Download (PDF, 6.71MB) - TEEB

REWARDING BENEFITS THROUGH PAYMENTS AND MARKETS
PES schemes face several constraints. They require
significant investments in information and capacity building.
Priorities include mapping the supply and demand
of ecosystem services, understanding current and
expected future use of resources, engaging relevant
stakeholders, supporting certification schemes and
training administrators.
High transaction costs create a barrier to developing
PES and reduce their cost-effectiveness. Depending
on the value of the ecosystems concerned, there may
be a justification for states (or international agencies)
to subsidise start-up or transaction costs to facilitate
progress e.g. by paying for mapping ecosystem services
or for stakeholder participation processes.
PES are not appropriate everywhere. They can be
particularly difficult to implement where resource tenure
or use rights are insufficiently defined or enforced e.g.
in the high seas and some mangroves, coral reefs, flood
plains and forests without clear ownership. Where
institutional capacity and transparency are lacking or
where resource access and ownership are in dispute,
PES ‘buyers’ have little incentive to participate because
they have few guarantees that the activities paid for will
actually be implemented – or even that a legitimate
service provider can be identified.
PES design and implementation can also be compromised
where there is unequal bargaining power between
stakeholders (i.e. imbalance between service
providers and beneficiaries). This can affect who is included
in the scheme, the way the money is shared,
the rate of payment and the conditions set for service
provision and access (see Figure 5.5 below).
In some cases, a PES targeting a single service will not be
sufficient to halt its degradation or loss as the payment will
be less than the opportunity costs of a range of alternative
resource uses. However, PES schemes can be part of a
broader mix of policy instruments that addresses the full
range of ecosystem services from an area.
More generally, the proper sequencing of measures
is important for achieving effective and coherent policies.
Introducing payment schemes without the prior or
simultaneous removal or reform of policies with adverse
consequences on ecosystems and biodiversity will lead
to incoherent and wasteful policy packages. This has
been repeatedly underlined by the Organization for Economic
Development and Co-operation (OECD), in particular
with regard to environmentally harmful subsidies
(see Chapter 6).
The ability to quantify, monetise and communicate
the values of ecosystem services to key stakeholders
– from politicians to industry to local communities
– can help build support (see Box 5.3 above). However,
the lack of a biophysical assessment and economic valuation
of an ecosystem service need not preclude PES
(Wunder 2007). Some of the most valuable services
may be those that are most difficult to measure. In
some cases, precise quantification of the service would
be prohibitive (e.g. for small watershed schemes). In
these cases, arguments based on the precautionary
principle may be enough to justify starting PES, although
economic valuation should be used as and when
new information becomes available to adjust payment
levels, targeting or conditions.
5.1.5 MOVING FORWARD ON PES
DESIGN AND IMPLEMENTATION
Experience to date has underlined the importance of
careful preparation to ensure that PES schemes
are effective and appropriate for local conditions.
Information on the social, economic and ecological
context and the legal and institutional context needs to
be taken into account. Ideally, PES should be targeted,
understandable, fair, cost-effective, accountable, enforceable,
coordinated with other instruments and responsive
to community needs. In practice, the reality can be
very different.
Key steps for PES development include identifying services
and stakeholders, setting the baseline, negotiating
the deal and implementing the scheme (see Figure 5.5)
as well as monitoring and enforcement.
SUPPORTIVE LEGAL AND INSTITUTIONAL
CONTEXT
PES schemes require rules and institutions to function
effectively, including mechanisms to enforce contracts.
TEEB FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 5: PAGE 17