Finance Solution · Blended · Fiscal transfers

Payments for Ecosystem Services

Use this solution when identifiable beneficiaries of an ecosystem service can pay land or water managers to maintain the practices that sustain it.

Finance type
Blended

1. What problem does this solution address?

Land managers often receive little financial reward for maintaining ecosystem services that benefit wider society.

2. When should this solution be used?

Use this solution when

Use payments for ecosystem services where services and beneficiaries can be identified, conditional actions can be verified and payments can change behaviour.

3. How does the solution work?

Beneficiaries or intermediaries pay providers under agreements tied to land-management practices or measured environmental outcomes.

4. What results does this solution deliver?

  • Improved ecosystem stewardship.
  • Diversified income for land and water managers.
  • More durable incentives for conservation.

5. Implementation considerations

Establish responsibilities, safeguards and reporting arrangements before implementation.