Payments for ecosystem services
PES project directory
Payments for ecosystem services, or PES, projects are designed to provide incentives for people and organisations to protect environmental services in an area. This page contains a directory of PES projects that have involved working with smallholders in tropical forest countries to protect watersheds, conserve biodiversity and minimise deforestation. This type of PES project is of particular interest to SHARP partners and other organisations and experts working with smallholders. Scroll below to find projects in three regions:
Details compiled from sources; check links for up-to-date information. For corrections or additions, email info@sharp-partnership.org.
Latin America
| AIJ Pilot Project and CNFL Project | |
| Location | Costa Rica |
| Year launched | 1990s |
| Description | Reforestation and forest conservation for improvement of hydrological resources. |
| Payees | Landowners (many not dependent on land for livelihood) |
| Payer | National Power and Light Company (CNFL); Government of Norway, which purchases certifiable tradable offsets |
| Compensation | Cash payments |
| Implementer | Costa Rican Joint Implementation Office (OCIC) |
| Spatial scope | 4,000 ha (1,000 for reforestation, 2,000 for conservation of existing forest) |
| Links | www.watershedconnect.com/programs/ |
| Bolsa Floresta | |
| Location | Juma Sustainable Development Reserve, Brazil |
| Year launched | 2006 |
| Objective | Deforestation prevention in Amazon Basin |
| Payees | Smallholder communities |
| Payer(s) | Public |
| Compensation | Monthly cash payments to families; annual cash payments to communities |
| Lead implementer | Amazonas Sustainable Foundation (Fundação Amazonas Sustentável) in partnership with the State Secretariat of the Environment and Sustainable of Amazonas (Secretaria de Estado do Meio Ambiente e Desenvolvimento Sustentável do Amazonas) with technical assistance from the Institute for Conservation and Sustainable Development of Amazonas (Instituto de Conservação e Desenvolvimento Sustentável do Amazonas) |
| Spatial scope | 329,483 ha |
| Links | http://pubs.iied.org/pdfs/13555IIED.pdf |
| Empresa de Servicios Públicos de Heredia (ESPH) | |
| Location | Costa Rica |
| Year launched | 1997 |
| Description | Watershed management through reforestation and regeneration, pioneered by water utility ESPH |
| Payees | Landowners |
| Payer | City of Heredia water users pay a tariff to ESPH |
| Compensation | Cash payments disbursed in instalments to landowners under contract |
| Implementer | Authority for Public Services |
| Spatial scope | Unknown |
| Links | www.watershedconnect.com/documents http://bacyasociados.com |
| Noel Kempff Mercado Climate Action Project | |
| Location | Bolivia |
| Year launched | 1996/97 |
| Description | Reforestation and regeneration of an area in a national park degraded by former logging activities, slated for future logging or predicted to be deforested. Long-term (30-year) programme |
| Payees | Indigenous communities inside the national park and on the periphery |
| Payer | Funds from The Nature Conservancy, American Electric Power, PacifiCorp and BP America |
| Compensation | Economic development initiatives and community-based benefits |
| Implementer | Fundación Amigos de la Naturaleza |
| Spatial scope | 642,184 ha |
| Links | http://pubs.iied.org/pdfs/13555IIED.pdf www.conservationgateway.org www.cifor.org www.greenpeace.org www.redd-monitor.org/2009/10/22/carbon-scam-the-noel-kempff-project-in-bolivia/ |
| Payments for Hydrological Services (PSA-H) | |
| Location | Mexico |
| Year launched | 2003 |
| Description | Secure water flow and water quality while conserving natural forests under the greatest threat |
| Payees | Individual landowners and communities (ejidos) |
| Payer | Federal water users pay charges |
| Compensation | Cash payment per hectare (after it has been verified that there is no breach of contract), up to 200 ha per individual and up to 3,000 ha per ejido |
