Organisation des Nations Unies pour l’alimentation et l’agriculture- FAO

Paiements des services environnementaux (PSE) dans les paysages agricoles

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Watershed protection services are primarily of interest to local and regional users. Demand for watershed services represents a growing opportunity for farmers, if they are located in a critical watershed.

Demand for watershed services represent a growing opportunity for farmers, if they are located in a critical watershed. Public watershed payment schemes, which currently represent by far the largest market for watershed services, are concentrated in the U.S. and China, but numerous smaller public watershed programmes are being established in Latin America, Africa, and Asia. Private voluntary watershed programmes are generally small and very localized (10).

Watershed protection services are primarily of interest to local and regional users: it is therefore relatively easy to identify the users or beneficiaries of watershed services (e.g. municipal water suppliers, hydroelectric facilities, industrial users, and irrigation systems). The challenge in developing payment programmes for watershed services is the difficulty of translating user benefit into actual revenue streams. Since farmers are rarely able to exclude beneficiaries from using the watershed services that flow from their land, private users have a strong incentive to become "free riders" and land stewards have little leverage to command payments. However, given the extensive reliance of private agricultural and industrial water users on watershed services, private voluntary PES markets have the potential to proliferate if land stewards and buyers can overcome these challenges through collective action.

A major downside of the local orientation of watershed service benefits is that there is little scope for attracting payments from the international community. The local orientation of watershed service benefits means that, in the long term, developing country watershed payments schemes must be funded primarily by developing country water users. Whether this is feasible depends on the context: the development of local watershed PES programmes is difficult where the water users themselves are poor and unable to afford payments to upstream stewards. In Table 3.6 a summary is presented of cases where payments have gone to reward upstream land managers, mainly in agricultural landscapes, for water quality improvements.

Table 3.6 - Examples of Payments for Watershed Services(11)

PES Scheme

Contracted Activity

Desired Function

US$ from Buyer

US$ to provider

Conservation Reserve Programme, U.S.

Land Fallowing and Improved land management

Improve Water Quality and Flow Regime, Reduce Erosion

$3/ton of erosion reduction

$6 to $26/ha/yr

Water company of Heredia city (ESPH), Costa Rica

Forest Conservation, Reforestation

Maintain Water Quality

$0.008/m 3

$30 to $110/ha/yr

San Pedro del Norte municipal water co., Nicaragua

Forest Protection, Sustainable Forest Management and Improved land management

Improve Water Quality and Flow

$0.31/hh/ month

$26/ha/yr

Pimampiro municipal water co., Ecuador

Forest conservation

Maintain water quality and quantity

US$1.2 per family/month

US$6 to 12/ ha/year

Vittel-Nestlé Water, France

Land purchase, Improved land management, Reforestation

Maintain Water Quality

US$230/ha

 

(10) FAO. 2007. The State of Food and Agriculture 2007

(11) adapted from FAO. 2007. Agricultural Landscape and Domestic Water Supply: the Scope for Payments for Watershed Services with special reference to sub-Saharan Africa- see PESAL paper series section in Materials