Payment for Ecosystem Services
Ecosystem services are the various functions provided by the natural environment that are considered valuable to human well-being. These services include the production of raw materials, water management, nutrient cycling, erosion control, climate regulation, and carbon storage, amongst many others.
Payment for ecosystem services (PES) is a voluntary transaction where the provider of an environmental service is compensated by a buyer for continuously securing the provision of that service. In other words, the buyer compensates the provider for protecting the environment and ensuring that an ecosystem service will continue to exist. The most common types of PES arrangements are for carbon sequestration, provision of drinking water, biodiversity conservation, and preservation of scenic beauty.
Where local people have the right to manage their own resources, PES arrangements can play a key role in generating incentives for conservation activities. EcoLogic is working with poor, rural communities to utilize PES-like arrangements that save their forests and water and improve their living conditions. EcoLogic currently uses PES in two areas: water supply services and carbon sequestration.
Read about EcoLogic 's current projects with PES-like arrangements: