The CoLUPSIA project conducted an assessment of the potential of establishing payment for ecosystem services (PES) for two regencies in Indonesia. The objectives of the present study were to determine the feasibility of PES projects in the Kapuas Hulu regency, West Kalimantan, to assess whether there is potential for PES at our study sites and, if so, identify the opportunities, constraints, risks, risk mitigation and needed steps for future actions. The method used followed the CoLUPSIAs PES methodological guidelines (Fripp 2014).
One of the aims of the CoLUPSIA project is to explore options for establishing payments for ecosystem services (PES) within the two districts where the project is working: Seram and Kapuas Hulu. These guidelines were prepared to support the CoLUPSIA team in completing this assessment and have since been revised to incorporate some findings from the field assessments.
Where benefits and costs accrue at different scales, financial intermediaries are needed to facilitate relations between global-scale buyers and local-scale providers of carbon sequestration and storage. These intermediaries can help to collect and distribute payments and to promote the scheme to potential beneficiaries. The benefits distributed should compensate for the transaction, opportunity and implementation costs incurred by stakeholders for providing ecosystem services. Therefore, calculating the costs and understanding who incurs them are essential for benefit sharing. Targeting benefits according to a set of criteria that match the objectives of the specific mechanism increases the mechanism’s efficiency. As the level of performance-based payments may not be able to compete with the opportunity costs of highly profitable land uses, performance-related benefit-sharing mechanisms should be focused on areas with moderate opportunity costs. Benefits should be divided into upfront payments to cover startup costs and to give an initial incentive for participation, and payments upon delivery of ecosystem services to ensure adherence to conditionality.
Payment for ecosystems services (PES) is a mechanism that attempts to create motivation for the conservation of biodiversity, where insufficient motivation existed before. Laos is a country rich in natural resources, with high dependence on these natural resources (particularly forests and rivers) for national income generation. Consequently, the country would seem to be fertile ground for the application of the PES concept, particularly in the hydropower sector. The largest hydropower project currently in operation in Laos is the Nam Theun 2 dam, which exports most of its electricity to neighboring Thailand. The dam’s watershed is the largest nature reserve in Indochina, Nakai-Nam Theun National Protected Area. Through mechanisms brokered by the World Bank, Nam Theun 2 has several features common to PES schemes. They are focused on using revenues from the dam to conserve the biodiversity and forest cover of Nakai-Nam Theun. This brief examines the degree of alignment of Nam Theun 2 with PES principles as commonly understood, and examines the potential for successful application of PES schemes generally in Laos. Some generally recognized constraints to implementation of PES schemes in developing countries are compounded in Laos, a Marxist state, which embraces social and economic philosophies contrary to the capitalist PES features of individual ownership of natural resources and transparency. Consequently, motivation within government for advancing PES in policy and law will likely be low, and a constraint to its uptake within the country. The way forward will likely be to focus on small, local projects that align with existing government policy.
Drawing on the literature concerning effective Payment for Ecosystem Services (PES) programmes and on more than 30 case studies, this book aims to identify good practice in the design and implementation of PES programmes so as to enhance their environmental and cost effectiveness.
Policy makers in the People's Republic of China have been experimenting with new approaches to environmental management, resulting in a wide array of policy and program innovations under the broad heading of eco-compensation. Many of these are market-based instruments, particularly payments for ecological services---currently an emerging policy debate regarding the extent to which beneficiaries should pay, and the providers should be compensated---for the provision of natural resources and environmental services to promote sustainable, balanced growth. These proceedings are a collection of papers presented at the International Conference on Payments for Ecological Services convened in Ningxia Hui Autonomous Region in September 2009 to support eco-compensation programs in the country.