Payment for and Management of Ecosystem Services

Issues and Options in the Nordic Context

image of Payment for and Management of Ecosystem Services

Payment for ecosystem services (PES) is a type of environmental policy instrument that gives the owner of a natural resource direct incentives to manage it in society's best interest. The report provides an overview of current theory and experiences from the use of PES. Several examples of PES already exist in the Nordic countries, most of which aim to preserve biodiversity or reduce nutrient runoff. The report shows that there is scope both to improve and expand the use of PES in the Nordic countries. Targeted and differentiated payments, for example by using competitive tendering where land owners have to reveal their compensation levels and ecosystem services they can offer, is a promising approach. The use of PES may also be expanded, for example into areas where regulation traditionally is perceived as very negative by land owners, or used in combination with existing regulation. The report was commissioned by the Working Group on Environment and Economics under the Nordic Council of Ministers



Examples of PES Schemes in OECD countries

There is a variety of existing PES schemes in place throughout the world. In the following, examples of existing PES schemes in OECD countries with relevance for the Nordic countries are briefly described. The examples are chosen to provide a diversity of approaches, types of ES and payment schemes to illustrate some of the issues discussed in previous chapters. The examples are presented under four main headings, according to their contractual set-up


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