EY MESSAGES for Payment of Ecosystem services and the way forward.
Ecosystem-based economic development is needed. Te cur- rent economic model driving the global economy is not sustain- able. A new approach to economic development and human ac- tivities is consequently necessary, underpinned by ecosystems.
PES is a proven concept which can reduce negative economic patterns, support sustainable development and increase well- being. It is not a remedy for all ills and must be applied care- fully, to avoid potential negative effects.
Governments can play a more prominent role in stimulating demand for environmental services and promoting different markets by establishing comprehensive regulatory and ena- bling frameworks.
Targeted institutional design is needed to support PES schemes. Tis includes efforts to identify and match the pro- viders and beneficiaries of ecosystem services.
Non-existent or ill-defined land rights can hamper PES. Te poorest of the poor oſten do not own or control any land. Tere are also issues relating to overlapping and disputed claims to land or where land is owned collectively by various groups.
Many PES schemes tend to focus on a single ecosystem serv- ice. However, integrating various ecosystem services could lead to more viable PES schemes. Functioning schemes seem to be moving towards a bundled approach.
Scope for assessing market prices for environmental services differs greatly from one market segment to another. In the
68 VITAL GRAPHICS ON PAYMENT FOR ECOSYSTEM SERVICES
carbon sequestration market, commodities can be traded, but economic valuation in the landscape beauty and biodiversity markets is far more challenging. Tis should not lead to the ‘easier’ ecosystem services gaining more importance.
Tere are great differences in the pricing of services within each market segment. Te development of prices should in- clude the best available science, but most importantly, it needs to be based on mutual understanding between the service provider and beneficiary.
It is essential for actors to understand the value of conserving ecosystems. Individuals and communities providing or selling environmental services must be able to understand what is entailed and how they will benefit.