Payments for Environmental Service (PES) schemes have become a popular policy instrument for promoting sustainable natural resource management and conservation. It is now increasingly recognised that PES can also contribute to broader economic development objectives such as sustained rural development, food security and lasting poverty alleviation (Antle 2008). Accordingly, it has attracted attention in both developed and developing countries alike, and has been applied within a wide variety of upland ecosystems and landscapes for a range of purposes, including regulation and quality of water for urban supplies, biodiversity conservation and climate change mitigation. This introductory article emphasises why PES schemes are of particular relevance for mountain regions, discusses the underlying concept and summarises key factors and challenges for design and implementation.