| Implementer | Funds are managed by CONAFOR (Comisión Nacional Forestal) of the State Forestry Commission |
| Spatial scope | Nationwide |
| Links | www.oecd.org/env/cc/38523758.pdf http://pubs.iied.org/pdfs/13555IIED.pdf ftp://ftp.fao.org/es/ESA/Roa/pdf/aug05-env_mexico.pdf |
| Pimampiro | |
| Location | Ecuador |
| Year launched | 2002 |
| Description | Maintain water supply and quantity by conserving forest at the headwater of municipal supply. Five-year contracts for participating families |
| Payees | Private landowners |
| Payer | Inter-American Foundation (IAF); FAO community forest project; municipality pays 20% more for water supply |
| Compensation | Cash payment to family, calculated per hectare |
| Implementer | Corporation for the Development of Natural Resources (CEDRENA) |
| Spatial scope | 390 ha |
| Links | http://pubs.iied.org/pdfs/13555IIED.pdf www.cbd.int/financial/pes/ecuador-pesdecen.pdf |
| PROFAFOR | |
| Location | Ecuador |
| Year launched | 1993 |
| Description | Carbon sequestration through reforestation and afforestation |
| Payees | Landowners |
| Payer | PROFAFOR – an Ecuadorian company acting in extension of the Forests Absorbing Carbon Dioxide Emissions (FACE) consortium |
| Compensation | Monthly cash payment to household, calculated per hectare |
| Implementer | PROFAFOR |
| Spatial scope | 22,287 ha |
| Links | https://www.cbd.int/financial/pes/ecuador-pesdecen.pdf |
| Purus Project | |
| Location | Brazil |
| Year launched | 2011 |
| Description | Mitigate deforestation and preserve biodiversity. Each participant family granted 100 ha for five years (initially) |
| Payees | Landowners |
| Payer | CarbonCo LLC |
| Compensation | Monthly cash payment to women; cash payments to community after five years; community projects |
| Implementer | Moura and Rosa Investments (LTDA) – an Acre, Brazil-based organisation created by the landowners; Freitas International Group LLC |
| Spatial scope | 35,169 ha |
| Links | http://redd-database.iges.or.jp |
Asia
| Bujang Raba Community PES Project | |
| Location | Indonesia |
| Year launched | 2014 |
| Description | Forest conservation for biodiversity, hydrological function and NTFPs. Community-based conservation planning |
| Payees | Five forest-dependent communities |
| Payer | Rainforest Foundation Norway |
| Compensation | Livelihood development activities |
| Implementer | Komunitas Konservasi Indonesia |
| Spatial scope | 7,292 ha |
| Links | www.planvivo.org/docs/Bujang-Raba_PIN.pdf |
| Community Forest Ecosystem Services | |
| Location | Indonesia |
| Year launched | 2012 |
| Description | Forest conservation (protection and restoration including natural regeneration |
| Payees | Durian Rambun village in Jambi Province and Laman Satong village in West Kalimantan Province |
| Payer | Packard/CLUA; EU; USAID; ICAP; Darwin Initiative; UK-FCO |
| Compensation | Secure forest management rights, training, livelihoods and community projects |
| Implementer | Flora and Fauna International; local partners LTB (Jambi) and Yayasan Palung (West Kalimantan) |
| Spatial scope | Jambi Province: 4,484 ha; West Kalimantan Province: 1,070 ha |
| Links | www.planvivo.org/wp-content/uploads/CFES-Indonesia_PIN_published.pdf |
| Khulekhani Watershed | |
| Location | Nepal |
| Year launched | |
| Description | Forest conservation and livelihood support to protect reservoir and share hydroelectricity revenue |
| Payees | Upstream communities in Khulekani watershed |
| Payer | Makawanpur DDC; Nepal Electricity Authority; Khulekani hydroelectricity projects |
| Compensation | Payment to a fund for conservation and development projects |
| Implementer | Rewarding Upland Poor for Environmental Services |
| Spatial scope | 12,492 ha |
| Links | www.forestaction.org |
| Lake Singkarak | |
| Location | Indonesia |
| Year launched | 2005 |
| Description | Landscape rehabilitation |
| Payees | Nagaris (villages that adhere to the traditional system of governing of the area) |
| Payer | Hydropower plant |
