Washington, D.C.—Countries
around the world are embracing “payments for ecosystem services” (PES)
as a verifiable approach to protecting biological diversity and
mitigating climate change, according to research conducted by the
Worldwatch Institute for the publication Vital Signs Online.
PES are financial arrangements designed to protect the many benefits
that are provided by the natural environment. They include payments for
projects that invest in biodiversity and watershed protection, ecosystem
restoration, and carbon capture in forests.
“Nearly 60 percent of all ecosystem services are being degraded or used
in an unsustainable manner,” said Alexander Ochs, Director of Climate
and Energy at Worldwatch. “With PES, we can put a monetary value on
these important services, from water filtration to carbon sequestration,
to ensure that they are being properly sustained for the benefit of
both people and the planet.” PES schemes aim to encourage a net increase
in benefits that would not otherwise have occurred without the
financial incentive, a concept known as providing “additionality.”
At the international level, two initiatives—the United Nations’ Reducing
Emissions from Deforestation and Forest Degradation (REDD) Programme
and the World Bank Forest Carbon Partnership Facility—were established
in 2008 to assist in the development of a global PES scheme that would
compensate developing countries for their efforts to conserve tropical
forests, which act as important carbon “sinks.” The international
community has discussed scaling up REDD finance to $30 billion per year.
Several wealthier governments, including Norway and Germany, are
providing funds to help developing countries build the capacity to
handle a REDD market as well as to provide financial incentives to the
best performers.
In the absence of a fully defined REDD marketplace, the primary markets
for ecosystem services are currently in the areas of watershed and
biodiversity protection, with a combined global value of at least $11
billion in 2008. The largest national markets for services to protect
and enhance water quality are China and the United States, respectively.
Worldwide, payments for biodiversity totaled $2.4 billion to $4 billion
in 2010. Although PES growth has slowed in countries that already have
programs in place for biodiversity protection, other countries are
adopting new programs and policy frameworks for biodiversity payment
mechanisms. “In 2010, at least 45 payment programs for biodiversity were
operational across the world and 27 programs were in development,” said
Will Bierbower, the author of the article and a former Climate and
Energy researcher at Worldwatch.
Factors driving the development of PES schemes include the scale of the
ecosystem service being provided, the number of buyers and sellers
involved, and the degree to which there is an immediate financial
payoff. The design of a PES arrangement is shaped in part by the
prevailing political, cultural, and institutional arrangements in a
country or region; however, governments have typically been the key
players in establishing most PES arrangements.
“China’s Sloping Land Conversion Program is a good example of a
government-backed PES scheme that was enacted in tandem with
regulations,” said Bierbower. “In 1999, the government started paying
farmers to restore land to its original ecological state, following
decades of mismanagement that had led to topsoil erosion and downstream
flooding. In the first seven years, rural farmers received some $7.7
billion in payments and enrolled some 7.2 billion hectares of cropland
in what has become one of the largest PES schemes in the world.”
Further highlights from the article:
Notes to Press:
To obtain a free copy of this article please contact Supriya Kumar at sku...@worldwatch.org.
About the Worldwatch Institute: Worldwatch is an independent research organization based in Washington, D.C. that works on energy, resource, and environmental issues. The Institute’s State of the World report is published annually in more than 20 languages. For more information, visit www.worldwatch.org.
--
You received this message because you are subscribed to the Google Groups "Sustainable Ag Standard Economic Sustainability Criteria Development Subcommittee" group.
To post to this group, send email to scs001econo...@googlegroups.com.
To unsubscribe from this group, send email to scs001economic_cr...@googlegroups.com.
For more options, visit this group at http://groups.google.com/group/scs001economic_criteria?hl=en.
To unsubscribe from this group, send email to scs001economic_cr...@googlegroups.com.
For more options, visit this group at http://groups.google.com/group/scs001economic_criteria?hl=en.