The private sector can be engaged in IES through different incentive forms that include:

1. Complying with regulation: If there is a good regulatory basis, it will be easier to negotiate investment from the private sector in related activities implemented by the IES package (e.g. if watershed management fees become a mandatory share of water fees, and if fee collection becomes more efficient and accountable).
2. Flexible or early compliance: When private companies participate in flexible compliance methods, through trading rights or offsets, they can invest in farmers’ practices to generate these benefits, or they can do so in anticipation of upcoming regulation, to reduce their environmental footprint before they are taxed or fined.
3. Voluntary investment in ecosystem services – linked to investment: Voluntary action with a direct returns of investment expectation, through insetting their environmental impacts into their own production process (instead of offsetting these elsewhere), securing and improving the efficiency, sustainability and cost-effectiveness of important ecosystem services that are inputs in their value chains.
4. Voluntary investment in ecosystem services – de-linked from input factor: Voluntary action, but lacking a direct link to daily business operations or specific outcome.

Investments made from 2 to 4 are also used for impact marketing strategies, yielding a double return to the investment.