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MAINSTREAMING THE ECONOMICS OF NATURE
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Figure 1. Major issues in the process of establishing PES
Are there any significant water management problems in the river Identify problems and risks (e.g. by using
No diagnostic analysis of environmental
basin? problems, including analysis of rights and
responsibilities of stakeholder groups).
Yes
- Analyse past experiences and the
Can ecosystem services help to at least partly address these water effectiveness of measures (e.g. policy
No management problems? Can these problems be solved or measures, laws/regulations,
mitigated by means of a project such as a change in land use or economic/financial instruments) and
infrastructure solutions.
management practice? - Check available information, including
results of scientific research.
- Make use of local knowledge and habits.
Yes
- Quantify ecosystem services (based on
biophysical analysis; hydrological models,
Do the costs and benefits of the PES scheme compare favourably etc.).
No
with those of feasible alternative projects (e.g. an infrastructure - Carry out a valuation of ecosystem
solution)? services (based on cost-benefit analysis,
multi-criteria analysis, cost-effectiveness
analysis, cost-utility analysis).
Yes
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32. Organize dialogue about the main
features of the PES mechanism and
Is a PES scheme politically acceptable, or can political support be
related opportunities and risks.
mobilized?
Conduct stakeholder analysis to
Are there any potential buyers and sellers of ecosystem services? identify the main beneficiaries and
service providers.
No
Consider an awareness-raising campaign
Can negotiations between potential buyers and sellers be
(e.g. to change willingness to pay and/or
successfully concluded? willingness to accept).
Yes
PROCEED WITH THE ESTABLISHMENT OF PES
- Create an effective and efficient legal and
organizational framework for the operation
PES schemes are not an of the PES scheme.
option, at least for the - Ensure effective monitoring of contract
time being. compliance and flexible adaptation of the
PES scheme to changing economic and
environmental conditions.
21

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