| Compensation | Royalties paid to community |
| Implementer | Rewarding Upland Poor for Environmental Services |
| Spatial scope | 10,780 ha |
| Links | http://moderncms.ecosystemmarketplace.com/ www.cifor.org/ard/documents/results/Day1_Helmi.pdf www.cifor.org/ard/documents/ |
| Maasin Watershed | |
| Location | Philippines |
| Year launched | 1999 |
| Description | Watershed protection, rehabilitation, flow regulation and siltation control by reforestation and reduced deforestation |
| Payees | Farmers organised into the Maasin people’s federation (KAPAWA) |
| Payer | Japan Bank for International Cooperation; Asian Development Bank; Overseas Economic Corporation Fund (OECF) Japan |
| Compensation | Cash payment for labour; land tenure recognition |
| Implementer | Metro Iloilo Water District; Department for Environment and Natural Resources; National Economic and Development Authority; Kahublagan Sang Panimalay Foundation; Tigum-Aganan watershed management council |
| Spatial scope | 2,685 ha |
| Links | www.worldagroforestry.org/sea/Publications/files/workingpaper/WP0060-05.PDF |
| Makiling Forest Reserve | |
| Location | Philippines |
| Year launched | 1996 |
| Description | Community partnership in protection of forests |
| Payees | Upland communities |
| Payer | University of the Philippines Los Banos |
| Compensation | Cash payment for labour; cash payment to community groups; land tenure recognition and access rights;training |
| Implementer | Local government unit |
| Spatial scope | 4,244 ha |
| Links | www.watershedmarkets.org/casestudies/Philippines_Makiling.html www.cbd.int/financial/pes/philippines-pespotential.pdf www.rightsandresources.org/documents/files/doc_1125.pdf |
| River Care | |
| Location | Indonesia |
| Year launched | 2006/2007 |
| Description | A collective action programme to reduce sedimentation affecting downstream hydroelectric power company. Became more collaborative as the company realised that, as a beneficiary, it had some responsibility for maintaining the watershed and that this required collaboration with smallholder communities |
| Payees | Local households |
| Payer | ICRAF (2006–2007); IFAD (2007–2011); PLTA Way Besai (Hydropower company) |
| Compensation |
Cash payment in return for labour and reduction in sedimentation (payments varied with the percentage of sedimentation reduction achieved by participants); community fund; land tenure security; construction of micro-hydroelectric power plant. n.b. Leimona et al. (2015a) found that compensation did not fully cover farmers' opportunity costs. |
| Implementer | Rewarding Upland Poor for Environmental Services (ICRAF); Community Forestry Farmers’ Groups Communication Forum; University of Lampung; local Forestry Service (regular monitoring) |
| Spatial scope | 670 ha |
| Links | www.fao.org www.cbd.int/financial/pes/indonesia-pesmarkets.pdf http://asia.ifad.org/ www.ifad.org/climate/regions/apr/rupes2_booklet.pdf www.eepsea.org/pub/rr/2014-RR10_Ly2_web.pdf Paper by Leimona et al. (2015a) |
| Sloping Lands Program | |
| Location | China |
| Year launched | 2000 |
| Description | Reduce soil erosion by returning crop land on steep slopes to forest and grassland |
| Payees | Farmers |
| Payer | Central government |
| Compensation | In-kind payment and cash subsidies for households |
| Implementer | Local government |
| Spatial scope | 15 million ha |
| Links | http://pubs.iied.org/pdfs/13555IIED.pdf ww.pnas.org/content/108/19/7721.full.pdf www.izajom.com/content/1/1/10 |
| Sumberjaya Forestry Project | |
| Location | Indonesia |
| Year launched | 2000 |
| Description | Designed to address downstream sedimentation attributed to uncontrolled deforestation by upstream smallholders, particularly for coffee cultivation on steep slopes. Aim: to contribute to watershed health through improved coffee management practices and forest protection. |
| Payees | Coffee farmer groups and organisations |
| Payer | National government on behalf of water users; IFAD |
