactions, an official agreement will be made
STEP 1: Identify possible ecosystem service and potential buyers
determining prospective clients who would benefit from the service and deciding whether to sell as individuals or groups
PES stakeholders
Beneficiaries
Mostly
public sector
Private sector
Citizens / consumers
Financing and payment mechanism
Tax incentives
Voluntary markets
Direct private payments
Certification programs
Direct public payments
Actor 'providing' service
single
farmers
/ associations
Forestry
owners / workers
Communities
Governance structure
National/regional/local
government / agencies
Multi-actor organisations
Committees
Role of Valuation of PES
For example: Watershed services, SUPPLY AND DEMAND
Supply of services: Upstream land uses affect the quality, quantity and timing the water flows
Demand for the services: possible downstream beneficiaries:
Domestic water use
Irrigated agriculture
Hydroelectric power
Fisheries
Recreation
Downstream ecosystems
Create sustainable programs for the provision of environmental services that compensate service providers
Secure desired environmental services for service buyers over the long term.
Identify and provide qualitative assessment of the potential impacts of policy options on
ecosystem services.
Assess the effects on human welfare.
Definition & structure of PES
Definition
: PES are payments made to farmers or landowners.
They who have agreed to take certain actions to manage their land or watersheds in order to provide an ecological service.
Structure:
