Win-Win Solutions and Payments for Ecosystem Services (PES)

Among typical problems in environmental managent and associated socio-economic developments are: how up-stream and down-stream countries, or even communities, develop win-win solutions for certain conflicts arising from the use of joint water-land resources; also how polluting industries and water-management organizations can develop joint solutions to protect land-water resources; also how agriculture, agro-industries and end-users can sustain good levels of trust. Payments for Ecosystem Services (PES) are of increasing political interest as this approach helps preserve ecosystems and the goods and services they provide. For proper synthesis of a functioning concept, certain prerequisites should be embodied such as legislation and institutional framework, property rights, contract designs etc.

Even though this concept has been in practice since the 80s, it is still a relatively new instrument for many parts of the world. For beneficial participation from ecosystem markets, awareness is important about what ecosystem services and how payment and compensation schemes work. There must be, also, sufficient local capacity of communities and other rural landowners to identify, approach and close deals with buyers of ecosystem services.

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