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REWARDING BENEFITS THROUGH PAYMENTS AND MARKETS
This can have equity implications as new rules change
the distribution of rights and responsibilities over ecosystems
and their services. Institutions will be needed
to:
• facilitate transactions and reduce transaction
costs. Most ecosystems provide a range of
services, even if only one or a subset of these are
recognised by a PES scheme. Payment can be
made for a specific ‘bundle’ of services from large
numbers of producers or there may be different instruments
or different buyers for different services,
evolving over time (see Figure 5.6). In some cases
a service will be a free co-benefit;
• set up insurance or other mechanisms to
manage risks;
• provide related business services e.g. for beneficiaries
of ecosystem services to be willing to pay for
them, better methods of measuring and assessing
biodiversity in working landscapes must be developed.
Figure 5.5: The main stages of PES development
A range of institutional actors are required in a PES deal,
including for its establishment and for the maintenance
of registers to keep track of payments. Figure 5.7
presents a typical scenario.
IDENTIFICATION OF SERVICES, BUYERS
AND SELLERS
Several conditions need to be met to enable PES, including
economic, technical, governance and practical factors:
• on the demand side, where the supply of a valuable
service is threatened, the beneficiary of the service
needs to be aware of the threat, willing to pay to
maintain the service and able to do so;
• on the supply side, the opportunity costs of
changing resource management practices must not
be too high. It must be possible to improve the
supply of the ecosystem service through a change
in resource use e.g. land set-aside, adoption of
organic production practices, use of water saving
irrigation techniques (see also Wunder 2008);
TEEB FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 5: PAGE 18
Source: adapted from Brand 2002