Issue Brief - Payment for Ecosystem Services (PES) and REDD+: A Synergy

Key messages

1. Payment for ecosystem services (PES) is an incentive based mechanism while REDD+ performance-based forest management. Both are based on the same principle for incentivizing improved management. Within the overall PES framework, REDD+ features as one PES scheme on carbon.

2. PES can play a role in reducing deforestation and forest degradation. This has already been demonstrated by PES schemes in many developing countries in the hydropower, water supply, and wildlife conservation and tourism sectors.

3. PES and REDD+ have similar goals to enhance ecosystem services by rewarding/incentivizing forest owners or managers. The design of the REDD+ implementation strategy can benefit from the existing experiences of PES schemes being implemented and legal frameworks in place that provided incentive for improving ecosystem services.

4. Countries can develop robust systems and procedures for linking international REDD payments with domestic PES payments.

5. Performance-based payments, such as PES, can be an important element of national and sub-national REDD mechanisms. However, certain economic, technical, institutional, cultural, and political conditions should be met for making PES an effective instrument for REDD+.