| Compensation | Land tenure security, in the form of a community forestry permit for members of farmers' organisations in return for planting at least 400 trees per hectare. Permit is five-year conditional, to be extended to 25 years if all criteria and indicators are met by participating farmers |
| Implementer | Rewarding Upland Poor for Environmental Services (ICRAF); West Lampung district forestry office; local NGOs YACILI and Watala |
| Spatial scope | 11,633 ha |
| Links | http://pubs.iied.org/pdfs/13555IIED.pdf http://outputs.worldagroforestry.org/record/146/files/BC11072.pdf www.researchgate.net www.oired.vt.edu www.worldagroforestry.org/downloads/publications/PDFs/wp15527.pdf www.watershedmarkets.org/casestudies/Indonesia_Sumberjaya_eng.html Paper by Leimona et al. (2015a) Paper by Leimona et al. (2015b) |
| Ulu Masen Ecosystem | |
| Location | Indonesia |
| Year launched | 2008 |
| Description | Reduce emissions from deforestation and forest degradation; maintain significant biodiversity values and enhance community development opportunities |
| Payees | Five districts adjacent to the project area |
| Payer | Provincial government of Aceh; Carbon Conservation Ltda |
| Compensation | Unknown |
| Implementer | Flora and Fauna International |
| Spatial scope | 750,000 ha |
| Links | www.redd-monitor.org http://pubs.iied.org/pdfs/13555IIED.pdf |
Africa
| Chimpanzee Conservation Corridor Pilot PES Scheme | |
| Location | Uganda |
| Year launched | 2002 |
| Description | Enhance biodiversity conservation |
| Payees | Smallholders |
| Payer | GEF/UNEP/NEMA (Uganda); private sector |
| Compensation | Annual cash payments and seedlings for farmers, calculated per hectare; community and livelihood projects |
| Implementer | ECOTRUST; Chimpanzee Sanctuary & Wildlife Conservation Trust; IIED; Nature Harness Initiatives; Innovation for Poverty Action |
| Spatial scope | 1,437 ha |
| Links | http://povertyandconservation.info/docs/20101115-Ajarova.pdfbr http://www.bioone.org/doi/abs/10.1896/052.023.0105 http://www.natureharness.or.ug/content/albertine-forests-corridor-pes-project http://www.slideshare.net/IIEDslides/session-1-3rd-presentation-paul-hatanga www.nemaug.org/projects_details/PES_Progress_report.pdf www.ecosystemmarketplace.com |
| Community PES (C-PES) Project | |
| Location | Cameroon |
| Year launched | 2012 |
| Description | Support two communities to protect forests by finding ways to integrate PES with community forest management |
| Payees | Two villages with community forests |
| Payer | UK DFID |
| Compensation | Annual payment to community bank accounts for civic and community activities (benefit-sharing model) |
| Implementer | Bioclimate Research and Development; Centre pour l’Environnement et le Développement |
| Spatial scope | 2,801 ha |
| Links | www.bioclimate.net/en/reports/item/197-redd-beyond-carbon-paper www.bioclimate.net/en/policy-briefs |
| Forest Again Kakamega Forest | |
| Location | Kenya |
| Year launched | 2008/2009 |
| Description | Reforestation |
| Payees | Kakamega Forest Participatory Management Committee |
| Payer | EU |
| Compensation | Livelihood activities; employment |
| Implementer | Kenya Wildlife Services; Kenya Forest Servicea |
| Spatial scope | Unknown |
| Links | https://s3.amazonaws.com/CCBA/Projects/Forest_Again_Kakamega_Forest/Forest_Again_PDD.pdf www.tropentag.de/2009/abstracts/links/Saizaki_WdjVsJBu.pdf |
| Humbo Community Managed Natural Regeneration Project | |
| Location | Ethiopia |
| Year launched | 2004 |
| Description | Reforestation and regeneration. Established seven forest development cooperatives |
| Payees | Community forestry protection and development cooperative societies |
| Payer | World Bank Biocarbon Fund (carbon credits); Government of Canada |
| Compensation | Funds disbursed to cooperatives, calculated according to emission reductions |
| Implementer | World Vision Ethiopia; World Vision Australia; Federal Environmental Protection Authority; Ministry of Agriculture and Rural Development; Bureau of Agriculture and Rural Development; Humbo Woreda (District) Agricultural, Rural Development and Forestry Development Coordination Office; Forest Farmers’ Union |
