Laying the Foundation: An Analytical Tool for Assessing Legal and Institutional Readiness for PES

This booklet has been created as an initial resource for public sector officials interested in fostering an environment in which PES transactions can occur. While PES legal and policy readiness is likely to look very different from one country to another -- depending on legal frameworks, as well as historical and current circumstances and pressures -- understanding policy options for getting ready for PES transactions is an important first step towards assessing readiness within a specific national and subnational context.This booklet offers an analytical framework for assessing legal and institutional readiness for PES transactions. It is divided into three sections based on timing and the order of addressing issues, with an eye to what will be most important to investors and buyers in payment for ecosystem services agreements. Specifically, the first level of preparing for PES agreements should be ensuring that fundamental or threshold conditions are in place for buyers to feel that there is sufficient stability in place to consider entering in these business arrangements. The second level of preparedness, while important for well-functioning PES, may be developed adaptively as needs and options become clearer via PES experience on the ground. Finally, level three includes non-urgent aspects that may be important to streamline or scale up PES, depending on the particular circumstances

Payments for Ecosystem Services: Legal and Institutional Frameworks

Analysis and engagement with partners working on ecosystem services transactions, policies and laws over the past 10 years have demonstrated a clear need to better understand the legal and institutional frameworks that have the potential to promote or hinder the development of payments for ecosystem services (PES) schemes, as well as the complex legal considerations that affect ecosystem services projects. In response, the IUCN Environmental Law Centre and The Katoomba Group have worked on a joint initiative to analyze the legal and institutional frameworks of water-related PES schemes and projects in four Andean countries: South America (Northeastern)-Brazil; Bolivia, Colombia and Peru. It has resulted in this report. Country-based analysts with experience in ecosystem services transactions have developed country and project assessments to define existing and recommend future regulatory and institutional frameworks that enable equitable and long-lasting ecosystem services transactions. Partners from North America (Central America)-Costa Rica; North America-Mexico; Ecuador and the North America-United States provided feedback on the assessments. The country assessments yielded lessons which were used to develop a set of recommendations on legal frameworks, property rights, enabling institutions, PES contracts, and governance issues supporting the future development of PES schemes