Getting Started with Payments for Ecosystem Services
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Transcript of Getting Started with Payments for Ecosystem Services
Getting Started with
Payments for Ecosystem Services
October 2009
Getting Started with
Payments for Ecosystem Services
United States Forest Service 1
MODULE FOUR: Steps to
Developing a Payment for Ecosystem
Services Project
Steps to Developing a PES Project: Part 2
• Module 4.2: Steps to Developing a Payment for Ecosystem Services Project: Part 2• Step 3: Structure PES Agreement
• Agreement Basics • Key Issues for Sellers • How to Reduce Costs • Options for Payment Types • Contracts • Key Elements of an Agreement
• Step 4: Implement PES Agreement • Key Actions• Monitoring and Evaluation• Value of Honest Brokers
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Step 3: Structure PES Agreement
• Design management and business plans
• Reduce transactions costs
• Review options for payment types
• Select a contract type 33333
Agreement Basics
• Who is responsible for each action? • What ecosystem service results are
expected? • How results will be demonstrated? • Who will be responsible for
monitoring, evaluating, verifying, and certifying results?
• Who will receive what amount of money in what time frame?
• Which criteria will evaluate the fairness of the PES deal?
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Key Issues for Sellers
• What costs may be incurred during implementation of the deal?
• What are the projected revenues for sellers?
• What, if any, intangible benefits will sellers realize
• What are potential risks to sellers and pathways for mitigating risks?
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How to Reduce Costs
• Aggregate projects• Build on existing programs• “Bundle” environmental service
payments• Cost-sharing mechanisms• Intermediary institutions provide
special services and overall management services
• Reduce data costs• Large-scale, area-wide projects• Set up a Trust Fund
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Options for Payment Types
• Direct financial payments• Financial support for specific
community goals• In-kind payments• Recognition of rights• Pay-per-tree• Forest establishment and protection• Profitable and sustainable land
management• Providing services 7
Contracts
• Memorandum of Understanding or Memorandum of Agreement
• Legal contract
• Customary law agreements
• “Handshake” agreement
• Quid-pro-quo8888
Key Elements of an Agreement
• Terms and types of payments• Timing of payments• Requirements to be met for payment• Managing risks• Signatories to the contract
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Step 4: Implement PES Agreement
• Finalize the PES management plan
• Implement activities
• Verify PES service delivery and benefits
• Monitor and evaluate the deal
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Key Actions
• Hire personnel
• Prepare accounting management and tracking systems
• Open accounts to manage funds
• Train participating community members on the activities allowed
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Monitoring and Evaluation
• Determination of who selects indicators and who is reporting to whom
• Selection of indicators
• Creation of a “Local Ecosystem Conceptual Process Model”
• Selection of monitoring sites
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Value of Honest Brokers
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• Assessing ecosystem service products and values to buyers
• Establishing relationships and rapport with potential buyers
• Enabling sellers get to know potential buyer(s) well, ensuring meetings reveal key details
• Ensuring the final agreement is in sellers’ best interest
• Risk management advice / services
• Negotiating on behalf of the community
• Proposal development
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“Take your time. And don’t sign it if you don’t fully understand.”
- Chief Oren Lyons, Onondaga Nation Council of Chiefs of the Six Nations of the Iroquois Confederacy
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Thank You!
Questions & Discussion
www.katoombagroup.org
Kate Hamilton: [email protected]
Fiona Mulligan: [email protected]
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