| Spatial scope | 2,728 ha |
| Links |
http://fmnrhub.com.au/humbo-fifteen-years-later/ |
| Ibi Bateke | |
| Location | Democratic Republic of Congo |
| Year launched | 2008 |
| Description | Grassy savannah conversion for sustainable fuelwood supply |
| Payees | Smallholders |
| Payer | UMICORE; SUEZ; AFD |
| Compensation | Unknown |
| Implementer | NOVACEL; BioCarbon Funda |
| Spatial scope | 4,200 ha |
| Links | www.vub.ac.be http://pubs.iied.org/pdfs/13555IIED.pdf http://ejatlas.org/conflict/ibi-bateke-carbon-sink-plantation-drc |
| N’hambita Community Carbon Project | |
| Location | Mozambique |
| Year launched | 2003 |
| Description | Develop forestry and land-use practices that promote sustainable rural livelihoods and generate verifiable carbon emission reductions |
| Payees | EnviroTrade; smallholders; community trust |
| Payer | Private buyers |
| Compensation | Up-front cash payments to farmers for seven years |
| Implementer | University of Edinburgh; Edinburgh Centre for Carbon Management; EnviroTrade (UK); Park Administration of the Gorongosa National Park (Mozambique) |
| Spatial scope | 8,000 ha |
| Links | http://pubs.iied.org/pdfs/13555IIED.pdf www.planvivo.org http://redd-database.iges.or.jp/ www.redd-monitor.org/2013/06/18/carbon-discredited-new-report-on-envirotrades-nhambita-carbon-project-in-mozambique/ www.eeo.ed.ac.uk/miombo/RJMSc.pdf www.cifor.org/miombo/docs/Mozambiquehouseholdlivelihoods_study.pdf www.foei.org/wp-content/uploads/2014/09/The-great-REDD-gamble.pdf www.fern.org/nhambita |
| Ngoyla-Mintom forest block | |
| Location | Cameroon |
| Year launched | 2012 |
| Description | Promote sustainable management of forest resources; conserve carbon stocks, biodiversity; introduce forest zonation; improve local governance |
| Payees | Four villages with community forests |
| Payer | EU |
| Compensation | Cash payments to communities |
| Implementer | WWF; Coopérative Agro Forestière de la Trinationale; Bioclimate (consultation) |
| Spatial scope | 7,750 ha |
| Links | www.planvivo.org/wp-content/uploads/Ngoyla_Mintom-PIN-v1.0.pdf |
| Reforestation in Grassland | |
| Location | Uchindile, Kilombero, and Mapanda, Mufindi, in Tanzania |
| Year launched | 2002 |
| Description | Permanent emission reduction, reforestation and biodiversity conservation |
| Payees | Local communities |
| Payer | Voluntary over-the-counter market |
| Compensation | 10% of revenue of carbon credits disbursed to communities |
| Implementer | Green Resources Ltd |
| Spatial scope | 10,814 ha |
| Links | www.forestcarbonportal.com/ http://theredddesk.org/countries/initiatives/reforestation-grassland-uchindile-kilombero-tanzania-mapanda-mufindi-tanzania www.greenresources.no |
| Trees for Global Benefits | |
| Location | Uganda |
| Year launched | 2002 |
| Description | Afforestation |
| Payees | Smallholders |
| Payer | Credit buyers: TetraPak UK, Future Forests, INSAP, Katoomba Group, Puma, Nedbank; investors: UK DFID and USAID |
| Compensation | Cash payments to smallholders in five instalments over first five years |
| Implementer | Environmental Conservation Trust of Uganda (ECOTRUST) |
| Spatial scope | 3,168 ha |
| Links | www.geos.ed.ac.uk/homes/scarter/Uganda1v2.pdf www.espa.ac.uk/publications http://r4d.dfid.gov.uk/PDF/Outputs/CCAFS/AfricanAgCarbon-CaseStudy-Ecotrust.pdf http://cotap.org/projects/tfgb-uganda/ http://cotap.org/projects/tfgb-uganda/#sthash.VrbM8v5B.dpuf |
| Wonegizi community-based REDD+ project | |
| Location | Liberia |
| Year launched | 2013 |
| Description | Reduce rate of forest clearance; increase sustainability of NTFP harvesting |
| Payees | 20 Ziama Clan communities |
| Payer | NORAD |
| Compensation | Investment in local agroforestry; community projects (benefit-sharing model) |
| Implementer | Flora and Fauna International; Skills & Agriculture Development Services |
| Spatial scope | 37,979 ha |
| Links | www.planvivo.org |
