Incentives for Ecosystem Services

Step 6: Institutional mapping of existing public, private and civil society financed inventives

To identify:

  1. Short- and long-term incentives currently provided by existing public programmes and private sector investment
  2. Synergies and gaps for financing incentives
  3. Opportunities to engage with public programmes and private sector investments that have the potential to provide incentives
Potential sources of finance to support best practices (Click to enlarge)

Key questions to ask

Existing incentives:

  1. Which of the short- and long-term incentives are needed for:
    • Readiness?
    • Implementation?
    • Self-sustaining financing?
  2. How are these incentives currently financed?
    • From existing:
      • Public programmes
      • Private sector investment
      • Civil society initiatives
    • What type of incentives do they provide and which practices do they support?
    • Who can access these incentives?
      What is the process for farmers to access the incentives offered?
  3. Are there perverse incentives that conflict with conservation and sustainable production objectives?
  4. What is the conditionality, if any, for farmers to receive incentives?
    • Mode: input/ output based
    • Frequency of reward: upon compliance/ periodically/ once
    • Enforcement of conditionality, if any?

Additional incentives: 

  1. What additional incentives are needed:
  2. Where can incentives be used together to support a wider sustainable landscape approach? For different stages:
    • Readiness: Restoration and conservation of degraded ecosystems, e.g. reforestation, terracing, etc.
    • Implementation: Sustainable agricultural practices, e.g. organic fertilizer use, improved crop varieties, etc.
    • Self-sustained financing: Access to higher-value markets, development of value chain, diversification of livelihoods, etc.
  3. Is there a trusted institution that could coordinate multiple incentives and enforce their conditionality?
  4. What opportunities are there for potential financing of incentives from additional public programme and private sector engagement?

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Expertise needed

Expertise needed

  • Strong knowledge of public policy, private sector investment and civil society initiatives in the country/ region
  • Capacity to identify how an initiative could contribute to landscape-level improvement beyond its own objective

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