Incentives for Ecosystem Services

Voluntary investments - linked to input

Green Public Procurement (GPP):

Public authorities use of environmental criteria to procure goods, services and works with a reduced environmental impact throughout their life-cycle. Concerns both contracting authorities and entities.

Example

Example

EU Green Public Procurement Policy: A voluntary policy to support the implementation of GPP within Member States. Life-cycle costs form a central part of the approach to GPP, to award contracts by public authorities.

Voluntary farm set asides:

Landowners voluntarily give up the right to use part of or all of their farmland, in exchange for payments.

Example

Example

Costa Rica: National forestry fund pays up to USD 50/ha/year to landowners to promise to preserve existing forests to allow natural regeneration.

Conservation concessions

Land management contracts between a government or landowner and a conservation-minded buyer to use as a territory for conservation processes and guarantee that the land will be protected, at least during the period considered, in exchange for compensation.

Example

Example

Upper Essequibo Conservation Concession, GuyanaWith funds intended to regulate logging in timber, Conservation International paid market rates to protect the land for 30 years to prevent illegal logging and to ensure the preservation of biodiversity and wildlife within the forest ecosystem

Direct Payments for Ecosystem Services (PES):

Beneficiaries of ecosystem services directly pay/ compensate providers to sustainably manage land to provide ecosystem services. Payments are conditional on specific ecosystem services outcomes and/or performance of agreed actions to enhance ecosystem services.

Example

Example

Vittel, France: With funds Nestle Waters finances farmers in the Vittel catchment to adopt improved dairy farming practices. These include reduction of stocking rates and agro-chemical use, improved waste management and animal feed to reduce nitrate concentration of the aquifer from agricultural intensification.