This study demonstrates how different payment mechanisms can stimulate the efficient delivery of key, high-value ecosystem services that are either not produced, or are under-produced, by the normal operation of the market. Two payment mechanisms are considered: payments from the public sector to private businesses and payments between private businesses.
Public to private funding is the most common Payment for Ecosystem Services (PES) mechanism in most countries. By contrast, private to private PES mechanisms remain relatively novel, although they have great potential for incentivising environmental improvements, particularly in cases where there is a profit opportunity arising from such improvements. Permutations of these mechanisms are illustrated through three case studies: (1) Public to private funding of natural capital improvements at the national level, (2) Public to private funding of natural capital improvements at the catchment level, and (3) Business to business funding of natural capital improvements at a catchment level.
Related Case Studies
This report showcases the results of piloting the 3Returns Framework in the coastal ecosystem restoration of mangrove forests in the Ayeyarwady Delta and how green growth alternatives can enhance the well-being of communities.
This insight brief serves to provide a comprehensive overview of the commercialization of nipa palm products and the production practices within the mangrove landscapes in the Ayeyarwady region of Myanmar.
This assessment focused on the effects of interventions in Uzbekistan involving the use and consumption of target fruits, as well as of their marketing value, to improve household food security and well-being.
This case study examines India's readiness and the ramifications of targets on land degradation reduction and proposes embedding diverse knowledge systems by formulating related policies.