Market Segment for BIODIVERSITY: Everything is connected
mal human well-being. Biodiversity refers to ‘the variability among living organisms from all sources ... and the ecologi- cal complexes of which they are part; this includes diversity within species, between species and of ecosystems’ (United Nations, 1993: Te Convention on Biological Diversity, Article 2).
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Markets for biodiversity services are oſten intertwined with other market segments, functioning alongside or packaged with multiple ecosystem services. For example, markets for biodiversity services can be combined with those for carbon sequestration to support bio-carbon offsets and sustainable forestry. A PES designed to protect a watershed and main- tain freshwater systems may, by extension, also have the ef- fect of conserving biodiversity in the area. Biodiversity serv- ices may also be combined with a PES relating to landscape beauty services such as those involved with eco-agriculture and eco-tourism. Biodiversity services may also contribute to promoting more sustainable fishing practices. And in some cases biodiversity can be enhanced by strengthening ethical and spiritual values. Other markets for biodiversity services might include bio-prospecting for genetic resources, biodi- versity offsets and biodiversity management services.
Te International Union for the Conservation of Nature (IUCN) highlights that PES schemes focusing on biodiver- sity need to establish clear priorities, with realistic targets and achievable timetables. Tis is of course true for any PES
IODIVERSITY IS THE BASIS for healthy eco- system services which in turn are essential for opti-
service, but particularly pertinent for the biodiversity market segment as it is so highly interlinked with the other markets. If such a scheme is intertwined with other programmes, it is important for a common standard covering all services to be adopted. It is equally important for information on such schemes to be clear and easily available and, as with all emerg- ing PES markets, a comprehensive monitoring and compli- ance regime is needed.
For a PES scheme to be successful a system of structures and institutions is essential to enforce land rights which in turn enable the involvement of a strong and motivated local community. If a community is not supported by appropriate institutional frameworks helping to protect their land from natural resource exploitation, then a PES scheme will be diffi- cult to implement. At the same time those who might stand to benefit from activities which may threaten biodiversity, such as mining, logging or oil exploration enterprises, need incen- tives to conserve biodiversity.
Emerging PES markets include land markets for habitats of high biodiversity value, payments for biodiversity manage- ment, payments for private access to view a species or see its habitat, tradable rights and credits and biodiversity-conserv- ing businesses (Bishop et al. 2008).
A market for biodiversity services can be driven by various factors. In some cases markets can be structured to support biodiversity conservation on a community level, while in oth- ers biodiversity conservation might be linked to a specific goal, such as combating climate change.
Traditionally, governments – not commercial markets – have been the main players in trying to conserve biodiversity and ensuring important ecosystem services continue to function, such as through protected areas. Now, with a new emphasis on market involvement, the question is just how big a role the private sector can play through PES schemes.
Considerable progress has been made in framing PES schemes related to biodiversity conservation, but clearly PES is not the only answer to questions of species and habitat preservation. Yet it can play an important role.
48 VITAL GRAPHICS ON PAYMENT FOR ECOSYSTEM SERVICES